David Bradbury (Lindsay, Australian Labor Party, Assistant Treasurer ) Share this | Hansard source

I move:

That this bill be now read a second time.

The Taxation (Trustee Beneficiary Non-Disclosure Tax) (No. 1) Amendment (DisabilityCare Australia) Bill 2013 is part of a package of measures increasing the Medicare levy by half a percentage point.

This bill contains consequential amendments to the Taxation (Trustee Beneficiary Non-Disclosure Tax) Act (No. 1) 2007 as a result of the increase in the Medicare levy, contained in the Medicare Levy Amendment (DisabilityCare Australia) Bill 2013.

Where a share of the net income of a closely held trust is distributed to another trust, the trustee must advise the Commissioner of Taxation of each share of trust income or tax-preferred amounts that is distributed from the trust. If a trustee does not provide this information, they will be liable to pay trustee beneficiary non-disclosure tax.

The rate of the trustee beneficiary non-disclosure tax is currently 46.5 per cent, the top marginal rate of 45 per cent plus the current Medicare levy rate of 1.5 per cent.

The Taxation (Trustee Beneficiary Non-Disclosure Tax) (No. 1) Amendment (DisabilityCare Australia) Bill 2013 will increase this rate to 47 per cent, from 1 July 2014, to reflect the increase in the Medicare levy from 1.5 per cent to two per cent.

These consequential amendments will help to ensure the integrity of the tax system.

The revenue from this package of bills will be used to provide a strong and stable funding stream for DisabilityCare Australia.

Further details of the bill are set out in the explanatory memorandum for the package of bills.

Debate adjourned.

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