House debates

Tuesday, 28 March 2023

Bills

Customs Tariff Amendment (Incorporation of Proposals) Bill 2023; Second Reading

5:06 pm

Photo of Libby CokerLibby Coker (Corangamite, Australian Labor Party) Share this | | Hansard source

The Albanese government is listening to you. We recognise your concerns about the rising cost of living that comes with global conflict. We've heard your calls to support the quick transition to electric and hybrid cars and on the need to ensure better access to medical products. We also know Australians want their government, the Albanese government, to stand alongside Ukraine.

It is for these reasons I rise to support the Customs Tariff Amendment (Incorporation of Proposals) Bill 2023 to retrospectively validate five tariff measures, including: raising the duty on goods from Russia and Belarus; a reduction in tariffs for goods from Ukraine; a reduction in tariffs for prescribed medicine and hygiene products, to be used in the treatment and prevention of COVID-19; a reduction in tariffs to electric hydrogen and plug-in hybrid vehicles; and minor amendments to correct tariff references. These measures show our commitment to being a government that listens, that acts and that upholds international obligations to our friends abroad.

Our friends in Ukraine are suffering the devastation of an illegal war. The imposition of tariffs on goods from Russia and Belarus honours our continued commitment to Ukraine's freedom and democracy. This bill also helps Ukraine by providing a temporary free rate of customs duty for goods that are produced or manufactured in Ukraine. The free rate applies to goods imported into Australia from 4 July last year to 3 July this year. These measures seek to assist the economic recovery of Europe and strengthen our opposition to Russia's bullying of Ukraine.

We know how important it is to show the world our nation won't stand for bullies. To this end, the bill will insert a new provision into the Customs Tariff Act for the temporary application of a 35 per cent additional duty to goods that are either produced or manufactured in Russia or Belarus. This duty will apply to goods imported between 25 April last year and 24 October this year. This new provision will apply in addition to the generative customs duty applied to imported goods. It should be noted importers will still be able to access concessional treatment under certain items of schedule 4 in the act. This will protect Australian business, which is so important, and still ensure we're meeting our commitments under international agreements. All in all, this measure is necessary to safeguard our nation's security interests as Russia continues to violate the rules based international order.

This bill also enables Australia to be on the front foot with pandemic preparedness, after the former government's careless handling of COVID. It provides for a free rate of customs duty for imported hygiene and medical goods. The measure was first introduced in 2020 as a temporary response to the pandemic and extended on several occasions before it became permanent on 1 July last year. The Albanese government extended the free rate to cover ingredients used in the production of certain medications, medication containers as well as face masks and gloves. These permanent concessions show that the Albanese government is proactive in protecting citizens and their health. We know it is vital that Australians continue to have access to critical hygiene and medical related goods when needed.

This amendment also comes at a critical time for our environment. We must hit our emissions targets of 43 per cent by 2030 and net zero by 2050. To achieve this, we must get more fossil fuel guzzling cars off the road. This tariff reduction will do just that. It will make electric, hydrogen and hybrid plug-in vehicles more affordable and the market more competitive. The bill will incorporate a measure to provide for a free rate of customs duty for new passenger motor vehicles with a customs value less than the luxury car tax threshold. The free rate will apply to electric vehicles, hydrogen cell vehicles and hybrid vehicles with an engine capable of being plugged in to an external source of power. This measure commenced on 1 July last year and complements other measures aimed at accelerating the adoption of these vehicles.

I know that people in my electorate are passionate about this. They've approached me in the street and at market stalls, and they've called my office. They all say that it is currently too expensive to buy an eco-friendly car. They've told me they want to support a sustainable future, but, with a costly car market, they can't afford to. This will change under this bill. By reducing tariffs on electric, hybrid and plug-in vehicles, we're sending an unmistakable signal to the parliament, to the Australian people and to industry: this is a government that is getting to work to secure cleaner, cheaper and more environmentally friendly cars. It shows that we recognise why immediate action on climate change is so important. It's why the people of Australia chose to support the Albanese government at the last election. They rejected the fear campaigns put forward by the former government, they rejected state Liberals all around the mainland and they are embracing action.

