Jan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | Hansard source

I table a supplementary explanatory memorandum relating to the government amendments to be moved to this bill. The memorandum was circulated in the chamber earlier today. I seek leave to move government amendments (1) to (3) together.

Leave granted.

I move:

(1)    Clause 2, page 2 (table item 7), omit “9 to 11”, substitute “9 to 13”.

(2)    Page 38 (after line 20), at the end of the bill, add:

Schedule 12—Austudy rent assistance

Income Tax Assessment Act 1997

1 Section 52-15 (cell at table item 4, column headed “the supplementary amount is the total of:”)

2  Application

The amendment made by this Schedule applies to assessments for the 2007-08 income year and later income years.

(3)    Page 38 (after line 20), at the end of the bill, add:

Schedule 13—Carer adjustment payments

Income Tax Assessment Act 1997

1  Section 11-15 (table item headed “social security or like payments”)

After:

insert:

2  Section 53-10 (table item 1)

Repeal the item, substitute:

3  Application

The amendments made by this Schedule apply to assessments for the 2007-08 income year and later years.

These amendments add new schedules, 12 and 13, to the bill and update the commencement table to reflect these additions. New schedules 12 and 13 are identical to schedules 3 and 4, which were omitted from the Tax Laws Amendment (2008 Measures No. 3) Bill while that bill was in the House of Representatives. The amendments are necessary to ensure that certain measures which are of benefit to taxpayers are passed before the end of the income year. Schedule 12 exempts rent assistance paid to Austudy recipients from income tax. This will ensure consistency with the taxation treatment of rent assistance paid to Newstart allowance, youth allowance and Abstudy recipients. Rent assistance has been payable to Austudy recipients from 1 January 2008. The payment provides assistance with the living costs associated with full-time study and training.

Schedule 13 exempts the carer adjustment payment from income tax. This will ensure consistency with the taxation treatment of other one-off payments made to carers in previous years. The carer adjustment payment provides up to $10,000 in financial assistance to families with a child up to six years of age who has suffered a catastrophic event after 1 January 2007. It is designed to assist families adjust to the increased costs arising from a severe illness, medical condition or major disability as a result of a catastrophic event. I commend the amendments to the chamber.