House debates

Wednesday, 23 February 2011

Tax Laws Amendment (Temporary Flood Reconstruction Levy) Bill 2011; Income Tax Rates Amendment (Temporary Flood Reconstruction Levy) Bill 2011

Second Reading

11:48 am

Photo of Don RandallDon Randall (Canning, Liberal Party, Shadow Parliamentary Secretary for Local Government) Share this | Hansard source

In estimates yesterday, the finance official, Mr David Tune, was asked a question regarding natural disaster relief payments to disaster declared areas. He was asked whether people in those areas would be paying the levy. His answer was quite interesting. Senator Cormann asked:

People like those in Kelmscott that was subject to those bushfires will be exempt from the flood tax?

The finance official answered:

No, no. Not necessarily, no.

Senator Cormann: Why is that?

The official answered:

Well, the government’s decision at the moment is that those who are subject to the floods are exempt from the levy. It would require another decision for that.

In other words, whether or not people affected by fires would be paying the levy. Senator Cormann continued:

So … if the natural disaster you are subject to was a flood you will be exempt from the flat tax. If it is any other natural disaster you are not exempt from the tax?

The official answered:

That is the situation at the moment.

Let’s talk about real, live action on this issue. This is what I am asking: how many people are going to be exempt, how many people will not be exempt?

I put out a press release, which was picked up by the West Australian newspaper, saying that people in my electorate would be hit with this tax, as per the description from the finance official. Interestingly, by the time the West Australian had finished talking to the Prime Minister’s office, things had changed. A spokesman was reported in the West Australian:

A spokesman for Ms Gillard said victims of this year’s WA bushfires would be exempted.

“As the Prime Minister has made clear, if people have been hit hard by natural disasters in the last few weeks, then it’s only fair that they do not pay the levy …

Well, they were going to pay the levy yesterday, but they are not going to pay the levy today? What a mess. The official declared to Senator Cormann in estimates—

Comments

No comments