Belich Camilla; Watts SimonCAMILLA BELICH (Labour): Thank you Madam Chair. I do have a lot of questions because this is a very complex area of the bill. So if the Minister would indulge me I just wanted to ask a few questions around Part 4 and specifically clause 36 that replaces section RD 17(4)(c) with the low threshold amount. But in new section RD 17(4)(c)(i) they've got a secondary code of $0 and I just wanted the Minister to perhaps explain to us as we might have been able to go through in select committee on page 19 of the bill in clause 36 of the primary legislation I just wondered if the Minister could just go through for the committee exactly the necessity—which I'm sure there is one and I'm sure his officials if he isn't aware will be able to tell him. But I'm interested in the answer of why have new section RD 17(4)(c)(i) when it just inputs a $0 factor into the piece of legislation. So that's my first question.The next question I had is in relation to clause 37 which looks at the different tax rates of taxable income that would apply. Now in this particular explanation of it obviously we've got the rows and then we've got the range of dollar in taxable income. I just wanted to know from the Minister is this a convention that we only refer to a dollar amount when we're obviously talking about a range of income? Why do we use the singular and not the plural in this instance? Is that convention or is that in fact an error in the bill? I'd be interested to hear that from the Minister. And you'll see in table 1 over the page that's also repeated.In relation to the employer superannuation contribution tax (ESCT) rate I know my colleague the Hon Dr Deborah Russell had some questions in relation to ESCT. This is a tax that I am familiar with in the past when I've employed someone and done their payroll myself having to go through that process of obviously paying the person paying income tax and then also paying the additional taxes in relation to superannuation. So I'm just interested with that ESCT rate I understand that that has not been changed but the tax rate has been changed. And I wanted to hear from the Minister: did he receive advice on also altering the ESCT rate in line with the change of taxation thresholds or is this not something he received advice on? I want to know what the advice is. And if he didn't ask for that advice why in fact he didn't and why it wasn't considered. So those are my questions for the Minister.Hon SIMON WATTS (Minister of Revenue): Well thank you very much Madam Chair. I'll work through these questions succinctly. The first aspect in regards to clause 36 inserting new section RD 17(4)(c)(i) in terms of secondary code at zero—I mean it is no more complex than one starts at zero and works their way up from zero in regards to tax bands. So that is simply just articulating that point which is very consistent with any tax bands.In regards to the employer superannuation contribution tax in clause 37(3) the thresholds are higher than the personal income tax thresholds. And the reason for this is because of the concessionary treatment that allows for the employer's contributions to be taxed at the employee's marginal tax rate. In effect that's what you're seeing flow through in regards to that clause and that's why it is what it is.