Nick Sherry (Tasmania, Australian Labor Party, Shadow Minister for Banking and Financial Services) Share this | Hansard source

Thank you very much. Not being from New South Wales, I was not familiar with the pronunciation. Whereas previously a proportion of club income from poker machines, bar takings and dining which related to members was tax free, the Coleambally decision ruled that that should only apply where members’ funds are distributed to members when an entity is being wound up. This bill clarifies that decision by establishing that the tax-free status of clubs is not determined by that restriction on winding up. So that particular legitimate concern of the club industry is being dealt with.

The third schedule ensures the new activity test for the child-care benefit. It does not restrict eligibility for the new child-care tax offset. The government has made changes to the activity test, requiring a work test or study-training test of 15 hours a week. As Labor pointed out at the time, this would restrict eligibility for the new child-care tax offset, which the government has accepted. The bill also amends the medical expenses offset so that purely cosmetic dental expenses are ineligible medical expenses and cannot be claimed under the MEO. Therefore, expenses which are cosmetic in nature and do not attract a Medicare benefit are considered ineligible medical expenses. Schedule 5 of the bill proposes that new organisations be added to the list of deductible gift recipients. Could I just inquire as to whether a second reading amendment has been circulated in the chamber?