Scrutiny of Bills Alert Digest No. 4 of 1999
24 March 1999
ISSN 1329-668X
SENATE STANDING COMMITTEE FOR THE SCRUTINY OF BILLS
MEMBERS OF THE COMMITTEE
Senator B Cooney (Chairman)
Senator W Crane (Deputy Chairman)
Senator H Coonan
Senator T Crossin 
Senator J Ferris
Senator A Murray
TERMS OF REFERENCE
Extract from Standing Order 24
(1)
(a) At the commencement of each Parliament, a Standing Committee for
the Scrutiny of Bills shall be appointed to report, in respect of the
clauses of bills introduced into the Senate, and in respect of Acts of
the Parliament, whether such bills or Acts, by express words or otherwise:
(i) trespass unduly on personal rights and liberties;
(ii) make rights, liberties or obligations unduly dependent upon insufficiently
defined administrative powers;
(iii) make rights, liberties or obligations unduly dependent upon non-reviewable
decisions;
(iv) inappropriately delegate legislative powers; or
(v) insufficiently subject the exercise of legislative power to parliamentary
scrutiny.
(b) The Committee, for the purpose of reporting upon the clauses of a
bill when the bill has been introduced into the Senate, may consider any
proposed law or other document or information available to it, notwithstanding
that such proposed law, document or information has not been presented
to the Senate.
CONTENTS
Criminal Code Amendment (Bribery of Foreign Public Officials) Bill 1999
Employee Protection (Wage Guarantee) Bill 1999
Export Market Development Grants Legislation Amendment Bill 1999
Financial Sector Reform (Amendments and Transitional Provisions) Bill
(No. 1) 1999
Financial Sector (Transfers of Business) Bill 1999
Health Legislation Amendment Bill (No. 3) 1999
Higher Education Legislation Amendment Bill 1999
Income Tax Rates Amendment (RSAs Provided by Registered Organizations)
Bill 1999
Referendum Legislation Amendment Bill 1999
Superannuation Legislation Amendment Bill (No. 2) 1999
Taxation Laws Amendment Bill (No. 4) 1999
Taxation Laws Amendment Bill (No. 5) 1999
Taxation Laws Amendment (CPI Indexation) Bill 1999
Taxation Laws Amendment (Demutualisation of Non-insurance Mutual Entities)
Bill 1999
Taxation Laws Amendment (Political Donations) Bill 1999
Provisions imposing criminal sanctions for failure to provide information
Criminal Code Amendment (Bribery of Foreign Public Officials) Bill 1999
This bill was introduced into the Senate on 10 March 1999 by the Parliamentary
Secretary to the Minister for Communications, Information Technology and
the Arts. [Portfolio responsibility: Justice and Customs]
The bill proposes to give effect to the OECD Convention on Combating
Bribery of Foreign Officials in International Business Transactions by
amending the Criminal Code Act 1995 to:
- prohibit providing or offering a benefit which is not legitimately
due to another person with the intention of influencing a foreign public
official in the exercise of their duties in order to obtain or retain
business or business advantage that is not legitimately due to the recipient
or intended recipient;
- apply the prohibition to conduct within and outside Australia and
when the conduct occurs wholly outside Australia, the person is an Australian
citizen or the company is a company incorporated in Australia; and
- ensure that the ancillary offences of attempt, complicity, incitement
and conspiracy which occur within and outside Australia apply where
they relate to conduct involved in the primary offence.
Reversal of the onus of proof
Proposed sections 70.3 and 70.4
This bill proposes to amend the Criminal Code Act 1995 by inserting
Division 70 as part of a new Chapter 4 into the Criminal Code.
Proposed new section 70.2 sets out the elements of the offence of bribing
a foreign public official.
Proposed new sections 70.3 and 70.4 provide relevant defences. Section
70.3 sets out the terms of the defence of conduct lawful in the country
of the foreign public official. Section 70.4 provides a defence where
a payment is a “facilitation payment made to expedite or secure the
performance of a routine government action of a minor nature”. Each
of these sections imposes an evidential burden on defendants, requiring
them to prove certain matters if they wish to avoid a finding of guilt.
Proposed new section 70.5 also sets out various matters akin to a defence.
In general terms, this section provides that a person does not commit
an offence under section 70.2 unless the conduct constituting the offence
occurs in Australia, or (if its occurs outside Australia) the offender
is an Australian citizen or corporation. In this instance, however, the
prosecution bears the onus of showing that the terms of this section have
been complied with.
