Chapter 2Key issues
2.1This chapter outlines the key issues considered by the Senate Economics Legislation Committee (the committee) at its 2024–25 Budget Estimates hearings with the Treasury Portfolio and the Industry, Science and Resources Portfolio (Industry Portfolio).
Treasury Portfolio, 3 June 2024
Department of the Treasury
2.2The Senate Economics Legislation Committee’s 2024–25 Budget Estimates hearings, commenced with the Secretary to the Treasury, Dr Steven Kennedy PSM, presenting an opening statement to the committee. Dr Kennedy touched on a range of topics, including the current state of the global economy, the net overseas migration rate since the COVID-19 pandemic, labour market performance, the shifting of fiscal policy as inflation begins to ease and the government’s Future Made in Australia framework.
Macroeconomic Group and International and Foreign Investment Group
2.3Topics examined by the committee included:
The effects of bracket creep on income tax payable (pp. 8–10)
Real household consumption forecasting and data (pp. 10–11)
Definitions and direction of the 2024–25 Budget and related measures(pp. 11–14, 19–21)
Economic pressure for young Australians (pp. 14–16)
The competitiveness of Australia’s company tax rate (pp. 16–19)
Consumer Price Index forecasting (pp. 21–22, 25)
Corporations rebuilding margins due to lack of competition (pp. 22–24)
Business investment statistics post the COVID-19 pandemic (p. 24)
Net overseas migration statistics (pp. 26, 31–32, 37-39, 45–46, 65)
Access to banking facilities in regional areas (p. 26)
Fuel excise and road-user charges (p. 27)
Consultation and assessment to inform the Future Made in Australia - National Interest Framework (pp. 27–30, 47–48, 51)
Strategies for the procurement of green energy solutions (pp. 32–35)
The Solar SunShot investment program (pp. 35–36)
Hydrogen exports (p. 37)
Budget measures to address climate change (pp. 39–40)
Funding to support Australia’s housing supply (pp. 40–41)
The government’s electricity bill relief Budget measure and related inflationary forecasting (pp. 42, 44–45, 48–49, 62–64)
Foreign investment in the housing and defence sector (pp. 43–44)
Information regarding Gross Domestic Product (GDP) statistics (pp. 49–51, 60–62)
The reporting of scope 3 emissions in Australia (pp. 51–54)
Treasury’s involvement in the Future Gas Strategy (p. 54)
Information pertaining to the Foreign Investment Review Board and related applications(pp. 56–58)
Establishment of a ‘single front door’ to assist major investors (pp. 58–60)
Data related to thermal coal pricing and exports (pp. 64–65)
Small Business, Housing, Corporate and Law Group
2.4Topics examined by the committee included:
Supply output projections in relation to new housing and supporting funds (pp. 65–70)
Support for first home buyers through the Home Guarantee Scheme and Help to Buy program (pp. 70–74)
The Hon Dr Craig Emerson’s independent review into the Payment Times Reporting Act 2020 (pp. 74–75, 95–97)
Cyber security measures within small businesses (pp. 75–76)
Treasury’s drafting capacity (pp. 76–77)
Draft legislation related to the Future Made in Australia agenda (pp. 77–79)
Progress and funding related to the Stage 3 Tax Cuts campaign (pp. 79–82, 89)
Allocation of the $2 billion Social Housing Accelerator to the Australian Capital Territory (ACT) (p. 82)
Treasury staff under full-time employment within the Housing Division as well as board appointments to Housing Australia (pp. 82–84)
Government rental support mechanisms (pp. 84–85)
Discussions and recommendations related to the National Supply and Affordability Council’s Barriers to Institutional Investment, Finance and Innovation in Housing report (pp. 85–88)
Social and affordable housing provided through the Housing Australia Future Fund (HAFF) (pp. 88–89)
Treasury’s newly appointed Public Information Branch to support government advertising campaigns (pp. 90–92)
Net overseas migration and the effect on the housing industry (pp. 92– 93)
The appointment of the Reserve Bank Board (pp. 93–95)
Information related to the Cyber Wardens investment program (pp. 97–98)
Fiscal Group
2.5Topics examined by the committee included:
GDP payment share and real spending growth statistics (p. 99)
Consultation and funding related to the PsiQuantum deal (pp. 100–105, 110–113)
Discussions related to the Productivity Commission’s inquiry into Australia’s Horizontal Fiscal Equalisation system and related GST distribution arrangements (pp. 105–110)
The Green Bond Framework (pp. 113–114)
Markets Group
2.6Topics examined by the committee included:
Taxation of superannuation balances – Better Targeted Superannuation Concessions (pp. 115–118)
The Consumer Data Rights Bill 2022 and its current status within the Parliament (pp. 118–120, 131–133, 136)
