Senate debates

Thursday, 16 May 2013

Bills

Customs Tariff Amendment (Incorporation of Proposals) Bill 2013, National Measurement Amendment Bill 2013, Social Security Legislation Amendment (Disaster Recovery Allowance) Bill 2013, Veterans' Affairs Legislation Amendment (Military Compensation Review and Other Measures) Bill 2013; Second Reading

3:46 pm

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) 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 TARIFF AMENDMENT (INCORPORATION OF PROPOSALS) BILL 2013

The Customs Tariff Amendment (Incorporation of Proposals) Bill 2013 contains several amendments to Schedule 4 to the Customs Tariff Act 1995.

Schedule 4 lists a range of goods and circumstances for which concessional rates of import duty are granted.

Following a review of the Schedule by the Better Regulation Ministerial Partnership, the Customs Tariff Amendment (Schedule 4) Act 2012 was passed by the Parliament in 2012. This act commenced on 1 March 2013.

This bill makes minor amendments to this act, and were previously given effect through the tabling of Customs Tariff Proposal (No. 1) 2013 in the House of Representatives on 14 February 2013.

The items to be amended are items 20, 21, 27, 30 and 35 in the revised Schedule 4.

The amendments fix typos or change wording so it is consistent with the intentions of the schedule, and have come about from both industry and inter-department feedback on the bill that passed last year.

The changes include:

    However, the term "batch repair" was not specifically mentioned in the new item 20, thus leading to confusion as to whether goods subject to a batch repair process have access to the concession or not. The bill will amend item 20 to specifically reference "batch repair" in the item.

      Following consultation with the Department of Industry, Innovation, Science, Research and Tertiary Education, this bill will remove the term "industrial processing" from item 21. This amendment will better reflect Australian Government policy that encourages all goods imported for industrial processing and subsequent exportation to use the Tradex Goods Scheme under item 21A of Schedule 4. Goods specified in a Tradex Order under the Tradex Scheme Act 1999 can then be better recorded and monitored for industry assistance purposes.

        The bill will give effect to an amendment that removes all references to "value" and "amount" from the item. This amendment will then allow the nature of representative sample goods that have access to this concession to be defined more clearly in the associated by-law(s).

          The bill will give effect to the amendment of item 30 that replaces "wheelchairs" with "invalid carriages", thus returning the item to its intended scope and application.

            However, a typographical error was made in the drafting of item 35 which changed gross construction "tons" (T-O-N-S) to gross construction "tonnes" (T-O-N-N-E-S). The bill will correct this.

            While these changes are minimal, they ensure our Customs Act is clearer. I commend the bill the house.

            THE NATIONAL MEASUREMENT AMENDMENT BILL 2013

            The National Measurement Amendment Bill 2013 is a bill to amend the National Measurement Act 1960. It introduces changes appropriate for the long-term operation of Australia's national trade measurement system, which has been in operation since July 2010.In Australia, an estimated $400 billion worth of trade based on some kind of measurement takes place annually. Australia's trade measurement system provides the infrastructure needed to ensure that buyers and sellers both get a fair result. It provides assurance that the quantity of pre-packaged goods is correct and that measuring instruments used for trade are sufficiently accurate.

            Trade measurement is a part of everyday life. We are interacting with the trade measurement system whenever we buy products such as fuel or groceries on the basis of prices set in dollars per litre, or dollars per kilogram, or dollars per metre. These prices are set by the product's volume, weight, or length.

            Trade measurement rules also govern pre-packaged goods and are significant for the export of commodities, as well as measurements of gold, precious gems and the quality of agricultural products.

            The National Measurement Institute (the NMI) is responsible for overseeing the operation of Australia's trade measurement system. As part of its "trade measurement compliance inspection program", the NMI employs trade measurement inspectors who inspect businesses nationwide for compliance with the act. The proposals in the bill will facilitate their work and the ability of business to comply with the act and its regulations.

            Key amendments proposed in this bill deal with situations where NMI inspectors find minor non-compliance issues concerning a measuring instrument used for trade or the sale of pre-packaged goods. Currently inspectors are required to obliterate the instrument's verification mark and cause the trader to immediately cease using the instrument. Where the non-compliance applies to pre-packaged goods, the items are immediately removed from sale.

            These requirements can be unduly onerous to businesses and, in some situations, can disadvantage consumers. Forcing products off the shelves, or preventing the use of a measuring instrument, can be a disproportionate response to a minor breach. It can also cause unintended difficulties for consumers, especially in rural and remote areas where the community may rely on a single retail outlet.

