The Government continues to reform Australia’s regulatory environment to ensure the economy remains productive, competitive and agile.
The Government will forgo receipts of $64.9 million over 3 years from 2023 to 24 to streamline fees associated with Australia’s Business Registers as company registration and lifecycle management moves to the modernised platform (scheduled for September 2023). These reforms will:
The Government will also forgo receipts of $6.9 million over 4 years from 2022-23 to make permanent the temporary tariff concession that is currently in place for certain medical and hygiene products to treat, diagnose or prevent the spread of COVID19:
The Government is also providing significant deregulation benefits to fuel and alcohol producers, importers, and distributors through streamlining the administration of fuel and alcohol excise and excise-equivalent customs goods.
These changes are estimated to cost $127.5 million in underlying cash terms over the forward estimates period. From 1 July 2023, the changes will:
The measure is expected to cost $336.9 million in underlying cash terms over the forward estimates period. Partial funding for this measure has already been provided for by the Government.
This measure builds on the 2021-22 MYEFO measure Deregulation Agenda – next steps.
Global oil prices have risen significantly since the Russian invasion of Ukraine. The Government will help reduce the burden of higher fuel prices at home by halving the excise and excise-equivalent customs duty rate that applies to petrol and diesel for 6 months.
The excise and excise-equivalent customs duty rates for all other fuel and petroleum-based products, except aviation fuels, will also be reduced by 50 per cent for 6 months. The Government is responding in a temporary, targeted and responsible way to reduce the cost of living pressures experienced by Australian households and small businesses.
The measure will commence from 12.01 am on 30 March 2022 and will remain in place for 6 months, ending at 11.59 pm on 28 September 2022. Under the measure, existing policy settings for fuel excise and excise-equivalent customs duty, including indexation in August, will continue but on the basis of the halved rates.
At the conclusion of the 6 month period the excise and excise-equivalent customs duty rates will then revert to previous rates, including indexation that would have occurred on those rates during the 6 month period.
The rate of excise and excise-equivalent customs duty currently applying to petrol and diesel is 44.2 cents per litre. This measure will halve the rate on petrol and diesel to 22.1 cents per litre from 30 March 2022, with the price faced by consumers expected to be reduced by a larger magnitude given GST will be levied on the lower excise rate.
The Australian Competition and Consumer Commission will monitor the price behaviour of retailers to ensure that the lower excise rate is fully passed on to Australians.
This targeted measure to provide temporary relief from fuel price pressures will be legislated to end on 28 September 2022.
This measure is estimated to decrease receipts by $5.6 billion, and decrease payments by $2.7 billion over the forward estimates period.
This post was aggregated from Dynamic Business (https://dynamicbusiness.com).