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

by leave—I move amendments (1) to (6) standing in my name on sheet 5616 together.

(1)    Schedule 1, item 2, page 3 (line 13) to page 4 (line 6), omit proposed section 5A, substitute:

5A What is the singles surcharge threshold?

        (1)    The singles surcharge threshold for a person for the 2008-09 year of income is $69,000.

        (2)    This threshold is indexed for each year of income after 2008-09 by multiplying the threshold by the indexation factor in subsection (3) and rounding the result down to the nearest multiple of $1,000.

        (3)    Theindexation factor is:

where:

CPI quarter means a period of 3 months ending 31 March, 30 June, 30 September or 31 December.

index number means the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Statistician.

The indexation factor is to be calculated to 3 decimal places, but increased by .001 if the 4th decimal place is more than 4.

Calculations:

             (a)    are to be made using only the index numbers published in terms of the most recently published reference base for the Consumer Price Index; and

             (b)    are to disregard index numbers that are published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the reference base).

(2)    Schedule 1, item 4, page 4 (line 21), omit $150,000, substitute $138,000.

(3)    Schedule 1, item 4, page 4 (line 21), omit $153,000, substitute $141,000.

(4)    Schedule 1, item 7, page 5 (lines 5 to 24), omit proposed section 3AA, substitute:

3AA Meaning of singles surcharge threshold

        (1)    The singles surcharge threshold for a person for the 2008-09 year of income is $69,000.

        (2)    This threshold is indexed for each year of income after 2008-09 by multiplying the threshold by the indexation factor in subsection (3) and rounding the result down to the nearest multiple of $1,000.

        (3)    Theindexation factor is:

where:

CPI quarter means a period of 3 months ending 31 March, 30 June, 30 September or 31 December.

index number means the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Statistician.

The indexation factor is to be calculated to 3 decimal places, but increased by .001 if the 4th decimal place is more than 4.

Calculations:

             (a)    are to be made using only the index numbers published in terms of the most recently published reference base for the Consumer Price Index; and

             (b)    are to disregard index numbers that are published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the reference base).

(5)    Schedule 1, item 8, page 6 (line 14), omit $150,000, substitute $138,000.

(6)    Schedule 1, item 8, page 6 (line 14), omit $153,000, substitute $141,000.

These amendments, as I foreshowed in my second reading contribution, seek to increase the current threshold of $50,000 to the sum of $69,000 for the 2008-09 year, based on CPI increases—that is my reading of the research I have obtained on CPI increases—and to continue to increase the threshold according to the CPI. Similarly the figure for the couples threshold is to be substituted with $138,000, which is again based on the CPI and will be indexed thereafter. I urge honourable senators to accept this compromise on the basis that I set out in my second reading contribution.