Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue) Share this | Link to this | Hansard source

Mr Deputy Speaker, on indulgence: can I inform the minister that we intend to move the amendment we have been denied in the House today when this bill gets to the Senate.

Peter Dutton (Dickson, Liberal Party, Minister for Revenue and Assistant Treasurer) Share this | Link to this | Hansard source

In summing up debate on the Fuel Tax Bill 2006 and the Fuel Tax (Consequential and Transitional Provisions) Bill 2006 I thank the members who have taken part in this debate. These bills contain positive improvements to the system of providing fuel tax relief, giving effect to the government announcement of major reform in its energy white paper Securing Australia’s energy future to modernise and simplify the fuel tax system. Further, the changes will lower compliance costs, reduce tax on business and remove fuel tax for thousands of businesses and households. When the fuel tax credit system is fully implemented, fuel tax will be effectively applied only to fuel used in private vehicles and for certain other private purposes, fuel used on road in light vehicles for business purposes and aviation fuels where tax is imposed for cost recovery reasons.

In response to some of the issues considered in this debate I make the following points. The government has provided generous support for the alternative fuels industry in this country, including a $37.6 million capital grants program to support new biofuels production capacity, effective excise-free treatment until 2011, a full year phase-in of effective excise and 50 per cent discount on the energy content excise rates that would otherwise apply to these bills. I note that the member for Hunter criticised the abolition of the Fuel Sales Grants Scheme as part of his contribution. This is the height of hypocrisy, given that during the last election campaign Labor had proposed to abolish the Fuel Sales Grants Scheme from 1 January 2005. The government’s plan redirects savings from this scheme to the AusLink program to improve transport infrastructure in outer metropolitan, rural and remote areas.

I would like to take the opportunity to answer some of the questions raised by members in this debate. A number of members spoke on the time line for phasing in effective excise on biofuels. It has to be noted that these bills have no effect on the time frames for applying effective excise on biofuels. The Energy Grants (Cleaner Fuels) Scheme Act 2004 contains the arrangements for phasing in effective excise on these fuels between 2011 and 2015. Solvent packers—those who pack fuels such as kerosene, turpentine and white spirit in small containers for retail sale in hardware stores and the like—are eligible for a fuel tax credit and are also eligible to make an early claim for payment under the transitional arrangements I announced on 1 June. Where a solvent is produced by mixing fuel with other substances, the Australian Taxation Office can determine that the product is no longer a fuel. In such cases, a fuel tax credit is available to the producer. The Taxation Office has draft determinations on its website for consultation on this matter.

In relation to energy security, the government has undertaken a comprehensive review of its energy policies and approaches and has developed a long-term framework to ensure that our energy advantage is utilised for the benefit of all Australians. The government released its energy white paper Securing Australia’s energy future on 15 June 2004.

The government moved parliamentary amendments to these bills. The first clarifies claiming arrangements for taxpayers who become members of the Greenhouse Challenge Plus program and are able to claim certain fuel tax credits that were denied prior to their membership of the program. The second amendment ensures that the current definition of ‘minerals’ will be retained and activities currently eligible under the Energy Grants Credit Scheme will continue to be eligible for an energy grant and will become eligible for a fuel tax credit from 1 July 2006. I am also tabling an addendum to the explanatory memorandum revising costs in light of this change and due to the announcement in the budget not to increase the road user charge for heavy vehicles.

The final set of parliamentary amendments moved to these bills provides a two-year transitional measure to help affected businesses adjust to the new system. Eligible businesses will be able to make early claims for their fuel tax credits rather than waiting to make claims on their business activity statements. These reforms simplify the existing arrangements for providing fuel tax relief and provide this relief to thousands of businesses and households that cannot currently access these concessions. The government has decided that the transitional arrangements should apply only for a set period due to the costs and complexities that would be involved for both taxpayers and the Australian Taxation Office in maintaining two separate processes for making claims on an ongoing basis. These bills contain positive improvements to the system of providing fuel tax relief and give effect to the government announcement in its energy white paper to modernise and simplify the fuel tax system. I table the supplementary explanatory memorandum to this bill with a supplementary explanatory memorandum and an additional supplementary explanatory memorandum to the Fuel Tax (Consequential and Transitional Provisions) Bill 2006. I commend these bills to the House.

Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue) Share this | Link to this | Hansard source

I take a point of order, Mr Deputy Speaker. We have been gagged and denied an opportunity to make a contribution in the third reading debate. I put a number of questions to the minister during my second reading contribution. He has not answered one of them.

Harry Jenkins (Scullin, Australian Labor Party) Share this | Link to this | Hansard source

Order! That is not a point of order.

Tony Windsor (New England, Independent) Share this | Link to this | Hansard source

Mr Deputy Speaker, I seek leave to move—

Ian Causley (Page, Deputy-Speaker) Share this | Link to this | Hansard source

Order! The honourable member will resume his seat. We will deal with the motion before the chair. The question is that the words proposed to be omitted stand part of the question.

Question agreed to.

Original question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

Before proceeding, I think that the chair should clarify an interpretation of the resolution of earlier this day by the House. In the past, resolutions of this kind have set time limits for the full debate on legislation. This is not the first occasion on which this type of resolution has allowed for a minister, following that time, to sum up and also has allowed that amendments circulated by the government at least two hours before being treated as moved. A literal reading of the resolution of earlier this day could give an interpretation that the whole proceedings on this bill cease now that the second reading has been dealt with and does not go through to 10.30 am. I do not believe that that was the spirit of the resolution, and I will allow the continued discussion of this bill to 10.30 am, unless the House has an objection to that course of action.

Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue) Share this | Link to this | Hansard source

Mr Deputy Speaker, is this my opportunity to make a further contribution in the consideration in detail stage? While the Clerk is being consulted, I hope that is the case, because this is a very—

Ian Causley (Page, Deputy-Speaker) Share this | Link to this | Hansard source

I indicate to the member for Hunter that I am allowing the House the opportunity to give the chair guidance on whether we now proceed to a consideration in detail discussion, which would then conclude at 10.30 am, or it is the intention of the House to proceed directly to put all motions that are consequential upon the second reading being carried.

Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue) Share this | Link to this | Hansard source

The House should proceed to the in detail stage of debate.

Peter Dutton (Dickson, Liberal Party, Minister for Revenue and Assistant Treasurer) Share this | Link to this | Hansard source

Mr Deputy Speaker, on a point of order: it is my understanding that is not the government’s intention.

Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue) Share this | Link to this | Hansard source

It is your intention just to destroy democracy.

Ian Causley (Page, Deputy-Speaker) Share this | Link to this | Hansard source

Order! The honourable member for Hunter is not assisting.

Peter Dutton (Dickson, Liberal Party, Minister for Revenue and Assistant Treasurer) Share this | Link to this | Hansard source

The government’s intention is to have this matter dealt with now.

Ian Causley (Page, Deputy-Speaker) Share this | Link to this | Hansard source

I seek clarification: without debate or with debate?

Martin Ferguson (Batman, Australian Labor Party, Shadow Minister for Primary Industries, Resources, Forestry and Tourism) Share this | Link to this | Hansard source

It’s a guillotine on a guillotine. You guillotine the guillotine!

Ian Causley (Page, Deputy-Speaker) Share this | Link to this | Hansard source

Order! The honourable member for Batman is not assisting.

Peter Dutton (Dickson, Liberal Party, Minister for Revenue and Assistant Treasurer) Share this | Link to this | Hansard source

That is the case, Mr Deputy Speaker.

Ian Causley (Page, Deputy-Speaker) Share this | Link to this | Hansard source

Without debate.

Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue) Share this | Link to this | Hansard source

Mr Deputy Speaker, that is an outrageous—

Ian Causley (Page, Deputy-Speaker) Share this | Link to this | Hansard source

Order! The honourable member for Hunter will resume his seat.

Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue) Share this | Link to this | Hansard source

That is an outrageous—

Ian Causley (Page, Deputy-Speaker) Share this | Link to this | Hansard source

The honourable member for Hunter will resume his seat. The question before the chair, therefore, is that the government amendments—

Martin Ferguson (Batman, Australian Labor Party, Shadow Minister for Primary Industries, Resources, Forestry and Tourism) Share this | Link to this | Hansard source

I do not think the government knows what it is doing.

Gavan O'Connor (Corio, Australian Labor Party, Shadow Minister for Agriculture and Fisheries) Share this | Link to this | Hansard source

Get your act together!