Further to these measures, the bill will amend a reference to the tariff heading for blood-grouping reagents. The amendment will insert the correct tariff subheading for goods including herbicides, anti-sprouting products and plant growth regulators. This will ensure these goods are appropriately tied to the correct preferential rate of customs duty, as agreed to under the Regional Comprehensive Economic Partnership Agreement.

All in all, in this place, we deal with legislation on many important issues. However, there are no issues more important than addressing climate change and supporting the rules based international order. This bill shows our commitment to reduce emissions, to tackle climate change, to safeguard our nation's health and to stand alongside the people of Ukraine in their struggle for a democratic, peaceful country that retains its sovereignty. That's what the people of Australia voted for at the last election, and it's what we must do in this place.

5:13 pm

Photo of Keith WolahanKeith Wolahan (Menzies, Liberal Party) Share this | | Hansard source

The Customs Tariff Amendment (Incorporation of Proposals) Bill 2023 has the coalition's support, but that doesn't mean that we don't have concerns about particular aspects of it. I'd like to talk about those particular parts of the bill, but it will nonetheless go through with coalition support. The bill amends the Customs Tariff Act to incorporate the measures in a number of customs tariff proposals. There are four elements to the bill: a 35 per cent tariff on top of the existing tariff payable on goods from Russia and Belarus; a free rate of tariff on goods that are the product of manufacture of Ukraine; an extension of free tariff designation on essential hygiene and medical related goods in response to the COVID-19 pandemic; and a free tariff for certain electric and low-emissions vehicles. We support all four, but we have a few concerns with item No. 4. Before I get to that I want to speak to the first two—those being, the restrictions on goods from Russia and Belarus and the removal of restrictions on goods from Ukraine.

It's easy to get desensitised by conflict, especially when it's on your TV and your computer. Life moves on and other issues move on. Sadly, there are many in other parliaments around the world, including in the United States and the United Kingdom, but more so particularly in the United States, who are questioning the level of support that has been given to Ukraine. That is quite concerning and disturbing because the footage from Ukraine looks exactly like the pictures that you would see if you walked up the road to the War Memorial—all the trees are wiped away; just mud, frost and trenches; and young men and women are crawling through mud and digging scrapes to survive the artillery barrage. The Russian military has had its setbacks, but one of the things it has is a huge supply of people and equipment.

A division having been called in the House of Representatives—

Sitting suspended from 17:16 to 17:45

I just wanted to speak on two parts. One was to say how much we support particularly the first two elements of this bill, being a tariff on goods from Russia and Belarus and 'free' tariffs on those from Ukraine.

Before we were rudely interrupted by the bells, I was asking this chamber to reflect upon some images. If you haven't seen them, just close your eyes and imagine now if you were to walk up the road to the War Memorial and look at those black-and-white pictures of Ypres or the Somme, when so much artillery was dropped on a square kilometre of earth that there was no life, no trees, no bushes, nothing, just mud and soil. If you were to take a bird's-eye view of that area, you would see zigzagging trenches designed somehow to give some comfort to people who are crawling into a hole, hoping they might survive absolute hell. We must never forget that, just over a year before, those people who were fighting for their very existence were teachers or people who ran cafes, and many, many thousands lost their lives fighting for their homeland. It's easy to be desensitised, and it's easy to say we must never forget the sacrifice they made for this country, but the importance of that conflict and the importance of that they succeeded cannot be underestimated.

This provision is a small step towards acknowledging that there must be consequences for the aggressive act of the state of Russia. Likewise, when this eventually ends, whether it's by negotiated settlement or otherwise, Ukraine will need help to build back up again. Those people who are fighting for their lives and trying to survive night after night in hell will want to provide a better life and a better future for their children and grandchildren. There's no more important role for us than helping them with trade, so we commend this.