The Committee, therefore, seeks the Minister's advice as to why
proposed sections 70.3 and 70.4 impose an evidential burden on defendants,
and whether those sections may be phrased in similar terms to proposed
section 70.5, thereby leaving the burden of proof of the matters under
those sections on the prosecution.
Pending the Minister's advice, the Committee draws Senators' attention
to these provisions, as they may be considered to trespass unduly on personal
rights and liberties in breach of principle 1(a)(i) of the Committee's
terms of reference.
Employee Protection (Wage Guarantee) Bill 1999
This bill was introduced into the House of Representatives on 8 March
1999 by Mrs Crosio as a Private Member's bill.
The bill proposes to protect workers in the event of their employer's
insolvency by:
- establishing a scheme of wage protection insurance;
- requiring employers to insure their workforces under the scheme; and
- providing for the determination and enforcement of claims under the
scheme.
The Committee has no comment on this bill.
Export Market Development Grants Legislation Amendment Bill 1999
This bill was introduced into the House of Representatives on 10 March
1999 by the Minister for Trade. [Portfolio responsibility: Trade]
The bill proposes to amend the following Acts:
Export Market Development Grants Act 1997 to:
- extend the Export Market Development Grants scheme for two years to
grant year 2000/2001;
- ensure that where previously paid grants are to be disregarded, they
are disregarded for all purposes under the Act;
- replace the term “grants entry test” with “grants entry
requirements”;
- ensure that the requirement that an applicant be “genuinely carrying
on business in Australia” is applicable to trusts;
- ensure that trusts have access to “new markets”;
- ensure that only 65 per cent of first class airfares are claimable
expenses;
- remove certain terms from the application of 46A of the Acts Interpretation
Act 1901;
- ensure that Austrade is unable to consider an application for grants
lodged beyond five months after the end of a grant year;
- provide that an eligible applicant may receive three grants in respect
of each “new market”; and
- make technical amendments;
Australian Trade Commission Act 1985 to allow Austrade to publicly
provide the addresses of grant recipients and their industry sectors;
and
Export Market Development Grants (Repeal and Consequential Provisions)
Act 1997 to limit the life of all “approved body” to three
years subject to extension upon review by Austrade.
The Committee has no comment on this bill.
Financial Sector Reform (Amendments and Transitional Provisions) Bill
(No. 1) 1999
This bill was introduced into the House of Representatives on 11 March
1999 by the Parliamentary Secretary to the Minister for Communications,
Information Technology and the Arts. [Portfolio responsibility: Treasury]
The bill proposes to amend the following Acts:
Australian Prudential Regulation Authority Act 1998 to enable
the Australian Prudential Regulation Authority (APRA), as a result of
an agreement with a State or Territory, to be contracted to provide prudential
regulation and advisory services for trustee companies and housing cooperatives
on a fee for service basis;
Banking Act 1959 to:
- apply the Criminal Code to all offences against the Banking Act;
- extend the bank holidays and unclaimed moneys provisions to all authorised
deposit-taking institutions;
- extend APRA's powers in relation to standards on prudential matters
and direction powers;
Corporations Law to:
- provide for the registration of financial institutions and friendly
societies as companies and regulation of those entities under the Corporations
Law by the Australian Securities and Investments Commission;
- make amendments consequential on financial institutions and friendly
societies becoming companies;
- provide that registration of the transferring financial institutions
under their previous governing legislation in the States and Territories
is cancelled, and no new registrations under such legislation is permitted;
Life Insurance Act 1995 to establish a prudential regime for financial
institutions providing life insurance products and to permit friendly
societies to be regulated under such a regime; and
Reserve Bank Act 1959 to:
- apply the Criminal Code to all offences against the Act; and
makes miscellaneous amendments to 12 Acts, consequential amendments to
38 Acts and transitional, saving and application provisions.
Commencement on Proclamation
Subclauses 3(2), 3(6) and 3(16)
By virtue of subclause 3(2), various provisions in this bill are to commence
on “the transfer date”. This date is defined as the date that
is specified by the Governor-General by Proclamation under subclause 3(16).
Similarly, subclause 3(6) will permit item 3 of Schedule 6 to commence
on Proclamation. In each case, no further date is specified within which
the provisions are to commence in any event.
