Kevin Hogan (Page, National Party, Shadow Minister for Trade and Tourism) Share this | Link to this | Hansard source

My question is to the Prime Minister. In Lismore on 28 October when asked whether the flood disaster grants would be taxed, the Prime Minister said there has been no suggestion that they would be taxed. Does the Prime Minister stand by this statement?

Anthony Albanese (Grayndler, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for Page for his question. I am surprised that he has asked it in that way, given that he travelled with me to Lismore with the Premier of New South Wales and also with the member for Richmond, who joined us on that occasion.

Effectively, what occurs in this system is that payments are made and once that is expended it becomes a tax deduction. So, in effect, it doesn't attract real tax. That is the situation. If you made it tax free upfront, then potentially people could gain money from it. So the grant is paid—some of it without receipts, as you would be aware—and then, once it is expended, it becomes a deduction, just like the grants that we've made today. This is the same way that it has always operated.