Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Hansard source

I thank Senator Boswell for his question and our continuing discussion on these issues. I might suggest, in responding, Mr President, that I offer Senator Boswell a briefing on these matters, because I think the level of complexity and detail is hard to get on top of not only regarding the changes that are affecting the charitable sector as a result of the previous government’s 2006 budget changes but also regarding the changes that we have introduced as part of our budget this year and the confusion in the minds of the public about how the two interact.

I am able to advise the Senate that the changes that the Rudd Labor government introduced as part of the budget will focus on the salary sacrifice into superannuation issue. The changes are designed to bring that measure into line with conditions that apply to pensioners and the self-employed. This initiative will also help ensure that people cannot reduce or avoid their child support obligations.

As I have said to the Senate and to you, Senator Boswell, it is not the purpose of the social security system to provide further incentives, over and above those provided by the tax system, to make voluntary contributions to superannuation. Our view is that people ought not to be able to get more benefits, be they family tax benefits and/or childcare benefits, than they would otherwise be entitled to and that, by using the salary sacrifice into superannuation, they should not be advantaged over other citizens. In terms of the FTB, I think I told you yesterday that we anticipated about 3½ per cent of families receiving family tax benefit will be affected.