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Thursday, 4 December 1986
Page: 3354

Senator VIGOR(12.41) —by leave-On behalf of the Australian Democrats, I move the following amendments to the Taxation Laws Amendment Bill (No. 4) 1986:

(1) Page 11, after clause 27, insert the following clause:

``Losses and outgoings

``27a. Section 51 of the Principal Act is amended by adding at the end the following sub-section:

`(5) A deduction is not allowable under sub-section (1) in respect of expenditure for the purpose of the advertising or promotion of-

(a) tobacco, substances containing tobacco, synthetic tobacco or any substance intended or designed for smoking;

(b) cigarettes, cigars or other items intended or designed to be used for smoking; or

(c) smoking pipes or any other accessories, items or devices intended or designed to be used principally for or in association with smoking.'.''.

(2) Page 47, clause 55, proposed new section 14zab, definition of ``required fee'', leave out ``$200'', insert ``$10''.

The first amendment would remove the taxation deduction that is currently available for expenditure on advertising and other forms of promotion of cigarettes. It would give the Government a chance to raise about $80m in one year and $450m in future years. If tobacco companies spend such large amounts in their attempts to seduce teenagers and the young in our community, thereby creating large bills for health prevention and social welfare measures, I believe that it is quite reasonable for the Government to levy taxes on such money. There is absolutely no reason why the taxpayer should support the advertising of tobacco. We should be doing everything that is possibly open to us to decrease the amount of smoking within the community. The taxpayer is being used to subsidise the advertising of this habit, particularly to the young. I am very disappointed that both the Government and the Opposition apparently will refuse the imposition of this levy. I commend the amendment to the Committee and recommend that honourable senators vote in favour of it.

The first amendment deals with tobacco; the second amendment was very fully canvassed by Senator Messner, Senator Short and Senator Michael Baume in the second reading debate. They all said that to impose a $200 fee for appeal to the Administrative Appeals Tribunal would be a pernicious measure. We are trying, by way of our second amendment, to get this fee decreased to $10, which I believe would be a reasonable fee. I commend the amendment to the Committee.