Tax Bonus for Working Australians Repeal Bill 2013

Portfolio: Treasury
Introduced: House of Representatives, 12 December 2013

Purpose

2.1        The Tax Bonus for Working Australians Repeal Bill 2013 (the bill) repealed the Tax Bonus for Working Australians Act (No. 2) 2009 (the TBA), which authorised the Commissioner of Taxation (the commissioner) to pay a tax bonus to eligible tax payers. Eligible tax payers are those who paid tax in the 2007-08 income year and who had a taxable income of $100 000 or less.

2.2        The effect of the bill is that no further tax bonus payments could be made by the commissioner.

Background

2.3        The committee reported on the bill in its Second Report of the 44th Parliament.

2.4        The bill was subsequently passed by the Parliament and received Royal Assent on 27 May 2014.

Committee view on compatibility

Right to an adequate standard of living

Impact of measure on low-income earners

2.5        The committee sought information on the income brackets of persons who would have remained eligible for the payment, including what proportion of persons would likely be low-income earners.

Parliamentary Secretary's response

For the Tax Bonus Repeal Bill, the Committee has expressed concerns about whether the Bill may engage the right to social security and the right to an adequate standard of living. The Committee has sought information about the income of those affected by the repeal, including the proportion of low income earners who may be affected.

The Bill ensures no further $900 stimulus payments are made to taxpayers. The eligibility for the payment, including the proportion of low income earners entitled to a payment, was established by the Tax Bonus/or Working Australians Bill 2009.

The Government is comfortable the measures set out in the Bill are compatible with human rights.[1]

Committee response

2.6                  The committee thanks the Parliamentary Secretary to the Treasurer for his response and has concluded its examination of the bill.

2.7                  However, the committee notes that the Parliamentary Secretary's response did not provide a detailed and evidence-based explanation for the measures in accordance with the committee's usual expectations.

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