Page 2193 - Week 06 - Tuesday, 22 June 2010
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
We have been informed by the Treasury department that the commonwealth has written to all states and territories to ask that these measures be put in place. We are happy to support this type of initiative and, as I understand it, the ACT has acted promptly to put these measures into place. I congratulate the government on doing that.
This is a positive initiative and I think, as a community, we need to further recognise the needs of not only those with disabilities but also the carers. It may well be worth while considering how these types of exemptions could be applied to others with a disability and the carers, even though they may not be the beneficiaries of such a trust.
On the payroll tax changes, the Greens also support the provisions exempting the listed emergency service activities from payroll tax. This amendment applies to all employees undertaking the listed volunteer activities so that employers do not have to pay payroll tax when they continue to pay wages whilst an employee undertakes the listed volunteer activities. Where staff are paid for their time even though, rather than being at work, they are making a contribution to either the Canberra community or another Australian community in need, employers should be congratulated. It is both reasonable and appropriate that they do not have to pay additional costs when they already, effectively, are facilitating a tremendous contribution to the community.
The Treasurer’s office has also indicated to me that this is part of an all-jurisdiction harmonisation process of payroll tax for this type of community service. Whilst the exact cost of the revenue forgone by the community is unclear, the ACT Greens are happy to accept that the social good that arises from each of the amendments justifies this cost.
While we are discussing reducing costs and disincentives for employers to pay employees for time spent volunteering rather than being at work, I think it is worth considering the nature and scope of volunteer activities covered by the exemption and therefore I put the question: are there any other activities which should be covered by this type of exemption?
The minister may, under the current section 2F(1)(b), through a disallowable instrument, make other exemptions to payroll tax liability. And whilst there is no such instrument on the legislation register, section 9B provides an exemption for maternity, paternity and primary carer leave payments, though I note these payments are limited to 14 weeks.
This is, of course, a debate for another day but I thought it worth while to raise the issue. This is something that we should be exploring to further encourage volunteering and help people participate in volunteer activities. Would employers be more willing to let their staff undertake these activities if they did not have to pay payroll tax? Is this a lever that we should use more to achieve good social outcomes and encourage volunteering in the community? As I said at the outset, the Greens are happy to support this bill.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video