Mitch Fifield (Victoria, Liberal Party, Shadow Parliamentary Secretary for Disabilities, Carers and the Voluntary Sector) Share this | Hansard source

That is great, we have learnt something here today. When we are looking at DGR status it is helpful to look at the nature of the activities that that status is supporting. I make the serious point that a lot of extremely worthy organisations seek DGR status. It is not always an easy thing to get and from time to time you do have to ask yourself why some deserving organisations do not get DGR status and others, over which perhaps there is a question mark, do. I thought that was interesting to note, Mr Acting Deputy President.

Schedule 5 provides an income tax exemption for the income recovery subsidy payments made to eligible recipients affected by the north-western Queensland floods. The income recovery subsidy is available to those who suffered a loss of income directly caused by the north-western Queensland floods of January and February 2009 and, I am sure, we would all spare a thought for those in Queensland who have been subject to the more recent floods. I know Senator Joyce is in Queensland at the moment rendering assistance in those areas.

Schedule 6 provides an income tax exemption for the income recovery subsidy payments made to eligible recipients affected by the north-western Queensland floods—as I have mentioned. This is intended to clarify the excise treatment of high-strength neutral spirit. I note that this schedule deals with pure ethanol and does not deal with ethanol used for beverages or consumption. Schedule 6 also covers that aspect. Currently, high-strength neutral spirits that are used for industrial, manufacturing, scientific, medical, veterinary or educational purposes are free from excise duty when they are manufactured domestically. However, the same spirit attracts an excise when it is imported. The current practice is for importers to blend imported spirit with domestically produced spirit. The blended spirit is then treated in the same manner as domestic spirit under the concessional spirits regime, and this is the same excise treatment applied to other fuels. The existing tax law does not have a provision deeming the blending of spirit as constituting domestic manufacture; however, the law does have provisions that relate to other fuels. This schedule brings the excise treatment of high-strength neutral spirit in line with other fuels by clarifying the law to ensure the intended operation of the law and allowing that the current industry practice can continue with greater certainty.

I acknowledge that the government has undertaken extensive consultation throughout the development of this bill and that there is broad support for these changes. The opposition will be supporting the bill.