House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Major Projects, Territories and Local Government, the Hon Paul Fletcher MP)

Passenger Movement Charge Amendment (Norfolk Island) Bill 2016

Outline

The purpose of the Passenger Movement Charge Amendment (Norfolk Island) Bill 2016 (the Bill) is to amend the Passenger Movement Charge Act 1978 so that most departures from Norfolk Island to another country will attract the Passenger Movement Charge.

The Bill relates to the broader Norfolk Island reform legislative package, which is being implemented through the Territories Legislation Amendment Bill 2016.

The Passenger Movement Charge Act 1978, together with the Passenger Movement Charge Collection Act 1978, applies a financial charge upon the departure of a passenger from mainland Australia to another country. The charge also applies to departures from the Indian Ocean Territories to another country. The Bill, together with the Territories Legislation Amendment Bill 2016, extends these arrangements to Norfolk Island so that people departing Norfolk Island for another country will also be liable to pay the charge.

The Bill recognises the special air transport arrangements in place on Norfolk Island, whereby travel to the mainland may require transit through an international country from time to time. The Bill provides that a person is exempt from liability for passenger movement charge if they depart Norfolk Island for another country (or for an installation in the Joint Petroleum Development Area) with the intention of returning to another place in Australia within 7 days.

Notes On Clauses

Clause 1: Short Title

Clause 1 specifies the short title of the Bill, when enacted, as the Passenger Movement Charge Amendment (Norfolk Island) Act 2016.

Clause 2: Commencement

Clause 2 sets out the commencement provisions for the Passenger Movement Charge Amendment (Norfolk Island) Act 2016, in accordance with the table in subclause 2(1) (the commencement table). Subclause (2)(2) provides that any information in column 3 of the commencement table is not part of this Act. Information may be inserted in column 3, or information in it may be edited, in any published version of this Act.

Table Item 1 provides that sections 1 to 3 of the Passenger Movement Charge Amendment (Norfolk Island) Act 2016 and anything else in the Act not covered elsewhere by the commencement table commence on the day the Act receives the Royal Assent.

Table Item 2 provides that Schedule 1 of the Act commences at the same time as Schedule 5 to the Territories Legislation Amendment Act 2016. However, the provisions of Schedule 1 of the Passenger Movement Charge Amendment (Norfolk Island) Act 2016 do not commence at all if Schedule 5 of the Territories Legislation Amendment Act 2016 does not commence.

The commencement table contains a clarifying note that the table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

Clause 3: Schedule(s)

Clause 3 is an enabling provision for the Schedules. It provides that legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1-Amendments

Passenger Movement Charge Act 1978

Item 1 repeals the definition of "Australia" in section 3 of the Act.

Section 5 of the Passenger Movement Charge Act 1978 (the Charge Act) applies passenger movement charge for any flight departing Australia for another country. "Australia" is currently defined in section 3 of the Passenger Movement Charge Collection Act 1978 (the Collection Act) as including Christmas Island and the Cocos/Keeling Islands, but not as including other external Territories such as Norfolk Island. This means that a person who departs Norfolk Island for another country is not liable to pay passenger movement charge.

The repeal of the definition of "Australia" in section 3 of the Act will mean that the definition of "Australia" in the Acts Interpretation Act 1901 will apply, which will include Norfolk Island. The consequence of this is that for the purposes of liability for passenger movement charge, a departure from Norfolk Island to another country is treated in the same way as a departure from anywhere else in Australia.

Items 2 inserts "Norfolk Island or" after the words "depart from" in paragraph 4(3)(a) of the Act.

Item 3 omits "Indian Ocean" from paragraph 4(3)(b) of the Act.

The effect of these amendments is that a person is exempt from liability for passenger movement charge if they depart Norfolk Island for another country (or for an installation in the Joint Petroleum Development Area) with the intention of returning to another place in Australia within 7 days. These amendments recognise that people who, for example, depart Norfolk Island for another country only because they wish to travel on to mainland Australia should not be liable for passenger movement charge.

Item 4 inserts "Norfolk Island" after "other than" in paragraph 4(4)(a) of the Act.

Item 5 inserts "Norfolk Island or" after "Joint Petroleum Development Area, for" in paragraph 4(4)(b) of the Act.

The effect of these amendments is that a person is exempt from liability for passenger movement charge if they depart from a part of Australia other than Norfolk Island for another country (or for an installation in the Joint Petroleum Development Area) with the intention of departing that other country or installation for Norfolk Island within 7 days. These amendments recognise that people who, for example, depart mainland Australia for another country only because they wish to travel on to Norfolk Island should not be liable for passenger movement charge.