Norfolk Island Tax freeTax-free Norfolk Island
The draft law addresses the specific question of taxing savings and provides the same safeguards against retroactive effects as the Norfolk Islanders' property tax on savings in Australia when it was adopted in 1985. It is indeed an interesting period to talk about withholding tax.
However, it is interesting to see that the UK has not shown the same enthusiasm and interest in continental Australia's economy reforms as Norfolk Island has. Taoiseach excluded changes to the withholding tax rebate this weeks and chose the kind of horror drive he pledged he would not override a sensible business talk with the Aussie population.
Regulatory analysis of the finance system has described the combined effect of net borrowing and withholding tax rebate as a large tax warp. It is the value of an amendment at second readings, bear that in mind! However, these are services that go overproportionally to the top of the payoutâ "70 percent of the withholding tax payments go to the top 10 percent of those earning them.
This is what this bill does, in the case of withholding tax schemes for Norfolk Islanders, and it is generally a good tax system. Mr Fraser, I can only tell the House and the listeners of what you have said that this draft legislation is a tax amendment and related legislation so that the Fraser member has the right to extend quite extensively in tax issues.
Labour market policies ensure that the withholding tax rebate is lowered for investment that is not made in new dwellings. Norfolk Island is still unable to get the kind of reassurances it gives to the population. You tell the Norfolk Islanders that the withholding tax will not be retroactively applicable, but you do not tell the Australian nation that the changes they have made to the adverse interest rate will not be retroactively applicable.
Now that the question of tax on the profits of Norfolk Islanders has been addressed correctly, it is important that other Australians receive assurances from this government that any changes in adverse gearing will not be back-season. The incorporation of the Norfolk Islands into the tax system of the continent is an important and gradual overhaul.
However, it is important that since Norfolk Islanders are transferred to Medicare, the Medicare system stays intact. It' s important that we have a cabinet that will respect the officials' tough work as they work on the island to broaden Medicare uptake. The Norfolk islanders will have retirement pensions through the parcel adopted by this House last year and it is important that pensions are safeguarded against cutbacks by this dictatorial state.
The Norfolk Islanders must be saved from the cutbacks in the welfare net that are still on the tableâ "that $80 billion torn by healthcare and educational measures are now to be further cutbacks. Mr President, my fellow member of Jagajaga was a passionate advocate of Australia's Australian welfare net, not only for the mainland but now also for Norfolk Islanders.
The Norfolk Island is part of New South Wales, which means that cutbacks in the financing of New South Wales colleges also apply to Norfolk Island. Needs-oriented financing is essential for Australians and Norfolk Islanders. However, we on this side of the House cannot fail to point out the sarcasm of the proposed changes to the withholding tax, which will make sure that Norfolk Islanders will not be treated retroactively without reassuring other Australians that they will not undergo retroactive changes under this one.
Uprising to talk about the Norfolk Island CGT Exemption Bill 2016. It' always a pleasure to have the chance to talk about things to do with Norfolk Island. I have a long-term interest in Norfolk Island. Since then, I have had the chance to attend it several times in recent years as Chairman of the Joint Standing Committee on the National Capital and the Suburbs.
We are pleased that both sides are supporting these actions, which we have seen in earlier laws in relation to the change of government regulations on Norfolk Island. Thank you to the former Secretary, Mr Briggs, for his commitment to achieving the best possible results for the Norfolk Island peopleâ "all the Norfolk Islanders, not just the ïlit.
It' s good that we as a goverment have taken forward these draft laws, which had to be passed in order to make the best possible offer to the Norfolk Islanders. There is no question that the island itself is a spectacle site in Australia. It is a beautiful landscape and the local population is very kind.
There is also an interesting role in Australia's story. In 1788, not long after the first fleet arrived in Sydney, the settlers also moved to Norfolk Island. Norfolk Island has been an integral part of this country ever since. I know, as Chairman of the Joint Standing Commission on the National Capital and External Areas, and my own panel knew that all Australians should have adequate levels of services and convenience, even though they are in a secluded place like Norfolk Island.
It is clear that the service, infrastructures and social benefits on Norfolk Island were not adequate. Agreements of this kind on the continental Australia are funded through the tax system. Obviously, a better tomorrow for Norfolk Islanders would be ensured by a change in government and the introduction of Australia's tax and social system.
