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1998-1999-2000-2001
THE
PARLIAMENT OF THE COMMONWEALTH OF
AUSTRALIA
HOUSE OF
REPRESENTATIVES
SUPPLEMENTARY
EXPLANATORY MEMORANDUM
(Amendment to be moved on
behalf of the
Government)
(Circulated
by authority of the Minister for Justice and
Customs,
Senator the Honourable Christopher Martin
Ellison)
ISBN: 0642 459703
PASSENGER MOVEMENT CHARGE AMENDMENT BILL 2001
OUTLINE
The
purpose of the amendment to the Passenger Movement Charge Amendment Bill 2001 is
to exempt certain departures of persons from Australia on or after
1 July 2001 from the increase in the rate of the
Passenger Movement Charge to $38. These are departures that are made by a
person using a ticket or equivalent authority where the ticket or authority was
sold or issued before 1 July 2001.
The exemption of these departures of persons from
Australia is expected to reduce the increased revenue from the increase of the
Passenger Movement Charge by approximately $9 million.
PASSENGER MOVEMENT CHARGE AMENDMENT BILL 2001
Amendment
1
This amendment amends item 2 of Schedule
1 to the Passenger Movement Charge Amendment Bill 2001 (the Bill) by omitting
“1 July 2001” and substituting “1 July 2001
unless:
(a) a person departs using a ticket or
equivalent authority; and
(b) the ticket or
authority was sold or issued before 1 July
2001.”
Item 2 of Schedule 1 to the Bill
contains the application provision for the increase of the Passenger Movement
Charge (the Charge) to $38. Currently, it provides that the increase applies in
relation to the departure of a person from Australia on or after 1 July
2001.
Currently, for departures from Australia
on commercial and charter airlines and passenger ships, the Charge is collected
entirely under arrangements made under section 10 of the Passenger Movement
Charge Act 1978 (the Charge Act). Airlines and shipping companies
periodically remit to the Commonwealth an amount equal to the Charge payable by
departing passengers that are covered by a relevant arrangement. Where this
amount is paid, the departing passenger is deemed to have paid the Charge. In
accordance with these arrangements, an amount equal to the Charge may be
collected from a passenger up to twelve months prior to their departure.
Airlines have indicated to the Government that
they have already sold several hundred thousand tickets for departures on or
after 1 July 2001 and have collected only the current amount of the Charge from
passengers ie, $30. Under the arrangements, however, the airline would be
required to remit to the Commonwealth the increased amount of the Charge for
each departure after
1 July 2001 and thereby bear
the additional $8 in respect of each such departure.
Therefore, it is proposed to move a Government
amendment to the application provision in the Bill. It is proposed that the
increase in the Charge will not apply to a departure of a person from Australia
on or after 1 July 2001 where the person departs using a ticket or an equivalent
authority and the ticket or authority was sold or issued before 1 July
2001.