House of Representatives

Tax Laws Amendment (2005 Measures No. 4) Bill 2005

Second Reading Speech

Mr BROUGH (Longman-Minister for Revenue and Assistant Treasurer)

I move:

That this bill be now read a second time.

This bill amends various taxation laws to implement a range of changes and improvements to Australia's taxation system.

Schedule 1 introduces the child-care tax rebate. This initiative will help families by giving them a rebate on their tax of 30 per cent of out-of-pocket child-care expenses. The rebate will cover child-care expenses for taxpayers who use approved care and meet the child-care benefit work test or one of the equivalent child-care benefit limits. The rebate will be payable up to a maximum of $4,000 per child. Taxpayers will also be able to transfer any unused portion of the rebate to their spouse.

The child-care tax rebate will assist families with the cost of approved child care, building on the child-care benefit system and family assistance currently provided through initiatives such as family tax benefit, and honours the coalition's election commitment.

Secondly, the bill amends the lists of deductible gift recipients in the Income Tax Assessment Act 1997. Deductible gift recipient status will assist the listed organisations to attract public support for their various good works and activities.

Schedule 3 expands the parameters for the disclosure of business income tax information between the Commissioner of Taxation and the Australian Statistician, for the purposes of the Census and Statistics Act 1905.

Finally, this bill provides arrangements through which New Zealand wine producers who export their wine to Australia can access the wine producer rebate. This measure demonstrates the close economic relationship shared by Australia and New Zealand.

Full details of the measures in this bill are contained in the explanatory memorandum.

I commend this bill to the House and present the explanatory memorandum.