            The proposed amendment gives an inspector the discretion to issue a notice to a trader to remedy the non-compliance and allow a 28 day period during which they may continue using the instrument or retailing the goods which are subject to the minor non-compliance. This change will give traders reasonable time to remedy any minor breaches and will retain consumer access to goods.

            The National Measurement Amendment Bill 2013 introduces a number of other minor amendments to the act. They include:

                          This Government is committed to maintaining a fair, effective and efficient national approach to trade measurement for business and consumers. The bill forms part of that commitment.

                          SOCIAL SECURITY LEGISLATION AMENDMENT (DISASTER RECOVERY ASSISTANCE) BILL 2013

                          This Bill introduces a new disaster recovery income support payment, the Disaster Recovery Allowance.

                          In recent years we have seen a trend of increasingly severe floods, cyclones, bushfires and storms. The recent summer has been no exception. Clearly the time for questioning the veracity of climate change is over.

                          These disasters have taken a physical, emotional and financial toll on all Australians. Most tragically, lives have been lost. We know that disasters in Australia are inevitable. We know that disasters in Australia are getting more prevalent. We know that disasters in Australia cost lives and livelihoods and we need to be prepared for this.

                          Ensuring that individuals across Australia are supported in the aftermath of these disasters is critical to the recovery of communities. The Australian Government stands ready to support disaster ravaged communities, providing the support they need to get back on their feet. The Government already provides a range of assistance, both by working with the States through the Natural Disaster Relief and Recovery Arrangements, and directly with the Australian Government Disaster Recovery Payment and a number of ex-gratia disaster payments.

                          The Australian Government Disaster Recovery Payment, or AGDRP, provides short term, one-off financial assistance to eligible Australians. It offers a helping hand and has assisted thousands of Australians in recent years. The AGDRP has a legislative basis in the Social Security Act 1991, which allows the Government to activate the AGDRP in response to a major disaster occurring in or outside Australia.

                          This Government is serious about supporting jobs following a disaster, about keeping people employed in the local area, protecting skilled labour and the longer term recovery of the community. Australian workers, businesses and farmers are resilient. But in times of great difficulty they may require that extra help to get them back on their feet and back to work.

                          The Disaster Recovery Allowance will standardise the highly successful assistance that is currently being provided as the ex-gratia Disaster Income Recovery Subsidy. The ex-gratia Subsidy provides fortnightly payments equivalent to the maximum rate of Newstart Allowance or Youth Allowance, depending on a person’s circumstances. The Subsidy supports those who, through no fault of their own, temporarily lose income as a direct result of a disaster. While the ex-gratia payment has worked well this past summer to meet this need, cementing the Disaster Recovery Allowance in legislation will provide a permanent and administratively efficient method for providing this assistance to communities. We have seen the value of such a legislated disaster recovery payment with the AGDRP.

                          The Disaster Recovery Allowance will provide temporary income support for up to 13 weeks. The Allowance will be paid at a rate equivalent to Newstart or Youth Allowance.

                          The Government will have the option of making the Disaster Recovery Allowance available for events of national significance where assistance in the form of income support is required. In making this decision we will consider the extent to which the nature or extent of the event is unusual, and the extent of disruption to the workforce.

                          This will fill a gap in the post-disaster assistance currently provided at both Commonwealth and State levels, which is mainly focused on relief and recovery, and not income support.

                          This Government recognises that each event is unique and the needs of each community will be different. That is why the Disaster Recovery Allowance will focus on either the areas that are affected, or the industries that are affected, or both. This means that it can apply broadly across a region, or just to an affected industry, depending on the impact of the event.

                          To qualify for the Disaster Recovery Allowance, a person will have to be able to demonstrate that, because of the disaster, they have lost income on which they were dependent.

                          In most cases this will be a straightforward self-declaration by a person, ensuring the Disaster Recovery Allowance is administered quickly and effectively in the wake of a major disaster.

                          While we are committed to supporting disaster-affected workers getting back on their feet, we do not want to create a disincentive for people to go back to work. For this reason the Disaster Recovery Allowance will be subject to reductions. This will ensure that recipients are encouraged to return to work when possible, restoring that normality to their lives.

