Second Reading Speech
Mr HOCKEY (The Treasurer)I move:
That this bill be now read a second time.
This bill is part of a package of bills that will give effect to the government's commitment to reintroduce biannual indexation of fuel excise and excise equivalent customs duties.
Specifically, this bill amends the Customs Tariff Act 1995 so that the rate of excise equivalent customs duty applying to all imported fuels, with the exception of aviation fuel, crude oil and condensate, will be biannually indexed by reference to the consumer price index.
The indexation of fuel excise and excise equivalent customs duty will contribute to the budget by raising approximately a net $3.6 billion over the five year period to 2018-19.
Consequential amendments will also be made to the Customs Tariff Act 1995 to simplify the burden on businesses by rounding the applicable duty rate of indexed fuels from three decimal places in the cent to one decimal place.
Full details of this bill are contained in the explanatory memorandum. I commend the bill to the House.
Debate adjourned.
Leave granted for second reading debate to resume at a later hour this day.
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