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

I indicate my support for this legislation, the Tax Laws Amendment (2011 Measures No. 1) Bill 2011. It seeks to implement the recent disaster related initiatives and changes to Australia's tax laws. My principal concern that I explored at the Senate Economics Committee inquiry into the flood levy legislation was for those individuals who have suffered from lesser-known disasters, such as the Stockport floods in South Australia, who have also lost their homes and whether they would be liable to the levy. I am satisfied with the response I have received from the government that those areas of South Australia that have been the subject of a declaration made under the NDRRA, the natural disaster relief and recovery arrangements, so long as one of the following conditions were satisfied: whether an individual was seriously injured; an Australian was killed, and that Australian was an immediate family member of the individual; or the individual's principal place of residence was destroyed or sustained major damage; or the individual was unable to gain access to their principal place of residence for at least 24 hours; or they were stranded in their principal place of residence for at least 24-hours. They would be fully covered—in other words, they would not be subject to any income tax levy. They would need to apply for that, so there is an administrative process, but they would clearly be eligible to be exempt from any levy.

I note that in my home state there were floods in Stockport, Riverton and Rhynie areas in early December 2010. There were also floods in the Barossa Valley in February 2011 which affected Eudunda, Swan Reach, Nuriootpa, Kapunda, Tanunda, Stockwell and Ebenezer. For the Clare and Gilbert Valleys Council the damages bill was in the order of $15 million. The Regional Council of Goyder had a damages bill of $10 million, the District Council of Peterborough had a damages bill of $2 million and as well there were damages for councils in Orroroo, Carrington and the Flinders Ranges and for the Northern Areas Council.

I believe that the natural disaster relief and recovery arrangements cover those individuals and businesses that have been affected and I think it is entirely appropriate in the context of the administrative arrange­ments in this bill. Therefore, I indicate my support for the government's bill as being necessary administrative arrangements to the tax act to implement the effect of the flood levy.