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

I move:

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

(R3) Schedule 1, page 3 (after line 27), at the end of the Schedule, add:

6  Application

                 The amendments made by this Schedule do not apply where the contract to make the taxable supply or taxable importation of the luxury car was entered into before 7.30 pm, by legal time in the Australian Capital Territory, on 13 May 2008.

It relates to the retrospectivity of this particular tax. My concern is that if a contract had been entered into prior to 7.30 pm on 13 May, but the vehicle was for whatever reason not delivered until after 1 July, the tax would apply. That to me seems to be fundamentally unfair. Essentially it would penalise those who for whatever reason purchased a motor vehicle prior to the announcement made in the budget but their vehicle was not delivered. I understand that this is something that would not on any reasonable argument be fair, and that is why I have moved this amendment.

I can indicate to honourable senators that I previously circulated an amendment where it made reference to, as I understand it, ‘where the contract or arrangement was entered into’. I accept the view that ‘arrangement’ is simply too broad and that ‘contract’ would be sufficient and, I think, fair in the circumstances. So I urge honourable senators to support this amendment to, in effect, ensure that there is not a retrospective tax increase, which I cannot imagine the government would want to impose upon motorists.