Scott Ryan (President) Share this | Link to this | Hansard source

In accordance with the order agreed to earlier, it being past 6.30 pm, the debate is interrupted for consideration of the Treasury Laws Amendment (Personal Income Tax Plan) Bill 2018. The time allotted for consideration of this bill has expired and the questions will now be put. I will first put the outstanding questions that were before the committee prior to senators' statements. I will put the question on the amendments that were before the chair earlier today. I will then work through the questions on the other amendments circulated in respect of the bill. If any senator wishes to withdraw amendments they have circulated, they may do so by leave. Senator Collins?

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

Mr President, in terms of the process you just outlined, what were the questions that you indicated you would put up first?

Scott Ryan (President) Share this | Link to this | Hansard source

I'm about to read out the ones that were before the chair earlier today. I will now go through the amendments by sheet and by number as I put them to the chamber, starting with the ones that were already moved before the chair in the committee stage. The question is that amendment Nos (3) to (8), (10) and (12) to (15) on sheet 8441, moved by Senator Storer, be agreed to. Senator Collins?

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

Just so that we can be clear—and I understand there's no debate, discussion or the like on the actual amendments—I think it's important for senators, particularly in circumstances where we don't have a committee consideration, to understand what the question actually is before us. The point you made earlier was that you were proceeding with those questions that had already been moved in the limited debate that we had—

Scott Ryan (President) Share this | Link to this | Hansard source

The ones that were before the chair.

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

So, looking at the running sheet and comparing that with the revised running sheet—and thank you to the clerks for providing it—Senator Storer's amendments, the ones that have already been moved, are (3) to (8), (10) and (12) to (15). Senator Storer's amendment (1) is not being moved at this stage; is that correct?

Scott Ryan (President) Share this | Link to this | Hansard source

The amendments that you just read out, and that I just read out, are the ones that had been moved and were before the chair in the committee stage earlier today. They are the ones that will be put first, and then I will work through a sheet that has been provided with other amendments that were circulated but were not before the chair.

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

Mr President, for clarity purposes and also for Senator Storer, in order for us to understand which of his amendments are the ones he moved earlier, and for what purpose, it might be necessary for the clerks to actually read the amendments so we know what we're really dealing with.

Scott Ryan (President) Share this | Link to this | Hansard source

I have just taken some advice from the Clerk, which confirms my past experience that, where amendments have been circulated in the chamber—and these were before the chair and well circulated—there is not a need to read them out. There is no doubt about what the matter we are dealing with is.

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

The difficulty I have with the difference here is that the Clerk's advised you on how matters would be dealt with under normal circumstances, which is not what we're dealing with here. We're dealing with an artificial distinction between amendments that have been previously moved and the ones that haven't yet been dealt with. In the case of Senator Storer, for instance, he has only now started to understand that, in terms of the batching of his issues—

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Collins, I was referring to my own experience of when the Senate has adopted this procedure that I am now bound by, which is to put these votes without debate or discussion. I've made a ruling in respect of there being no need to read the amendments out. I have allowed you to put your point. I've made my ruling. I'm now going to put the question, because that is what the Senate has directed me to do—to put these motions without debate or discussion. So the question is—and I'll read it again—that amendment Nos (3) to (8), (10) and (12) to (15) on sheet 8441, moved by Senator Storer, be agreed to.

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

Mr President, just further to that, can I then clarify in respect of Senator Storer's amendments, for example, when in this process he would be moving amendment (1).

Scott Ryan (President) Share this | Link to this | Hansard source

We will go through the other amendments in an order that I have been provided with. They will all be voted on by the Senate. Even if they were not before the chair, all the amendments will be voted on by the Senate in an order starting now.

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

So, if they're on the running sheet they have been moved, but senators are able to withdraw if that's their want?

Scott Ryan (President) Share this | Link to this | Hansard source

I will restate it and I'll make it very clear. The first set of amendments are the ones that were moved by Senator Storer earlier today and were before the chair at the time. Then we will proceed through other matters. But I'm going to put that question now. I'm not going to read them out four times every time. I'll do it again now. The question is that amendment numbers (3) to (8), (10) and (12) to (15) on sheet 8441, moved by Senator Storer, be agreed to.

Scott Ryan (President) Share this | Link to this | Hansard source

The question is that sections 61-110 and 61-115 in item 1, item 5 and part 3 of schedule 1 stand as printed.

