Karen Andrews (McPherson, Liberal Party, Minister for Home Affairs) Share this | Hansard source

Firstly, I would like to thank those members who have contributed to this debate. Schedule 1 to the Treasury Laws Amendment (2021 Measures No. 3) Bill 2021 amends the Medicare Levy Act 1986 and A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999 to increase the Medicare levy low-income thresholds for singles, families, seniors and pensioners, consistent with increases in the consumer price index.

For individual taxpayers, no Medicare levy will be payable for those with a taxable income that does not exceed $23,226 in 2020-21. Single seniors and pensioners with no dependents who are eligible for the seniors and pensioners tax offset will not incur a Medicare levy liability if their taxable income does not exceed $36,705 in 2020-21.

As well as these individual thresholds, further relief is available for low-income couples and families. Couples and families not eligible for the seniors and pensioners tax offset will not be liable to pay the Medicare levy for 2020-21 if their combined taxable income does not exceed $39,116, plus $3,597 for each dependent child or student. Couples and families eligible for seniors and pensioners tax offset will not be liable to pay the Medicare levy for 2020-21 if their combined taxable income does not exceed $51,094 plus $3,597 for each dependent child or student. The amendments to the Medicare levy low-income thresholds apply to the 2020-21 year of income and future income years.

Schedule 2 to the bill will enable the National Housing Finance and Investment Corporation to provide 10,000 Family Home Guarantees over four years, commencing 1 July 2021, to single parents with dependants, predominantly women, seeking to enter or re-enter the housing market sooner. By establishing the Family Home Guarantee, the government is providing a pathway to homeownership for single parents with dependants to purchase a modest home sooner, subject to the individual's ability to service a loan.

Schedule 3 to the bill will exempt eligible payments made by the Australian government to thalidomide survivors from income taxation and from the social security and veterans entitlements income test. As announced in the 2021 budget, the Australian government will provide $44.9 million over four years and $3.9 million per year ongoing to thalidomide survivors.

Schedule 4 to the bill provides an income tax exemption for qualifying grants made to primary producers and small businesses affected by the February and March 2021 storms and floods, which had a devastating impact on communities in Australia. This schedule provides that qualifying grants are category D grants, provided under the Commonwealth State Disaster Recovery Funding Arrangements 2018, where those grants relate to the storms and floods in Australia that occurred due to rainfall events between 19 February 2021 and 31 March 2021. These include small business recovery grants of up to $50,000 and primary producer recovery grants of up to $75,000. These grants provide support in addition to other assistance that the Australian and state governments have provided to assist communities as they begin to build and recover following these devastating events. Impacted small businesses and primary producers are encouraged to apply for these grants. Further information on disaster recovery assistance is available on the Disaster Assist website.

Schedule 5 to the bill amends the Income Tax Assessment Act 1997 to include the Alliance for Journalists' Freedom Limited, the Andy Thomas Space Foundation Limited, Youthsafe, the RAS Foundation Limited, the Judith Nielsen Institute for Journalism and Ideas and the Great Synagogue Foundation Trust on the list of deductible gift recipients. This bill also extends the specific listing of the Centre for Entrepreneurial Research and Innovation as well as Sydney Chevra Kadisha. Deductible gift recipient status allows members of the public to receive income tax deductions for the donations they make to these eight organisations. By granting deductible gift recipient status to these eight organisations, the government is supporting them in providing valuable services to their communities. I commend this bill to the House.

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