Anyone visiting Norfolk Island knows that the streets and other infrastructures are not in good condition. People who could have afforded it often went to Australia for medication. The general changes that the administration is making will soon improve the healthcare system on Norfolk Island through better provision of healthcare and elderly peoplecare.
The bill is one of several proposed changes to personal tax legislation to improve the overall way Norfolk Island is transformed into Australia's tax-law. That bill actually provides a full net proceeds tax relief on the values kept by Norfolk Islanders.
There' s no question that many on Norfolk Island have fought in the years since the beginning of self-government in 1979. In May 2015, in line with the Committee's findings, the European Commission adopted the Norfolk Island Legislation Amendment Act 2015. This bill made the necessary changes to begin the Norfolk Island transition into the Australia tax and benefit system, which includes Newstart and other pension plans, but also provided for Medicare and the Pharmaceutical Benefits Scheme.
While the many part-time employment, so often the means by which people on the island earn their incomes and maintain themselves, will be part of the system, everyone will finally be supported by the welfare system and the public service provided by the governments, which will help to make the island of Norfolk's infrastructures more youthful through the programmes of the GOIS.
Mr President, I remember our study on the government and economy and the prospects for Norfolk Island in 2014, when a number of individuals talked to us about the effects of the adoption of the Australian tax system on Norfolk Island. It is good that this bill provides the same derogations for the establishment of the withholding tax on investment income as were introduced on the land in 1985 for those on Norfolk Island.
Ever since the committee's review, the trustee, Hon Gary Hardgrave and Commonwealth official have been working with local constructors and the Norfolk Island Advisory Council to find out how to implement the tax and social system in the way things have been done in the past.
It is necessary because things are different on Norfolk and they have changed over the years. It was noted that there was a shortage of paperwork on the disposal of property and a need for a decentralised approach to the inheritance of property, so that Commonwealth laws must take this into consideration, which would make the implementation of withholding tax more onerous.
And I am glad that the Secretary has grasped these disparities and has presented this bill to take account of these misgivings and the reality of Norfolk Island. Adoption of this Act will therefore allow for a complete waiver of the withholding tax on Norfolk Island residents' property before the relevant notification on 24 October 2015.
All about the trial that has been followed and the measures taken by this House and the GOA have been concentrated on what will be in the best interest of the people of Norfolk Island. There' s no witchcraft in the game and there are no pearls of gold to repair the island's inn.
Australia's authorities are committed to ensuring a decent standard of living for all on Norfolk Island. While I know that some on Norfolk Island were against the changes in the rules of governing and also the introduction of the tax system in Australia, for the great majority of Norfolk Islanders these changes are necessary, very useful and desirable.
Mr President, I am delighted that both sides are supporting the changes in legislation for Norfolk Island and the work of the Joint Parliamentary Committee for the national capital and the outer regions. The bill correctly recognises the conditions on Norfolk Island and I am happy to lend my backing to the House as I fully back all moves taken by the Australian authorities to promote the well-being of the population of Norfolk Island.
I' m happy to talk today about the tax law amendment (Norfolk Island CGT Exemption) Bill 2016. It is part of a much wider reform agenda for Norfolk Island. This reform follows the Joint Standing Committee on the National Capital and External Territories' update on the island of Norfolk and builds on many decade-long accounts of the Norfolk area.
I am a member of the Commission which drafted the document "Same country: different worldâ "the one and only of Norfolk Island", which looks at the outlook for the island's economy in the aftermath of declining tourist numbers, a budgetary shortfall and other persistent financing problems. It encouraged the Commonwealth authorities to abrogate the Norfolk Island Act 1979 as soon as possible and to set up a transitional administrative structure to support the move to a locally based governmental structure in line with the needs and wishes of the fellowship.
Its first installment was the Norfolk Island Law Amendment Bill 2015, which was adopted by the European Assembly in May 2015 with cross-party backing. Norfolk Island introduced tax dwellers into the Australia tax system, which gives Australians direct contact with welfare benefits, healthcare such as Medicare and other community programmes available to continental people.