Scott Ryan (President) Share this | Link to this | Hansard source

The question now is that amendments (1), (3), (4), (6) and (8) to (11) on sheet 8449, amendments (1) to (7) on sheet 8431, amendments (2), (13), (15), (17) and (19) on sheet 8449, and amendments (1) to (3), (5), (7), (9) and (10) on sheet 8450, circulated by the opposition, be agreed to.

Opposition's circulated amendments—

(1) Clause 2, page 2 (table item 3), omit the table item.

(3) Schedule 1, heading, page 3 (line 2), omit "and Low Income tax offset".

[consequential—Low Income tax offset]

(4) Schedule 1, item 1, page 3 (lines 7 and 8), omit "and Low Income tax offset".

[consequential—Low Income tax offset]

(6) Schedule 1, page 9 (line 12), omit the heading.

[consequential—section 159N rebate]

(8) Schedule 1, item 6, page 9 (lines 20 to 22), omit the item, substitute:

6 Section 13 -1 (table item headed " low income earner " )

Omit:

substitute:

[consequential—section 159N rebate]

(9) Schedule 1, item 7, page 10 (lines 1 to 4), omit the item.

[consequential—section 159N rebate]

(10) Schedule 1, page 10 (line 5), omit the heading.

[consequential—Low Income tax offset]

(11) Schedule 1, items 8 and 9, page 10 (lines 6 to 15), omit the items.

[consequential—Low Income tax offset]

(1) Schedule 1, item 1, page 3 (lines 24 and 25), omit "2018-19, 2019-20, 2020-21 or 2021-22 income year", substitute "2018-19 income year or a later income year".

[Low and Middle Income tax offset]

(2) Schedule 1, item 1, page 4 (lines 5 and 6), omit "2018-19, 2019-20, 2020-21 or 2021-22 income year", substitute "2018-19 income year or a later income year".

[Low and Middle Income tax offset]

(3) Schedule 1, item 1, page 4 (lines 17 and 18), omit the note.

[consequential—Low and Middle Income tax offset]

(4) Schedule 1, item 1, page 4 (line 20) to page 5 (line 2), omit subsection 61-107(1), substitute:

General rule—2018 -2019 income year

(1) The amount of your *tax offset for the 2018-19 income year is set out in the following table in respect of the following income (your relevant income):

(a) if you are an individual—your taxable income for the income year;

(b) if you are a trustee—the amount of the share of *net income referred to in subsection 61-105(2).

[Low and Middle Income tax offset]

(5) Schedule 1, item 1, page 5 (after line 2), after subsection 61-107(1), insert:

General rule—2019 -20 income year and later income years

(1A) The amount of your *tax offset for the 2019-20 income year or a later income year is set out in the following table in respect of the following income (your relevant income):

(a) if you are an individual—your taxable income for the income year;

(b) if you are a trustee—the amount of the share of *net income referred to in subsection 61-105(2).

[Low and Middle Income tax offset]

(6) Schedule 1, item 1, page 5 (line 4), omit "subsection (1)", substitute "subsections (1) and (1A)".

[consequential—Low and Middle Income tax offset]

(7) Schedule 1, item 1, page 5 (line 23), omit "subsection (1)", substitute "subsections (1) and (1A)".

[consequential—Low and Middle Income tax offset]

(2) Clause 2, page 2 (table items 5 and 6), omit the table items.

[consequential—tax rates]

(13) Schedule 2, item 2, page 13 (lines 11 to 13), omit the table dealing with tax rates for resident taxpayers for the 2018-19, 2019-20, 2020-21 or 2021-22 year of income, substitute:

[tax rates]

(15) Schedule 2, item 5, page 15 omit the table dealing with tax rates for non-resident taxpayers for the 2018-19, 2019-20, 2020-21 or 2021-22 year of income, substitute:

[tax rates]

(17) Schedule 2, item 9, page 16 (lines 8 to 10), omit the table dealing with tax rates for working holiday makers for the 2018-19, 2019-20, 2020-21 or 2021-22 year of income, substitute:

[tax rates]

(19) Schedule 2, Part 3, page 20 (line 1) to page 21 (line 12), omit the Part.

[consequential—tax rates]

______________

(1) Clause 2, page 2 (table item 5, column 1), omit ", Division 1".

