Don Farrell (SA, Australian Labor Party, Parliamentary Secretary for Sustainability and Urban Water) Share this | Hansard source

Firstly, I would like to thank those senators who contributed to this debate. Schedule 1 to this bill, the Tax Laws Amendment (2011 Measures No. 1) Bill 2011, amends the Income Tax Assessment Act 1997 to exempt from income tax the disaster income recovery subsidy payments to victims of the recent disasters that devastated parts of Australia during the 2010-11 summer. The amend­ments also exempt from income tax ex gratia payments made to certain New Zealand visa holders affected by the disaster in 2010-11 where the Australian government disaster recovery payment has been activated. Exempting these disaster relief payments from income tax is consistent with the gov­ernment's response to other disasters such as the Black Saturday bushfires in Victoria—your home state, Mr Acting Deputy President Marshall—and alleviates the financial hardship being felt in affected communities.

Schedule 2 exempts from income tax category C payments made under the natural disaster relief and recovery arrangements for small businesses and primary producers affected by the 2010-11 floods and Cyclone Yasi. This measure recognises the hardship suffered by small businesses and primary producers in affected areas and provides certainty for recipients in terms of tax treatment at a time when they should not need to worry about tax matters. Schedule 3 increases the flexibility of the first home saver accounts. Individuals who purchase a home before meeting the minimum release conditions will now be able to put the money towards their new home. This change amends the tax laws to allow money in a first home saver account to be paid to a genuine mortgage, after the end of a minimum qualifying period, should the account holder purchase a dwelling in the interim. Currently, this money would go towards their superannuation balance. First home saver accounts are designed to encourage individuals, through tax concessions and government contributions, to save for their first home over the medium to long term and have been available since October 2008. This measure applies to houses purchased after the bill's royal assent. The bill deserves the support of parliament and I commend the bill to the Senate.

Question agreed to.

Bill read a second time.