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The order of the day having been read for the resumption of the debate on the question—That the Bill be now read a second time—And on the amendment moved thereto by Mr Swan, viz.—That all words after "That" be omitted with a view to substituting the following words: "whilst not declining to give the Bill a second reading, the House:

(1) condemns the Government's failure to comprehensively reform its flawed system of family assistance, which has so far resulted in one in three families receiving FTB and CCB accumulating debts in excess of $1.2 billion;

(2) urges the Government to immediately close loopholes such as share market margin lending losses and foreign income reporting which have allowed wealthy families to pocket benefits;

(3) recognises the importance of annual tax returns for family budgeting and opposes the automatic stripping of family tax returns without warning to recoup family assistance debts;

(4) notes the proposed two year time limit for past period claims of family assistance is still at odds with tax law which allows adjustments and subsequent claims to be made for up to four years; and

(5) calls on the Government to reform family assistance to improve incentives to work and ensure benefits may properly account for changes in family income without the risk of families accruing an unavoidable debt"—

Debate resumed.

Question—That the words proposed to be omitted stand part of the question—put.

The House divided (the Deputy Speaker, Mr Scott, in the Chair)—

AYES, 72

Mr AbbottMrs ElsonMrs D. M. KellyMr Randall
Mr AndersonMr EntschJackie KellyMr Ruddock
Mr AnthonyMr FarmerDr KempMr Schultz
Mr BairdMr Forrest*Mr P. E. KingMr Secker
Mr BaldwinMrs GallusMrs LeyMr Slipper
Mr BarresiMs GambaroMr LindsayMr A. D. H. Smith
Mr BartlettMrs Gash*Mr LloydDr Southcott
Mr BillsonMr GeorgiouMr McArthur*Dr Stone
Mrs B. K. BishopMr HaaseMr I. E. MacfarlaneMr C. P. Thompson
Ms J. I. BishopMr HardgraveMr McGauranMr Ticehurst
Mr BroughMr HartsuykerMrs MoylanMr Tollner
Mr CadmanMr HawkerMr NairnMr Truss
Mr CameronMr HockeyDr NelsonMr Tuckey
Mr CharlesMrs HullMr Neville*Mr Wakelin
Mr CioboMr HuntMs PanopoulosDr Washer
Mr CobbMr JohnsonMr PearceMr Williams
Mrs DraperMr JullMr ProsserMr Windsor
Mr DuttonMr KatterMr PyneMs Worth

NOES, 60

Mr AdamsMr M. J. FergusonMr LathamMr Price
Mr AlbaneseMr FitzgibbonDr LawrenceMr Quick*
Mr BeazleyMs GeorgeMs LivermoreMr Ripoll
Mr BevisMr GibbonsMr McClellandMs Roxon
Ms BurkeMs GillardMs J. S. McFarlaneMr Rudd
Mr ByrneMs GriersonMs MacklinMr Sawford
Ms CorcoranMr GriffinMr McLeayMr Sercombe*
Mr CoxMs HallMr McMullanMr Sidebottom
Mrs CrosioMr HattonMr MelhamMr S. F. Smith
Mr Danby*Ms HoareMr MossfieldMr Swan
Mr EdwardsMrs Irwin*Mr MurphyMr Tanner
Ms EllisMs JacksonMs O'ByrneMr K. J. Thomson
Mr EmersonMr JenkinsMr B. P. O'ConnorMs Vamvakinou
Mr EvansMr KerrMr G. M. O'ConnorMr Wilkie
Mr L. D. T. FergusonMs C. F. KingMs PlibersekMr Zahra

* Tellers

And so it was resolved in the affirmative.

Question—That the Bill be now read a second time—put and passed—Bill read a second time.

Message from the Governor-General

Message No. 164, 10 September 2003, from His Excellency the Governor-General was announced recommending an appropriation for the purposes of the Bill.

Leave granted for third reading to be moved forthwith.

On the motion of Mr Anthony (Minister for Children and Youth Affairs), the Bill was read a third time.