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

I would like to take the opportunity to thank all members who contributed to this debate, in particular the member for Lyne for his contribution, which I think was a very worthy one.

Schedule 1 of the Tax Laws Amendment (2013 Measures No. 2) Bill 2013 requires large entities in the pay-as-you-go instalment system to make their instalments monthly instead of quarterly. Unlike the coalition's monster paid parental leave tax, no entity will pay more tax as a result of this change. In fact, not one extra dollar in tax will be paid. This merely changes the frequency with which instalment amounts must be remitted to the Australian Taxation Office.

In order to help reduce compliance costs, the commissioner will be granted a new power to develop alternative methods of developing instalment income. Earlier this year, I also announced a longer term review of the pay-as-you-go instalment system. As part of this review the government will consult with industry to identify longer term reforms to improve the pay-as-you-go instalment system for all businesses, large and small.

The member for North Sydney bleated that the $20 million threshold had been plucked out of thin air. Once again, the member for North Sydney is showing his ignorance of these matters and also, I think, is showing why he is unfit to be sticking his hand up to be the Treasurer. The $20 million threshold was chosen to align with the GST threshold for being a monthly GST reporter, so there is a very clear reason. The figure was not plucked out of the air; there is a very strong rationale for that. The whole purpose of the reform is to better align PAYG instalment payments with the GST payments for most large companies and to allow PAYG instalments to be more responsive to the economic conditions faced by their businesses.

Schedule 2 to this bill amends the Income Tax Assessment Act 1997 to introduce a new tax loss incentive for designated infrastructure projects. The tax incentive will promote private sector investment in infrastructure projects determined to be of national significance. Examples of these projects that could benefit include the Brisbane Cross River Rail, Sydney motorways and Melbourne Metro projects. I know firsthand how important the Sydney motorways project is to the people of Western Sydney. It is desperately needed, but we would of course like to see the extension to the M4 go all the way to the city and would like to ensure that, whatever the financing arrangements, a new toll is not imposed on an old road where motorists are forced to pay a toll for driving along a road that they currently drive on for free.

Mr Hockey interjecting—

The member opposite says it will never happen. Perhaps he should tell the people of Western Sydney that he is intending to make a false promise.

This is an important part of a broader package of reforms to build the—

See this speech in context