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TAX LAWS AMENDMENT (LUXURY CAR TAX) BILL 2008E A NEW TAX SYSTEM (LUXURY CAR TAX IMPOSITION—GENERAL) AMENDMENT BILL 2008E A NEW TAX SYSTEM (LUXURY CAR TAX IMPOSITION—CUSTOMS) AMENDMENT BILL 2008E A NEW TAX SYSTEM (LUXURY CAR TAX IMPOSITION—EXCISE) AMENDMENT BILL 2008

Order of the day read for the further consideration of the bills in committee of the whole.

In the committee

TAX LAWS AMENDMENT (LUXURY CAR TAX) BILL 2008—

Consideration resumed of the bill—and of the request for an amendment moved bytheMinister for Broadband, Communications and the Digital Economy (Senator Conroy) (see entry no. 4).

Debate resumed.

Question—That the request be agreed to—put.

The committee divided—

AYES,33


Senators—
ArbibEvansLudlamPratt
BilykFarrellLudwigSiewert
BishopFeeneyLundyStephens
Brown, BobFieldingMarshallSterle
Brown, CarolForshawMcEwen (Teller)Wortley
CameronFurnerMcLucasXenophon
CarrHanson-YoungMilne
CollinsHoggMoore
CrossinHutchinsPolley

NOES, 31


Senators—
AbetzBushbyFisherNash
AdamsCashHeffernanParry
BarnettColbeckJohnstonRyan
BernardiCormannJoyceScullion
BirminghamEgglestonMacdonaldTroeth
BoswellFergusonMasonTrood
BoyceFierravanti-WellsMcGauranWilliams (Teller)
BrandisFifieldMinchin

Question agreed to.


Senator Abetz moved the following request for an amendment:

 That the House of Representatives be requested to make the following amendment:

 Schedule 1, page 3 (after line 27), at the end of the Schedule, add:

 4 Subsection 25-1(3)

  Repeal the subsection, substitute:

  (3) The luxury car tax threshold for the 2008-09 financial year is $57,180.

  (4) The threshold referred to in subsection (3) is indexed for each year of tax after the year of tax commencing on 1 July 2008 in accordance with the CPI indexation method provided for by Subdivision 960-M of the *ITAA 1997, calculated using the index number referred to in subsection 960-280(1) of that Act.

Debate ensued.

Question—That the request be agreed to—put.

The committee divided—

AYES,32


Senators—
AbetzCashHeffernanMinchin
AdamsColbeckHumphriesNash
BarnettCormannJohnstonParry
BernardiEgglestonJoyceRyan
BirminghamFergusonKrogerScullion
BoswellFierravanti-WellsMacdonaldTroeth
BoyceFifieldMasonTrood
BushbyFisherMcGauranWilliams (Teller)

NOES, 34


Senators—
ArbibFarrellLudlamPratt
BilykFaulknerLudwigSiewert
BishopFeeneyLundyStephens
Brown, BobFieldingMarshallSterle
Brown, CarolForshawMcEwen (Teller)Wong
CameronFurnerMcLucasWortley
CollinsHanson-YoungMilneXenophon
ConroyHoggMoore
CrossinHutchinsPolley

Question negatived.

On the motion of Senator Xenophon the following request for an amendment was debated and agreed to:

 That the House of Representatives be requested to make the following amendment:

 Schedule 1, page 3 (after line 27), at the end of the Schedule, add:

 11 Subsection 25-1(3)

  After "Subject to subsection" , add "(3A) and".

 12 After subsection 25-1(3)

  Insert:

 (3A) On and from 1 July 2012 the luxury car tax threshold is the luxury car tax threshold as at 30 June 2012 indexed according to a factor to be determined by the Parliament and to apply from
1 July 2012 or, if such a factor is not determined by the Parliament, indexed annually in accordance with the CPI indexation method provided for by Subdivision 960-M of the *ITAA 1997, calculated using the index number referred to in subsection 960-280(1) of that Act.

On the motion of Senator Xenophon the following request for an amendment was debated and agreed to:

 That the House of Representatives be requested to make the following amendment:

 Schedule 1, page 3 (after line 27), at the end of the Schedule, add:

 13 Application

   The amendments made by this Schedule do not apply where the contract to make the taxable supply or taxable importation of the luxury car was entered into before 7.30 pm, by legal time in the Australian Capital Territory, on 13 May 2008.