While the Committee consistently draws attention to such provisions in
the context of Office of Parliamentary Counsel Drafting Instruction
No 2 of 1989, it is apparent that the commencement of these provisions
depends on the passage of complementary legislation in the States and
Territories. Therefore, these provisions are within one of the exceptions
provided for in that Drafting Instruction.
In these circumstances, the Committee makes no further comment on
these provisions.
Retrospective application
Subclauses 3(7), 3(8) and 3(9)
The amendments referred to in subclauses 3(7), 3(8) and 3(9) are to commence
retrospectively at various times. However, in each case the Explanatory
Memorandum notes that these amendments are for the purpose of correcting
drafting errors and misdescribed amendments, and make no substantive change
to the law.
In these circumstances, the Committee makes no further comment on
these provisions.
Financial Sector (Transfers of Business) Bill 1999
This bill was introduced into the House of Representatives on 11 March
1999 by the Minister representing the Minister for Communications, Information
Technology and the Arts. [Portfolio responsibility: Treasury]
The bill proposes to enable the Australian Prudential Regulation Authority
to:
- approve an application for the transfer of part or all of the business
of one prudentially regulated entity to another (a voluntary transfer);
or
- require, in limited circumstances, a prudentially regulated entity
to transfer part or all of its business to another entity (a compulsory
transfer).
The Committee has no comment on this bill.
Health Legislation Amendment Bill (No. 3) 1999
This bill was introduced into the House of Representatives on 11 March
1999 by the Minister for Health and Aged Care. [Portfolio responsibility:
Health and Aged Care]
The bill proposes to amend the following Acts:
National Health Act 1953 to:
- transfer responsibility for registration, cancellation of registration
and merger approval from the Minister to the Private Health Insurance
Administration Council (PHIAC);
- restrict new registrations to companies whose primary purpose is the
operation of a health benefits fund;
- require any current registered organisations that are unincorporated
associations to become incorporated as a company;
- require registered organisations, when taking any action relating
to the application, investment or management of the assets of the health
benefits fund conducted by it, to give priority to the interest of the
contributors to the fund;
- require payments from the health benefits funds to be used only for
health insurance business purposes;
- allow the Court to set aside certain transactions that are manifestly
not in the interests of contributors;
- create a new civil penalty regime that makes directors liable for
serious contraventions of the Act by registered organisations;
- create a part-time Deputy Commissioner position (to be held by a member
of PHIAC);
- repeal the current minimum reserve requirements;
- allow both the Minister and the PHIAC to appoint inspectors to examine
the affairs of registered organisations in certain circumstances;
- repeal the Court ordered judicial management, compulsory transfer
and winding up of funds provisions;
- allow PHIAC to appoint an administrator to either a fund or organisation
in difficulty, have the administrator operate in the interests of contributors,
and require the administrator to recommend to the PHIAC the most appropriate
options for the fund or organisation;
- require Court approval before a fund or registered organisation in
difficulty can be forced to comply with a scheme of arrangement to be
wound up;
- give health benefit fund contributors priority over other unsecured
creditors in the distribution of fund assets in a winding up;
- make directors liable for any loss to the fund in certain circumstances;
and
- allow all funds and all incorporated registered organisations, if
solvent, to enter into a voluntary winding up; and
Private Health Insurance Incentives Act 1998, Health Insurance
Commission Act 1973 and National Health Act 1953 to:
- allow the Health Insurance Commission (HIC) 14 days to either grant
or refuse a claim for the incentive payment and provide for internal
review by the HIC of a decision refusing to pay a claim;
- enable a person or their employer, having paid premiums, to register
for the premiums reduction scheme;
- remove the requirement for annual registration in the premiums reduction
scheme for individuals and health funds;
- provide that the Minister may revoked the status of a participating
fund;
- require a health fund, when given notice, to produce a certificate
in writing by a registered company auditor as to the correctness of
its accounts and records in relation to the 30 per cent rebate;
- specify additional categories that are debts due to the Commonwealth
and who the money is recoverable from and allow the HIC to set off debts
against amounts that are payable;
- require a health fund to provide the HIC, when given notice, information
in relation to people who have had a policy issued by the fund or have
paid premiums in relation to a policy;
- enable the Minister to make principles relating to personal information
which a health fund must comply with; and
- make consequential amendments.