Undertakings within Treasury’s Competition Taskforce with reference to the supermarket industry (pp. 120–122)
The A-GLIMMER report - legislative protection against genetic discrimination (pp. 122–123)
Regulation of digital assets in Australia (pp. 123–125)
Information regarding recent Australian Securities Exchange (ASX) arrangements (pp. 125–127)
Discussions related to the introduction of a beneficial ownership register to enhance the transparency of requirements for Australian companies (pp. 127–129)
Treasury’s review of the regulatory framework for managed investment schemes (pp. 129–131)
The Australian Competition and Consumer Commission’s Digital platform services inquiry 2020-25 (pp. 132–133)
Parliamentary oversight capabilities (pp. 134–135)
Treasury’s discussions with the Department of Employment and Workforce Relations and other information regarding The Competition Review (p. 137)
The Hon Dr Craig Emerson’s independent review into the Payment Times Reporting Act 2020 and related information (p. 139)
Information regarding Treasury’s review of the continuous disclosure laws undertaken in 2021 (pp. 140)
Treasury Portfolio, 4 June 2024
Australian Financial Complaints Authority
2.7Topics examined by the committee included:
Information related to the Dixon Advisory matter (pp. 4–8, 13–15)
Complaints related to the Banking Code of Practice (pp. 8–9)
Success rate in favour of complainants and backdated case investigations since the establishment of the Australian Financial Complaints Authority (AFCA) (pp. 9 – 10)
Financial hardship statistics and related support from financial firms (pp. 11–13)
Australian Securities and Investments Commission
2.8Topics examined by the committee included:
Figures and information related to the Australian Securities and Investments Commission’s (ASIC) most recent culture survey (pp. 17–18)
Details related to ASIC’s investigation into Mayfair 101 (pp. 18–19)
Information related to the Dixon Advisory matter (pp. 19–21)
Reporting related to auditing quality and outcomes in ASIC (pp. 21–22)
Adjustments to legal professional privilege and ASIC’s regulation regarding the PricewaterhouseCoopers (PwC) matter (pp. 22–25)
ASIC’s enforcement of financial scams (pp. 25–28)
Current investigations into financial firms breaching the National Credit Code in relation to financial hardship measures (pp. 28–30, 35)
Consideration of ‘material risk’ surrounding scope 3 emissions and the development of related legislation (pp. 30–32)
ASIC’s regulation of the beneficial ownership register (pp. 33)
The Youpla Group Funeral Benefits Program and surrounding information regarding the liquidation of the funds (pp. 34–35)
Data related to a nationally representative survey regarding Australian’s experiencing debt concerns through ASIC’s Moneysmart program (pp. 36–37)
Complaints related to death benefit payments from superannuation funds (pp. 37–38)
ASIC’s regulation regarding stock market abuse (pp. 39–40)
Developments regarding the Banking Code of Practice (pp. 40–41)
Investigation of allegations related to a gold bullion company (pp. 41–44)
Cost recovery modelling (pp. 44–45)
ASIC’s involvement in climate-related financial disclosures through the proposed Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (pp. 46–48)
Australian Prudential Regulation Authority
2.9Topics examined by the committee included:
Regulation related to superannuation fund payments (pp. 48–51, 52–53)
The New Daily news outlet (p. 51)
Housing Australia
2.10Topics examined by the committee included:
Housing Australia’s administration of the HAFF with reference to tender and application processes (pp. 54–59)
Executive remuneration, staffing, contractor and consultant expenses (pp. 59–61)
Delivery and timeframe related to the building of dwellings under the HAFF (pp. 61–62)
Details related to the funding application process under the HAFF (pp. 63–64)
Mortgages under the Home Guarantee Scheme (p. 65)
Government relations advisor role within Housing Australia (pp. 65–68)
Productivity Commission
2.11Topics examined by the committee included:
The Productivity Commission’s (PC) involvement in the Future Made in Australia program (pp. 68–69, 71)
Procurement arrangements related to the Solar SunShot investment program (pp. 70–71)
The PC’s Commonwealth funding arrangements (pp. 72–74)
The current housing industry from a productivity perspective (pp. 74–76)
Productivity benefits of competition in the e-conveyancing market (pp. 76–77)
The effect of company tax rate cuts on Australia’s international competitiveness (pp. 78 – 79)
Information related to the Future foundations for giving draft report (pp. 79–82)
Findings within the PC’s Review of the National Agreement on Closing the Gap study report (pp. 83–85)
Status and details of the latest edition of the PC’s Trade and Assistance Review (pp. 85–86)
Australian Bureau of Statistics
2.12Topics examined by the committee included:
