Bill Shorten (Maribyrnong, Australian Labor Party, Parliamentary Secretary for Disabilities and Children's Services) Share this | Hansard source

I want to thank those members who have contributed to the debate on the Tax Laws Amendment (2009 Measures No. 5) Bill 2009. Schedule 1, the GST and representatives of incapacitated entities measure, will protect GST revenue in the light of the Federal Court decision which found that the representatives of an incapacitated entity are not liable for the GST consequences that arise during their appointment. This measure will amend the GST law with effect from 1 July 2000 to restore the policy intent stated in the explanatory memorandum to the law introducing the GST. In particular, it will ensure that the representatives of incapacitated entities are liable for GST on postappointment transactions that are within the scope of their authority. This measure will also address the uncertainty faced by insolvency practitioners in the application of the law following the Federal Court decision.

Schedule 2 amends the Pay-As-You-Go instalment provisions to address unintended consequences arising out of the amendments to those provisions contained in the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009, the TOFA Act. Consultation on a more appropriate method for dealing with the interactions between the Pay-As-You-Go instalment system and the TOFA Act will be undertaken.

Schedule 3 exempts from income tax the outer regional and remote payment made under the Helping Children with Autism package. This is a payment of $2,000 to assist parents of children with a diagnosis of autism who live in outer regional and remote Australian areas to be able to access services which might not be present in their immediate vicinity by assistance with costs. This exemption will ensure and provide the recipients of this payment with certainty as to the tax status of these payments. The payments, as I said, are for families with children and are to assist with their costs, not create circumstances where they have to pay tax.

The Helping Children with Autism package is the first attempt by any federal government to fund early intervention services for children diagnosed with autism or Asperger’s syndrome along the spectrum. We know that early intervention and quality therapies provided by psychologists, occupational therapists and speech therapists can improve a child’s wellbeing and their ability to benefit from learning and education throughout the course of their schooling life. As members would realise, raising a child with an ASD is a challenging and often isolating experience for parents. I am pleased to say the package has helped 4,104 families with the cost of therapies and 460 of those are living in regional and remote areas. The payment acknowledges the difficulties that families can face when there are not the qualified health professionals available in remote and outer regional Australia.

Schedule 4 exempts from income tax the payments made under the Continence Aids Payment Scheme. These payments assist eligible recipients with permanent and severe incontinence to meet some of the costs of their continence products and allow recipients greater choice in the range of products. This replaces the existing Continence Aids Assistance Scheme, which currently provides subsidised continence products to eligible recipients. Providing an income tax exemption for the receipt of this payment will ensure that no recipients are disadvantaged under the new scheme. Schedule 5 will help improve the neutrality of the tax system and bring Australia’s tax treatment of Commonwealth government securities into line with the treatment of government securities in other nations by the removal of interest-withholding tax on Commonwealth government securities. This important measure will increase the attractiveness of Commonwealth government securities in global financial markets.

Finally, as we all know, after the Victorian bushfires devastated communities on 7 February—and there were other fires in that month—a joint appeal fund was established by the Australian Red Cross Society, supported by the Victorian government and the federal government, to help fire affected communities. I am pleased to say the Victorian Bushfire Appeal Fund has received donations in excess of $386 million. Recognising the extraordinary and tragic circumstances and the quite remarkable and unprecedented generosity of Australians and indeed people from overseas, the amendments in schedule 6 permit the Victorian Bushfire Appeal Fund independent advisory panel to use the donations in the fund for a broader range of purposes than the tax law traditionally considers charitable, without jeopardising the charitable status of the Red Cross.

As I have said, the February bushfires generated a wave of generosity almost unprecedented in Australian history. I believe, through working with the bushfire appeal fund directly in my responsibilities as Parliamentary Secretary for Victorian Bushfire Reconstruction, that those who gave to the fund—and this is in excess of 600,000 people—had an expectation their donations could be used to help all of those genuinely in need as a result of the fires. These changes will allow the fund to fund a wider range of community projects and broaden the number of people eligible for assistance. Some of the changes which have been underway since the minister announced these amendments have seen farmers being able to receive payments for fencing and seen destroyed community projects and community infrastructure able to be replaced with funds from the Red Cross.

These changes have been requested by the fund, first chaired by former Governor Landy and now chaired by Mr Patrick McNamara, former Deputy Premier of Victoria. The fund has done a great job. In fact, it has done an exceptional job in wisely distributing the donations it has received. I place on record my congratulations to all the directors of the fund. The allowable purposes for which donations made may be expended are, however, restricted to provide assurance to donors that their charitable gifts will be used appropriately. I commend this bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

Ordered that the bill be reported to the House without amendment.

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