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

I acknowledge those who have contributed to this debate, in particular the member for Casey, the member for Canberra, the member for Parramatta, the member for McPherson and most recently the member for Robertson, and I thank her for her genuine interest in these matters. Schedule 1 of the Tax and Superannuation Laws Amendment (2013 Measures No. 2) Bill 2013 makes some amendments to ensure that the meaning of 'documentary' in the film tax offset provisions is consistent with the meaning explained in the Australian Communications and Media Authority's guidelines—that meaning applied for tax purposes until the decision of the Administrative Appeals Tribunal in 2011—so that these amendments restore the previously understood meaning. Restoring the original meaning ensures that the taxation incentives for the production of film and television in Australia continue to encourage the sorts of productions the Commonwealth intends to support. Schedule 2 exempts from income tax certain disaster relief payments. This includes the ex gratia payment equivalent to the Australian Government Disaster Recovery Payment made to New Zealand special category visa holders and the Disaster Income Recovery Subsidy.

In the wake of recent disasters, it is important that these payments are tax free. Exempting these payments from tax maximises the value of the payments so that people can get on with the job of cleaning up after the floods and fires and, hopefully, get on with their lives. Exempting these payments from tax also ensures consistency with previous disaster relief payments that were also tax exempt. It also ensures the New Zealand special category visa holders who have been affected by recent disasters receive the same support as Australians.

Schedule 3 allows small business taxpayers using the GST instalment system to temporarily move into a net refund position to continue to use the instalment system if they choose to do so. These amendments aim to assist such entities that consider the compliance cost advantages of submitting their business activity statement annually outweigh the cash flow cost of delayed refunds. The amendments will ensure greater certainty for those small business taxpayers who use the GST instalment system. These amendments will apply in relation to GST instalment quarters starting on or after 1 July, following royal assent of this bill.

Schedule 4 adds six entities to the list of named deductible gift recipients in division 30 of the Income Tax Assessment Act 1997. Taxpayers can claim an income tax deduction for gifts to organisations that are DGRs. Therefore, DGR status will assist these bodies in attracting public support. The new DGRs listed are the Conservation Trust, the National Congress of Australia's First Peoples Limited, the National Boer War Memorial Association Incorporated, the Anzac Centenary Public Fund, the Australian Peacekeeping Memorial Project Incorporated and Philanthropy Australia Incorporated.

Schedule 5 to this bill amends the Superannuation Industry (Supervision) Act 1993 to require trustees to establish procedures for consolidating multiple superannuation accounts they hold for the same member on an annual basis when it is in the member's best interests. Defined benefit interest accounts, accounts supporting an income stream and first home saver accounts will all be exempt. The measure will commence on 1 July 2013, with the first round of consolidations to occur by 30 June 2014. This will apply regardless of the balances of the accounts concerned. The amendments will contribute to a steady reduction in the number of unnecessary accounts in the superannuation system. This measure was developed in consultation with industry and was released as an exposure draft on two occasions prior to introduction, with the views of stakeholders being incorporated at each stage. Schedule 5 provides a flexible regulatory framework for a process that many fund trustees are already undertaking. The amendments will simply ensure that the process is an industry-wide practice.

Schedule 6 of this bill will freeze the income threshold above which the maximum contribution phases down at $31,920 for 2012-13. The income threshold above which no cocontribution is payable will be reduced to $15,000 above the lower income threshold—that is, $46,920 for the 2012-13 income year.

These changes are supported by the low-income superannuation contribution. From 1 July 2012 the low-income superannuation contribution allows most people with income up to $37,000 to effectively pay no tax on their super contributions, by providing a benefit of up to $500 a year. This is better targeted, more widely available than the current co-contribution and does not require individuals to make additional after-tax contributions.

The opposition has publicly stated that it will discontinue the low-income superannuation contribution. This will result in 3.6 million low-income earners effectively paying more tax. The co-contribution scheme continues to be generous and provides a significant incentive for low-income individuals to make voluntary contributions into superannuation. The government is deeply concerned by these attempts to cut away at this important concession that has been reducing taxation levels for low-income earners.

Schedule 7 consolidates eight separate tax offsets for dependants into one new tax offset that is available to taxpayers who maintain a dependant who is unable to work because of invalidity or carer obligations. The eight tax offsets to be consolidated are the: carer spouse, invalid relative, parent, parent-in-law, child-housekeeper, child-housekeeper with child, housekeeper, and housekeeper-with-child tax offsets. Consolidating the dependency tax offsets removes out-dated barriers to dependants seeking employment. It builds on the government's participation agenda and allows the government to target more assistance to dependants who are genuinely unable to work.

Schedule 8 refines and clarifies the operation of the taxation and financial arrangements regime. The amendment's lower compliance costs provide certainty for effective taxpayers. The amendments respond to issues raised by industry and the Australian Taxation Office as part of ongoing monitoring of the implementation of the taxation and financial arrangements regime. The amendments have been developed following extensive consultation with industry. I commend the bill to the House.

Question agreed to.

Bill agreed to.

Ordered that this bill be reported to the House without amendment

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