Senate debates

Thursday, 30 March 2023

Bills

Customs Tariff Amendment (Incorporation of Proposals) Bill 2023, Health Insurance Amendment (Prescribed Dental Patients and Other Measures) Bill 2023, Special Recreational Vessels Amendment Bill 2023, Treasury Laws Amendment (Refining and Improving Our Tax System) Bill 2023, Veterans' Affairs Legislation Amendment (Miscellaneous Measures) Bill 2023; Second Reading

12:05 pm

Photo of Anthony ChisholmAnthony Chisholm (Queensland, Australian Labor Party, Assistant Minister for Education) 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—

HEALTH INSURANCE AMENDMENT (PRESCRIBED DENTAL PATIENTS AND OTHER MEASURES) BILL 2023

The Government is pleased to introduce the Health Insurance Amendment (Prescribed Dental Patients and Other Measures) Bill 2023.

Prescribed dental patients

Cleft and craniofacial services listed on the Medicare Benefits Schedule provide patients and families with much needed financial assistance for major dental and skeletal treatment. In Australia, about one in every 800 babies are born with a cleft lip or palate, and early medical intervention is critical for improved health outcomes. Persons diagnosed with a cleft or craniofacial condition often require ongoing treatment, particularly during their growth and development years, to correct or improve their physiological irregularities which can lead to other significant problems such as issues with feeding, hearing and speech, ear infections, and dental decay.

This Bill proposes changing the Cleft Lip and Cleft Palate Scheme to remove the unfair age restrictions that deny a small cohort of patients a Medicare reimbursement for treatment beyond the age of 22 years. This Bill will confer Medicare benefits eligibility to disadvantaged patients, including those who did not have treatment organised by their parents before reaching the age of 22, or those who have their treatment delayed beyond the age of 22 for other reasons, for example due to the COVID-19 pandemic.

Age limits for access to the scheme were initially established on the basis that patients suffering cleft and craniofacial conditions would generally have completed most specialist dental work associated with their condition once their facial growth was complete. Age limits for some patients were amended under the Health Insurance Amendment (Professional Services Review and Other Matters) Bill 2002. A small number of patients, however, continue to be denied access to Medicare benefits for treatment based on age. These changes will provide equity of access to treatment for cleft and craniofacial conditions, by removing the age restrictions currently associated with these services so that access is based on clinical need, in line with other Medicare Benefits Schedule services.

This Bill will not significantly alter average patient numbers being treated under Medicare but will allow for a more structured treatment plan that considers individual patient circumstances.

Other Measures

This Bill will also provide for Services Australia to develop a system to place a doctor on, and remove a doctor from, the Register of Approved Placements.

Specified bodies like the Department of Health and Aged Care and the general practice colleges are responsible for determining if a doctor is eligible to be placed on the Register of Approved Placements. The specified bodies notify Services Australia of their decision, and Services Australia places doctors on, and removes doctors from, the Register of Approved Placements accordingly.

Currently, the Health Insurance Act 1973 does not allow for this step of the process to be automated through a computer system. This Bill enables Services Australia to achieve efficiencies by developing systems that support an automated approach. Specifically, systems to support placing doctors on, and removing doctors from, the Register of Approved Placements once a decision has been made by a specified body. There are over 10,000 placements processed each year.

The Bonded Medical Program provides a Commonwealth-supported place in a course of study in medicine at an Australian university in exchange for a participant completing a Return of Service Obligation working as a doctor in a regional, rural or remote community.

This Bill will further enhance the administration of the Bonded Medical Program by rectifying inconsistencies between the Health Insurance Act 1973 and the Health Insurance (Bonded Medical Program) Rule 2020, simplifying the length of a bonded participant's return of service obligation.

For the benefit of bonded participants, the Bill will also clarify how the return of service obligation will be calculated—as well as support automatic calculation in the Bonded Return of Service System—and ensure that the administrative penalty will only be applied when it is appropriate.

Conclusion

This Bill will allow persons diagnosed with congenital and hereditary cleft and craniofacial conditions access to appropriate and timely treatment, despite their age, which will improve their quality of life.

