David Bradbury (Lindsay, Australian Labor Party, Assistant Treasurer ) Share this | Hansard source

I thank members who have contributed to this debate. Schedule 1 to the Tax Laws Amendment (2012 Measures No. 3) Bill 2012 reduces the marginal tax rate for Pacific Islander and East Timorese seasonal workers to 15 per cent, to be administered as a final withholding tax with effect from 1 July 2012. The Income Tax (Seasonal Labour Mobility Program Withholding Tax) Bill 2012 formally imposes this rate of tax.

Schedule 2 makes minor consequential amendments to the taxation of gaseous fuels and the taxation of aviation fuels. These will ensure that the clean energy legislation and the legislation applying fuel tax to gaseous fuels operate as intended. Schedule 3 makes a technical amendment to the Income Tax Assessment Act 1936 to ensure that the government's 2011-12 budget measure to remove the ability of minors to use the low-income tax offset to reduce tax on their unearned income operates as intended. Schedule 4 provides an exemption from the income tax for clean energy payments made to recipients of specified government payments. Schedule 5 changes the taxation of termination payments to make it fairer by limiting access to the employment termination payment tax offset for high-income earners. Payments received because of genuine redundancy, invalidity or the death of an employee will not be affected by these reforms.

The Tax Laws Amendment (Income Tax Rates) Bill 2012 will amend the personal tax rates for non-resident taxpayers to align with the rates for resident taxpayers. I commend this bill to the House.

Question agreed to.

Bill read a second time.

Ordered that this bill be reported to the House without amendment.

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