Senator HOGG —My question is directed to the Assistant Treasurer. In relation to the minister's recent press release which stated `credit in relation to any advance previously paid will be applied to the 1997-98 assessments as provided for by the legislation', I ask: how will people who do not have a superannuation surcharge tax assessment issued in 1997-98 recover advance instalments they have made in the previous year?

Senator KEMP (Assistant Treasurer) —I thank Senator Hogg for that question on the very popular measure that the government announced recently—the abolition of the advance payment. This was a measure which received very strong community support. In particular, we received very strong support from the industry—

Senator Faulkner —You were humiliated.

Senator KEMP —If that is the case, can we have more such occasions? In the superannuation area we received very strong support from all the major industry groups. I think that at the time—I may be wrong; if I am, the Labor senator can correct me—the Labor Party did not even bother to put out a press statement attacking it. There was no press statement, I believe, from the shadow minister. So I assume that this, again, was a measure which was widely welcomed by the Labor Party. It is an extremely important measure. It was supported by ASFA, IFSA and the Australian Institute of Actuaries. We are very pleased and comfortable with those changes. We have strongly welcomed the community support.

Senator Faulkner —On a point of order, Madam President, I draw your attention to the fact that Senator Kemp was asked whether people who do not have a surcharge tax assessment issued in 1997-98 recover advance instalments they have made in the previous year—I think those were the words that Senator Hogg used. I do think it would be reasonable in this circumstance, given that we have had a couple of minutes of waffle, as usual, from Senator Kemp, to draw his attention to the actual question that was asked and perhaps invite him to break his duck and try to answer the question.

The PRESIDENT —I think the minister is giving background preamble, but I am sure he is coming to the answer.

Senator KEMP —And, I might say, an extremely important background preamble, Madam President. In line with the government's announcement, assessments for the 1997-98 income year, to be issued around 15 May, will not include an advance instalment. Any payments of advance instalment already made will be credited, including against assessments to be issued from May. With regard to 1996-97 assessments, the majority of superannuation funds have complied with the law and paid their surcharge liability.

Senator HOGG —I ask a supplementary question, Madam President. Isn't it the case that someone whose 1997-98 income has fallen below the surcharge threshold will not receive an assessment for that year? Isn't it the case that those who received an assessment in 1996-97 but have since died will not be issued with an assessment in 1997-98? Isn't it also the case that women who have left the work force—for instance, to have a baby—will also not be issued with an assessment in 1997-98? How will they receive their advance instalment credit?

Senator KEMP (Assistant Treasurer) —Madam President, where there is a small sort of charge on the advance payment, as I said, if a credit is required, a credit will be given. Where an advance payment has been made and no surcharge is required to be paid the following year, quite clearly the money will be refunded.