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Friday, 9 June 1989
Page: 3769

Senator WALSH (Minister for Finance)(10.47) —I forgot earlier to answer Senator Macklin's question about what is now called the disabled child allowance. It was previously called the handicapped child allowance. The change of name was made in November 1987. Neither the previous allowance nor the present allowance is taxable, which is what I would have expected. The amendment ensures that children who receive what is now called the disabled child allowance will not come within division 6aa, which imposes a higher rate of tax on the unearned income of minors, that being a provision which, I think, was introduced by the Fraser Government. If the unearned income of minors exceeds $416 a year, it is taxed at the maximum personal rate. This is, of course, an anti-tax avoidance measure.