Craig Emerson (Rankin, Australian Labor Party, Minister Assisting the Finance Minister on Deregulation) Share this | Hansard source

In closing, I would like to thank the member for Groom for his contribution to this debate on the Tradex Scheme Amendment Bill 2008. This bill will decouple the Tradex Scheme from the requirements of the Customs drawback provisions and will simplify the administration of the scheme. Tradex and drawback are designed to ensure that customs tariffs are not paid on goods that are imported and subsequently exported, and that they are not inappropriately used or consumed while in Australia.

Both programs are based on the international taxation principle that taxes should apply in the country in which the good is consumed. However, there are subtle differences in the way in which Tradex and drawback operate. The separation of the legislation for the two programs will enable each program to be better tailored to meet the particular demands of its customer base. Administrative simplification of Tradex should further reduce the regulatory burden on industry that uses the scheme. As the member for Groom points out, I have always been keen on reducing unnecessary red tape and in my current capacity as Minister assisting the Finance Minister on Deregulation I take on that task with great vigour and enthusiasm.

Tradex was introduced as a streamlined program for providing relief to businesses paying customs duty and GST. This bill will further improve a program that provides more than $200 million per annum of up-front tariff duty and GST relief to industry importing and exporting in competitive global markets. It provides real benefits to Australia’s exporters and improves our international competitiveness as a trading nation. It is pleasing to see the coalition’s support for this bill. I commend the bill to the chamber.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

Ordered that this bill be reported to the House without amendment.

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