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

by leave—I present a supplementary explanatory memorandum to the bill, and I move:

(1)    Clause 2, page 1 (lines 7 to 9), omit the clause, substitute:

2 Commencement

        (1)    Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Note:   This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.

        (2)    Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.

(2)    Page 27 (after line 5), at the end of the Bill, add:

Schedule 5—Victorian bushfires and North Queensland floods

Part 1—Ex-gratia Income Recovery Subsidy Assistance

Division 1—Main amendments

Income Tax Assessment Act 1936

1 Subsection 159J(6) (after paragraph (b) of the definition of separate net income)

Insert:

           (ba)    does not include an ex-gratia payment from the Commonwealth known as Income Recovery Subsidy for the Victorian bushfires of January and February 2009; and

           (bb)    does not include an ex-gratia payment from the Commonwealth known as Income Recovery Subsidy for the North Queensland floods of January and February 2009; and

Income Tax Assessment Act 1997

2 Section 11-15 (table item headed “welfare”)

Before:

Insert:

3 Section 51-30 (at the end of the table)

Add:

Division 2—Sunsetting on 1 July 2011

Income Tax Assessment Act 1936

4 Subsection 159J(6) (paragraphs (ba) and (bb) of the definition of separate net income)

Repeal the paragraphs.

Income Tax Assessment Act 1997

5 Section 11-15 (table item headed “welfare”)

Omit:

6 Section 51-30 (table items 5.2 and 5.3)

Repeal the items.

Part 2—Gifts

Income Tax Assessment Act 1997

7 Subsection 30-45(1) (table item 4.1.5)

Repeal the table item, substitute:

8 Subsection 30-45(2) (at the end of the table)

Add:

9 After section 30-45

Insert:

30-45A Australian disaster relief funds—declarations by Minister

        (1)    For the purposes of item 4.1.5 of the table in subsection 30-45(1), an event is a disaster to which this subsection applies if the Minister has declared it to be a disaster. The Minister may do so if satisfied that:

             (a)    it developed rapidly; and

             (b)    it resulted in the death, serious injury or other physical suffering of a large number of people, or in widespread damage to property or the natural environment.

        (2)    The Minister’s declaration of an event as a disaster:

             (a)    must be in writing; and

             (b)    must specify the day (or the first day) of the event; and

             (c)    must be published on the internet or by another method determined by the Minister.

        (3)    The Minister’s declaration of an event as a disaster is not a legislative instrument.

        (4)    You can deduct a gift that you make to a public fund covered by item 4.1.5 of the table in subsection 30-45(1), in relation to a disaster to which subsection (1) of this section applies, only within the 2 years beginning on the day specified in the declaration as the day (or the first day) of the event for which the fund is to provide relief.

Note:   Public funds under item 4.1.5 of the table in subsection 30-45(1) are for disaster relief of people in Australia. Public funds may also be established for disaster relief of people in other countries. See items 9.1.1 (which is not limited to disaster relief) and 9.1.2 of the table in section 30-80.

10 Section 30-46 (heading)

Repeal the heading, substitute:

30-46 Australian disaster relief funds—declarations under State and Territory law

11 At the end of subsection 30-46(1)

Add:

   ; and (d)    subsection 30-45A(1) does not apply to it.

12 Subsection 30-46(2)

After “subsection 30-45(1)”, insert “, in relation to a disaster to which subsection (1) of this section applies,”.

13 Section 30-315 (before table item 1AA)

Insert:

Part 3—Application

14 Application of amendments

(1)    The amendments made by Division 1 of Part 1 of this Schedule apply in relation to the 2008-09 income year.

(2)    The amendments made by Part 2 of this Schedule apply in relation to:

             (a)    the 2008-09 income year; and

             (b)    later income years.

These supplementary amendments to the Tax Laws Amendment (2008 Measures No. 6) Bill 2008 introduce taxation measures to alleviate financial hardship being felt in communities affected by the 2009 Victorian bushfires and North Queensland floods. Part 1 of schedule 5 amends the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997 to exempt the income recovery subsidy from income tax and to ensure the subsidy is not included in separate net income for the purposes of calculating an entitlement to certain tax offsets. The income recovery subsidy will provide financial assistance to employees, small business owners and farmers who can demonstrate that they have experienced a loss of income as a result of the 2009 Victorian bushfires or the North Queensland floods.

Part 2 of Schedule 5 amends the Income Tax Assessment Act 1997 to allow the Treasurer to declare an event as a disaster for the purposes of establishing Australian disaster relief funds. The declaration of a disaster by the Treasurer will allow Australian disaster relief funds to receive tax-deductible donations and provide money for the relief of people in Australia in distress as a result of the disaster. Public benevolent institutions, which must normally operate for direct relief efforts, will also be able to establish Australian disaster relief funds for longer term recovery and community reconstruction efforts.

Part 2 also lists by name the 2009 Victorian Bushfire Appeal Trust Account as a deductible gift recipient in the Income Tax Assessment Act 1997. This will ensure the fund can use tax-deductible donations for relief, recovery and community reconstruction efforts in communities affected by the 2009 Victorian bushfires. The cost to revenue of listing the trust account will be in the order of $46.5 million in the 2009-10 income year. Could I take this opportunity to say that these amendments are very important in ensuring the ongoing tax deductibility of the Victorian bushfire appeal and to ensure that the funds can be used appropriately for certain reconstruction efforts in the aftermath of those fires. I thank the officers of the Treasury for working so quickly with my office and me to ensure that these amendments are readily passed by the House. I also thank the opposition for their cooperation. The shadow minister and I have discussed these matters at length privately and I thank him for the approach that the opposition has indicated that they will take.

Tony Smith (Casey, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

The opposition fully supports these amendments as outlined by the Assistant Treasurer. I commend the Assistant Treasurer for his consultation and for the speed with which he has made the announcement and sought to legislate the necessary amendments.

Question agreed to.

Bill, as amended, agreed to.

Ordered that this bill be reported to the House with amendments.