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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''.

And on the amendment moved by Senator Siddons 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 resumed.

Ordered-That the Questions for the second reading of the Income Tax Rates Bill 1986 and the Medicare Levy Bill 1986 be put separately.

INCOME TAX RATES BILL 1986-

Senator Siddons, by leave, amended his proposed amendment by leaving out all words after ""Leave out paragraph (a)''.

Question in respect of the amendment moved by Senator Siddons to Senator Messner's proposed amendment to the motion-That this Bill be now read a second time, viz: That the words proposed to be left out be left out-put.

The Senate divided-

AYES, 8

Senators- Haines Harradine Macklin (Teller) Mason Powell Sanders Siddons Vigor

NOES, 55

Senators- Alston Archer Aulich Baume, Michael Baume, Peter Bjelke-Petersen Black Boswell Brownhill Carrick, Sir John Childs Coates Collard Colston Cook Cooney Crichton-Browne Crowley Devlin Durack Elstob Evans Foreman Gietzelt Grimes Guilfoyle, Dame Margaret Hamer Jones Kilgariff Knowles Lewis MacGibbon McIntosh McKiernan Maguire Messner Morris Newman Parer Puplick Ray Reid (Teller) Richardson Robertson Ryan Sheil Short Tate Teague Townley Vanstone Walsh Walters Watson Withers

Amendment negatived accordingly.

Senator Michael Baume moved an amendment to Senator Messner's proposed amendment, viz:

At end of words proposed to be added, add:

""(d) the Government should be condemned for misleading Australians by claiming that meaningful tax cuts are being provided when they are in fact being neutralised by inflation; and

(e) the average income earner after 1 July 1987 will pay a marginal rate of tax of 40 per cent compared with the 30 per cent rate paid at the time the Hawke Government came to power in March 1983''.

Senator Siddons moved an amendment to Senator Michael Baume's proposed amendment, viz: Paragraph (d) of the words proposed to be added, before ""misleading'', insert ""not indexing personal income tax rates and''.

Debate ensued.

Question-That the words proposed to be inserted be inserted (Senator Siddons' amendment to Senator Michael Baume's proposed amendment to Senator Messner's amendment)-put.

The Senate divided-

AYES, 8

Senators- Haines Harradine Macklin (Teller) Mason Powell Sanders Siddons Vigor

NOES, 57

Senators- Alston Archer Aulich Baume, Michael Baume, Peter Bjelke-Petersen Black Boswell Brownhill Carrick, Sir John Childs Coates Collard Colston Cook Cooney Crichton-Browne Crowley Devlin Durack Elstob Evans Foreman Gietzelt Giles Grimes Guilfoyle, Dame Margaret Hamer Jones Kilgariff Knowles MacGibbon McIntosh McKiernan Maguire Messner Morris Newman Parer Puplick Ray Reid (Teller) Reynolds Richardson Robertson Ryan Sheil Short Tate Teague Townley Vanstone Walsh Walters Watson Withers Zakharov

And so it was negatived.

Debate continued.

Question-That the words proposed to be added be added (Senator Michael Baume's amendment to Senator Messner's proposed amendment)-put and passed.

Question-That the words proposed to be added be added (Senator Messner's amendment, as amended)-put.

The Senate divided-

AYES, 30

Senators- Alston Archer Baume, Michael Baume, Peter Bjelke-Petersen Boswell Brownhill Carrick, Sir John Collard Crichton-Browne Guilfoyle, Dame Margaret Hamer Harradine Kilgariff Knowles MacGibbon Messner Newman Parer Puplick Reid (Teller) Sheil Siddons Teague Townley Vanstone Vigor Walters Watson Withers

NOES, 34

Senators- Aulich Black Childs Coates Colston Cook Cooney Crowley Devlin Elstob Evans Foreman Gietzelt Giles Grimes Haines Jones McClelland McIntosh McKiernan Macklin Maguire Mason Morris Powell Ray Reynolds Richardson Robertson (Teller) Ryan Sanders Tate Walsh Zakharov

And so it was negatived.

Question-That this Bill be now read a second time-put and passed.

And it being 10.30 p.m.-

Adjournment Negatived: The President, under Sessional Order, put the Question-That the Senate do now adjourn-

Question-put and negatived.

INCOME TAX BILL BILL 1986-

TAXATION LAWS (MISCELLANEOUS PROVISIONS) BILL 1986-

Question-That these Bills be now read a second time-put and passed.

MEDICARE LEVY BILL 1986-

Question-That the words proposed to be added be added (Senator Messner's amendment)-put.

The Senate divided-

AYES, 36

Senators- Alston Archer Baume, Michael Baume, Peter Bjelke-Petersen Boswell Brownhill Carrick, Sir John Collard Crichton-Browne Guilfoyle, Dame Margaret Haines Hamer Harradine Kilgariff (Teller) Knowles MacGibbon Macklin Mason Messner Newman Parer Powell Puplick Reid Sanders Sheil Short Siddons Teague Townley Vanstone Vigor Walters Watson Withers

NOES, 29

Senators- Aulich Black Childs Coates Colston Cook Cooney Crowley Devlin Elstob Evans Foreman Gietzelt Giles Grimes Jones McClelland McIntosh McKiernan Maguire Morris Ray Reynolds Richardson Robertson (Teller) Ryan Tate Walsh Zakharov

And so it was resolved in the affirmative.

Main Question, as amended, put and passed.

Bills read a second time.

Ordered-That consideration of the Bills in Committee of the Whole be an Order of the Day for the next day of sitting.