Brendan O'Connor (Gorton, Australian Labor Party, Minister for Home Affairs) Share this | Link to this | Hansard source

I move:

That the Customs Tariff Act 1995 be altered as set out in the Schedule to this Proposal and that the alteration operates on and from 14 December 2009.

The Schedule read as follows—

Schedule—Alteration to the Customs Tariff Act 1995

1 Schedule 4 (item 53C, the description of goods in column 2)

After “1 January 2005”, insert “and on or before 31 December 2009,”.

The Customs Tariff Proposal that I have just tabled amends item 53C of Schedule 4 to the Customs Tariff Act 1995.

Item 53C in Part III of Schedule 4 provided a mechanism to reduce the general rate of customs duty from 10 per cent to five per cent for certain goods entered for home consumption on or after 1 January 2005. These goods are the many non-passenger motor vehicle (PMV) goods that are classified to the same tariff classifications as PMV parts and components. Prior to 1 January 2010, such non-PMV goods would have attracted a 10 per cent rate of duty but for the operation of item 53C.

However, on 1 January 2010, the general rate of customs duty for PMV parts and components tariff classifications fell from 10 per cent to five per cent. This means that the non-PMV goods classified to the same tariff classifications as PMV components are also dutiable at five per cent from that date. Therefore, from 1 January 2010, the item 53C concession for non-PMV goods is redundant.

Customs Tariff Proposal (No. 1) 2010 inserts an end date of 31 December 2009 into item 53C. This alteration limits the application of item 53C to goods entered for home consumption on or before 31 December 2009.

Debate (on motion by Mr Coulton) adjourned.