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 contributed to the debate on the Tax Laws Amendment (2008 Measures No. 6) Bill 2009. Schedule 1 modifies the capital gains tax provisions of the Income Tax Assessment Act 1997 for corporate restructures. Companies will be prevented from obtaining a market value for cost base for shares and certain other interests acquired in other entities following a scrip-for-scrip capital gains tax rollover under an arrangement that is taken to be a restructure.

This is an important integrity measure which the former government announced its intention to deal with in October 2007. However, the former government’s proposal was poorly targeted and effectively stopped scrip-for-scrip arrangements, causing disruptions in the market. The government’s measure has been refined through extensive consultation and will effectively target the mischief. The amendments to the assistance in collection provisions will ensure that they operate as intended and provide the Commissioner of Taxation with an effective mechanism to take action to collect or to conserve tax debts in another country where Australia has committed to such a reciprocal arrangement under an international agreement.

Schedule 3 of this bill amends the Superannuation Guarantee (Administration) Act 1992 with regard to the late payment offset. The offset allows an employer who makes a late superannuation guarantee contribution for the employee to use that contribution to offset against part of their superannuation guarantee charge liability. These amendments specify that an employer will be able to use the offset if they make the contribution before they are assessed with the superannuation guarantee charge liability. This will encourage employers to make the contributions in a more timely manner whilst still having the benefit of using the offset to reduce their superannuation guarantee charge liability. Schedule 3 also amends the calculation of the general interest charge on an unpaid superannuation guarantee liability where the offset is used. The calculation of the general interest charge will be amended so that it accrues with the remaining amount of the unpaid liability after the offset has been applied. This reduces the amount of the general interest charge and acknowledges the fact that the employer has made a contribution for their employee.

Schedule 4 implements various minor amendments to the law and also some general improvements of a minor nature. These amendments reflect the government’s commitment to care and maintenance of the tax system.

Schedule 5 introduces taxation measures to alleviate the financial hardship being felt in communities affected by the 2009 Victorian bushfires and North Queensland floods. Part 1 of schedule 5 exempts the income recovery subsidy from income tax and ensures that the subsidy is not included in separate net income for the purposes of calculating an entitlement to certain tax offsets. Part 2 of schedule 5 allows the Treasurer to declare an event a disaster for the purpose of establishing Australian disaster relief funds. The declaration of a disaster by the Treasurer will allow Australian disaster relief funds to receive tax deductible donations and provide money for the relief of people in distress as a result of the disaster. Part 2 also lists by name the 2009 Victorian Bushfire Appeal trust account as a deductible gift recipient. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.