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Tax Laws Amendment (2013 Measures No. 1) Bill 2013

Introduced into the House of Representatives on 15 May 2013

Portfolio: Treasury

Overview

1.1        This bill seeks to make three sets of amendments to the Income Tax Assessment Act 1997 (ITAA 1997).

• Schedule 1 seeks to make a number of changes to the 'stakeholder' and 'connected entity tests, which seek to determine whether an entity controls or can influence another entity. This ensures the tests applies to interests owned by life insurance companies, superannuation funds and trusts in the same way that they apply to other types of entities.
• Schedule 2 seeks to amend the ITAA 1997 to exempt from income tax the Disaster Income Recovery Subsidy for persons who have lost income as a result of natural disasters occurring in Australia from 3 January 2013 to 30 September 2013.
• Schedule 3 seeks to add a new general deductible gift recipient category to extend tax deductibility to donations to public funds established solely for providing education in ethics in government schools in Australia as an alternative to religious instruction.

Compatibility with human rights

1.2        The bill is accompanied by three statements of compatibility, one in relation to each Schedule to the bill.

1.3        In relation to Schedule 1, the statement of compatibility notes that the proposed rule changes are retrospective. However, it argues that it is not expected that this will produce any disadvantages of which taxpayers were unaware, as the changes were announced in the 2011-2012 Budget and details were made public in May 2011.

1.4        In relation to Schedules 2 and 3, the statements of compatibility state that the amendments do not engage any of the applicable rights and are beneficial to taxpayers, and 'are therefore compatible with human rights as it does not raise any human rights issues.'[20]

1.5        The committee considers that the amendments proposed by Schedule 1 to the control or influence of an entity do not appear to raise human rights concerns. However, in relation to Schedule 2, as the committee has already noted in the context of natural disaster payments or benefits,[21] such measures may be viewed as promoting enjoyment of the right to social security and the right to an adequate standard of living, as guaranteed by articles 9 and 11 respectively of the International Covenant on Economic, Social and Cultural Rights (ICESCR).

1.6        The committee also considers that the proposed amendments relating to deductible gift recipient status for funds established to support the provision of ethics classes may be viewed as promoting the right to freedom of religion and the right to education. Ensuring parents and children have the option to undertake ethics classes if they do not wish to take part in religious education provided in government schools may be viewed as protected by article 18 of the International Covenant on Civil and Political Rights (ICCPR), article 13 of the ICESCR, and corresponding rights in the Convention on the Rights of the Child.

1.7                 The committee considers that the bill does not appear to give rise to human rights concerns.

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