[consequential—tax rates]

(2) Clause 2, page 2 (table item 6), omit the table item.

[consequential—tax rates]

(3) Schedule 2, item 2, page 13 (line 14) to page 14 (line 2), omit the table dealing with tax rates for resident taxpayers for the 2022-23 or 2023-24 year of income, substitute:

[tax rates]

(5) Schedule 2, item 5, page 15 (lines 3 to 5), omit the table dealing with tax rates for non-resident taxpayers for the 2022-23 or 2023-24 year of income, substitute:

[tax rates]

(7) Schedule 2, item 9, page 16 (lines 11 to 13), omit the table dealing with tax rates for working holiday makers for the 2022-23 or 2023-24 year of income, substitute:

[tax rates]

(9) Schedule 2, heading to Division 1 of Part 3, page 20 (line 2), omit the heading.

[consequential—tax rates]

(10) Schedule 2, Division 2 of Part 3, page 20 (line 20) to page 21 (line 12), omit the Division

[consequential—tax rates]

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Could I just briefly make two points. I appreciate that you're giving me some leeway to do so, so I will be brief. The first is that these include the amendments which proposed Labor's bigger, better and fairer tax plan, so I just draw that to the attention of the chamber given that Senator Cormann made some inaccurate statements earlier today.

In light of that, what I'd also say to you, Mr President, is that there is a distinct possibility there may be senators who wish to vote differently on items (1) to (3), (5), (7), (9) and (10) on sheet 8450. These are items that fill a gap in the tax law as a result of the Senate's earlier decision to omit step 3 of the government's plan from the bill. They implement the step 2 tax rates for 2024-25 and later income years rather than leaving no rates in place, and they make associated consequential amendments. So I would invite you to consider putting those items that I've identified in that contribution separately.

Scott Ryan (President) Share this | Link to this | Hansard source

If any senator requests that any item be put separately, I will put them separately, but they must vote differently on the item they requested to be put separately to other items. Are there any requests from any senators who wish to vote on items differently?

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Yes, Mr President, there are. In relation to this, we wish to split out amendments (1) to (7) on sheet 8431 and vote on that separately to the other amendments before the chair.

Scott Ryan (President) Share this | Link to this | Hansard source

Okay. What I will do is read it out again so that we are clear on the amendments that are being put. The question now is that amendments (1), (3), (4), (6) and (8) to (11) on sheet 8449, amendments (2), (13), (15), (17) and (19) on sheet 8449, and amendments (1) to (3), (5), (7), (9) and (10) on sheet 8450 circulated by the opposition be agreed to.

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

Mr President, I'm aware that some of the other senators who indicated positions to us may not have had sufficient time to understand which ones are in that batch. Could you repeat that again, please.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Collins, I have offered senators the opportunity. Senator Whish-Wilson has indicated he would like some matters dealt with separately because he would like to vote differently on that to the others. No-one else has taken advantage of that opportunity, so I'm going to put it as I read it out just then. The question now is that amendments (1), (3), (4), (6) and (8) to (11) on sheet 8449, amendments (2), (13), (15), (17) and (19) on sheet 8449 and amendments (1) to (3), (5), (7), (9) and (10) on sheet 8450, circulated by the opposition, be agreed to.

Scott Ryan (President) Share this | Link to this | Hansard source

The question is that amendments (1) to (7) on sheet 8431 be agreed to.

Opposition 's circulated amendments—

(1) Schedule 1, item 1, page 3 (lines 24 and 25), omit "2018-19, 2019-20, 2020-21 or 2021-22 income year", substitute "2018-19 income year or a later income year".

[Low and Middle Income tax offset]

(2) Schedule 1, item 1, page 4 (lines 5 and 6), omit "2018-19, 2019-20, 2020-21 or 2021-22 income year", substitute "2018-19 income year or a later income year".

[Low and Middle Income tax offset]

(3) Schedule 1, item 1, page 4 (lines 17 and 18), omit the note.

[consequential—Low and Middle Income tax offset]

(4) Schedule 1, item 1, page 4 (line 20) to page 5 (line 2), omit subsection 61-107(1), substitute:

General rule—2018 -2019 income year

(1) The amount of your *tax offset for the 2018-19 income year is set out in the following table in respect of the following income (your relevant income):

(a) if you are an individual—your taxable income for the income year;

(b) if you are a trustee—the amount of the share of *net income referred to in subsection 61-105(2).

