Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Hansard source

I table a statement of reasons justifying the need for these bills to be considered during these sittings and seek leave to have the statement incorporated in Hansard.

Leave granted.

The statement read as follows—

Purpose of the Bills

The two Appropriation Bills are supplementary additional estimate appropriation Bills which request legislative authority for further expenses to be incurred in 2008-2009 in relation to the Government’s Nation Building and Jobs Plan. Passage of the Bills by 5 February 2009 will allow funds to be made available to departments, thereby ensuring implementation of the programs relating to the package.

Further annual appropriation bills are required to fund a number of measures announced on 3 February 2009. They include funds for the Building the Education Revolution, Energy Efficient Homes, regional and local community infrastructure, the Black Spot Program, repairing regional links on the national highway network and social housing. The additional funding required exceeds what is currently available to the departments and from the Advance to the Finance Minister. The 2008-2009 Additional Estimates Bills are not expected to be agreed to by Parliament until the end of the 2009 Autumn Sittings. Consequently, a set of supplementary bills is required to ensure implementation of the Plan.

The Household Stimulus Package Bill (No. 2) 2009 provides for necessary amendments to deliver on the announcement to provide one-off cash payments to eligible families, those in education and training, and drought affected farmers as part of the Plan.

The Tax Bonus for Working Australians Bill (No. 2) 2009 provides for a tax bonus payment that is to be paid to eligible Australian resident individual taxpayers from April 2009. The Commissioner of Taxation will administer the bonus payments. The bonus will be paid to eligible individual taxpayers based on whether they paid net income tax in the 2007-08 financial year and had a taxable income of $100,000 or less.

The Tax Bonus for Working Australians (Consequential Amendments) Bill (No. 2) 2009 also makes amendments consequential on the enactment of the Tax Bonus for Working Australians Bill (No. 2) 2009 to ensure that the bonus payments will not be taken into account for taxation purposes and also for the purposes of income testing for social security and family assistance payments.

The Commonwealth Inscribed Stock Amendment Bill 2009 provides for an increase in the cap on borrowings where special circumstances exist.

Reasons for Urgency

These measures give effect to the announcement by the Prime Minister and the Treasurer in a joint statement on 3 February 2009 outlining the Government’s Nation Building and Jobs Plan. This Plan has the objective of providing immediate stimulus to the Australian economy in the face of the global downturn.

A range of important nation building and jobs measures are contained in the Appropriation Bills.  Prompt passage of the legislation is needed so the approval and administrative processes, which involve other levels of government, can be established and the measures begin as soon as possible in 2008-09.

Introduction and passage of the Household Stimulus Bill is needed urgently to enable Centrelink system changes to be made which would provide for payments to begin in the fortnight from 11 March 2009. 

Introduction and passage of the Tax Bills are needed quickly to ensure the Australian Taxation Office can have systems in place and settle system design to ensure tax bonus payments can be made to eligible taxpayers from April 2009.

As a result of the deteriorating global economy and the consequent falling tax revenues, the budget is now expected to move into deficit.

The Commonwealth Inscribed Stock Act 1911 provides for a cap on the total face value of Commonwealth Government Securities on issue at any point in time, currently $75 billion.

This amendment inserts a new power for the Treasurer to declare that special circumstances exist, justifying an increase in the cap.  Once the declaration that special circumstances exist has been published in the Gazette, the cap on Commonwealth Government Securities on issue will be increased by $125 billion.

The amendment must be passed as quickly as possible in the Autumn Sittings to allow for the most efficient and effective management of the Commonwealth Government Securities issuance program.