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MESSAGE FROM THE SENATE—TAXATION LAWS AMENDMENT BILL (NO. 8) 1999

A message from the Senate was reported returning the following Bill with amendments:

9 December 1999—Message No. 275—Taxation Laws Amendment (No. 8) 1999.

Ordered—That the amendments be considered forthwith.

On the motion of Mr Slipper (Parliamentary Secretary to the Minister for Finance and Administration), amendments Nos 1 to 7, 9, 10, 15 and 16 were agreed to, after debate.

Mr Slipper moved—That amendments Nos 8, 11 to 14, 17 and 18 be disagreed to.

Debate ensued.

Question—put.

The House divided (the Deputy Speaker, Mrs Gash, in the Chair)—

AYES, 73

Mr AbbottMr EntschMr McArthur*Mr Slipper
Mr AndersonMr FaheyMr I. E. MacfarlaneMr Somlyay
Mr K. J. AndrewsMr FischerMr McGauranDr Southcott
Mr AnthonyMr Forrest*Mrs MayDr Stone
Fran BaileyMrs GallusMr MooreMrs Sullivan
Mr BairdMs GambaroMrs MoylanMr C. P. Thompson
Mr BarresiMr GeorgiouMr NairnMr A. P. Thomson
Mr BartlettMr HaaseMr NehlMr Truss
Mr BillsonMr HardgraveDr NelsonMr Tuckey
Mrs B. K. BishopMr HawkerMr NevilleMr M. A. J. Vaile
Ms J. I. BishopMr HockeyMr NugentMrs D. S. Vale
Mr BroughMrs HullMr PyneMr Wakelin
Mr CadmanMr JullMr ReithDr Washer
Mr CameronMr KatterMr RonaldsonMr Williams
Mr CharlesJackie KellyMr RuddockDr Wooldridge
Mr CostelloDr KempMr St ClairMs Worth
Mr DownerMr LawlerMr Schultz
Mrs DraperMr LiebermanMr Scott
Mrs ElsonMr LindsayMr Secker

NOES, 57

Mr AdamsMr GibbonsMr McLeayMr Sawford*
Mr AlbaneseMs GillardMr McMullanMr Sercombe*
Mr AndrenMr GriffinMr MartinMr Sidebottom
Mr BevisMs HallMr MelhamMr Smith
Mr BreretonMr HattonMr MorrisMr Snowdon
Ms BurkeMr HollisMr MurphyMr Swan
Mr ByrneMr HorneMs O[quot ]ByrneMr Tanner
Mr CoxMrs IrwinMr O[quot ]ConnorDr Theophanous
Mr DanbyMr JenkinsMr O[quot ]KeefeMr K. J. Thomson
Ms EllisMr KerrMs PlibersekMr Wilkie
Dr EmersonMr LathamMr PriceMr Wilton
Mr M. J. EvansDr LawrenceMr QuickMr Zahra
Mr M. J. FergusonMr LeeMr Ripoll
Mr FitzgibbonMr McClellandMs Roxon
Ms GerickMs J. S. McFarlaneMr Rudd

* Tellers

And so it was resolved in the affirmative.

Pairs

Mr Howard Mr Beazley

Mr Prosser Ms Kernot

Mr Lloyd Mr Mossfield

Mr Slipper presented reasons, which were circulated, and are as follows:


Reasons of the House of Representatives for disagreeing to the amendments of the Senate

Senate Amendments Nos 8, 11-13 and 17

These amendments propose significant additions to measures contained in the Bill that will provide taxation incentives for personal and corporate philanthropy in Australia. Broadly, the amendments provide that where a property owner covenants a property for conservation purposes and that results in a reduction in the value of the property then any reduction in the value of the property should be treated as a tax deduction. The amendments also extend the ability to deduct amounts over five years to such donations and also where property is donated a capital gains tax exemption should apply.

Substantial changes like these need to be considered in depth in the context of their cost as well as their effectiveness. Any decisions need to be taken within the budgetary constraints of government but also with the objective of getting the most effective outcome in terms of conservation.

Accordingly, the House of Representatives does not accept these amendments.

Senate Amendments Nos 14 and 18

The amendments propose changes to the measure that will allow tax deductibility for donations to what will be known as prescribed private funds. Broadly, prescribed private funds will have to operate in the same way as public ancillary funds but will not have to seek and receive funds from the public. The purpose of the amendments is to preclude a fund that provides funds to political parties from being a prescribed private fund.

Item 6 of Schedule 5 of the Bill will amend the Income Tax Assessment Act 1997 such that a fund can only be a prescribed private fund if it is established solely for the purpose of providing money to a fund or institution that is listed under Subdivision 30-B of that Act. If a fund is established to provide funds to any non-listed institutions it cannot be a prescribed private fund. Political parties are not listed in Subdivision 30. The amendment is unnecessary.

Accordingly, the House of Representatives does not accept these amendments.

On the motion of Mr Slipper, the reasons were adopted.