Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Competition, Charities and Treasury) Share this | Hansard source

by leave—First, I would like to thank the members for Bradfield, Sturt and Bennelong, who have contributed to this debate, and welcome the opposition's support on this crucial measure. Schedules 1, 3 and 4 of the bill will amend our tax laws to provide targeted support to low-income households, primary producers and small and medium businesses. In line with the government's commitment to provide targeted cost-of-living relief in this year's budget, the bill increases the Medicare levy low-income threshold for singles, families, seniors and pensioners by 3.9 per cent. This means that singles with a taxable income of up to $24,276 will not be liable for the Medicare levy—an increase of almost $1,000. The change to thresholds to reflect the CPI increases is consistent with increases introduced by previous governments and will support 1.1 million individuals.

The bill also assists our primary producers to reduce their carbon emissions by providing concessional tax treatment for Australian carbon credit unit income. We will also change the taxing point for eligible primary producers holding ACCUs. Instead of being taxed as the value changes each year, they will be taxed in the year of sale. Doing so will help farmers distribute uneven income across multiple financial years, support cash flow and support primary producers to diversify their business into carbon abatement activities.

The final tax measure presented in the bill reduces the GDP adjustment factor used to work out the amount of Pay as you go on GST instalments payable for the 2023-24 income year from 12 per cent to six per cent. The reduced GDP adjustment factor of six per cent strikes a balance. It will minimise cash flow impacts while helping businesses avoid tax debts through the contribution of reasonable tax instalments throughout the year.

Schedules 2 and 5 of the bill amend access to government guarantees. As part of the privatisation of the Commonwealth Bank, the Australian government provided a guarantee to ensure that pre-privatisation members would not risk losing their superannuation following privatisation. The bill assures that these members will continue to benefit from the existing guarantee following a planned merger involving Commonwealth Bank Group Super. This will enable the merger to go ahead, as the superannuation fund trustee can only transfer its members to another fund without their consent if it is satisfied that those members will enjoy 'equivalent rights' in the new fund.

Finally, the bill enables the National Housing Finance and Investment Corporation, soon to be renamed Housing Australia, to provide assistance to more Australians in need. Previous governments' failure to act seriously on housing has led to significant challenges across the country. It has meant homeownership is out of reach for many ordinary Australians. The bill will expand assistance to those who've not held a property interest in Australia in the preceding 10 years. This will allow those who have fallen out of home ownership, often due to financial hardship or a relationship breakdown, to re-enter the property market with government assistance. It also expands eligibility for single parents to include single legal guardians of children such as aunts, uncles and grandparents. The expansion in eligibility recognises the importance of stable and secure housing in providing a foundation for social and economic wellbeing. I commend the 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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