Retrospective application
Subclause 2(5) and Schedule 3
By virtue of subclause 2(5), the amendments proposed in Schedule 3 are
to commence retrospectively on 1 January 1999. However, the Explanatory
Memorandum notes that these amendments are intended to “relate to
the day to day implementation or operation of the [health insurance incentives]
scheme”, and “are designed to operate retrospectively so as
to ensure the smooth operation of the incentives scheme from 1 January
1999”. The amendments do not impose any new or additional burden
on members of the public.
In these circumstances, the Committee makes no further comment on
these provisions.
Higher Education Legislation Amendment Bill 1999
This bill was introduced into the House of Representatives on 11 March
1999 by the Minister for Education, Training and Youth Affairs. [Portfolio
responsibility: Education, Training and Youth Affairs]
The bill proposes to amend the following Acts:
Higher Education Funding Act 1988 to:
- reflect the name change of James Cook University of North Queensland
to James Cook University;
- make the University of the Sunshine Coast eligible for Commonwealth
funding as an independent institution;
- specify how a notice of decision by the Secretary in relation to an
application to remit either a Higher Education Contribution semester
debt or an Opening Learning study period debt is to be given;
- implement voluntary student unionism by preventing any institution
receiving grants under the Act from making it a condition of enrolment
that a student be a member of any association; and
- make a technical amendment; and
Higher Education Funding Act 1988 and States Grants (General
Purposes) Act 1994 to remove the Minister's discretion to approve
direct funding of student organisations under the Student Organisation
Support Program.
The Committee has no comment on this bill.
Income Tax Rates Amendment (RSAs Provided by Registered Organizations)
Bill 1999
This bill was introduced into the House of Representatives on 11 March
1999 by the Parliamentary Secretary to the Minister for Communications,
Information Technology and the Arts. [Portfolio responsibility: Treasury]
The bill proposes to amend the Income Tax Rates Act 1986 to specify
the rates of tax that apply to the retirement savings account business
of friendly societies and other registered organisations.
The Committee has no comment on this bill.
Referendum Legislation Amendment Bill 1999
This bill was introduced into the House of Representatives on 11 March
1999 by the Attorney-General. [Portfolio responsibility: Special Minister
of State]
The bill proposes to:
- allow expenditure by the Commonwealth on proposed public information
activities related to the lead-up to the 1999 constitutional referenda;
- enable the Australian Electoral Commission to arrange wider distribution
of the Yes/No case pamphlets, including publication on the Internet;
- provide that when referendums on two or more proposed laws are to
be held on the same day and 28 days notice is given before the issue
of the writ, the ballot-papers for each of the referendums are to be
printed on separate pieces of different coloured paper; and
- make a technical amendment relating to voting outside the polling
place.
The Committee has no comment on this bill.
Superannuation Legislation Amendment Bill (No. 2) 1999
This bill was introduced into the House of Representatives on 11 March
1999 by the Minister for Financial Services and Regulation. [Portfolio
responsibility: Treasury]
The bill proposes to amend the following:
Small Superannuation Accounts Act 1995 to change the arrangements
governing the early release of monies from the Superannuation Holding
Accounts Reserve to individuals on whose behalf the monies are held;
Income Tax Assessment Act 1936 so that special income of a complying
superannuation fund, approved deposit fund (ADF) or pooled superannuation
trust (PST) will include:
- distributions from all trusts other than where the superannuation
fund, ADF or PST has a fixed entitlement to income from that trust;
and
- non arm's length trust distributions of income where the superannuation
fund, ADF or PST has a fixed entitlement to income from that trust;
and
Superannuation Guarantee (Administration) Regulations to continue from
1 August 1996 an exemption from the Superannuation Guarantee for
employers in respect of certain senior foreign executives.
Legislation by press release
Schedule 2
The amendments proposed by Schedule 2 to this bill are to apply from
25 November 1997 (see item 3). The Explanatory Memorandum notes that
this is the date of a press release issued by the Treasurer.
This would suggest that the bill was not introduced until some 16 months
after the issue of the press release. However, the Explanatory Memorandum
goes on to observe that the amendments “were originally introduced
on 2 July 1998 in Taxation Laws Amendment Bill (No 5) 1998”. That
bill lapsed on the announcement of the federal election.
However, even given this explanation, it is apparent that the original
bill was introduced more than 7 months after the date of the press release.
