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TAX LAWS AMENDMENT (MEDICARE LEVY SURCHARGE THRESHOLDS) BILL (NO. 2) 2008

Order of the day read for the adjourned debate on the motion of the Minister for Innovation, Industry, Science and Research (Senator Carr)—That this bill be now read a second time.

Debate resumed.

Question put and passed.

Bill read a second time.

The Senate resolved itself into committee for the consideration of the bill.

In the committee

Bill taken as a whole by leave.

Senator Xenophon moved the following amendments together by leave:

 Schedule 1, item 2, page 3 (line 13) to page 4 (line 6), omit section 5A, substitute:

  

5A What is the singles surcharge threshold?

  (1) The singles surcharge threshold for a person for the 2008-09 year of income is $69,000.

  (2) This threshold is indexed for each year of income after 2008-09 by multiplying the threshold by the indexation factor in subsection (3) and rounding the result down to the nearest multiple of $1,000.

  (3) The indexation factor is:

Sum of the index numbers for the CPI quarters for the 12 months ending on 31 March of the current year

Sum of the index numbers for the CPI quarters for the 12 months ending on 31 March of the previous year

where:

   CPI quarter means a period of 3 months ending 31 March, 30 June, 30 September or 31 December.

index number means the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Statistician.

The indexation factor is to be calculated to 3 decimal places, but increased by .001 if the fourth decimal place is more than 4.


Calculations:

 (a) are to be made using only the index numbers published in terms of the most recently published reference base for the Consumer Price Index; and

 (b) are to disregard index numbers that are published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the reference base).

 Schedule 1, item 4, page 4 (line 21), omit "$150,000", substitute "$138,000".

 Schedule 1, item 4, page 4 (line 21), omit "$153,000", substitute "$141,000".

 Schedule 1, item 7, page 5 (lines 5 to 24), omit section 3AA, substitute:

  

3AA Meaning of singles surcharge threshold

  (1) The singles surcharge threshold for a person for the 2008-09 year of income is $69,000.

  (2) This threshold is indexed for each year of income after 2008-09 by multiplying the threshold by the indexation factor in subsection (3) and rounding the result down to the nearest multiple of $1,000.

  (3) The indexation factor is:

Sum of the index numbers for the CPI quarters for the 12 months ending on 31 March of the current year

Sum of the index numbers for the CPI quarters for the 12 months ending on 31 March of the previous year

where:

   CPI quarter means a period of 3 months ending 31 March, 30 June, 30 September or 31 December.

index number means the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Statistician.

The indexation factor is to be calculated to 3 decimal places, but increased by .001 if the fourth decimal place is more than 4.

Calculations:

 (a) are to be made using only the index numbers published in terms of the most recently published reference base for the Consumer Price Index; and

 (b) are to disregard index numbers that are published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the reference base).

 Schedule 1, item 8, page 6 (line 14), omit "$150,000", substitute "$138,000".

 Schedule 1, item 8, page 6 (line 14), omit "$153,000", substitute "$141,000".

Debate ensued.


At 12.45 pm: The Acting Deputy President (Senator Ellison) resumed the chair and the Temporary Chair of Committees reported progress.