[Low and Middle Income tax offset]

(5) Schedule 1, item 1, page 5 (after line 2), after subsection 61-107(1), insert:

General rule—2019 -20 income year and later income years

(1A) The amount of your *tax offset for the 2019-20 income year or a later income year is set out in the following table in respect of the following income (your relevant income):

(a) if you are an individual—your taxable income for the income year;

(b) if you are a trustee—the amount of the share of *net income referred to in subsection 61-105(2).

[Low and Middle Income tax offset]

(6) Schedule 1, item 1, page 5 (line 4), omit "subsection (1)", substitute "subsections (1) and (1A)".

[consequential—Low and Middle Income tax offset]

(7) Schedule 1, item 1, page 5 (line 23), omit "subsection (1)", substitute "subsections (1) and (1A)".

[consequential—Low and Middle Income tax offset]

Scott Ryan (President) Share this | Link to this | Hansard source

The question now is that items 12 and 13 of schedule 1 and the tables dealing with tax rates for resident taxpayers, non-resident taxpayers and working holiday-makers for the 2022-23 or the 2023-24 year of income stand as printed.

The opposition opposed schedule 1 and schedule 2 in the following terms—

(8) Schedule 1, items 12 and 13, page 11 (lines 9 to 13), to be opposed.

[Low and Middle Income tax offset]

(14) Schedule 2, item 2, page 13 (line 14) to page 14 (line 2), table dealing with tax rates for resident taxpayers for the 2022-23 or 2023-24 year of income to be opposed.

[tax rates]

(16) Schedule 2, item 5, page 15 (lines 3 to 5), table dealing with tax rates for non-resident taxpayers for the 2022-23 or 2023-24 year of income to be opposed.

[tax rates]

(18) Schedule 2, item 9, page 16 (lines 11 to 13), table dealing with tax rates for working holiday makers for the 2022-23 or 2023-24 year of income to be opposed.

[tax rates]

Scott Ryan (President) Share this | Link to this | Hansard source

The question is that amendments (1), (2) and (17) to (19) on sheet 8441, circulated by Senator Storer, be agreed to.

Senator Storer's circulated amendments—

(1) Clause 2, page 2 (table item 3), omit the table item.

(2) Clause 2, page 2 (table items 5 and 6), omit the table items.

(17) Schedule 2, Part 1, page 13 (starting at line 2), omit the Part, substitute:

Part 1—Main amendments

Income Tax Rates Act 1986

1 Clause 1 of Part I of Schedule 7 (table item 2, column headed " For the part of the ordinary taxable income of the taxpayer that: " )

Omit "$87,000", substitute "$90,000".

2 Clause 1 of Part I of Schedule 7 (table item 3, column headed " For the part of the ordinary taxable income of the taxpayer that: " )

Omit "$87,000", substitute "$90,000".

3 Clause 1 of Part II of Schedule 7 (table item 1, column headed " For the part of the ordinary taxable income of the taxpayer that: " )

Omit "$87,000", substitute "$90,000".

4 Clause 1 of Part II of Schedule 7 (table item 2, column headed " For the part of the ordinary taxable income of the taxpayer that: " )

Omit "$87,000", substitute "$90,000".

5 Clause 4 of Part II of Schedule 7 (example)

Repeal the example.

6 Clause 1 of Part III of Schedule 7 (table item 2, column headed " For the part of the taxpayer ' s working holiday taxable income that: " )

Omit "$87,000", substitute "$90,000".

7 Clause 1 of Part III of Schedule 7 (table item 3, column headed " For the part of the taxpayer ' s working holiday taxable income that: " )

Omit "$87,000", substitute "$90,000".

8 Application

The amendments made by this Part apply to the 2018-19 year of income and later years of income.

(18) Schedule 2, items 10 to 12, page 18 (lines 3 to 12), omit the items.

(19) Schedule 2, items 15 and 16, page 18 (line 22) to page 19 (line 3), omit the items.

Scott Ryan (President) Share this | Link to this | Hansard source

The question now is that part 3 of schedule 2 stand as printed.

Senator Storer opposed schedule 2 in the following terms—

(20) Schedule 2, Part 3, page 20 (line 1) to page 21 (line 12), to be opposed.

