Anthony Albanese (Grayndler, Australian Labor Party, Prime Minister) Share this | Hansard source

I thank the member for Page for his question. I am surprised that he has asked it in that way, given that he travelled with me to Lismore with the Premier of New South Wales and also with the member for Richmond, who joined us on that occasion.

Effectively, what occurs in this system is that payments are made and once that is expended it becomes a tax deduction. So, in effect, it doesn't attract real tax. That is the situation. If you made it tax free upfront, then potentially people could gain money from it. So the grant is paid—some of it without receipts, as you would be aware—and then, once it is expended, it becomes a deduction, just like the grants that we've made today. This is the same way that it has always operated.

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