CASA budget 2015 – What is revealed??

CASA budget 2015 – What is revealed??

The 2015-2016 budget papers have some serious hidden implications for aviation, with a continuation of the excise on avtur and avgas, an impost that on CASA figures [see budget papers below], that impacts aviation into the next four years by over $100m.

The impost is now into it’s 5th year and on the current budget papers goes on for a further five years.

The Department of Infrastructure says in it’s papers that the excise take will continue at least until June 2019.

This is serious hidden taxation and in light of what the Member for Farrer had to say in 2010:

We condemn the government for introducing this 25 per cent tax increase on the aviation sector without first consulting with or informing the aviation industry about it and without demonstrating that this additional tax being taken from the industry will be put to good use within an organisation that is already running a budget surplus. It is not as if the organisation needs the money.

The changes to the excise and the attendant debates can be read here:

June 2010 parliamentary debates on giving CASA $89.9m for only four years.

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In the 2010 budget, Minister Albanese gave a four year increase to CASA, which was to:

Federal Budget 2010-2011
As part of the Federal Budget for 2010-11, the Government has committed $89.9 million additional funding over four years to strengthen the capacity of the Civil Aviation Safety Authority. This figure, which represents a 30 per cent increase over current levels, will go towards achieving the following objectives:
• employ 97 additional safety specialists, safety analysts and air worthiness inspectors and other staff, allowing the organisation to expand its surveillance activities and fulfil its increasingly complex regulatory activities
• provide expanded and ongoing training to its staff
• make permanent random alcohol and drug testing as well as a number of other programs which until now had been funded on a temporary or ad hoc basis
• make sure the Office of Airspace Regulation continues to have the resources to properly regulate and administer Australia’s airspace, an area covering almost 11 per cent of the earth’s surface.

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Current Position:

The issue now is that CASA are now past the 4-year mark of this funding and are still not making the proper progress and effectively have wasted the budgeted “$89.9m”.

Apart from allowing the excise to “roll forward”, there has been no proper acquittal of the budget requirement for this funding stream to cease at by June 30 2014.

The current budget papers show this amount [see programme 2.4 expenses] below, which continue this massive tax take into the 2018-2019 fiscal year.

Further, the following comments in the Departmental papers:

Committee consideration
As of 9 June 2010, the Bill has not been considered by any committee.

Now the Senate estimates must make the appropriate direction.

Another industry saving for a sorely pressed industry!! is required now.

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Committee consideration
As of 9 June 2010, the Bill has not been considered by any committee.
Financial implications
The increase in excise was announced in the Federal Budget for 2010-11. The Explanatory Memorandum  states that the measure will result in an additional $89.9 million for CASA over four financial years from 1 July 2010 to 30 June 2014.11

Main provisions
Schedule 1—Amendments to the Excise Tariff Act 1921
Item 1 amends subitem 10.6 of the Schedule to the Act. Subitem 10.6 deals with the rate of duty for gasoline used as fuel for aircraft. The rate of duty is increased from $0.02854 per litre to $0.03556.
Item 2 amends subitem 10.17 which deals with kerosene for use as fuel in aircraft. The rate of duty is increased from $0.02854 per litre to $0.03556.

11. Explanatory Memorandum, Excise Tariff Amendment (Aviation Fuel) Bill 2010, p. 1.

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This is not a “good look” for an industry decimated by poor planning and regulation.

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Budget Papers 2015-2016:

BP1_combined.pdf

BP2_consolidated.pdf

BP3 – Consolidated

BP4_consolidated_file

Other readings:

SMH – Ian McDonald comment – Article Aviation fuel excise to go up from July

Actual 2015 Budget Bill

excise bill casa avgas-avtur

Civil Aviation Safety Authority Budget 2015

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