Bill Shorten (Maribyrnong, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

Firstly, I would like to thank the members who have contributed to this debate: the members for Dobell, Greenway, Cunningham and, indeed, Casey.

Schedule 1 amends the deductible gift recipient—DGR—provisions of the Income Tax Assessment Act 1997. Taxpayers can claim an income tax deduction for gifts to organisations that are DGRs. This schedule adds two new organisations to the act: the Charlie Perkins Trust and the Roberta Sykes Indigenous Education Foundation. It also recognises the name change of Guides Australia Incorporated to Girl Guides Australia. Making these organisations deductible gift recipients will assist them in attracting public support for their activities.

Schedule 2 allows regulations to make rules relating to how self-managed superannuation fund—SMSF—trustees make, hold and realise investments in collectables and personal use assets. Collectables can be a legitimate investment for some SMSF trustees. However, there is a risk that SMSF trustees may gain current day benefit from these investments due to the nature of the assets. These amendments allow regulations to be made that will ensure SMSF investments in collectables and personal use assets are made for retirement income purposes, rather than current day benefit. The schedule also removes a reference to a provision that was repealed in 2007.

Schedule 3 will improve the administrative processes of superannuation fund trustees and retirement savings account providers by removing the requirement for funds to use other search methods before tax file numbers are used. It will also allow superannuation fund trustees and retirement savings account providers to use tax file numbers to facilitate the consolidation of multiple superannuation accounts held by the same person, provided the conditions in the regulations are met. The accompanying regulations will ensure that appropriate safeguards are in place to support the use of tax file numbers, facilitating the account consolidation process and to protect the privacy of members.

Schedule 4 will amend the GST law to replace the current mechanism for exempting Australian taxes, fees and charges with a legislative exemption with effect from 1 July 2011. The GST law currently specifies that Australian taxes, fees and charges are exempt from GST if they are included in a determination of the Treasurer. This measure will allow the GST treatment of an Australian tax, fee or charge to be determined against legislative principles. Generally this measure will provide the same outcome as the current mechanism, but in a more efficient manner. This measure will provide increased certainty to taxpayers and government agencies in relation to the GST treatment of new taxes, fees and charges, as the tax treatment is not dependent on the item being listed in the determination. A legislative exemption will provide a more effective and transparent approach to exempting Australian taxes, fees and charges from the GST compared to the current exemption mechanism.

Finally, schedule 5 to this bill covers other amendments to tax laws. These amendments are part of the government's commitment to the care and maintenance of the tax law, and include some legislative issues raised by the public through the tax issues entry system. This bill deserves the support of the parliament.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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

See this speech in context