Senator SHORT (Assistant Treasurer)(1.08 p.m.) —I thank Senator Bolkus, Senator Spindler and Senator Watson for their contributions in this debate. It is very encouraging to see such a bipartisan approach to a matter that has affected so many Australians so traumatically.

This legislation deals with the issue of financing the government's decision to buy back guns. It does not relate specifically to the buyback, but it is an integral part of the whole buyback proposal. The proceeds from the levy will be used entirely for the buyback operation, to respond to Senator Spindler's point. As the Prime Minister said in his second reading speech, the bills will raise the necessary funds to reimburse states and territories for the direct costs of payments that they will have made to relevant gun owners.

Similarly, I can assure Senator Spindler, and Senator Bolkus who I think also raised the question—at least it is pertinent to the questions he will be raising on the buyback scheme—that any surplus that may occur or accrue as a result of the Medicare levy over the additional levy of 0.2 per cent will be returned to taxpayers through the Medicare levy system. The question of whether there will be any surplus funds left at the end is a matter that cannot be specifically determined at this time, but if there is any surplus, it will be returned through the Medicare levy system.

Senator Bolkus is leaving until the committee stage specific questions in relation to the buyback scheme. I might say to Senator Bolkus that, as I understand it, he told the Attorney-General's office only a couple of hours ago that he proposed to raise questions in the debate today. This is specifically a tax bill. The officers of the Attorney-General's office and department are very heavily engaged in many of the other details relating to the buyback scheme as a whole and I know that the Attorney-General is sorry, as am I, that he is not able to provide an adviser today. That is the reason. Had we had more advance notice that Senator Bolkus wished to raise questions in the debate today, then perhaps the situation would have been different.

Senator Chris Evans —It is your bill.

Senator SHORT —This is not the guns buyback bill; this is a tax bill to finance the buyback. As I foreshadowed to Senator Bolkus before this debate, and as he has said, he will be putting questions on notice during the committee stage. I will certainly take the questions on notice and I undertake to provide the very best answers possible as soon as possible, given, I must say to Senator Bolkus, that certain issues are still to be resolved in discussions taking place among the states, the territories and the Commonwealth. I thank all senators for their participation.

Question resolved in the affirmative.

Bills read a second time.