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Part 1: Revenue Measures (continued)

Immigration and Border Protection

Enhanced Project By‑law Scheme — closure

Revenue ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Immigration and Border Protection 60.0 60.0 50.0 50.0

The Enhanced Project By‑law Scheme (EPBS) will close from 7:30pm (AEST) on 3 May 2016, with transitional provisions for concessions already granted under the EPBS. This measure is estimated to have a gain to revenue of $220.0 million over the forward estimates period.

Enhancing Tourism — further reforms to tourist visas

Revenue ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Immigration and Border Protection 0.2 0.4 0.4 0.4

The Government will raise revenue of $1.5 million over four years from 2016‑17 by introducing trial visa arrangements in key markets. This includes a user‑pays visa fast‑track service for nationals from India and the United Arab Emirates, and a three year multiple entry visa for low immigration risk nationals from India, Thailand, Vietnam and Chile.

This measure builds on the 2015‑16 MYEFO measure titled Our North, Our Future — business, trade and investment gateway, which included a trial of a user‑pays visa fast‑track service for Chinese nationals.

Premium Border Clearance Services — establishment

Revenue ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Immigration and Border Protection nfp nfp nfp nfp nfp
Department of Agriculture and Water Resources nfp nfp nfp nfp nfp
Total — Revenue nfp nfp nfp nfp
Department of Agriculture and Water Resources nfp nfp nfp nfp nfp
Department of Immigration and Border Protection nfp nfp nfp nfp nfp
Total — Expense

The Government will raise revenue by charging a commercial fee to airport operators to provide premium border clearance services for international air passengers, initially at Sydney, Perth and Melbourne airports.

The expenditure for this measure is not for publication (nfp) due to commercial confidentiality.

Removal of the Special Duty on Imported Used Vehicles

Revenue ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Immigration and Border Protection .. ..

The Government will remove the $12,000 special tariff on imported used vehicles from 1 January 2018. This measure is estimated to have negligible cost to revenue over the forward estimates period.

The special tariff is rarely applied in practice as importers can claim an exemption if they have a Vehicle Import Approval issued by the vehicle safety standards regulator.

Further information can be found in the press release of 10 February 2016 issued by the Minister for Major Projects, Territories and Local Government.

Tobacco Excise — measures to improve health outcomes and combat illicit tobacco

Revenue ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Immigration and Border Protection 685.0 1,540.0 2,460.0
Australian Taxation Office 75.0 155.0 245.0
Total — Revenue 760.0 1,695.0 2,705.0
Department of Immigration and Border Protection 2.9 4.9
Department of the Treasury 65.0 145.0 235.0
Total — Expense 2.9 69.9 145.0 235.0

The Government will increase tobacco excise and excise equivalent customs duties through four annual increases of 12.5 per cent per year from 2017 until 2020. The increases will take place on 1 September each year and will be in addition to existing indexation to average weekly ordinary time earnings.

In addition, the Government will also limit, from 1 July 2017, the duty free tobacco allowance to 25 cigarettes or equivalent from the current allowance of 50 cigarettes.

This measure is estimated to have a gain to the Budget of $4.7 billion over the forward estimates period.

In conjunction with the changes to excise and the duty free limit, the Government will also strengthen its regulatory and enforcement response to illicit tobacco by providing $7.7 million over two years to expand the Department of Immigration and Border Protection's Tobacco Strike Team.

The Government will also reform the Customs Act 1901 and Excise Act 1901 to provide enforcement officers with access to tiered offences and appropriate penalties, increasing the range of enforcement options available for illicit tobacco offences.

These changes will improve the health of Australians by reducing their exposure to tobacco products and will ensure that tobacco products consumed domestically are fully taxed and comply with Australian regulations. These four annual increases will take Australia's excise on a cigarette to almost 69 per cent of the average price of a cigarette (assuming no other changes to cigarette prices over this period), close to the World Health Organisation recommendation of 70 per cent of the price of a cigarette.

Trans‑Pacific Partnership Agreement

Revenue ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Immigration and Border Protection ‑25.0 ‑50.0 ‑60.0 ‑60.0

On 4 February 2016, the governments of Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States of America and Vietnam signed the Trans‑Pacific Partnership Agreement (TPP). The TPP is a trade agreement that will further integrate the twelve economies in the Asia‑Pacific region. This measure is estimated to have a cost to revenue from tariff reductions of $195.0 million over the forward estimates period. This measure adds to the Government's free trade agreements with Japan, Korea and China.

The cost to revenue of this measure has already been accounted for by the Government.

Further information can be found in the press release of 4 February 2016 issued by the former Minister for Trade and Investment.

World Trade Organization — Information Technology Agreement

Revenue ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Immigration and Border Protection .. .. ‑20.0 ‑60.0

The Government will phase out tariffs on a range of information technology products starting from 1 January 2017 as part of the World Trade Organization Information Technology Agreement.

Reciprocal reductions in tariffs and other trade barriers by other parties to the Agreement will provide Australian businesses and consumers with a greater variety of goods and services at lower prices.

This measure is estimated to have a cost to revenue of $80.0 million over the forward estimates period.

Further information can be found in the press release of 17 December 2015 issued by the former Minister for Trade and Investment.