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The President informed the Senate that he had received a letter from Senator Peter Rae advising that this day he intended to move-That in the opinion of the Senate the following is a matter of urgency: ''The urgent need for fundamental reform of the Australian system of the raising and expenditure of revenue which involves the need for- (a) the total review of expenditure;

(b) the restoration of the incentive and opportunity for the creation of economic growth and national wealth;

(c) the reduction in the burden of personal taxation;

(d) the relief for families by the introduction of income splitting for tax purposes and also of tax rebates for child care;

(e) the review of the distribution of the tax revenue base between the various levels of government; and

(f) the emphasis upon neutral, efficient, and equitable taxes''.

And at least 4 Senators having risen in support of the motion- Senator Peter Rae thereupon moved the motion.

Debate ensued.

Closure: Senator Dame Margaret Guilfoyle moved-That the Question be now put.

Question-That the Question be now put-put and passed.

Question-That the motion be agreed to-put accordingly.

The Senate divided

AYES, 36

Senators- Archer Baume Bjelke-Petersen Boswell Brownhill Carrick, Sir John Chipp Collard Durack Evans, Jack Guilfoyle, Dame Margaret Haines Hamer Hill Jessop Knowles Lajovic Lewis Macklin Mason Messner Missen Parer Puplick Rae, Peter Reid (Teller) Scott Sheil Short Teague Townley Vanstone Vigor Walters Watson Withers

NOES, 31

Senators- Aulich Black Bolkus Childs Coates Cook Cooney Crowley Devlin Elstob Evans, Gareth Foreman Gietzelt Giles Grimes Hearn Jones McClelland McIntosh McKiernan Maguire Primmer Ray, Robert Reynolds Richardson Robertson (Teller) Ryan Sibraa Tate Walsh Zakharov

And so it was resolved in the affirmative.