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CASA gets extra funds now $400m – What for??

CASA gets extra $400m – What for??

In June 2010, Minister Albanese put together a new funding source for CASA This funding source never went before a Parliamentary panel or investigation before it was enacted. It was opposed by the member for Wide Bay [Mr. Truss], Senator Ian McDonald and by Member for Farrer Susan Ley.

The source was for short term funding [of a total of $89.9m] that has been hidden in the budget papers by then Treasurer Swan. The funding from excise on avtur and avgas, as continuing past the use-by date of 30th June 2014.

Department of Infrastructure [May Budget Papers] records show the impost continuing in 2015 and 2016.

The question is why, with serious pressure on budgets of all departments, where there is a clear final date on a payment, the Departmental head, Mike Mrdk, does not tell the new treasurer.

The Member for Farrer, Susan Ley, in an impassioned plea to the House says in June 2010 before the Labor Party passed the measure:

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.

What is the position now in May 2015?

The levy continues, with budget papers showing the increased tax take being $140m [CASA Annual reports to 2014] over the past four years. The Mrdk Departmental figures show $73m for 2015 and 2016 years. The 2015 Budget forward figures show another $139m, leaving the aviation industry to find a total of $352m over a 9-year period.

This is supposedly to:

“….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…………..”

This is a situation that failed to impress Senator Ian McDonald as well, but now the “well-funded CASA” in the terms of Susan Ley is continuing to be funded in a way that damages the aviation industry, particularly the GA sector which cannot easily pass on the extra excise charge as can large-scale avtur users – QANTAS/ Virgin/ JetStar/ Tiger.

This further damages the GA sector.



89.9m source

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