Senate

Customs Legislation Amendment Bill (No. 1) 2002

Replacement Explanatory Memorandum

(Circulated by authority of the Minister for Justice and Customs, Senator the Honourable Christopher Martin Ellison)

This Memorandum replaces the Explanatory Memorandum presented to the House of Representatives on 19 June 2002

Schedule 6 - Amendment of the Passenger Movement Charge Collection Act 1978

Passenger Movement Charge Collection Act 1978

Item 1 - Paragraph 5(j)

Passenger movement charge is imposed on persons departing Australia for another country (section 5, Passenger Movement Charge Act 1978 ).

Section 5 of the Passenger Movement Charge Collection Act 1978 (the Collection Act) exempts certain persons from the requirement to pay the charge.

Paragraph 5(j) of the Collection Act provides that a person does not have to pay passenger movement charge if the person is in the course of a journey that has involved a previous departure by the person from Australia in respect of which the person paid the charge.

It was intended that this provision would only apply to a passenger on a fly/cruise type journey, which involves multiple departures from Australia. For example, a person can fly to Australia and then depart Australia on a cruise. He or she will pay passenger movement charge on this departure. They may then return to Australia on the boat and then depart Australia again, this time by aircraft. Under paragraph 5(j) the person will not have to pay passenger movement charge when they depart Australia the second time.

Whilst paragraph (j) covers the fly/cruise type journeys, it is arguable that is also applies where a person departs Australia twice by aircraft. Paragraph (j) was not intended to cover this type of circumstance.

This item limits the operation of paragraph 5(j) to the fly/cruise type of journey.

Item 2 - At the end of paragraph 5(k)

Paragraph 5(k) of the Collection Act exempts a person who at the time of departure does not have to pay the charge because of the operation of:

-
the Consular Privileges and Immunities Act 1972 ;
-
the Diplomatic Privileges and Immunities Act 1967 ; or
-
the International Organisations (Privileges and Immunities) Act 1963.

These Acts do not cover the representatives of the Taipei Economic and Cultural Office and the Hong Kong Economic and Trade Office. It is considered that these representatives should be accorded the same treatment in relation to passenger movement charge as diplomats.

Under the Overseas Missions (Privileges and Immunities) Act 1995 (the Overseas Missions Act) members of those offices are exempt from paying passenger movement charge.

This item amends paragraph 5(k) of the Collection Act so that a person will not have to pay passenger movement charge if the person does not have to pay the charge because of the operation of the Overseas Missions Act.


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