Chris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

I thank all honourable members who have made a contribution to this debate on the Tax Laws Amendment (2008 Measures No. 2) Bill 2008. I particularly thank the honourable member for Lindsay, who always makes a very well-considered contribution to tax law amendment bills based on his considerable experience in this area. He has correctly identified many of the issues that go to the complexity of getting status under the tax act for charities and benevolent institutions in this country whether it be deductible gift recipient status or PBI status or the other capacities to be recognised under the tax act. He has correctly identified the difficulties in operating under the Statute of Elizabeth, which has been in operation some 400 years, and charities have changed just a little in those 400 years. It is something that is exercising the mind of the government and something the government will be turning its mind to in a more detailed way during this term.

I thank all honourable members including those opposite—the shadow minister, the member for Stirling, for his contribution; the member for Cook for his contribution in relation to philanthropy, which nobody could disagree with; and the member for Bowman, who I am not sure actually did make a contribution in relation to the bill in any meaningful way but certainly made a long speech. I thank the member for Melbourne Ports, the Parliamentary Secretary for Disabilities and Children’s Services, the member for Blair, the member for Isaacs, the member for Petrie and of course the member for Lindsay and the member for Dobell.

I am glad that the measures in this bill are seen as relatively uncontroversial. It is appropriate that it be so. They are sensible measures which, as some members pointed out, have been introduced by both sides of the House. They do deal with technical inconsistencies in relation to the amount misappropriated by an employee or agent after they dispose of an asset on behalf of a taxpayer. Schedule 2 removes an anomaly in the superannuation guarantee system by extending the superannuation guarantee late offset payment. Schedule 3 amends the tax law to ensure that the market value substitution rule does not apply to certain CGT events, and schedule 4 provides an income tax exemption for the Endeavour executive award and for all research fellowships under this award.

Schedule 5, as several honourable members have pointed out, exempts from income tax the first $1,000 of eligible early completion bonuses paid by state or territory governments. At the moment this only applies to Queensland but of course it will apply to any state or territory which chooses to implement such a bonus.

Schedule 6 adds a number of organisations to the Income Tax Assessment Act 1997 in relation to deductible gift recipient status. I particularly take the opportunity of thanking the member for Melbourne Ports not only for his contribution in this debate but for his ongoing contribution in relation to the status of the Council for Jewish Community Security. He has played an integral role in getting that particular committee recognised in terms of the tax act. We remember of course that the previous government announced this particular recognition on the same day that the then Labor opposition announced a funding package for security in Jewish schools. As the then Leader of the Opposition and the then shadow minister were in the car on their way to make that announcement the previous government was informed that that was the case and they rushed out this announcement in order to counteract the announcement that the Labor opposition was at that point making. It was an announcement that was being made with the member for Melbourne Ports who had been lobbying members of the shadow ministry to have the particular security needs of some schools recognised, whether they were Jewish or of other religious minorities, because these were real issues that many of those schools are facing.

I also briefly take the opportunity of recognising the contribution of the former member for Cowan, whom many of us deeply miss in this House. He lobbied strongly for DGR status for Wheelchairs for Kids. In fact he took the opportunity in his valedictory address to this House to make that case. So although he has departed from this House, he deserves a large degree of the credit for the implementation of Wheelchairs for Kids in relation to the deductible gift recipient status. I recognise his contribution and I am sure that all honourable members join me in wishing him all the best in his retirement. I commend the bill to the House. I will be moving amendments in the consideration in detail stage, which the shadow minister, I understand, has been informed of by my office as a matter of course.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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