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2003-04 Budget

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Attorney-General's

A Safer Australia - cost recovery for enhanced checking of aviation security identification card holders

Revenue ($m)
  2003-04 2004-05 2005-06 2006-07
Australian Federal Police 1.5 0.8 0.8 0.8

The Government will further strengthen security at airports by conducting additional background checks on staff who require an aviation security identification card. The checks will seek to ascertain if the applicants for and holders of cards are involved in politically motivated violence. This service will be in addition to the current mandatory security checking undertaken for all card holders, and will be fully cost recovered.

See also the related expense and capital measures titled A Safer Australia - enhanced checking of aviation security identification card holders in the Attorney-General's portfolio.

A Safer Australia - cost recovery for x-ray facilities for shipping container inspections

Revenue ($m)
  2003-04 2004-05 2005-06 2006-07
Australian Customs Service 16.3 16.3 16.3 -

To improve the security of cargo entering Australia, shipping containers moving through Australian ports will be subject to greater security including more x-ray testing. The Import Processing Charge (IPC), payable by industry to recover Customs cargo processing costs, will be increased (by $14.35 per consignment) to partially fund the movement and presentation of cargo through x-ray examination facilities at ports in Sydney, Melbourne and Brisbane.

The increased IPC which took effect on 1 May 2003 is estimated to yield additional revenue of $56 million over four years (including $7.1 million in 2002-03).

See also the related expense measure titled A Safer Australia - increased use of x-ray facilities for shipping container inspections in the Attorney-General's portfolio.

Chemical paraquat dichloride - removal of import duty

Revenue ($m)
  2003-04 2004-05 2005-06 2006-07
Australian Customs Service -0.5 -0.5 -0.5 -0.5

The Government will remove, with effect from 1 April 2003, the five per cent import duty on the chemical paraquat dichloride with the addition of an emetic. The emetic is a safety agent that induces vomiting if swallowed.

Currently, there is duty-free treatment of paraquat dichloride with safety features such as an anti-dusting, colouring or stenching agent, whereas paraquat dichloride with an emetic attracts a duty rate of five per cent.

This measure will align the tariff treatment of paraquat dichloride with an emetic with the tariff treatment of the chemical with the addition of other safety features.

Passenger motor vehicle and automotive components - reduction in tariff rate

Revenue ($m)
  2003-04 2004-05 2005-06 2006-07
Australian Customs Service - - - -

From 1 January 2010, the Government will reduce the tariff for passenger motor vehicles (PMVs) and automotive components to five per cent.

On 5 June 1997, the Government announced that tariff rates for PMVs and automotive components would be reduced from 15 per cent to 10 per cent, from 1 January 2005. Under this measure, tariffs will remain at 10 per cent until 31 December 2009.

The measure forms part of the post-2005 assistance package for the automotive industry, which provides $4.2 billion over ten years to the industry through the Automotive Competitiveness and Investment Scheme. The package promotes production, investment, and research and development in new and innovative technologies and will foster an increasingly competitive and sustainable automotive industry in Australia.

Further details may be found in the Minister for Industry, Tourism and Resources' Press Release No. 02/249 of 13 December 2002.

See also the related expense measure titled Automotive assistance package post-2005 in the Industry, Tourism and Resources portfolio.

Singapore-Australia Free Trade Agreement - reduced tariffs

Revenue ($m)
  2003-04 2004-05 2005-06 2006-07
Australian Customs Service -30.0 -30.0 -35.0 -35.0

On 17 February 2003, the Governments of Australia and Singapore signed the Singapore-Australia Free Trade Agreement (SAFTA). The agreement is expected to come into force in July 2003. As part of the comprehensive agreement, both nations have agreed to eliminate tariffs on each other's goods, resulting in a reduction in tariff revenue collected.

The SAFTA builds on Australia's strong economic partnership with Singapore and will provide significant benefits to the Australian economy. In addition to eliminating tariffs on goods, the SAFTA establishes a more open, predictable and transparent framework for bilateral trade across a wide range of areas. In particular, Australian service suppliers and investors in sectors such as legal, financial, professional, telecommunications, education and environmental services will be the main beneficiaries.

In addition, the SAFTA is consistent with Australia's Asia-Pacific Economic Cooperation commitment to broader trade and economic reform objectives and is a positive initiative to advance the Bogor goals of free and open trade and investment.

Further details may be found in the Minister for Trade's Press Release of 17 February 2003.


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