House of Representatives

Second Reading Speech

Mr Swan (Treasurer)

I Move:

That this bill be now read a second time.

The Federal Financial Relations (Consequential Amendments and Transitional Provisions) Bill 2009 provides for the relevant consequential amendments arising from the measures in the Federal Financial Relations Bill 2009, including the repeal or amendment of inconsistent legislation.

GST payments

The bills provide for the repeal of parts of the A New Tax System (Commonwealth State Financial Arrangements) Act, with effect from 1 July 2009. Once amended, the ongoing provisions of the current act will be limited to the procedures for managing the rate and base of the GST.

National SPPs

As part of the rationalisation of specific purpose payments, the bill provides for the repeal of the Health Care (Appropriation) Act 1998, with effect from 1 July 2009. The payments to the states appropriated through this act will be rationalised in the new national healthcare SPP from 1 July 2009.

National partnership payments and general purpose financial assistance

The bill provides for the Offshore Petroleum and Greenhouse Gas Storage Act 2006 to be amended to remove the appropriation for royalty payments to Western Australia. The royalty payments will be made using provisions in the Federal Financial Relations Act.

The bill also provides for the Interstate Road Transport Act 1985 to be amended to allow payments from the interstate road transport account to be made through the COAG Reform Fund, as these payments are national partnership payments under the new federal financial framework.

Conclusion

Full details of these measures are contained in the explanatory memorandum.

Together with the Federal Financial Relations Bill 2009, the measures in this bill will provide for a very substantial improvement in the framework of federal financial relations.

I commend the bill to the House.

Debate (on motion by Mr Lindsay ) adjourned.