This Bill will also streamline Medicare administrative processes for the registration of approved training and workforce placements. The efficiencies that can be realised through the implementation of these changes may lead to reduced processing timeframes and allow doctors to start working at a medical practice and providing services to patients in the community sooner.

Finally, this Bill will further enhance the administration of the Bonded Medical Program in the interests of bonded participants.

VETERANS' AFFAIRS LEGISLATION AMENDMENT (MISCELLANEOUS MEASURES) BILL 2023

The Albanese Labor Government is committed to the task of saving lives and delivering a better future for the veteran community.

When an Australian signs up to our Defence Force, they make a solemn vow to defend Australia, to operate in support of our national interests.

They do so knowing that they may find themselves in harm's way and could make the ultimate sacrifice for our nation.

This is why as a Government and as a nation we have a solemn obligation to look after our Defence force personnel, veterans and families.

To make sure that for those who find themselves injured or needing support, that this is readily available.

I am pleased to introduce the Veterans' Affairs Legislation Amendment (Miscellaneous Measures) Bill 2023.

This Bill introduces a number of measures that will improve the way we support veterans and their families, address some

technological anomalies, and make some minor technical improvements to the operation of veterans' legislation.

The amendments contained in the Bill, a number of which are long overdue, demonstrate the government's ongoing commitment to implementing practical support measures to better support defence personnel, veterans and their families.

Schedule 1 will require the Repatriation Medical Authority (RMA) to provide an annual report for tabling in Parliament. This item addresses the Senate Foreign Affairs, Defence and Trade Legislation Committee's recommendation in their July 2019 report 'Annual reports (No.1 and No. 2 of 2019)', that the Veterans' Entitlements Act 1986 (VEA) be amended to publish an annual report. The RMA has, as a matter of practice, already been tabling an annual report, so this measure will convert this existing practice to a legislative requirement.

The RMA have been consulted and supports this measure.

Schedule 2 amends the language contained in section 330 of the Military Rehabilitation and Compensation Act 2004 (MRCA) and section 58 of the Safety Rehabilitation and Compensation (Defence-Related Claims) Act 1988 (DRCA).

This is important because the language in these provisions is reflected in communication with veterans, and the present phrasing regarding the Military Rehabilitation Compensation Commission refusing to process a claim of further information is

distressing to many veterans. This phrase will be replaced so the commission will instead "defer" processing of the claim, which reflects actual practice.

Schedule 3 fixes incorrect references in the Veteran Entitlements Act to a provision in the A New Tax System (Family Assistance) Act 1999.

Schedule 4 amends the Defence Service Homes Act 1918 (OSHA Act) to clarify the determination, revocation, replacement, variation and content of the Statement of Conditions made under section 38A of the OHSA Act.

The Statement of Conditions is similar to a Product Disclosure Statement. It is a legislative instrument that sets out the risks against which the Commonwealth will undertake insurance under the relevant part of the OHSA Act, and other terms and conditions relating to insurance by the Commonwealth under the relevant part of this Act.

The original drafting of section 38A left it ambiguous as to the extent the Minister may re-make or otherwise revoke and replace the Statement of Conditions.

The amendments in Schedule 4 repeal certain subsections under section 38A and substitute provisions that clarify the operation of the Statement of Conditions and the conditions to vary, revoke and replace the Statement of Conditions.

The new provisions continue to ensure that any revocation or variation of the Statement of Conditions must not remove the right of a person to receive a payment to which the person had become entitled before the revocation or variation took effect.

Schedule 5 will automate the alignment of the private vehicle allowance rate in the Military Rehabilitation and Compensation Act 2004 (MRCA) and the Safety Rehabilitation and Compensation (Defence-Related Claims) Act 1988 (DRCA) continues to align to that of the Safety, Rehabilitation and Compensation Act 1988 (SRCA).

This will ensure consistency and create on-going administrative efficiencies. Clarity and certainty will be provided for both clients and the department through the creation of a transparent and legislated process for the rate.

