Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

This Bill amends the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007 to lower from 95 per cent to 65 per cent the rate of tax on superannuation payments applying to working holiday makers after they leave Australia.

As part of the Government's working holiday maker reform package, Parliament previously agreed to amend the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007 to increase to 95 per cent the rate of tax on superannuation payments to working holiday makers after they leave Australia. That increase helped to ensure that the Government's working holiday maker reform package was fully offset.

As a result of the negotiations with Senate crossbench around the passage of legislation to implement a 15 per cent tax rate on working holiday makers' income, the Government has agreed to lower the rate of tax on working holiday makers' Departing Australia Superannuation Payment from 95 per cent to 65 per cent.

The new rate of tax introduced by this Bill will apply from 1 July 2017. The decision to lower the rate of tax on Departing Australia Superannuation Payments to working holiday makers from 95 to 65 per cent is estimated to have a cost to revenue of $55 million over the forward estimates.

This change will lower the overall level of taxation that applies to working holiday makers. It is part of the Government's package to lower to 15 per cent the rate of tax applying to working holiday makers' income. This is a good outcome for working holiday makers and the employers that rely on them as a valued source of seasonal labour.

Full details of the measure are contained in the explanatory memorandum.

I move:

That the question be now put.

Stephen Parry (President) Share this | Link to this | Hansard source

The question is that the question be now put.

Stephen Parry (President) Share this | Link to this | Hansard source

The question now is that this bill be now read a second time.

Question agreed to.

Bill read a second time.