The Committee has consistently drawn attention to the Senate Resolution
of 8 November 1988, which deals with tax legislation and which provides
that:
where the Government has announced, by press release, its intention to
introduce a Bill to amend taxation law, and that Bill has not been introduced
into the Parliament or made available by way of publication of a draft
Bill within 6 calendar months after the date of that announcement, the
Senate shall, subject to any further resolution, amend the bill to provide
that the commencement date of the Bill shall be a date that is no earlier
than either the date of introduction of the Bill into the Parliament or
the date of publication of the draft Bill.
The Committee, therefore, seeks the Minister's advice as to the
effect of this Senate resolution on the proposed commencement date of
the bill.
Pending the Minister's advice, the Committee draws Senators' attention
to this provision, as it may be considered to trespass unduly on personal
rights and liberties in breach of principle 1(a)(i) of the Committee's
terms of reference.
Retrospective application
Schedule 3
The amendments proposed in Schedule 3 are intended to continue an exemption
from the superannuation guarantee for employers in respect of certain
senior foreign executives who meet criteria equivalent to those previously
met by the former class 413 overseas executive visa. These amendments
are to apply retrospectively from 1 August 1996 (see item 2), which is
the date that the exemption was rendered ineffective by the re-numbering
of immigration visa classes. Therefore, these amendments are beneficial
to taxpayers.
In these circumstances, the Committee makes no further comment on
these provisions.
Taxation Laws Amendment Bill (No. 4) 1999
This bill was introduced into the House of Representatives on 11 March
1999 by the Minister for Financial Services and Regulation. [Portfolio
responsibility: Treasury]
The bill proposes to amend the following Acts:
Income Tax Assessment Act 1997 to:
- allow income tax deductions for gifts made to certain funds and organisations;
- ensure grants paid to eligible businesses by the Katherine District
Business Re-establishment Fund are exempt from income tax;
- treat all public entities as having had a change in underlying interests
at 30 June 1999, unless they can satisfy the Commissioner of Taxation
that they have maintained continuity of majority underlying interests;
- ensure that public entities include those that are jointly owned by
one or more public entities;
- amend provisions relating to small business retirement exemption rules
that exempt a capital gain made by an individual, private company or
a trust from a CGT event happening to an asset used in a business; and
- extend the small business retirement exemption rules to land and buildings
held by a taxpayer where the land and buildings are used by another
entity connected with the taxpayer;
- rewrite the small business roll-over rules;
- rewrite the measure that adjusts the costs bases and reduced costs
bases of shares (and loans) where there has been an underlying shift
between companies under common ownership;
- make changes relating to how taxpayers keep their records for determining
their capital gains tax liability;
- exempt reimbursements or payments of expenses under the M4/M5 Cashback
Scheme for tolls paid on the M4 and M5 toll roads; and
- make consequential and technical amendments;
Income Tax Assessment Act 1936 to:
- remove the Commissioner of Taxation's power to disregard the “notional
holder” rule which public entities may use to calculate the majority
underlying interests in their assets;
- enable participants in the Commonwealth Development Employment Projects
(CDEP) Scheme to claim the beneficiary tax rebate in respect of the
income support component of their CDEP wages; and
- make consequential and technical amendments; and
Taxation Administration Act 1953 to enable the Commissioner of
Taxation to disclose information acquired under a taxation law to the
New South Wales Police Integrity Commission and the Queensland Crime Commission.
Retrospective application
Schedules 2 and 4
The amendments proposed in Schedule 2 to this bill will apply only to
the 1997-98 income year (see item 6). These amendments concern the tax
exempt status of grants paid as part of a business re-establishment package
to eligible businesses and primary producers in those parts of the Katherine
region devastated by floods in January 1998.
The amendment made by Schedule 4 is to apply to payments made on or after
1 July 1998. As noted above, this amendment is intended to enable
participants in the CDEP Scheme to claim the beneficiary tax rebate in
respect of the income support component of their CDEP wages.
In each case, the proposed amendments are beneficial to some taxpayers.
In these circumstances, the Committee makes no further comment on
these provisions.
Retrospective application
Schedule 3, items 1 and 2
By virtue of item 3 of Schedule 3, the amendments proposed in items 1
and 2 of that Schedule are to apply retrospectively to a public entity
“if the test time (within the meaning of Division 20 of Part IIA
of the Income Tax Assessment Act 1936) was on or after 20 January
1997”. These amendments repeal section 160ZZSQ of that Act, and the
note to section 160ZZSJ.
