Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

I would like to thank those senators who have taken part in the debate on the Tax Laws Amendment (2008 Measures No. 1) Bill 2008. This bill honours the government’s election commitment to remove tax-deductibility for donations made to political parties, candidates and members. This commitment was made as part of Labor’s $3 billion savings plan, which was announced by the Minister for Finance and Deregulation on 2 March 2007. Currently, deductions are allowed for donations to political parties, members of parliament and candidates, including Independents, of up to a maximum of $1,500. Prior to 2006, donations and membership fees were deductible up to a lower $100 threshold, when the former government implemented an increase up to the current $1,500 and expanded the deduction of donations to independent candidates and members and to donations by business.

The proposal to remove deductibility of political donations has the support of the majority of members of the Joint Standing Committee on Electoral Matters. This measure will save Australian taxpayers about $10 million per annum. Amendments to this bill are to be moved by the government in the committee stage of the debate. The amendments will in part omit schedules 2 to 6 to this bill. These schedules have been incorporated into the Tax Laws Amendment (2008 Measures No. 2) Bill 2008, which passed the Senate on 17 June 2008.

Question agreed to.

Bill read a second time.