Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Hansard source

Although all of these points have been answered well in previous hearings, debate contributions and committee hearings, Senator Macdonald chooses to persist on a couple of specific points. On the Bega issue, if in fact the Bega area is declared a disaster zone, it would be exempt from the tax. My advice from Treasury is that, despite the exemption in this case and in previous exemptions, it is estimated that it will not materially affect the estimated revenue collection of $1.8 billion.

The tax is a progressive tax and is income based. It is fair and equitable and efficient. That is the reason the government is determined to use that as the tax base in the same way as the guns levy and the East Timor levy were applied. We considerably debated other levies under the previous Liberal-National Party government. There were levies that did not affect everyone as applied by the previous Liberal-National Party government. The Ansett levy applied to tickets. Clearly, many people in the community would not have flown and, therefore, would not have paid the levy. Not everyone drinks milk, surprisingly. The superannuation surcharge, through definition, did not apply to everyone.

There is a mixed record, but on this occasion we believe that the base of the tax is fair, equitable and efficient. I have taken the two questions on notice. Clearly—and this is obvious, Senator Macdonald, from the Bega example—we are not in a position to give the total number of people exempt. We cannot do that today but as soon we have the figure from the ATO we will provide it for you on notice.

Bills agreed to.

Bills reported without amendments or requests; report adopted.