Question agreed to.

Scott Ryan (President) Share this | Link to this | Hansard source

We now come to the last part of this chain of events. The question now is that the remaining stages of this bill be agreed to.

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

No, you skipped one.

Scott Ryan (President) Share this | Link to this | Hansard source

That's an unnecessary stage. I've been speaking to the Clerk about this.

Senator Wong interjecting—

Senator Wong, I have just been dealing with the Clerk about this matter and I've been advised that that is not necessary.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

So you're going to truncate it even more and not even have a debate on whether or not the bill should be agreed to.

Scott Ryan (President) Share this | Link to this | Hansard source

No. If I could complete the reading out of the motion: I've taken advice from the Clerk, Senator Wong, and the question now is that the remaining stages of this bill be agreed to and the bill be now passed with amendments. It is not necessary to have that particular motion in this chain of events—

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

This running sheet is what was circulated.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

We are already in an extraordinary procedure which has been following a document which has been circulated in the chamber. You are now seeking to amend that document, and I'd ask you not to. I'd ask you to simply proceed with the question. It may be a guide and you may know what you're doing, but—

Opposition senators interjecting—

You may; who knows?

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Wong—

Senator Cormann interjecting—

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

You know you would have had the vote now if you'd—

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Wong, please address me rather than Senator Cormann. This was circulated in the chamber. It is a guide and a courtesy. The rulings on procedure—

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

I am requesting 'that the bill, as amended, be agreed to' as a question.

Scott Ryan (President) Share this | Link to this | Hansard source

And I am advised by the Clerk that that is an unnecessary stage in this chain of events and the final matter remaining to be dealt with is 'that the remaining stages of this bill be agreed to and this bill be now passed with amendments'. Senator Collins, are you raising a point of order?

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

Yes, I am. As a courtesy, given the clerks would have advised the construction of this document in the first instance and we've been given no notice of the change, I would ask as a courtesy that we continue to follow the program that we have had in front of us and we ask the next question.

Scott Ryan (President) Share this | Link to this | Hansard source

That is a courtesy document.

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

It's unprecedented if you do that. You're politicising yourself.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Collins, really? I'm taking advice from the Clerk. I've ruled on the point of order and I've granted opposition senators latitude in this particular part—

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

There's no latitude on this.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Collins, can you remain silent while I'm ruling from the chair. I have granted the opposition courtesy to raise a number of issues in—

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

This is not courtesy. You should have told us of the changes.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Collins, I was advised two minutes ago during the last division. Resume your seat while I finish ruling on your point of order. I have granted the opposition latitude during a part of the Senate where there was to be no debate or discussion. I am now putting this motion. The question is—

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

Mr President, I didn't raise a point of order. I sought a courtesy on the basis that you are referring to Clerk's advice that has not been before anyone else here. There was no notice of it. I asked that the courtesy of following the program that has been circulated be followed.

Scott Ryan (President) Share this | Link to this | Hansard source

I have ruled, Senator Collins. I have granted the opposition—

Senator Jacinta Collins interjecting—

Really!

Senator Jacinta Collins interjecting—

Senator Collins, you have been granted latitude today during a session of the Senate that was specifically—

An honourable senator interjecting—

It is an order of the Senate that this matter be proceeded with without debate or discussion. You have been granted latitude—

Senator Jacinta Collins interjecting—

Senator Collins, you should reflect on your opportunity to save face, given the accusations you have just made. The question now is that the remaining stages of this bill be agreed to and the bill be now passed with amendments.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

I just wanted to get on record that, when we voted on items 12 and 13 of schedule 1 and the tables dealing with tax rates for resident taxpayers, non-resident taxpayers and working holiday-makers, the Greens opposed amendment (8) on sheet 8341. But I would like to get on record that had we split those bills we would have said yes to 8449—amendments (1) to (10).

Scott Ryan (President) Share this | Link to this | Hansard source

Thank you. That is noted on the record. Senator Collins?

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

On the basis of that advice, I think we should have the vote recommitted.

Scott Ryan (President) Share this | Link to this | Hansard source

I don't have a request for that from Senator Whish-Wilson. He has asked to put the matter on the record. He's been granted the courtesy to do that. The question now is that the remaining stages of this bill be agreed to and the bill be now passed with amendments.