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Thursday, 12 March 1998
Page: 912


Senator MARGETTS (10:38 AM) —I would also like to ask a question about the so-called long taper. I cannot imagine in a tax regime going from $30 a week to $31 a week and having half of your allowance taken off you as a result of going from $30 to $31. That is extraordinary. It might be better than what it was—I am not sure—but that is not a long taper. Basically, if you go from $30 a week without having your youth allowance affected to $31 a week and having it halved, that is not a long taper. That is extraordinary.


Senator Newman —It is nothing of the sort.


Senator Neal —It is only for the dollar above the $30.


Senator MARGETTS —Oh, it is for your marginal rate. But it is quite extraordinary and it is more than you would have in a taper on a tax system. Can the minister guarantee that it is the marginal rate above that? How does that work? It is not going to affect a person's income; it is going to affect their youth allowance, is it not? How does that actually work? That does seem to be a fairly steep taper, not a long taper.