On the motion of the Leader of the Family First Party (Senator Fielding) the following request for an amendment was debated and agreed to:

 That the House of Representatives be requested to make the following amendment:

 Page 3 (after line 27), at the end of the bill, add:

  

Schedule 2—Refunds for primary producers and tourism operators

 

A New Tax System (Luxury Car Tax) Act 19990

 1 At the end of section 2-10

  Add:

  (4) Refunds can arise for primary producers and tourism operators in certain circumstances. (Division 18).

 2 After Division 17

  Insert:

 

Division 18—Refunds

 

18-1 What this Division is about

Refunds under this Division may be available to primary producers and tourism operators for the supply of certain cars.

 

18-5 Refunds for tax borne—primary producers

  (1) You are entitled to a refund under this section if:

 (a) you have a refund entitlement under this section; and

 (b) you are *registered; and

 (c) no one else has made a valid claim for a refund in relation to the refund entitlement.

  (2) You have a refund entitlement if:

 (a) you have *borne luxury car tax on the supply, or *importation, of a *refund-eligible car; and

 (b) at the time of the supply or importation you are carrying on a *primary production business.


 (3) The amount of the refund for a refund entitlement under subsection (2) is the lesser of:

 (a) 8/ 33 of the luxury car tax *borne by you as described in paragraph (2)(a); and

 (b) $3,000.

  (4) You cannot have a refund entitlement under subsection (2) for more than one *car in a *financial year.

   

18-10 Refunds for tax borne—tourism operators

  (1) You are entitled to a refund under this section if:

 (a) you have a refund entitlement under this section; and

 (b) you are *registered; and

 (c) no one else has made a valid claim for a refund in relation to the refund entitlement.

  (2) You have a refund entitlement if:

 (a) you have *borne luxury car tax on the supply, or *importation, of a *refund-eligible car; and

 (b) the Commissioner is satisfied that:

 (i) you will use the car solely for the purpose of carrying on a business; and

 (ii) the principal purpose of the business is carrying tourists for *tourist activities.

  (3) The amount of the refund for a refund entitlement under subsection (2) is the lesser of:

 (a) 8/ 33 of the luxury car tax *borne by you as described in paragraph (2)(a); and

 (b) $3,000.

 

18-15 Claiming refunds

  (1) You must claim a refund within 4 years of becoming entitled to the refund.

  (2) A claim for a refund must be in the *approved form.

   

18-20 Payment of refunds

   If you are entitled to a refund under this Division and you have claimed the refund, the Commissioner must, on behalf of the Commonwealth, pay the amount of the refund to you.

 3 Section 27-1

  Insert:

   primary production business has the meaning given by section 995-1 of the *ITAA 1997.

 4 Section 27-1

  Insert:

   refund-eligible car means a 4 wheel drive, or all wheel drive, *car of a kind specified in regulations made for the purposes of this definition.


 5 Section 27-1

  Insert:

   tourist activity has the meaning set out in regulations made for the purposes of this definition.

 6 Application

  The amendments made by this Schedule apply to taxable supplies of luxury cars and taxable importations of luxury cars on or after 1 July 2008.

Bill agreed to, subject to requests.

A NEW TAX SYSTEM (LUXURY CAR TAX IMPOSITION—GENERAL) AMENDMENT BILL 2008E A NEW TAX SYSTEM (LUXURY CAR TAX IMPOSITION—CUSTOMS) AMENDMENT BILL 2008E A NEW TAX SYSTEM (LUXURY CAR TAX IMPOSITION—EXCISE) AMENDMENTE BILL 2008—

Bills, taken together and as a whole by leave, agreed to.

The Tax Laws Amendment (Luxury Car Tax) Bill 2008 to be reported with requests for amendments and the remaining bills to be reported without requests.

The Acting Deputy President (Senator Humphries) resumed the chair and the Temporary Chair of Committees reported accordingly.

On the motion of Senator Conroy the report from the committee was adopted and A New Tax System (Luxury Car Tax Imposition—General) Amendment Bill 2008, A New Tax System (Luxury Car Tax Imposition—Customs) Amendment Bill 2008 and A New Tax System (Luxury Car Tax Imposition—Excise) Amendment Bill 2008 read a third time.