G-G's tax waiver 'an insult to public'

Taxpayers Australia: "There are many people in this situation and I don't think anyone else is getting an extra amount paid because they weren't aware."

An Australian taxpayers lobby group says the Federal Government has insulted the public by waiving a $190,000 superannuation tax bill owed by former governor-general Michael Jeffery.

The Government waived the tax obligations for Major-General Jeffery after the superannuation surcharge for high-income earners, which he had been required to pay, was abolished in 2005.

Finance Minister Lindsay Tanner says the decision was taken to make sure that Major-General Jeffery paid exactly the same tax as any other Australian with the same superannuation entitlements.

Taxpayers Australia says the decision is unlikely to be applied to members of the general public.

The lobby group's superannuation tax expert Heather Schache says the move is extremely unusual.

"It seems entirely inequitable to the average taxpayer as far as I am concerned," she [said].

"The ex-governor-general's comment was that he said in 2003 he wasn't aware that the surcharge existed.

"My response to that is well, you are like any other person in that situation. You have an obligation when you enter into any employment contract to find out what your obligations are going to be. So the fact that someone turns around and says 'well I wasn't aware of that back in 2003' doesn't really seem to be a response that ... should mean that taxpayers are having to fund an extra amount that wasn't anticipated.

"I don't think anyone else would be in the same situation and the surcharge assessments, even though they actually stopped from July 1, 2005, are so behind, that there are still people getting surcharge assessments now.

"There are many people in this situation and I don't think anyone else is getting an extra amount paid because they weren't aware."

'Not good enough'

The Federal Opposition is arguing that Major-General Jeffery was given special treatment under the law.

"Lindsay Tanner has to explain in detail to the Australian people why he was prepared to give the governor-general a tax break that so many other Australians don't enjoy," Opposition finance spokesman Joe Hockey said.

"He has to explain to the Australian people why the superannuation levy was waived for the governor-general when the governor-general has been on the same tax footing as every other Australian for a number of years now.

"I don't think it is good enough to have private agreements like this to waive a debt of such a substantial amount of money when the governor-general may well be being treated differently to other Australians.

"If there was an anomaly involving the remuneration or a disagreement about the terms of the remuneration for the governor-general then it should have been transparent in the same way that the governor-general's remuneration is transparent."

Charmaine Crowe from the Combined Pensioners and Superannuants Association also hit out at the decision.

"For someone who has had the role of a governor-general it seems a little bit bizarre that there's some rule for an individual in that position and quite another for the rest of the population. And given the economic crisis that everyone is experiencing it is a little bit difficult to follow for the rest of the population that this tax bill is waived."

Carbon sink tax bill 'seriously flawed'

There were extraordinary scenes in the Senate last night as the Greens combined with the Nationals and the Liberal Senator Bill Heffernan to attack part of a tax bill.

It was originally drafted by the previous Coalition government and has been reintroduced by Labor.

It gives a full tax deduction for the cost of planting forests as carbon sinks.

But Senator Heffernan, the Nationals and the Greens argued passionately in the Senate last night that it is flawed.

Senator Heffernan says the bill does not stop the trees being cut down or allowed to die within a year.

"There is absolutely no way in this legislation that you can prevent me from planting these trees and the year after I collect the tax deduction - me ploughing them in," he said.

"It is a national disgrace if we allow this Parliament to pass this legislation in the full knowledge that it is completely and fundamentally flawed."

Greens Senator Bob Brown agrees the bill is seriously flawed.

Nationals Senator Barnaby Jocye has called it a load of rubbish.

"Its very rare - to be honest - I would agree with the Greens but tonight's going to be one of those nights," Senator Joyce said.

But Government Senator Stephen Conroy says the bill was initially brought in by the previous Government.

"To be muttering up the back about what an evil plot this is - its your bill," he said.

The senators do not deny that they are negotiating on ways to to fix the problems they have complained about.

The Coalition is understood to be discussing technical aspects of how to do that.

Petroulias jailed for two years

Nicholas Petroulias accepted $41,000 in return for providing confidential ATO information.

Former assistant tax commissioner Nicholas Petroulias will spend at least two years in jail for corrupt conduct and unauthorised publication of documents, a NSW Supreme Court judge has ruled.

In December, a jury found Petroulias guilty of two offences - agreeing to receive money on an understanding that his role at the Australian Taxation Office (ATO) would be affected, and publishing documents without authorisation.

In passing sentence today, Justice Peter Johnson said Petroulias acted with "impropriety and deceit" while working in a position of trust.

"I'm satisfied that these are very close to the worst cases of crime of this type," Justice Johnson said.

Between 1997 and 1999, for the latter part of which period Petroulias was assistant tax commissioner, he accepted $41,000 in return for providing confidential ATO information.

Justice Johnson said that information was used by Petroulias and his private business partners to benefit their business.

"The information had been gathered by him to the benefit of him and his associates, to the detriment of their competitors," Justice Johnson said.

"A proper and impartial administration of the tax law is crucial to the operation of our federal government.

"By his crimes, the offender has ... damaged the public fabric of our community.

"The offender acted in this way for personal gain ... (a) clear conflict of interests between public duty and personal interest."

Justice Johnson sentenced Petroulias to a total of three years and two months in prison, with a non-parole period of two years.

Unfair tax on gays: activist

There are concerns same sex couples could be financially worse off under the Federal Budget.

The gay and lesbian rights group, Coming Out Proud, says this year's budget treats all same sex couples as de facto relationships.

The group's Julian Punch says this will mean some couples could lose welfare benefits and be taxed on double incomes because their relationship is not recognised as having the same value as a marriage.

He wants the Federal Government to recognise same sex civil unions nationally to avoid tax discrimination.

"At the moment, currently and with the previous government, as facist as it was, our relationships were just in a no person zone, they weren't accepted they weren't recognised," he said.

"Now the government's going to recognise them for the purposes of tax accruements."

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