Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Hansard source

I move:

That this bill be now read a second time.

The Passenger Movement Charge Amendment Bill (No. 2) 2016 gives effect to the government's commitment that the rate of the passenger movement charge of $60 applying from 1 July 2017 will not increase for a minimum period of five years from this date. This commitment was made to One Nation senators during passage of the Passenger Movement Charge Amendment Bill 2016 which was passed by the Senate last week. That bill increased the passenger movement charge from $55 to $60 from 1 July 2017. This is the first time the passenger movement charge has been increased since 2012. The five dollar increase is broadly in line with the increase in the consumer price index between 2012 and 2017.

This measure—combined with the other measure, regarding the departing Australia superannuation arrangements, as well as the measures that I have just referred to in the introduction of the other bill relating to the 15 per cent tax on backpackers—ensures that, of the $760 million that was set out in the budget in May of this year, some $640 million or thereabouts of that will be achieved by the combination of these measures. These are important to ensure that no further diminution of the revenue is resulting from the conclusion of this matter. It has been important to resolve this matter. We are keen to ensure that this matter is resolved this week, for the backpacker market into Australia and for the horticultural industry in particular, who have raised significant concerns about this. But, equally, the budget measures have to be addressed as well, to ensure that taxpayers are no further impacted by these arrangements. I commend this bill to the House.

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