Tax Laws Amendment (2009 measures No. 6) Bill 2009
Tuesday, 25 May 2010 04:01
Darren Cheeseman Speech Tax Laws Amendment (2009 measures No. 6) Bill 2009Mr Speaker, I am grateful for this opportunity to speak on this Bill.
It gives me a chance to talk about the specific measures contained in the Bill, a number of which are important to many Australians and of course people in my electorate.
But it also gives me a chance to say a few words about taxation policy in a broader sense, including Labor's commitment to progressive taxation and the ridiculous position being adopted by the Opposition on taxation.
Mr Speaker, this Bill is another example of how Labor is committed to having the most efficient, effective and fair taxation system possible.
It is an example of how the Rudd Labor Government is always on the lookout for how to improve and refine our taxation system.
It is an example of how we are always trying to develop a fair and balanced taxation laws.
Unlike the Opposition, we have not just sat back and let taxation policy slip and slide.
We are trying to develop a tax system that works for working families, and for industry.
So just going through in brief Mr Speaker.
Schedule 1 abolishes the capital gains tax (CGT) trust cloning exception.
Previously Mr Speaker, taxpayers could use the exception to change effective ownership of an asset potentially to eliminate tax liabilities on accrued capital gains, undermining equity and the integrity of the tax system.
This measure also provides a limited Capital Gains Tax roll-over for the transfer of assets between trusts, with no material discretionary elements (sometimes referred to as fixed trusts) and with the same beneficiaries.
This will ensure that Capital Gains Tax considerations are not an undue impediment to the restructure of those trusts, whilst ensuring that subsequent changes to the manner and extent to which beneficiaries can benefit from the trusts are subject to appropriate tax consequences.
Mr Speaker, "trust" is a word most Australians know as something of an important human quality.
But for many Liberal Party Members "trust" is something altogether different.
"Trust", for many Liberal Party members, is something you put into the tax system as a tax loophole.
Trusts, not always, but on more than the odd occasion, have been used to avoid tax.
And these tax loopholes which were allowed to exist by the former Government was just another reason why the Liberals lost the trust of Australians at the ballot box.
So it is great to see a Labor Government here today closing off some of these loopholes today.
Schedule 2 Mr Speaker is a measure removing significant income tax impediments to mergers between complying superannuation funds by permitting the roll-over of capital losses and revenue losses realised under the merger and the transfer of previously realised capital and revenue losses.
This is a measure aimed at assisting the superannuation industry Mr Speaker, which as we all know was one of the greatest triumphs of the previous Labor Government and of course the Australian trade union movement.
Mr Speaker, I know many people on the other side will disagree with this measure because they fundamentally hate to see the success of the Australian superannuation reforms because it was an idea that was born out of the Australian trade union movement.
But all I say to them Mr Speaker is this.
Not only has the Australian superannuation industry been brilliant for Australian families, it has been fantastic for our whole economy.
Mr Speaker, I would point out in this debate - as it is directly relevant - that if it were not for the superannuation reforms put in place by the previous Labor government and the Australian trade union movement then the Australian economy would not be seen as the miracle economy it is seen as today.
It was the structural savings created by those super reforms, along with the Rudd government stimulus packages, that were the foundations of our economy during the crisis.
Mr Speaker this change reflects changes within the superannuation industry and allows a continuing consolidation.
Mr Speaker Schedule 3 amends the Income Tax Assessment Act 1997 to clarify the circumstances in which income derived by life insurance companies in respect of immediate annuity business qualifies as non-assessable non-exempt income.
Schedule 4 is a measure amends the Income Tax Assessment Act 1997 (ITAA 1997) to specifically list two new organisations as deductible gift recipients (DGRs), and change the name of one organisation.
In order for an organisation to be a DGR, it must fall within one of the general categories set out in Division 30 of the Income Tax Assessment Act 1997 or be specifically listed by name in this Act. Organisations with DGR status can collect tax deductible gifts.
Mr Speaker these are fair and prudent measures.
Determinations and assessments have been made about organisations that are legitimately be able to claim tax deductible gifts status.
Schedule 5: This measure exempts from income tax the income recovery subsidy for the north western Queensland floods of January and February 2009.
The income recovery subsidy payment for north western Queensland floods is an Australian Government payment paid to individuals affected by the north western Queensland floods of January and February 2009.
The payment is equivalent to the maximum rate of the Newstart allowance, and is designed to provide immediate financial assistance to individuals affected by disaster.
Mr Speaker, it would not be fair to tax this payment, as it would defeat the purpose.
This payment has been made income tax exempt in order to provide individuals affected by this disaster with the maximum amount of support.
Again Mr Speaker, this shows a Government right on the ball, looking to constantly adjust the tax system so it is fair and helps those who need help.
Mr Speaker the final schedule in this Bill is Schedule 6
This measure amends the Excise Act 1901 (the Excise Act) to deem the blending of spirits to produce spirit as excise manufacture for the purposes of the Excise Act.
This is necessary for imported high strength neutral spirit, as it currently derives its concessional duty treatment (that is, a ‘free' rate of excise duty) from being blended with domestic high strength neutral spirit and entering the excise system.
These amendments will preserve the status quo for the concessional spirits regime.
Mr Speaker, what this is about is the tax regime relating to the use of spirits with an industrial, manufacturing, scientific, medical, veterinary or educational purpose.
The ultimate users of high strength neutral spirits are a broad range of industries, including the pharmaceutical, chemical, manufacturing and food sectors. Examples include mouthwash and antibacterial hand sanitiser.
Again, this is another change reflecting the Rudd Government's determination to keep the tax system up-to-date with the times, how materials and substances are used and taxes should apply.
Mr Speaker I want to just finish off by again observing the importance of keeping a close eye on the tax system and constantly refining and improving it.
This has always been a mark of Labor Governments.
Wherever and whenever Labor has been in power we have always closely scrutinised the tax system.
We have always tried to design tax systems that care for working families, balance the need of and changes to industry.
That's what we are again doing here today and I commend the Bill to the house.
| < Prev | Next > |
|---|
