Second Reading Speech
BY THE PARLIAMENTARY SECRETARY (CABINET) TO THE PRIME MINISTER THE HON CHRIS MILES M.P.That the bill be now read a second time.
This bill is the last of the four bills which implement the proposed trust loss measures. The bill makes a consequential amendment to the Medicare Levy Act 1986 to provide that the taxable income of a person for certain purposes includes an amount that is exempt from income tax because family trust distribution tax has been paid in relation to it.
This ensures the income tax exemption for amounts on which the tax has been paid cannot be used as a tax planning tool to avoid the increased Medicare levy on certain high income earners who do not have private health insurance.
Family trust distribution tax was mentioned in my speech on the Taxation Laws Amendment (Trust Loss and Other Deductions) Bill 1997 . I commend the bill to the House.
Debate (on motion by Mr Laurie Ferguson) adjourned.
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