House debates

Thursday, 21 February 2008

Tax Laws Amendment (2008 Measures No. 1) Bill 2008

Second Reading

12:19 pm

Photo of David BradburyDavid Bradbury (Lindsay, Australian Labor Party) Share this | Hansard source

I hear an interjection across the chamber from the member for Cook, who, if memory serves me correctly, was also the state director around the same time. What you had back in those days was the member for Wentworth knocking on the doors and the member for Cook following him around with his cap, collecting all the shekels of those willing to make a contribution to the Liberal Party.

Such is the prolific reputation of the member for Wentworth’s contribution to fundraising in our great democracy that an article in the Daily Telegraph on 1 August 2007 detailed some of his fundraising exploits. In fact, to join the Wentworth Forum—the principal fundraising arm for the member for Wentworth and his re-election to the seat and, no doubt, many other aspirations that he holds—the meagre amount of $55,000 would get a seat at the table for one of the poor individuals that the member for Wentworth seems to think are being deprived of their democratic rights through the expression of this bill.

I find it extraordinary to hear the member for Wentworth come forward and try to teach us, with such eloquence, a great lesson about the need to curb donations from the big end of town. In my view, that is akin to being taught a lesson in good manners by Wayne Carey. It is not something that anyone would rightfully expect or be prepared to accept, given the sheer hypocrisy of it. To quote the words of the member for Stirling, I would say that it is ‘absolute egregious hypocrisy’.

If I can turn to the specific tax deductability issues of this bill, I want to quote from a submission by some experts to a previous Joint Standing Committee on Electoral Matters inquiry into these matters. Mr Orr and Mr Tham indicated in a submission that, in relation to tax deductions for donations—and, in particular, donations by companies—‘Such deductions by companies would also, in effect, generate a public subsidy towards the payment.’ Earlier in the footnote from which I read, it says, ‘This would be clearly against public policy,’ and it indicates that it would not be appropriate to extend deductability of contributions to corporations—which, I might add, is something that the former government did.

In relation to the tax deductability issue, it is a simple proposition that those on higher marginal tax rates get a greater benefit from the contribution that they make, so there is not a lot of assistance for a pensioner who wishes to make a contribution. In response to the member for Stirling, why should members of a collective organisation be denied the opportunity to contribute, any more so than an individual? It is an interesting point that the member for Wentworth made in relation to the so-called preserved and privileged position of unions within this system. The interesting point that he failed to make—and he would appreciate this, because I know of his great love of the minutiae of tax legislation—is in the specifics of the legislation, and in particular in section 50-15 of the Income Tax Assessment Act 1997, where it says that the tax exempt status that is afforded to trade unions is also extended to employer associations. So for anyone to come into this place and suggest that this is a one-sided tax exemption that exists for those trade unions is mere folly. Go and have a look at section 50; and, in looking at section 50, all members will be able to see that that is clearly not the case.

In relation to some of the peak bodies such as the Business Council of Australia et cetera, some of those bodies would also no doubt benefit from the taxation principle of mutuality, in which case they would obtain at least limited benefits from the taxation law in terms of contributions that they make. So please do not come into this House and suggest for one moment that trade unions in some way enjoy privileged status. The member for Wentworth made the startling observation that the trade unions contributed to the Australian Labor Party’s campaign at the last election. I cannot, for the life of me, figure out why they did not contribute to the Liberal Party’s campaign! They were determined to get rid of the former government’s unfair and extreme Work Choices laws. Don’t ever forget that, while those opposite failed to put their Work Choices laws before the Australian people, this very schedule that we are now debating was one of the measures that we did put before the Australian people. We have a mandate for it. We do not need to send it off to a committee in order to see whether or not a commitment we made needs to be delivered on. Unlike those opposite, we do not distinguish between core and non-core promises. It was a promise and we intend to deliver on it.

Can I also say that the member for Stirling I thought made some rather pertinent comments in one of his previous contributions to the House. He suggested that the most appropriate place for referring matters relating to the conduct of elections, specifically the conduct of elections that have just occurred, was to the Joint Standing Committee on Electoral Matters. I understand that the member for Casey, who is in the chamber, previously chaired one of those committees. I think that that is entirely appropriate. I would call upon the member for Stirling, the member for Casey and the member for Cook—in their zeal and great eagerness to see this matter referred to that committee—to reflect upon the previous comments of the member for Stirling in this place. He said the way in which elections are conducted are matters that should be referred to the Joint Standing Committee on Electoral Matters. I would call upon them to support the referral to that committee of the actions of some of their fellow Liberal Party members in the seat of Lindsay in the last election campaign. I would call on them to refer those matters to that committee for its specific attention. In doing so I would also ask that the committee consider the role of the member for Warringah, because he is on the record saying that the Warringah federal electorate conference, which I assume is some fundraising arm of his, contributed—and, in fact, if I can use the terminology—bankrolled the campaign in Lindsay. If he bankrolled the campaign in Lindsay I think it is incumbent upon this place and the committees that report to this place and to the other chamber to investigate these matters and to see specifically what role the member for Warringah and the electoral funds that he has collected had in the activities that occurred in Lindsay. I support the proposals that are contained within this bill and I am sure that the opposition will acknowledge the mandate that the government has in respect of these items.

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