This Bill is just one of many ways that the Albanese Labor Government is working to better support veterans.

We came to Government with a commitment to invest in a better future for Defence personnel, veterans and families.

The October 2022 Budget delivers on this commitment, with significant investments including;

            We're also responding to the Royal Commission into Defence and Veteran Suicide's Interim Report:

                      veterans' legislation. Consultation on that Pathway is now underway.

                      This government is committed to implementing practical support measures to better support defence personnel, veterans and their families.

                      The amendments contained in the Bill before us today, while modest, demonstrate our government's ongoing commitment, while we also work on our Veteran legislation Reform Consultation Pathway.

                      We want our service personnel, veterans, and veteran families to know that they will get the support that they not only need, but deserve.

                      I commend the Bill to the House.

                      CUSTOMS TARIFF AMENDMENT (INCORPORATION OF PROPOSALS) BILL 2023

                      The Customs Tariff Amendment (Incorporation of Proposals) Bill 2023 amends the Customs Tariff Act 1995 to incorporate the measures in five customs tariff proposals and to correct references to new tariff headings and subheadings made by the 2022 Harmonized Commodity Description and Coding System (the Harmonized System). The Customs Tariff Proposals were tabled in Parliament in August and November last year. The measures in the Bill support improved access to essential hygiene and medical-related goods, greener technology, and respond to the illegal invasion of Ukraine and follow from Australia's international obligations.

                      The Bill inserts into the Customs Tariff Act a new provision for the temporary application of a 35 per cent additional duty to goods that are the produce or manufacture of Russia or Belarus. The additional duty applies to goods imported between 25 April 2022 and 24 October 2023 that left for direct shipment to Australia from 25 April 2022. This duty applies in addition to the general rate of customs duty applicable to imported goods. Importers of these goods are able to access concessional treatment under certain items of Schedule 4 to the Customs Tariff Act. This ensures that Australia is meeting its commitments under various international agreements. This measure commenced on 25 April 2022 for an initial six month period and was subsequently extended for a further twelve month period. The measure and the extension are a response to Russia's illegal invasion of Ukraine, and the support provided by Belarus for this invasion. The measure and the extension are necessary for Australia's essential security interests as Russia continues to violate the sovereignty and territorial integrity of Ukraine and undermine the rules-based international order. Australia is committed to upholding these principles that are essential for Australia's international, regional and domestic stability and security. Economic measures against Russia and Belarus are a necessary part of the international community's response to their flagrant violation of the Charter of the United Nations.

                      The Bill incorporates a provision which provides for a temporary 'Free' rate of customs duty for goods that are the produce or manufacture of Ukraine, other than tobacco, alcohol, and petroleum products. The 'Free' rate of customs duty applies to goods that are imported into Australia from 4 July 2022 to 3 July 2023. The measure complements the additional duty applied to Russian and Belarusian goods and seeks to assist the economic recovery of Ukraine.

                      The Bill incorporates the extension and expansion in scope of concessional item 57 of Schedule 4 of the Customs Tariff Act. This concession provides for a 'Free' rate of customs duty for imported hygiene and medical-related products. The measure was first implemented in 2020 as a temporary response to the pandemic, extended on several occasions and was ultimately made permanent on 1 July 2022. At this time, the scope of the concession was extended to cover ingredients to be used in the production of certain medicaments and containers for medicaments, in addition to goods such as facemasks and gloves. This permanent tariff concession ensures that Australians continue to have access to critical hygiene and medical-related goods.

                      The Bill incorporates a measure that provides 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 of customs duty applies to electric vehicles, hydrogen fuel 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 2022 and complements other measures aimed at accelerating the uptake of these vehicles.

                      The Bill will also amend a reference to the tariff heading for blood-grouping reagents in a note to Chapter 13 of Schedule 3 of the Customs Tariff Act and insert the correct tariff subheading for certain goods that are herbicides, anti-sprouting products and plant-growth regulators to ensure that these goods are subject to the correct preferential rate of customs duty as agreed under the Regional Comprehensive Economic Partnership Agreement.