The Explanatory Memorandum notes that the financial impact of these amendments
will be negligible, but it does not refer to any possible adverse effects
on taxpayers, or indicate why 20 January 1997 has been chosen as an effective
date. The Committee, therefore, seeks the Treasurer's advice as
to whether the amendments will adversely affect any taxpayers, and why
the date of 20 January 1997 was chosen as the date from which the amendments
are to apply.
Pending the Treasurer's advice, the Committee draws Senators' attention
to this provision, as it may be considered to trespass unduly on personal
rights and liberties in breach of principle 1(a)(i) of the Committee's
terms of reference.
Taxation Laws Amendment Bill (No. 5) 1999
This bill was introduced into the House of Representatives on 11 March
1999 by the Minister for Financial Services and Regulation. [Portfolio
responsibility: Treasury]
The bill proposes to amend the following Acts:
Sales Tax (Exemptions and Classifications) Act 1992 to ensure
that the sales tax exemption for goods incorporated into property owned
by, or leased to, always exempt persons (AEPs) or the government of a
foreign country is only available where the property is occupied principally
by an AEP or the government of a foreign country, or where the property
is used principally for the provision of services to an AEP or government
of a foreign country; and
Income Tax Assessment Act 1936 and the Income Tax Assessment
Act 1997 to:
- include an amount in the assessable income of a taxpayer where amounts
are unpaid on the termination of a hire purchase or limited recourse
debt arrangement;
- treat taxpayers who acquire capital assets by hire purchase or instalment
sale as the owners of those assets for the purpose of determining eligibility
for capital allowance deductions and relevant ant-avoidance provisions;
and
- treat hire purchase or instalment sales as though they were loan transactions;
and
- make consequential amendments.
Retrospective application
Schedule 1
The amendments proposed by Schedule 1 to this bill are to apply from
2 April 1998. The Explanatory Memorandum indicates that this was the date
on which the amendments first appeared in legislative form (in Taxation
Laws Amendment Bill (No 4) 1998).
The Committee regularly comments on the uncertainty that is often associated
with `legislation by press release'. On this occasion, the Committee notes
with approval that the precise form of these amendments has been available
for public examination and comment since 2 April 1998 – the date
from which they are to take effect. As a matter of principle, where an
intention to amend the law is announced, the Committee considers that
the legislation which gives effect to those amendments should be made
available as quickly as possible.
In these circumstances, the Committee makes no further comment on
these provisions.
Retrospective application
Schedule 2
In general terms, the amendments proposed by Schedule 2 treat hire purchasers
as the owners of assets under hire purchase, and hire purchase arrangements
as sale, loan and debt transactions. These amendments are to apply retrospectively
from 27 February 1998. The Explanatory Memorandum indicates that this
was apparently the date on which the Treasurer issued a second press release
amending to some extent proposals originally included in the 1997-98 Budget
speech.
The Committee has consistently drawn attention to the Senate Resolution
of 8 November 1988, which deals with tax legislation and which provides
that:
where the Government has announced, by press release, its intention to
introduce a Bill to amend taxation law, and that Bill has not been introduced
into the Parliament or made available by way of publication of a draft
Bill within 6 calendar months after the date of that announcement, the
Senate shall, subject to any further resolution, amend the bill to provide
that the commencement date of the Bill shall be a date that is no earlier
than either the date of introduction of the Bill into the Parliament or
the date of publication of the draft Bill.
The Committee, therefore, seeks the Treasurer's advice as to the
effect of this Senate resolution on the proposed commencement date of
the bill.
Pending the Treasurer's advice, the Committee draws Senators' attention
to this provision, as it may be considered to trespass unduly on personal
rights and liberties in breach of principle 1(a)(i) of the Committee's
terms of reference.
Taxation Laws Amendment (CPI Indexation) Bill 1999
This bill was introduced into the House of Representatives on 11 March
1999 by the Minister for Financial Services and Regulation. [Portfolio
responsibility: Treasury]
The bill proposes to amend the following Acts:
Fringe Benefits Tax Assessment Act 1986 to:
- ensure that the car parking benefits threshold amount will remain
unchanged if the CPI movement in the 12 months before the start of the
FBT year is lower than the CPI for the preceding 12 months; and
- make technical amendments;
Income Tax Assessment Act 1936 to ensure that the maximum indexed
dependant rebate amount does not fall when there is a decrease in the
CPI; and
Sales Tax Assessment Act 1992 to retain the wholesale sales tax
quarterly remitter threshold for 1998-99 at the 1997-98 level.
