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Thursday, 21 November 1996
Page: 7248

Amendment agreed to.

Mr MILES (Braddon—Parliamentary Secretary (Cabinet) to the Prime Minister) (1.12 p.m.)—I move:

That amendment No. 2 be agreed to.

This amendment will provide for the trustee who pays tax on behalf of a beneficiary who is under a legal disability to calculate the beneficiary's entitlement to the FTA on the basis of the beneficiary's share of trust income alone. The trustee will not be required to take any other source of income into account in determining the beneficiary's entitlement to FTA. The change is consistent with the existing law in that the trustee has to pay tax only on the beneficiary's income from the trust and not on the beneficiary's other income. We have been willing to accommodate the opposition in having a sensible debate in this area, so we will proceed with each of these amendments independently.