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Thursday, 30 June 1994
Page: 2417

Senator CROWLEY (Minister for Family Services) (12.07 p.m.) —The government opposes this amendment. The government's amendment removes the legislative requirement whereby rates of return for listed shares and managed investments which have been available for less than 12 months are to be extrapolated over a full 12-month period. It is a beneficial amendment that results in smaller rates of return for products which have been available for less than 12 months. It applies uniformly to all investors, irrespective of the day they entered into the investment.

  The Greens' amendment is about something completely different—that is, the assessment of any product, new or old, held by persons for less than 12 months whereby only capital growth since the date of purchase by the person will be taken into account in determining the rate of return. The Greens' amendment is based upon a complete misunderstanding of the nature and purpose of the rate of return methodology used to assess income from shares and managed investments. It has probably been proposed on the basis that it will result in smaller rates of return and, therefore, more favourable income assessments for all affected clients. In the interests of expediting the legislation, I think it is fair to say that the government will oppose this amendment.