Darren Cheeseman (Corangamite, Australian Labor Party) Share this | Hansard source

I withdraw. Payments in relation to a farm management deposit, a retirement savings account or a first home saver account will generally have to be made into another account of the same type. This ensures that the normal restrictions on withdrawing amounts from those accounts are maintained. Those payments will generally be treated as a rollover from one account to another to avoid the consequences of them being treated as the opening of a new account. APRA will be subject to the same obligations to withhold amounts from payments, and to the same reporting obligations in relation to the amounts withheld or rolled over, that the failed institution would have been.

Another matter tackled by these amendments is the matter of small business capital gains—of course, very important to my constituency within Corangamite. These amendments to the small business capital gains tax concessions increase access to the concessions for taxpayers owning a capital gains tax asset used in a business by an affiliate or entity connected with the taxpayer and for partners owning a capital gains tax asset used in a partnership business. The main changes were announced in the 2008-09 budget. These amendments had been actively sought by industry, and will be a real help to many small businesses in my own electorate. Corangamite, my own electorate, is based around small business, and I have done a lot of work with small business to find out what their needs are in difficult circumstances. I am pleased to see them get assistance, particularly when we are in such difficult times, as we are now.

These amendments will also make a number of additional changes to refine and clarify elements of the existing small business capital gains tax concessions so that they operate flexibly, as of course the government intended. Industry stakeholders expressed support for these measures during consultation processes. A number of stakeholders suggested additional changes to the scope and application for small business capital gains tax concessions. The additional changes were not adopted, as they were beyond the scope of the current amendments and would also lead to more complex provisions or greater compliance costs for taxpayers.

I would also like to say a couple of things about the tax offset component in this bill in relation to urban water and desalination projects. I think it is a very important measure. It will help important water desalination projects get off the ground. The government is providing financial assistance under the National Urban Water and Desalination Plan to improve the security of water supplies to all of Australia’s major cities. This will be achieved by supporting major desalination, water recycling and stormwater harvest projects that will contribute significantly to this end. This measure implements the tax offset component within this plan. Assistance is capped at 10 per cent of eligible capital costs up to a maximum of $100 million per project. Successful applicants which are outside the tax system will receive cash grants instead of tax offsets. The Minister for Climate Change and Water is responsible for approving this assistance, and the plan is administered by the Department of Environment, Water, Heritage and the Arts. Part of the National Urban Water and Desalination Plan involves funding for stormwater harvesting projects. Additional funding for these projects, as well as relaxed eligibility criteria, were negotiated with Senator Xenophon as part of the passage of the $42 billion stimulus package through the Senate.

This forms part of the government’s Water for the Future and will support initiatives that drive investment in diverse water supply options and encourage industry and the community to save and use water more efficiently. This measure implements the government’s election commitment. Within my own seat, and in the city that I represent, there are two major projects in relation to water recycling. There is the $20 million commitment to Shell, which is a part of federal Labor’s commitment in the federal seat of Corio, and there is a $10 million commitment to the Black Rock recycling plant, which, of course, is very pleasing to my electorate. Most of the other elements which I have not touched on today have been canvassed by numerous speakers, so I will leave it at that. I commend this bill to the House.

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