Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document

TAXATION SYSTEM REFORM-MINISTERIAL STATEMENT

Order of the Day read for the adjourned debate on the motion of the Minister for Industry, Technology and Commerce (Senator Button)-That the Senate take note of the Statement.

Senator Messner moved an amendment, viz: Leave out all words after ""That'', insert ""the Senate, while welcoming the promised reductions in marginal taxation rates, believes that the tax package presented by the Treasurer falls well short of the fundamental and lasting reform of our taxation system so frequently promised by the Government, and more specifically, the Senate-

(a) condemns the proposed introduction of the new capital gains tax;

(b) notes that under the Government's proposals the share of revenue carried by personal income tax will continue to rise;

(c) condemns the indiscriminate nature of the attack on fringe benefits and entertainment expenses;

(d) expresses grave concern over the effect on enterprise, investment and employment due to the additional cost burdens on business arising from the capital gains tax, the higher rate of company tax, the fringe benefits tax and the loss of deductions for legitimate entertainment expenses;

(e) regrets that the package will have an adverse and discriminatory impact upon rural Australia;

(f) notes the particularly discriminatory nature of the attack on the deductibility of farm losses against non-farm income;

(g) condemns the proposed foreign tax credit system as likely to discourage investment by Australian companies in our region; and

(h) while supporting the elimination of double taxation on dividends, expresses serious reservations about the proposed system of imputation which may cause serious cash flow difficulties for business and may produce only benefits of a very restricted kind for share holders''.

Debate ensued.

Senator Watson addressing the Chair

And it being 2 p.m.-