Australian Government, 2012‑13 Budget
Budget

Appendix A: Policy Decisions taken since the 2012-13 Budget (Continued)

Revenue Measures (Continued)

Attorney‑General's

Customs' compliance assurance system — expansion

Revenue ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Australian Customs and Border Protection Service 11.4 11.4 11.4
Australian Taxation Office 7.6 7.6 7.6
Total — Revenue 19.0 19.0 19.0
Australian Customs and Border Protection Service 0.5 4.5 4.2 4.3
Department of the Treasury 7.6 7.6 7.6
Total — Expense 0.5 12.1 11.8 11.9

The Government will provide $13.5 million over the forward estimates period to expand the Australian Customs and Border Protection Service's (Customs) compliance assurance system at the border. This measure will provide Customs with additional staff dedicated to compliance activity. This measure is estimated to have a gain to revenue of $57.0 million, and an increase in GST payments to the States and Territories of $22.8 million, over the forward estimates period.

This measure will also provide Customs with additional staff to undertake a targeted review of Tariff Concession Orders (TCOs) on imported goods and services. TCOs allow duty‑free entry for certain goods and services where there is no local industry. The review will help ensure that TCOs are still valid and appropriate in the current market.

Duty free allowances — amending the rules when incoming passengers declare an excess over the allowance

Revenue ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Australian Customs and Border Protection Service * * * *
Australian Taxation Office * * * *
Total — Revenue * * * *

The Government has amended the arrangements when passengers exceed the duty‑free allowances for tobacco and alcohol products. The new arrangements took effect from 1 September 2012 and allow passengers who have declared amounts of tobacco and/or alcohol in excess of the duty‑free allowances to either keep the goods up to the allowance and abandon the excess or pay duty on the total amount of goods. This measure is estimated to have a small but unquantifiable impact on revenue over the forward estimates period.

Under the previous arrangements travellers who declared they were in excess of the duty‑free allowances were required to pay duty on all their tobacco and alcohol products or abandon the goods altogether.

This change alleviates an ongoing cause of traveller dissatisfaction, simplifies administration and provides a more equitable outcome for travellers who have declared being in excess of the duty‑free allowances.

Malaysia‑Australia Free Trade Agreement

Revenue ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Australian Customs and Border Protection Service ‑10.0 ‑20.0 ‑25.0 ‑25.0

On 22 May 2012, the governments of Australia and Malaysia signed the Malaysia‑Australia Free Trade Agreement. Under the Agreement, both parties agreed to eliminate tariffs on a wide range of goods. Both parties are aiming to complete their respective domestic processes so as to give effect to the Agreement from 1 January 2013. This measure is estimated to have a cost to revenue of $80.0 million over the forward estimates period.

Under the Agreement, Australia and Malaysia will reduce or eliminate tariffs on imported goods. The Agreement will also address other barriers to trade and investment.

Further information can be found in the joint press release of 22 May 2012 issued by the Prime Minister and the Minister for Trade and Competitiveness.

Passenger movement charge — do not proceed with indexation

Revenue ($m)
  2011-12 2012-13 2013-14 2014-15 2015-16
Australian Customs and Border Protection Service ‑15.0 ‑40.0 ‑70.0

The Government will not proceed with annual indexation of the rate of the passenger movement charge to the Consumer Price Index (CPI), as announced in the 2012‑13 Budget, and will instead continue the current practice of periodic increases. This measure is estimated to have a cost to revenue of $125.0 million over the forward estimates period.

Further information can be found in the joint press release of 20 June 2012 issued by the Acting Prime Minister and Treasurer, the Minister for Home Affairs and the Minister for Tourism.

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