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INCOME TAX RATES BILL 1986
INCOME TAX BILL 1986
TAXATION LAWS (MISCELLANEOUS PROVISIONS) BILL 1986
MEDICARE LEVY BILL 1986

Order of the Day read for the adjourned debate on the motion of the Minister for Community Services (Senator Grimes)-That these Bills be now read a second time-And on the amendments moved thereto by Senator Messner, viz: At end of motion-

In respect of the Income Tax Rates Bill 1986, add "", but the Senate is of the opinion that-

(a) the Government's taxation policy, in particular its fringe benefits and capital gains taxes, is causing damage and confusion to business and farmers;

(b) the Government's failure to deliver tax cuts on 1 September 1986 as promised in 1985 has caused additional hardship to families; and

(c) this Government is the highest taxing Government in history, with tax receipts estimated to reach 25.5 per cent of GDP''.

And in respect of the Medicare Levy Bill 1986, add "", but the Senate-

(a) condemns the Prime Minister for breaking his promise that for the term of Labor's next Government, the Medicare levy would not be increased;

(b) notes with concern that the Government continues to perpetuate the myth that the levy pays for Medicare health services when in fact it only pays approximately 40 per cent of the cost of Medicare with the balance being funded out of general revenue; and

(c) condemns the Government for its total failure to take action to contain the massive blow-out in Medicare health costs''.

Debate resumed.

Senator Siddons moved an amendment to Senator Messner's proposed amendment in respect of the Income Tax Rates Bill 1986, viz: Leave out paragraph (a) of the words proposed to be added, insert the following paragraph:

""(a) the Government should be condemned for-

(i) not indexing personal income tax rates, which has allowed inflationary factors virtually to neutralise the Government's tax cuts, and

(ii) very minor reductions in the marginal rate of tax at the level of the average income earner;''.

Debate continued.

Senator Short addressing the Chair

And it being 2 p.m.-