Senate debates

Monday, 9 October 2006

Customs Amendment (2007 Harmonized System Changes) Bill 2006; Customs Tariff Amendment (2007 Harmonized System Changes) Bill 2006; Schools Assistance (Learning Together — Achievement Through Choice and Opportunity) Amendment Bill (No. 2) 2006

Second Reading

4:23 pm

Photo of Santo SantoroSanto Santoro (Queensland, Liberal Party, Minister for Ageing) Share this | | Hansard source

I move:

That these bills be now read a second time.

I seek leave to have the second reading speeches incorporated in Hansard.

Leave granted.

The speeches read as follows—

CUSTOMS AMENDMENT (2007 HARMONIZED SYSTEM CHANGES) BILL 2006

The Customs Amendment (2007 Harmonized System Changes) Bill 2006 contains amendments to the Customs Act 1901 that are complementary to the amendments contained in the Customs Tariff Amendment (2007 Harmonized System Changes) Bill 2006.

The Customs Amendment (2007 Harmonized System Changes) Bill 2006 will enable the revocation of about seven hundred Tariff Concession Orders that will be affected by the amendments to the Customs Tariff Act 1995 contained in the Customs Tariff Amendment (2007 Harmonized System Changes) Bill 2006. Up to twelve hundred Tariff Concession Orders will also need to be made to replace those that will be revoked.

Tariff Concession Orders provide ‘Free’ rate of customs duty for imported goods when there are no substitutable domestically produced goods.

This bill will ensure the seamless application of Tariff Concession Orders to goods imported before and after 1 January 2007.

CUSTOMS TARIFF AMENDMENT (2007 HARMONIZED SYSTEM CHANGES) BILL 2006

The Customs Tariff Amendment (2007 Harmonized System Changes) Bill 2006 contains approximately 1200 amendments to the Customs Tariff Act 1995.

These amendments implement changes that result from the third review, by the World Customs Organization, of the Harmonized Commodity Description and Coding System, which is commonly referred to as the Harmonized System.

The Harmonized System is a hierarchical system that uniquely identifies all traded goods and commodities. This system is used uniformly throughout most of the world. Australia’s goods and commodity classifications have been based on the Harmonized System since 1988 and are contained in the Customs Tariff for imports and the Harmonized Export Commodity Classification for exports.

As a signatory to the International Convention on the Harmonized System, Australia is required to implement the changes from 1 January 2007.

As with the last review of the Harmonized System, which was implemented on 1 January 2002, this review has deleted classifications for goods where there have been low levels of international trade. Amendments have also been made to clarify existing descriptions and terminology in the Harmonized System.

The current review of the Harmonized System will also provide new classifications to separately identify a number of hazardous or dangerous chemicals, pesticides, or wastes such as chlorofluorocarbons, mercury compounds, aldrin and asbestos. This will facilitate the monitoring and control of international trade in these products under various United Nations Conventions including the Rotterdam Convention.

The third review will also introduce amendments to reflect developments in technology and changes in industry practices including the significant restructure of tariff classifications for a wide range of information technology and consumer electronic products.

While giving effect to the changes to the Harmonized System, the Customs Tariff Amendment (2007 Harmonized System Changes) Bill 2006 ensures, to the greatest extent possible, the preservation of existing duty rates and levels of tariff protection for Australian industries and margins of preference accorded to Australia’s trading partners.

The Customs Tariff Amendment (2007 Harmonized System Changes) Bill 2006 also includes amendments that will impact on the concessional items contained in Schedule 4 of the Customs Tariff. In addition, amendments will also be made to Schedules 5 and 6 of the Customs Tariff which give effect to the application of customs duty on goods the subject of Free Trade Agreements with the United States and Thailand respectively.

This bill will provide certainty for Australia’s importers and exporters, and ensures consistency with Australia’s international trading partners.

SCHOOLS ASSISTANCE (LEARNING TOGETHER—ACHIEVEMENT THROUGH CHOICE AND OPPORTUNITY) AMEND-MENT BILL (No. 2) 2006

The purpose of the bill is to amend the Schools Assistance (Learning TogetherAchievement Through Choice and Opportunity) Act 2004, which provides funding to States and Territories for government schools and funding for non-government schools for the 2005-2008 funding quadrennium. The Australian Government will provide a record estimated $33 billion in funding for Australian schools over the four years, 2005-2008. This is the largest ever commitment by an Australian Government to schooling in Australia.

The Act provides for a significant investment by the Australian Government for school infrastructure. The Australian Government is providing substantial funding for school infrastructure for both State owned government schools and non-government schools as a means of improving educational outcomes for Australian children.

Under the Capital Grants Programme an estimated $1.7 billion is being provided over 2005-2008 to assist the building, maintenance and updating of schools throughout Australia. An estimated $1.2 billion will be provided for State and Territory government schools over 2005-2008, whilst an estimated $489 million will be provided for Catholic and independent schools for the same period.

This bill appropriates capital grants funding for the years 2009 to 2011, to include capital grant funding allocations in the Act for government and non-government schools for the years 2009, 2010 and 2011. Funding amounts for programme years beyond 2008 are required because capital grants are approved up to three years in advance of the current calendar year. In 2006 a capital project may be approved involving funding for programme years through to 2009. Funding amounts in the bill are in initial 2005 prices, the price basis of the Act. They do not take into account the generous supplementation provided annually by the Australian Government.

The bill ensures that approval of Australian Government capital funding assistance for government and non-government schools can continue, providing stability in Australian Government capital funding as anticipated by State education departments and non-government school Block Grant Authorities.

This bill maintains the Australian Government’s commitment to a strong school sector through assisting government and non-government schools with important building projects which will support improved educational outcomes.

Passage of the bill is necessary to ensure that these initiatives for schools and school communities can be implemented to continue to support the improvement in school outcomes across Australia.

I commend the bill to the Senate.

Debate (on motion by Senator Santoro) adjourned.

Ordered that the Schools Assistance (Learning Together—Achievement Through Choice and Opportunity) Amendment Bill (No. 2) 2006 be listed on the Notice Paper as a separate order of the day.