Briefly, in terms of the electrical vehicle part, I often get emails and calls from members of my electorate who want me to come for a spin in their new Teslas; I think I went for the first one and then realised I should stop doing this! It's not because I don't appreciate what they're showing me. I do acknowledge that there's a transition underway in automobiles that people are naturally excited about, and some want it to happen quicker than might otherwise occur.

One of the issues they raise is infrastructure for charging. It will happen. It will come. It probably won't be because of the government; it will be because of the market. When we transitioned from horse and cart to combustion engine, the service stations didn't pop up because the government said, 'We'll do it.' They popped up because there were enough people with cars that there was a profit to be made. I think the same will happen and we will see that infrastructure around Australia.

There is an element to this that we are concerned about but not so concerned that we won't let it go through. We're really talking about a specific type of car, because any car from Japan, Thailand, Korea, China or the United States is covered by a free trade agreement. So let's be honest about what we're talking about: we're talking about fancy German electric cars. We're talking about cars that come from Germany and maybe those from Hungary. Again, it's not to say that they're not important or they don't matter; it is but one element in making that transition.

I'll conclude by saying that this is an important bill, and it's a reminder of what's happening on the other side of the world and what people are fighting for. We should support them.

5:50 pm

Photo of Clare O'NeilClare O'Neil (Hotham, Australian Labor Party, Minister for Home Affairs) Share this | | Hansard source

Thanks for the opportunity to sum up on this really important bill that is before the parliament. I want to acknowledge the contribution of all MPs who have spoken on this bill and, in particular, the member for Menzies who just spoke then. Everyone in the chamber will be aware that the member for Menzies has a very proud record of serving his country in uniform. I acknowledge his service and the important impact that that has on his contribution to these debates. We're very lucky in the parliament that we have a number of members of parliament who have a very proud history of serving their country. It's a very important thing which members on all sides of the parliament greatly respect.

The Customs Tariff Amendment (Incorporation of Proposals) Bill 2023 incorporates the customs tariff proposals tabled in August and November last year, as well as making a number of minor amendments. The bill amends the Customs Tariff Act 1995 to align references to tariff headings and subheadings in the 2022 harmonized commodity description and coding systems nomenclature. It inserts provisions for the following: a 35 per cent temporary additional duty on goods that are the produce or manufacture of Russia and Belarus; a free rate of customs duty for goods other than excise equivalent goods that are the produce or manufacture of Ukraine; the extension and expansion in the scope of concessional treatment for prescribed medical and hygiene goods, including certain ingredients and containers for medicaments; and a free rate of customs duty for certain electric hydrogen fuel cell and hybrid passenger motor vehicles. The diverse measures in the bill implement Australia's international obligations, maintain the supply of medical and hygiene goods into the future, increase the accessibility of low-emissions transport options and protect Australia's essential security interests in response to the illegal invasion of Ukraine by Russia, with support provided by Belarus.

A lot of the public debate and discussion about what goes on in our parliament is focused on the conflict and the areas of disagreement. There are many of those, and they are legitimately fought out in our parliament using words, not weapons, and every Australian should be proud of that fact. But I want to draw the House's attention to the fact that a bill like this—which, fundamentally, is about Australia expressing its view in the strongest terms possible of the brutal, evil, illegal and immoral invasion of Ukraine by Russia—is supported by all sides of the chamber. What has happened in Ukraine demonstrates an approach to the global world order that Australia wants no part in. I'm proud of our country's unified efforts to make sure that we use every tool at our disposal to make our position abundantly clear: that the invasion should never have happened and that every effort must made to ensure that we bring peace to Ukraine and that Ukraine's borders are properly restored. It's really important that our parliament stands strong and in agreement on this. I note that we've got a real unanimity of view in Australia that is not reflected across all countries in the world, so I'm very proud of what we're doing in this bill and proud of the view of the parliament on this. Again I would like to thank all speakers who participated in this debate.

Question agreed to.

Bill read a second time.

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