                          The Disaster Recovery Allowance will be payable for 13 weeks. For those who have not been able to find work at the end of this period, the Department of Human Services will help them transition to the Newstart or Youth Allowance, and they will have access to all of the existing Commonwealth programs that help people get back to work.

                          We recognise that sometimes the full impact of a disaster is not felt straight away, particularly economic impacts. For this reason, and to allow adequate time for applications, the claim period for the Disaster Recovery Allowance will stay open for 6 months after the disaster.

                          The Disaster Recovery Allowance will be taxed and subject to Beneficiary Tax Off-sets, consistent with other social security payments.

                          Introduction of the Disaster Recovery Allowance reflects the Australian Government’s commitment to supporting communities affected by disasters. The Disaster Recovery Allowance is about more than individuals, it is about getting communities back on their feet. We are seeing again with the recent disasters in Queensland, New South Wales, Victoria and Tasmania that Australians want to help each other out after a disaster, and they want to lend a hand. The Disaster Recovery Allowance makes sure that those people whose income has been hit by the disaster do not need to worry about getting food on the table, they can focus on what Australians want to be doing in that situation, which is helping their friends, their neighbours, their community in getting back on their feet and putting their lives back together.

                          Disasters will happen in this country. With the changing climate, conditions will become more extreme and disasters will happen more frequently. With each year this is becoming clearer. It is a reality we cannot ignore and we must be as prepared as possible for future events. That is why this Government is committed to improving the assistance we provide and the way it is delivered. With each year we, as a Nation, and as a Government, are getting better at preparing, mitigating and responding to disasters. This Bill is a further step in that process. It provides the Commonwealth with the ability to respond to disasters and to support the communities that are affected. These tools give us a greater sophistication in disaster recovery, they give us the certainty that the money is getting where it is needed.

                          VETERANS' AFFAIRS LEGISLATION AMENDMENT (MILITARY COMPENSATION REVIEW AND OTHER MEASURES) BILL 2013

                          It gives me great pleasure to present legislation that will enhance Australia's repatriation system and provide improved access to compensation and health care for Australian Defence Force members, former members and their families.

                          The Military Rehabilitation and Compensation Act 2004 – the MRCA – was introduced on 1 July 2004 and provides rehabilitation and compensation coverage for injuries, diseases and deaths caused by all types of military service after that date.

                          In the lead up to the 2007 Election, we undertook to conduct a review of the MRCA.

                          The review commenced in mid-2009, at which time, the MRCA had been in operation for five years.

                          Extensive consultation with the defence and veteran community was undertaken throughout the Review.

                          The report concluded that the objectives of the MRCA are sound.

                          It also confirmed that the unique nature of military service justified rehabilitation and compensation arrangements specific to the needs of the military.

                          However, not unexpectedly given the relative complexity and period of operation of the MRCA, the review found opportunities for improvements.

                          The Government announced is response to the Review as part of the 2012 Budget.

                          This bill will give effect to a number of initiatives that form part of the Government response to the Review of Military Compensation Arrangements.

                          In total, the Government will implement 96 of the 108 recommendations put forward by the Review.

                          A number of Review initiatives that do not require legislation have been implemented, or are being implemented, to assist our members, former members and their families.

                          Many of the measures in this bill will further enhance the benefits and services provided to the defence force community.

                          These amendments deliver on the Government's commitment to continuing to improve and evolve our support for the veteran and defence communities, and their families, to better meet their needs.

                          Of significant benefit is the introduction of a Repatriation Health Card – For Specific Conditions, known as a White Card, to former members of the Australian Defence Force with conditions accepted under the Safety, Rehabilitation and Compensation Act, where they have a long term treatment need.

                          The new streamlined arrangements will replace the existing treatment arrangements under the Safety, Rehabilitation and Compensation Act which requires SRCA members to claim reimbursement of treatment costs for their SRCA injury or ask their health care provider to invoice the Department of Veterans' Affairs.

                          This measure will provide a consistent method of access for all former members of the Australian Defence Force with long term treatment needs.

                          The bill will provide greater flexibility for wholly dependent partners of deceased members under the Military Rehabilitation and Compensation Act.

                          From 1 July 2013, instead of a single choice between receiving ongoing compensation payments or a lump sum payment, wholly dependent partners will be able to choose to convert either 25%, 50%, 75% or 100% of the periodic compensation amount to an age-based lump sum payment.

                          This increased flexibility will enable a wholly dependent partner to better meet their immediate and long-term financial priorities, and applies to future partners and to existing partners who have yet to make their choice as to how to receive their compensation.