Retrospective application
Subclause 2(2) and Schedule 1, items 3 and 4
By virtue of subclause 2(2), the amendments proposed in items 3 and 4
of Schedule 1 to this bill are to commence retrospectively on the date
of Assent to earlier legislation. However, the amendments proposed in
those items are technical only, and make no substantive change to the
law.
In these circumstances, the Committee makes no further comment on
these provisions.
Taxation Laws Amendment (Demutualisation of Non-insurance Mutual Entities)
Bill 1999
This bill was introduced into the House of Representatives on 11 March
1999 by the Minister for Financial Services and Regulation. [Portfolio
responsibility: Treasury]
The bill proposes to amend the Income Tax Assessment Act 1936 and
the Income Tax Assessment Act 1997 to introduce a generic framework
for the taxation of certain transactions associated with demutualisations
of mutual non-insurance organisations.
Retrospective application
Schedule 2H, proposed paragraph 326-5(1)(e)
This bill proposes to insert a new Division 326 in the Income Tax
Assessment Act 1936. By virtue of proposed new paragraph 326-5(1)(e),
the amendments are to apply to demutualisations completed on or after
12 May 1998. The Explanatory Memorandum indicates that these amendments
are Budget measures, having been foreshadowed in the 1997-98 Budget, and
announced in the 1998-99 Budget speech.
The Committee accepts that, for the Government to fully implement its
budgetary strategy, it needs certain fiscal and monetary measures it employs
to operate from the date of their announcement rather than from the date
of their enactment. This approach also minimises the risk that those measures
may be avoided.
In these circumstances, the Committee makes no further comment on
these provisions.
Taxation Laws Amendment (Political Donations) Bill 1999
This bill was introduced into the House of Representatives on 11 March
1999 by the Minister for Financial Services and Regulation. [Portfolio
responsibility: Treasury]
The bill proposes to amend the following Acts:
Income Tax Assessment Act 1997 to allow taxpayers to make tax
deductible contributions (including membership subscriptions) of $2 or
more to political parties registered under the Commonwealth Electoral
Act 1918 or under corresponding State or Territory legislation up
to a maximum level of $1500 annually, and gifts to independent candidates
and members, also up to a maximum level of $1500 annually, with effect
from 1 July 1998; and
Income Tax Assessment Act 1997 and the Income Tax Assessment
Act 1936 to make technical and consequential amendments.
Retrospective application
Schedule 1, Part 4
By virtue of Part 4 of Schedule 1 to this bill, the amendments proposed
in that Schedule are to apply from 1 July 1998. However, these amendments
are beneficial to taxpayers.
In these circumstances, the Committee makes no further comment on
these provisions.
Provisions imposing criminal sanctions for failure to provide information
The Committee's Eighth Report of 1998 dealt with the appropriate
basis for penalty provisions for offences involving the giving or withholding
of information. In that Report, the Committee recommended that the Attorney-General
develop more detailed criteria to ensure that the penalties imposed for
such offences were “more consistent, more appropriate, and make greater
use of a wider range of non-custodial penalties”. The Committee also
recommended that such criteria be made available to Ministers, drafters
and to the Parliament.
The Government responded to that Report on 14 December 1998. In that
response, the Minister for Justice referred to the ongoing development
of the Commonwealth Criminal Code, which would include rationalising
penalty provisions for “administration of justice offences”.
The Minister undertook to provide further information when the review
of penalty levels and applicable principles had taken place.
For information, the following Table sets out penalties for `information-related'
offences in the legislation covered in this Digest. The Committee
notes that imprisonment is still prescribed as a penalty for some such
offences.
TABLE
| Bill/Act |
Section/Subsection |
Offence |
Penalty |
| Employee Protection (Wage Guarantee) Bill 1999 |
32(3) |
Fail to comply with a notice to provide written answers
to questions or copies of documents |
150 penalty units |
| Banking Act 1959 |
16B(1A) |
Fail to comply with requirement from the Australian Prudential
Regulation Authority (APRA) to provide information |
6 months |
| Banking Act 1959 |
16B(2)
16B(3)
16B(4)
|
Auditor fail to inform APRA of insolvent ADI
Auditor fail to inform APRA of insolvent NOHC
Auditor fail to inform APRA of insolvent subsidiary
|
6 months
6 months
6 months
|
|
