Chris Bowen (Prospect, Australian Labor Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

I move:

Schedule 8, page 120 (line 2) to page 128 (line 7), omit the schedule.

As I said during my remarks in the second reading debate on the Tax Laws Amendment (2007 Measures No. 4) Bill 2007, this is a matter of priorities. The Labor Party does not regard it as a priority to simplify the operation of family trusts in this country. The Labor Party does not regard it as a priority to expand the definition of family member to include lineal descendants of nieces and nephews.

As the member for Rankin said, and as I said in my second reading remarks, we are not talking about small amounts of money—$8 million a year or $34 million over the forward estimates is a substantial amount of money. For example, our policy of cutting the withholding tax rate to 15 per cent as a flat and final rate is costed by us at $15 million a year. So you can do substantial reform with small amounts of money. However, we do not regard this as a priority. We think there are better ways of spending that money and we will be advocating that this not be proceeded with and that the $8 million a year or $34 million over the forward estimates should be spent elsewhere. On that basis I commend the amendment to the House.

Question negatived.

Bill agreed to.