                      SPECIAL RECREATIONAL VESSELS AMENDMENT BILL 2023

                      The Special Recreational Vessels Amendment Bill 2023 will extend the sunsetting date of the Special Recreational Vessels Act 2019 (the SRV Act) from 30 June 2023 to 30 June 2025. This Act allows foreign special recreational vessels (also known as superyachts) to apply for a special recreational vessel temporary licence to operate on the Australian coast, if they choose to opt in to the coastal trading regulatory regime. This allows these vessels to be offered for hire or charter.

                      The proposed amendment means these vessels can continue to operate under temporary licences, bringing overseas dollars into regional communities around Australia. Encouraging special recreational vessels to come to Australia to charter is important, particularly for post COVID recovery.

                      Special reactional vessels bring a range of economic benefits—Australian producers and service industries all stand to benefit from the continuation of superyacht charters. The opportunity to supply food and beverages to the vessels as well as the onshore demand for tourism, accommodation, cafes and restaurants will provide much needed business.

                      Extending the repeal date of the SRV Act for two years will allow more time to consult stakeholders on a longer-term solution for special recreational vessel regulation. Earlier consultation was paused because of the COVID-19 pandemic, resulting supply chain issues, and will not be completed prior to the SRV Act sunsetting.

                      In the interim, the SRV industry needs certainty to continue to operate in Australia.

                      The Australian Government is committed to ensuring Australia's regulatory framework for our maritime industries remains fit for purpose, meets community expectations and supports Australian businesses.

                      The Government appointed a Taskforce to provide advice on how to establish an Australian strategic maritime fleet and is expected to provide advice on any changes to the coastal trading regulatory framework required to support establishment of the fleet. The Government will consider the Taskforce's advice, which is due by 30 June 2023, before determining whether wider regulatory reform is required to support and grow Australia's maritime industry more broadly, including consideration of a longer term solution for regulating superyachts.

                      The superyacht industry will no doubt make an important contribution to our post COVID-19 recovery as we look to reopen the economy and permit more leisure activities in Australia.

                      The Australian Government recognises the economic opportunities that superyachts afford Australian business, as well as regional and urban communities.

                      This Bill permits special recreational vessels to continue to charter in Australia and have these opportunities realised.

                      TREASURY LAWS AMENDMENT (REFINING AND IMPROVING OUR TAX SYSTEM) BILL 2023

                      The Treasury Laws Amendment (Refining and Improving our Tax System) Bill 2023 contains a number of measures to remove unnecessary administrative and compliance burdens associated with our tax system.

                      Schedule 1 to the Bill amends the International Tax Agreements Act 1953 to give the force of law to the new tax treaty signed by Australia and Iceland on 12 October 2022.

                      The number of Icelandic people in Australia is not large. The 2021 Census counted 405 Icelandic-born people and 1328 people of Icelandic ancestry. However, Iceland's GDP per capita is one of the highest in the world and this tax treaty will make Australia a more attractive investment destination for Icelandic capital. It will also reduce the tax barriers to Australian businesses trading with Iceland.

                      The treaty also reflects the Government's commitment to ensuring multinationals pay their fair share of tax.

                      As part of our first Budget last October, we have already taken meaningful steps:

                              This treaty builds on that work by incorporating important integrity measures from the G20 and OECD's Base Erosion and Profit Shifting project and providing mechanisms to support stronger cooperation between tax authorities to detect and combat tax evasion.

                              This treaty presents a welcome opportunity to strengthen our economic and cultural ties with Iceland, a country with whom we share many values.

                              Schedule 2 to the Bill amends the law to exempt wholly owned Australian incorporated subsidiaries of the Future Fund Board of Guardians (Future Fund Board) from corporate income tax.

                              Currently, the Future Fund Board is exempt from income taxes, but this exemption does not extend to its wholly owned subsidiaries. Extending this exemption will remove the administrative burden associated with the payment of tax by these subsidiaries and the subsequent claiming of a refund by the Future Fund Board.

