David Bradbury (Lindsay, Australian Labor Party, Parliamentary Secretary to the Treasurer) Share this | Hansard source

I thank all of those members who contributed to the debate on the Tax Laws Amendment (2011 Measures No. 1) Bill. In particular I acknowledge the contribution of the member for Blair, who was a very strong and effective advocate for the people of his community. I think that came through very clearly in his contribution today.

Schedule 1 introduces taxation measures to alleviate the financial hardship being felt in communities affected by the disasters that have devastated Australia over the 2010-11 summer. These amendments exempt from income tax the disaster income recovery subsidy payments to victims of the recent floods and Cyclone Yasi and the ex-gratia payments made to certain New Zealand visa holders affected by a disaster where the Australian Government Disaster Recovery Payment has been activated. Exempting these payments from income tax maximises the amount of payment that individuals receive and is consistent with the exemption provided for equivalent payments made in response to other disasters, such as the devastating Black Saturday Victorian bushfires.

Schedule 2 exempts from income tax category C payments made to flood affected small businesses and primary producers under the Natural Disaster Relief and Recovery Arrangements. This measure recognises the hardship suffered by small businesses and primary producers in affected areas and provides certainty for recipients in terms of tax treatment at a time when they should not need to worry about tax matters

Schedule 3 amends the tax laws to allow the money in a first home saver account to be paid to a genuine mortgage after the end of a minimum qualifying period should the account holder purchase a dwelling in the interim. This increases the flexibility of first home saver accounts by allowing individuals to purchase a home earlier than planned and still be able to put the money towards their new home.

Currently, if a first home is purchased before certain minimum release conditions are met, the first home saver account must be closed and the money in the account must be paid to the individual account holder’s superannuation or retirement savings account. First home saver accounts are designed to encourage individuals, through tax concessions and government contributions, to save for their first home over the medium to long term, and have been available since October 2008.

The government has consulted on these changes and the measure applies for houses purchased after royal assent. This bill deserves the support of the parliament. I commend this Bill to the House.

Question agreed to.

Bill read a second time.

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

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