Mr SLIPPER (10:59 PM) —I move:

That the amendments be agreed to.

The amendments being considered tonight demonstrate the government's commitment to consultation and concern that the new tax system be fair to all Australians. The first amendment provides benefits to the charitable sector and was the subject of representations from the Australian Democrats. It would be appropriate at this time to recognise the constructive role played by the Australian Democrats in the implementation of Australia's new tax system.

The first amendment extends the 50 per cent cost of supply test to non-commercial supplies by charities to 75 per cent. The second amendment again provides benefits to the non-profit sector by lifting the threshold under which branch units of charities can opt out of the GST system. This amendment responds directly to a request from the charitable and not-for-profit sector to significantly reduce compliance needs. The third amendment relates to the funeral agreements and responds to requests from the funeral industry for clarity with respect to the transitional provisions as they apply to the funeral industry.

It is interesting to note that the Australian Funeral Directors Association and the Australian Cemeteries and Crematoria Association have commended the government's approach in making these amendments. In fact, the Assistant Treasurer has received a letter dated 2 December from the Australian Funeral Directors Association stating:

On behalf of all members of the Australian Funeral Directors Association and the Australian Cemeteries and Crematoria Association, please accept our thanks for your recent undertakings to amend legislation relating to the transitional provisions for GST and the funeral industry.

The outcomes as described in your correspondence of 30th November, 1999, were very pleasing and, may I say, very sensible. The amendments have certainly provided clarity and relative ease in the application of GST, particularly for prepaid funerals.

That is an absolutely wonderful recommendation and letter of support from the funerals association. I commend the bills and these amendments to the chamber.