Mr TRUSS (Leader of the Nationals) (12:50 PM) —I am speaking today on the Excise Tariff Amendment (Aviation Fuel) Bill 2010 and the Customs Tariff Amendment (Aviation Fuel) Bill 2010 and Iğ Ğmoveğ :
That all words after “That” be omitted with a view to substituting the following words: “whilst not declining to give the bill a second reading, the House:
(1) acknowledges the importance of the role of the Civil Aviation Safety Authority (CASA) in regulating for safety in aviation;
(2) notes that CASA’s funding from aviation fuel excise has increased from $53.96 million in 2002-03 to $78.37 million in 2008-09, and will continue to increase as the industry expands;
(3) calls on CASA to improve its efficiency in the way it conducts its business so that it may use its existing resources more effectively in the regulation of the aviation industry;
(4) notes that the bill proposes to increase the excise on aviation fuel from 2.854 cents per litre to 3.556 cents per litre, that is, by 25 per cent, from 1 July 2010; and
(5) condemns the Government for introducing a 25 per cent tax increase on the aviation sector
without first consulting and informing the aviation industry”.
These bills increase the excise levied on aviation gasoline and aviation kerosene sold in Australia by 25 per cent.
The funds raised from this increase are to be allocated to the Civil Aviation Safety Authority to enable it to recruit 97 new staff and expand its surveillance activities. It is also intended that some of the money raised by this tax increase will be directed towards allowing CASA to clear its backlog of regulatory reforms and regulation redrafting.