Funding and delivery of the 2024 Census via myGov (pp. 87–88)
Information related to the Australian Bureau of Statistics’ (ABS) General Social Survey and the uptake of digital surveys(pp. 88–80)
COVID-19 vaccination statistics (pp. 89 – 91)
Indigenous data sovereignty (pp. 91–92)
Excess mortality data (pp. 92–94)
ABS data related to migration and building approvals (pp. 94–96)
Publication of information and statistics related to the Measuring What Matters report (pp. 96–97)
Census question related to religious affiliation (pp. 97–99)
Employment-to-population statistics with reference to temporary visa holders and overseas migrants (pp. 100–101)
Australian Competition and Consumer Commission
2.13Topics examined by the committee included:
Forecasting related to the Gas Mandatory Code of Conduct (pp. 101–102)
The Australian Competition and Consumer Commission’s (ACCC) input regarding the Future Gas Strategy (p. 102)
ACCC regulation of Australian ports (pp. 102–103)
News media bargaining code (pp. 103–105)
Vehicle efficiency standards (pp. 106–107)
The Origin Energy acquisition (pp. 108, 117)
Reform of Australia’s current merger regime (pp. 109–110)
Digital platform services inquiry 2020-2025 (pp. 111–112)
Competition and regulation of the e-conveyancing market (pp. 113, 114–115)
ACCC perspective on the Consumer Data Rights Bill 2022 currently before the Senate (pp. 115–116)
Services provided by data firms with reference to single touch payroll (pp. 118–119)
Commonwealth Grants Commission
2.14Topics examined by the committee included:
Directions provided by the Treasurer (pp. 120–121)
Australian Small Business and Family Enterprise Ombudsman
2.15Topics examined by the committee included:
Protections under the National Consumer Credit Protection Act (pp. 121–122)
Compliance impact on small businesses (p. 122)
Treasury Portfolio, 5 June 2024
Reserve Bank of Australia
2.16Topics examined by the committee included:
GDP per capita statistics (pp. 2–4)
The inflationary risks of low productivity (pp. 4–6)
Inflation forecasts relative to the 2024-25 Budget (pp. 6–9, 20–21)
‘Real wage’ statistics (pp. 9–10)
Discussions with the Treasury and Treasurer related to the 2024-25 Budget (pp. 10–11)
Household impacts of high interest rates (pp. 12–13, 15–16)
Discretionary and non-discretionary spending as a result of current economic pressures (pp. 13 -14)
Distributional impacts of current interest rates across all age cohorts (pp. 15–17)
Rent inflation forecasts (pp. 17–18)
Information and data related to the Financial Stability Review (pp. 18–19)
Roundtable discussions related to the provision of a cash-in-transit service (pp. 19–20)
Gold storage at the Bank of England (p. 22)
Industry Portfolio, 5 June 2024
Department of Industry, Science and Resources
2.17The Secretary of the Department of Industry, Science and Resources (Industry), Ms Meghan Quinn PSM, provided an opening statement to the committee, outlining Industry’s involvement in the implementation of the government’s Future Made in Australia agenda.
Corporate, Enabling and Business Services
2.18Topics examined by the committee included:
The establishment and work of the recently established Legal and Integrity Division within Industry (pp. 30–32)
Costings related to legal services contracts (pp. 33–35)
Contract provisions related to funding provided to EY with reference to potential conflicts of interest (pp. 35–38)
Reports to the Office of Legal Services Coordinationwithin the Attorney-General’s Department (pp. 38–39)
Grant agreement details related to the Environmental Defenders Office (pp. 39–41)
Freedom of Information request data (pp. 42–43)
Work undertaken by EY to assist with Industry projects(pp. 43–45)
Industry contract with SG Fleet (pp. 45–46)
Staffing arrangements with reference to the Future Made in Australia project (pp. 46–48)
Decision-making process and pieces of work used to inform the Future Made in Australia project (pp. 48–49)
Outcome 1 – Program 1.1
2.19Topics examined by the committee included:
Appointment of a new Anti-Dumping Commissioner (pp. 50 – 53)
Current workload of the Anti-Dumping Commission (pp. 53–55)
Observations related to international dumping with reference to Australian processes (pp. 55–58)
Corporate tax rates (pp. 59–61)
Contract information related to i4Connect and the Entrepreneurs Programme (pp. 61–64, 72–75, 77–78)
Information related to the National Battery Strategy (pp. 64–68, 70–72, 87–90)
Improvements to Australia’s anti-dumping system (pp. 68–70)
The Barriers to collaboration and commercialisation report, commissioned by Industry Innovation and Science Australia (pp. 75–77)
Briefings and discussions related to tariffs on Chinese wind turbines (pp. 79–87)
National Reconstruction Fund Corporation
2.20Topics examined by the committee included:
Potential investments and related timelines (pp. 91, 94)