                          The bill provides for an increase in the amount of compensation paid for financial advice for those persons who are required to make a choice under the Military Rehabilitation and Compensation Act about the nature of the benefits they receive. The maximum compensation available will increase from $1,592 to $2,400 and legal advice related to that choice can also be covered within the new limit.

                          The bill will also provide a one-off increase to the rate of ongoing compensation for eligible young persons under the Military Rehabilitation and Compensation Act. Ongoing compensation is one component of a package of compensation for this group.

                          The rate will be increased to match the rate payable for a dependant child under the Safety, Rehabilitation and Compensation Act.

                          This will result in an expected increase of approximately 50 per cent on the current rate.

                          Rehabilitation and transition management services under the Military Rehabilitation and Compensation Act will be enhanced to improve consistency across the three branches of the Defence Force and increase flexibility in rehabilitation management.

                          Improved consistency will be achieved by giving the Chief of the Defence Force overarching responsibility for rehabilitation for serving members.

                          Transition management services will also be made available to part-time reservists.

                          The responsibility for rehabilitation for part-time reservists will transfer from the Department of Veterans' Affairs to the Chief of the Defence Force to give more visibility to Defence of the rehabilitation needs of this group.

                          There will also be greater flexibility in the transfer of rehabilitation responsibilities between the Chief of the Defence Force and the Military Rehabilitation and Compensation Commission.

                          The bill contains provisions which will allow earlier payment of compensation for permanent impairment for claimants with more than one accepted condition under the Military Rehabilitation and Compensation Act.

                          Additionally, DVA will make greater use of the payment of interim permanent impairment compensation and will be able to include a payment for an imputed lifestyle effect when determining the level of interim compensation payable, which will result in increased compensation payments.

                          From 1 July 2013, the eligibility criteria for Special Rate Disability Pension under the Military Rehabilitation and Compensation Act will be expanded to include certain persons who are not currently eligible because the person converted their incapacity compensation payments to a lump sum or because the incapacity payment is reduced to nil because it is fully offset by Commonwealth superannuation.

                          This measure will also result in the person being entitled to additional benefits that are associated with eligibility for Special Rate Disability Pension, including a Gold Card, education assistance for eligible young persons and MRCA supplement.

                          The bill will make changes to the treatment of superannuation under the Military Rehabilitation and Compensation Act so that serving members and former members are treated equally.

                          Technical amendments will be made to the definition of 'Commonwealth superannuation scheme' under the Military Rehabilitation and Compensation Act to exclude contributions made by a licenses corporation and to include Commonwealth contributions into a retirement savings account.

                          The powers of the Veteran's Review Board will be enhanced to provide a remittal power to allow certain matters to be referred to the Military Rehabilitation and Compensation Commission for further consideration and determination.

                          The membership of the Military Rehabilitation and Compensation Commission will be increased by an additional member, to be nominated by the Minister for Defence.

                          This will assist the Commission in the management of the broad and complex occupational health, safety and compensation issues faced by the Defence Force.

                          The claims process for conditions accepted under the Veterans' Entitlements Act that are aggravated by service covered under the Military Rehabilitation and Compensation Act will be simplified.

                          Currently, a person must choose whether to claim the aggravation under either the Veterans' Entitlements Act or the Military Rehabilitation and Compensation Act.

                          The existing process is complex, resulting in confusion for clients and is administratively resource intensive.

                          From 1 July 2013, a simplified arrangement will be introduced resulting in all such claims being determined under the Veterans' Entitlements Act.

                          The bill will expand the definition of 'member' in the Military Rehabilitation and Compensation Act to include persons holding an honorary rank, persons who are an accredited representative of a registered charity and former members undergoing career transition.

                          Other measures in the bill will create an entitlement to travel expenses under the Veterans' Entitlements Act for certain partners of eligible persons, and make technical amendments to Veterans' Affairs Acts in relation to the appropriation of treatment costs for aged care services and administrative arrangements for payments to bank accounts.

                          The measures in the bill clearly demonstrate the Australian Government's support and high regard for our Defence Force members.

                          The Government is committed to continuously improving and adapting to the needs of veterans, serving and former members and their families.

                          These proposed changes will result in a positive outcome for many in the defence and veteran communities.

                          Debate adjourned.

                          Ordered that the bills be listed on the Notice Paper as separate orders of the day.