                              The legislation will not change the net position for either the Commonwealth or the Future Fund—that is, no income tax is collected by the Commonwealth from the Future Fund Board.

                              Schedule 3 to the Bill transfers administration of four unique Deductible Gift Recipient categories to the Australian Taxation Office, and repeals provisions relating to maintenance of departmental registers.

                              The ATO currently administers 48 of the 52 categories under which an organisation may be eligible for endorsement as a deductible gift recipient. Four deductible gift recipient categories—Environmental Organisations, Harm Prevention Charities, Cultural Organisations, and Overseas Aid Organisations—are currently administered by Ministers through departmental registers.

                              The amendments transfer practical responsibility for assessing deductible gift recipients from these four Ministers to the ATO. The amendments will make all deductible gift recipient categories consistent in administration, reducing the regulatory burden imposed on endorsed organisations and streamlining application and reporting requirements for organisations.

                              Approval times for these four categories will be reduced from up to two years to around one month. It will prevent the situation that we saw prior to the last election, in which worthy charities that were not politically aligned with the Morrison Government did not receive their deductible gift recipient listing in a timely fashion. This included the Grace Tame Foundation, which had to await the election of the Albanese Government before receiving its deductible gift recipient listing.

                              These changes are just part of our commitment to strengthening the charity sector.

                                        Schedule 4 to the Bill provides deregulatory benefits to small and medium businesses that engage with the fuel or alcohol excise system or import excise-equivalent goods. Instead of the existing ability to apply for weekly or monthly reporting and payments, such businesses can also apply for permission to lodge and pay their duty quarterly. This measure will reduce administrative burdens and help small and medium businesses with cash flow.

                                        The proposed amendment will commence on 1 July 2023. Eligible businesses with an aggregated turnover of less than $50 million in an income year, who pay fuel and alcohol excise or customs duty on excise-equivalent goods, will then be able to apply for permission to the Commissioner of Taxation or Comptroller-General of Customs to move to the new reporting schedule.

                                        Currently, businesses are required to lodge and pay excise and customs duty on excise-equivalent goods when goods enter home consumption unless they have permission to defer lodgement and payment. This permission can only be given for lodgement and payment weekly or, for certain eligible businesses, monthly.

                                        This new quarterly schedule will better align fuel and alcohol excise and customs duty on excise-equivalent goods with other indirect taxes such as the GST. Fuel and alcohol businesses will benefit from reporting and paying excise and customs duty at the same time as they lodge their Business Activity Statement.

                                        Schedule 5 to the Bill provides deregulatory benefits to retail and hospitality venues who repackage beer from bulk quantities into small containers for immediate retail sale. From 1 July 2023, this measure introduces a targeted exemption from alcohol excise licensing requirements for the repackaging of the first 10,000 litres of beer from kegs into non-pressurised containers of no more than 2 litres capacity—commonly known as growlers—for immediate retail sale at particular premises in a financial year.

                                        Currently, businesses that package duty-paid beer into these containers are required to hold a manufacturing license for excise purposes and pay duty again, in effect paying double duty. These licenses carry significant obligations which are more appropriate to entities fermenting, brewing or repackaging beer on a commercial basis in order to protect the lower alcohol excise rate of keg beer. However, filling specified containers in retail settings does not pose this integrity risk. This measure will benefit the hospitality sector, and reflects the Australian Government's commitment to our local bars and clubs.

                                        While the first 10,000 litres of beer in a financial year is exempt, subsequent amounts are captured by existing arrangements. This will ensure that larger businesses engaged in this practice in more significant commercial quantities remain appropriately regulated.

                                        Sale of takeaway alcohol in retail settings will continue to remain the regulatory responsibility of the states and territories. This amendment is intended to remove disproportionate regulatory requirements on this practice created by the alcohol excise system.

                                        The measures in Schedules 4 and 5 reflect the Australian Government's strong commitment to a thriving small business sector. It complements small business measures that we are already implementing, including:

                                                  Full details of the measure are contained in the Explanatory Memorandum.

                                                  Debate adjourned.

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