Nick Xenophon (SA, Independent) Share this | Hansard source

I move the request for amendment standing in my name:

That the House of Representatives be requested to make the following amendment:

(1)    Schedule 1, page 3 (after line 27), at the end of the Schedule, add:

4  Subsection 25-1(3)

             After “Subject to subsection”, add “(3A) and”.

5  After subsection 25-1(3)

Insert:

          (3A)    On and from 1 July 2012 the luxury car tax threshold is the luxury car tax threshold as at 30 June 2012 indexed according to a factor to be determined by the Parliament and to apply from 1 July 2012 or, if such a factor is not determined by the Parliament, indexed annually in accordance with the CPI indexation method provided for by Subdivision 960-M of the *ITAA 1997, calculated using the index number referred to in subsection 960-280(1) of that Act.

Statement pursuant to the order of the Senate of 26 June 2000

This amendment is framed as a request because it is to a bill which imposes taxation within the meaning of section 53 of the Constitution. The Senate may not amend a bill imposing taxation

Statement by the Clerk of the Senate pursuant to the order of the Senate of 26 June 2000

As this is a bill imposing taxation within the meaning of section 53 of the Constitution, any Senate amendment to the bill must be moved as a request. This is in accordance with the precedents of the Senate.

I have just had a lengthy discussion which traversed this with my good friend Senator Abetz. Essentially this provides for a sunset clause in relation to the current manner of the CPIMV method of indexation, and that if nothing is done within four years it provides for there to be a reversion to ordinary CPI, the position of the coalition.

As I indicated earlier, I believe this draws a line in the sand in respect of the whole issue of the CPI. It forces the government to come back to this place to say what they have done or not done in relation to the whole issue of indexation. Who knows what the Henry review will determine or advise or recommend on the whole issue of this tax and indexation, but it is a mechanism to ensure that the issue of indexation is brought back to this chamber within the requisite period. I know it is not what the opposition wanted but I would urge them to support it because it ensures that there is a mechanism of accountability, if you like, built into the context of this amendment with the sunset clause and with the default position of ordinary CPI increases if the parliament does not deal with this issue.