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

I move:

That this bill be now read a second time.

The Income Tax Rates Amendment (DisabilityCare Australia) Bill 2013 is part of a package of measures increasing the Medicare levy by half a percentage point.

The bill contains consequential amendments to the Income Tax Rates Act 1986. These are necessary as a result of the increase in the Medicare levy, contained in the Medicare Levy Amendment (DisabilityCare Australia) Bill 2013.

When a superannuation fund or retirement savings account member does not provide their tax file number, the contributions made on behalf of the member are counted as income of the superannuation fund or the retirement savings account provider. The superannuation fund or retirement savings account provider is then required to pay tax on the contributions where no tax file number has been provided. This helps to ensure the integrity of the tax system.

The rate of the tax imposed on contributions where no tax file number has been provided includes a component which is the current Medicare levy rate of 1.5 per cent.

The Income Tax Rates Amendment (DisabilityCare Australia) Bill 2013 will increase this component from 1 July 2014 to reflect the increase in the Medicare levy from 1.5 per cent to two per cent.

These consequential amendments will help maintain the integrity of the tax system.

The revenue from this package of bills will be used to provide a strong and stable funding stream for DisabilityCare Australia.

Further details of the bill are set out in the explanatory memorandum for the package of bills.

Debate adjourned.