Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

I thank Senator Rhiannon for her contribution. The government will not be able to support these proposed Greens amendments. These amendments would have a significant impact on expenditure. The first amendment, in addition to amendment (3), reduces the amount of trade support loan payments that will be treated as an income contingent loan. This reduction is supplemented by the introduction of an additional payment equal in value to the loan payment and paid at the same time. It effectively turns trade support loans into 50 per cent loans and 50 per cent grant payments. Changing the payment structure in this way is contrary to the clear and stated public policy intention of the government.

The second amendment clause 5, page 7, line 2, in relation to the definition of TSL debt indexation factor, can also not be supported. This amendment removes any indexation, CPI or otherwise, from being applied to a person's trade support loan debt. This substantially changes the treatment of trade support loans from other government income contingent loans and will also have significant impacts on expenditure. So do all of the other amendments in relation to lifetime limits and other indexation related amendments. On that basis, the government is not in a position to support those amendments.