Second Reading Speech
Senator Ian Campbell (Manager of Government Business in the Senate)I move:
That these bills be now read a second time.
I seek leave to have the second reading speeches incorporated in Hansard.
Leave granted.
The speeches read as follows-
This bill extends the eligibility provisions of the Diesel Fuel Rebate Scheme to retail and hospitality businesses who use diesel and like fuels to generate power for their own use where there is no ready access to a commercial supply of electricity. It gives effect to a policy initiative announced by the Government during the 2001 election campaign and will principally benefit small business operators in remote areas of Australia by providing a rebate of the customs or excise duty paid on diesel and like fuels used by them to generate power for their own use.
The extension of the Diesel Fuel Rebate Scheme will mean that small retail/hospitality businesses will now be able to claim a rebate in relation to their commercial operations. Examples of the types of businesses generating their own power that will benefit from the measure include caravan parks, tourist resorts and road houses.
Businesses will need to use diesel and like fuels in the course of carrying on an enterprise to qualify for the rebate, in the same way as is required in the eligibility provisions for the marine and rail transport categories in the Diesel Fuel Rebate Scheme.
This bill provides that the rate of rebate applicable to diesel fuel for electricity generation by retail and hospitality businesses will be the same as that applying to Primary Production. The rate is currently equal to the full amount of excise paid on the fuel.
The extension to the Diesel Fuel Rebate Scheme will apply only in relation to diesel fuel that is purchased on or after 1 July 2002.
Full details of the measures in this bill are contained in the explanatory memorandum.
I commend this bill.