Funding provided to the National Reconstruction Fund Corporation (NRFC) (pp. 91–94)
Spokespeople in the NRFC (pp. 96–99)
NRFC Board meetings and remuneration (pp. 100–103)
The monitoring of manufacturing insolvencies (pp. 103–105)
Outcome 1 – Program 1.2
2.21Topics examined by the committee included:
Engagements with King & Wood Mallesons and other legal firms with reference to the Psi Quantum deal (pp. 106–110, 112, 120)
Analysis of Australia’s Research and Development (R&D) system (pp. 110–111)
Industry’s expression of interest (EOI) processes (pp. 113–115)
Staffing arrangements within Industry (pp. 116–119)
Advice provided in relation to the Psi Quantum deal (pp. 120–124)
Commonwealth Scientific and Industrial Research Organisation
2.22Topics examined by the committee included:
Staffing adjustments in the Commonwealth Scientific and Industrial Research Organisation (CSIRO) (pp. 125–128)
Funding related to R&D capabilities within CSIRO (p. 128)
Information related to the most recent GenCost report (pp. 128–130)
Industry Portfolio, 6 June 2024
Outcome 1 – Program 1.3
2.23Topics examined by the committee included:
Details related to the Critical Minerals Strategy 2023–2030 (pp. 5–8)
Environmental and safety outcomes in the resources sector (pp. 8–9)
Funding provided to Geoscience Australia for resource mapping (pp. 10–11)
Information related to the Future Gas Strategy (pp. 11–13, 16–18, 39–42)
Definitions related to the Critical Minerals List and Strategic Minerals List (pp. 13–14)
The Australian nickel industry (pp. 15–16, 26–27)
Carbon Capture Storage (CCS) usage (pp. 18–21, 36–38)
Memorandum of understanding between the European Union and Australia on critical and strategic minerals (pp. 22–24)
The Critical Minerals Production Tax Incentive (pp. 26–31)
Allocated staffing level (ASL) and key performance indicators (KPI) in the Critical Minerals Office (pp. 32–34)
Wages in the resources sector (pp. 34–35)
Liquefied natural gas (LNG) production and exports (pp. 43–45)
The offshore acreage release process (pp. 45–47)
The Major Projects Facilitation Agency (pp. 47–48)
National Offshore Petroleum Safety and Environmental Management Authority
2.24Topics examined by the committee included:
Assessments regarding environmental plans (pp. 49–50)
Regulatory frameworks in relation to offshore resources (pp. 50–52)
Reports of ruptured submarine pipelines (pp. 53–56)
Assessments related to impacts on cultural heritage (pp. 57–61)
Geoscience Australia
2.25Topics examined by the committee included:
Data acquisition through geological mapping (pp. 61–64, 67)
Geoscience funding and related ASL statistics (pp. 64–66)
The Exploring for the Future program (pp. 68–70)
Artificial Intelligence (AI) usage in the resources sector (pp. 71–72)
Outcome 1 – Program 1.3 (including the Australian Nuclear Science and Technology Organisation); Program 1.4 (including the Australian Nuclear Science and Technology Organisation)
2.26Topics examined by the committee included:
Funding related to radioactive waste disposal facilities (pp. 73–75)
Decommissioning of the Kimba Nuclear waste facility (pp. 75–77)
Advice provided to the Australian Submarine Agency related to radioactive waste disposal and related facilities (pp. 77–78)
The appointment of a new national radioactive waste facility (pp. 79–80)
Classifications regarding nuclear waste (pp. 80–82)
Australian Nuclear Science and Technology Organisation (ANSTO) support provided to the Australian health and medical system (pp. 83–84)
ANSTO’s management of nuclear waste (pp. 85–87)
Treasury Portfolio, 25 June 2024
Revenue Group; Australian Taxation Office; Tax Practitioners Board; Australian Charities and Not-for-profits Commission
2.27Topics examined by the committee included:
The Critical Minerals Production Tax Incentive
Information related to the Coalition for Conservation
Registration for charities and lobbying entities
HECS debt indexation arrangements
Company tax and investment measures
Repayments regarding the Robodebt scheme
The Board of Taxation’s review of the Tax Treatment of Digital Assets and Transactions in Australia
Responsibilities of the Tax Practitioners Board and Commissioner of Taxation
Reporting requirements for tax exemptions on non-charitable, not-for-profit entities
Taxation on rental income for foreign owners
Foreign ownership in the housing market
Information related to the PricewaterhouseCoopers matter
Legislation related to the Build-to-rent tax concessions
Industry Portfolio, 1 July 2024
Commonwealth Scientific and Industrial Research Organisation
2.28Topics examined by the committee included:
The 2023-24 GenCost Report
Costing related to nuclear energy sources
Staffing arrangements
Comparison of the capacity and cost of different renewable energy sources
Senator Jess Walsh
Chair
Labor Senator for Victoria