The draft law we are discussing today changes the pattern of these reform relatively slightly, but it is important because it changes the 1997 Law on Personal Income Tax (transitional provisions) to give tax-free treatment to property holdings before 24 October 2015. That is the same as before September 20, 1985, when the withholding tax was incorporated into the tax system in Australia.
The small change addresses the concern of Norfolk Islanders about the tax status of savings in the initial law that incorporates the island into the Australian tax system. That is an important point, because it shows that the administration and the opposition are hearing and reacting to the worries of the Norfolk islanders.
The amendment does not cover property of Norfolk Islanders that would not have been exempted from withholding tax before Norfolk Island was fully included in the Australia tax system. As of July 1, 2016, property purchased on or after October 24, 2015 by Norfolk Islanders, will be taxable under CYT.
By involving Norfolk Island tax dwellers in the Australia tax system, Lab helps ensure clear tax governance and security for institutional investor. The changes give security in the withholding tax without retroactive effect on investments under the former Norfolk Island tax system. Norfolk Islander's change in the tax law amendments (Norfolk Island CGT Exemption) Bill 2016 gives Norfolk Islander tax resident further security and clarification as they become part of the tax system in Australia on July 1, 2016.
We have another law that provides for further reform, which we will discuss in the next few weeks, and I will go into it in more detail. I would like to emphasize this pointâ "I would like to say to the Norfolk people: we listen to your concern, we react accordingly, and I think this bill is proof of this.
It was only last night that I had a meeting with the ministers to debate the reform and I expressed a number of other misgivings that had been voiced to me by the people of Norfolk. Mr President, I look forward to moving on to the next series of laws that will implement these important reform in the near-term.
Thank you to the Secretary for the continuation of these very important reform in this area for the well-being of the Norfolk people, for their people. In particular, I would like to thank the Secretary for having an open-door politics with me when it comes to discuss these reform and intervene on our behalf. Thank you, Mr President.
In conclusion, I would like to pay tribute to the five members of the Norfolk Island Advisory Council who have accompanied the island's reforms. You have a part that has not always been simple, but you have done it with great rigour and in a way that has won you great reverence both on Norfolk Island and here in Canberra.
I' m pleased to summarize the Norfolk Island CGT copy Bill 2016 and thank the members who helped in this debat. The bill modifies various tax legislation to grant a full withholding tax relief for Norfolk Island property to help the Norfolk Island municipality make the transition to the Australian tax system.
The derogation is part of a wider set of reforms that will enable the authorities to fulfil their electoral obligation to implement tax, welfare and health schemes on the island of Norfolk from 1 July 2016. The Norfolk Island Legislation Amendment Act 2015 was adopted by the European Commission on 14 May 2015, ending the decade of insecurity for the people of Norfolk Island.
Australia's authorities will incorporate Norfolk Island into continental welfare insurance schemes, which include Medicare and the Pharmaceutical Benefits Scheme. Other consultations with the EU have given cause for concern about the possible ex-post taxing of savings. To remove these doubts, this bill will introduce a full CGT waiver for property owned by the inhabitants of Norfolk Island before 24 October 2015, the date on which the notification of the waiver was made.
This CGT grant shows the government's dedication to work proactively and on a regular basis with the Norfolk Island Fellowship to make sure that all inhabitants can make an important contribution to their prospective leadership, also through the Norfolk Island Advisory Council. This more comprehensive reforms packet deals with the long-standing problems on Norfolk Island, which have been investigated in a King's Committee, a large number of accounts, 12 Parliament' s investigations and filings over a 30-year time span.
It is implementing the necessary restructuring to enhance the provision of services and stimulate the island's economy while maintaining its cultural and territorial presence through commitments such as the CGT exemptions in this law. Before Norfolk Island was fully included in the Australian tax system, the indemnity applies to those property that was exempted from CGT.
May I say that, as one of the members of this place that Norfolk Island has been visiting, it was in my role as Minster for the Shadows of Judiciary and Tradition a very long ago that you cannot go there and be enchanted by its peoples, its past and its outlook for the world.
There' s a lot of heat for the Norfolk Island residents that the members of the Aussie Assembly feel today. In this regard, the Member has requested as an amendment for Fraser that all words after'that' be omitted to replace other words. My immediate concern is that the change is adopted.