Referral of the inquiry
1.1
The Treasury Laws Amendment (2022 Measures No. 4) Bill 2022 (the bill) was introduced into the House of Representatives and read a first time on 23 November 2022.
1.2
On 24 November 2022, the Senate referred the provisions of the bill to the Senate Economics Legislation Committee (the committee) for inquiry and report by 25 January 2022.
1.3
On 22 December 2022, the committee tabled a progress report seeking an extension of the reporting date to 3 March 2023.
Purpose of the bill
1.4
The bill proposes to make amendments to several Acts to implement nine broad-ranging measures. These amendments are contained in nine schedules:
Schedule 1—Digital Games Tax Offset (DGTO)
Schedule 2—Taxation of digital currency
Schedule 3—Reducing the compliance burden of record keeping for fringe benefits tax (FBT)
Schedule 4—Skills and training boost
Schedule 5—Technology investment boost
Schedule 6—Financial reporting and auditing requirements for superannuation entities
Schedule 7—Deductible gift recipients
Schedule 8—Amendment of the Clean Energy Finance Corporation Act 2012
Schedule 9—Taxation of military superannuation benefits: Reversing the Douglas decision
1.5
The overall intent of the bill was explained by the Assistant Treasurer and Minister for Financial Services, the Hon Mr Stephen Jones MP, on 23 November 2022. The Minister stated that the measures aim to enhance the digital games industry, support veterans, boost small business, reduce Australia’s emissions, and strengthen the transparency of Australia’s superannuation system.
1.6
Details of each of the measures contained in the nine schedules are outlined below.
Digital Games Tax Offset
1.7
Schedule 1 of the bill seeks to amend the Income Tax Assessment Act 1997 (ITAA) to introduce a refundable tax offset for companies that develop digital games in Australia.
1.8
Companies that are Australian tax residents or foreign tax residents with a permanent establishment in Australia would be eligible, with the proposed offset applying to qualifying Australian development expenditure incurred in relation to eligible game development from 1 July 2022.
1.9
Given that the digital games and interactive entertainment sector is one of the fastest growing industries worldwide, the key objective of the DGTO is to grow Australia’s digital games industry, attract international digital games development, and support investment in highly skilled, transferrable jobs.
1.10
The schedule would implement the Digital Games Tax Offset strategy which was announced in the 2021–22 Budget, and the Digital Games Tax Offset— expansion from the 2021–22 Mid-Year Economic and Fiscal Outlook (MYEFO).
1.11
As part of the Digital Economic Strategy, the introduction of the DGTO is expected to strengthen the digital games industry in Australia; expand employment opportunities for digital and creative talent; enhance the industry’s international competitiveness; and make Australia an attractive destination for foreign investment.
Taxation treatment of digital currency
1.12
On 22 June 2022, the government announced that it would introduce legislation to exclude crypto assets such as Bitcoin from being treated as foreign currency for Australian income tax purposes.
1.13
Due to the decision of El Salvador’s Government to recognise bitcoin as an unrestricted legal tender on 7 September 2021, bitcoin may be deemed a ‘foreign currency’ for the purposes of the ITAA due to its status as legal tender in El Salvador. This is an unintended consequence and is inconsistent with the currency policy intent.
1.14
The proposed amendments in the schedule would therefore clarify that digital currencies continue to be excluded from the income tax treatment of foreign currency.
1.15
The key objective of the amendment is to deliver a consistent tax requirement for crypto asset holders that would be backdated to 1 July 2021 for the avoidance of ambiguity following the decision by the Government of El Salvador. Without this clarification, there would be uncertainty about the status of these assets for Australian income tax purposes.
Reducing the compliance burden of record keeping for fringe benefits tax
1.16
Schedule 3 of the bill would introduce legislation to reduce FBT record keeping compliance costs for employers maintaining their corporate records.
1.17
Employers who pay FBT are required to self-assess their FBT liability and lodge an FBT return following the end of the FBT year, where there is a fringe benefits taxable amount for the year. The requirement for certain records to be in an approved form to comply with FBT record keeping obligations forces employers, and in some cases employees, to create additional records despite the required information already being captured through other record keeping processes, including in the employer’s own corporate records.
1.18
The purpose of the proposed legislative changes would reduce and simplify FBT record keeping requirements for employers while producing similar compliance outcomes with lower compliance costs to remove ‘red tape’ for business while maintaining the integrity of the FBT system.
1.19
The schedule implements the measure Fringe Benefits Tax—reducing the compliance burden of record keeping announced in the 2020–21 Budget.
Skills and training boost
1.20
The proposed amendments in Schedule 4 would introduce a temporary Skills and Training Boost to incentivise small businesses to upskill their employees, or train new employees, to help address skills shortages.
1.21
The boost would allow small businesses with an annual turnover of less than $50 million access to a bonus deduction equal to 20 per cent of eligible expenditure incurred on external training provided to their employees.
1.22
The measure, which would be available until 30 June 2024, is expected to ‘create opportunities for employees to enhance their skills and contribute to the growth of small business’. A key aim of the bonus deduction is to support small businesses grow their workforce, which could include taking on less-skilled employees that may need external training to develop their skillset and enhance their productivity.
1.23
The schedule implements the Small Business—skills and training boost measure from the March 2022—23 Budget.
Technology investment boost
1.24
The proposed amendments in Schedule 5 would introduce a temporary Technology investment boost to help small businesses operate digitally. The boost would provide small businesses (with an aggregated annual turnover of less than $50 million) with access to a bonus deduction equal to 20 per cent of their eligible expenditure, on expenses and depreciating assets for the purposes of their digital operations or digitising their operations.
1.25
The proposed tax incentive, which would be available until 30 June 2023, is expected to assist small businesses to adopt new technologies, operate more efficiently, and grow by helping them ‘respond to customer demands, remain competitive, and build resilience to changes in economic conditions’.
1.26
The schedule fully implements the measure Small Business—technology investment boost from the March 2022–23 Budget.
Financial reporting and auditing requirements for superannuation entities
1.27
The amendments in the proposed Schedule 6 of the bill seek to extend and adapt the financial reporting and auditing requirements which apply to registrable superannuation entities (RSEs).
1.28
Given the importance of superannuation, the new requirements would require RSEs to prepare financial reports in accordance with the Australian Accounting Standards and for these reports to be lodged on the public record with the Australian Securities and Investments Commission (ASIC). This would also include imposing additional reporting and independence obligation for audit firms and audit companies.
1.29
The purpose of these amendments is to impose financial reporting obligations on RSEs that are consistent with those that currently apply to public companies and registered schemes. This builds on other measures in recent years, including the Your Future, Your Super reforms introduced in 2021, to improve the compliance and transparency of the superannuation sector.
1.30
The proposed schedule is expected to increase the transparency of financial information and enable stronger enforcement action to be taken to promote compliance with the financial reporting requirements. It forms the first part of the government’s three-part plan to deliver a transparent, member-centric, superannuation system.
1.31
These amendments complement and leverage the recent changes to ASIC and the Australian Prudential Regulation Authority’s (APRA) roles in the regulation of superannuation made by the Financial Sector Reform (Hayne Royal Commission Response) Act 2020, which came into force on 1 January 2021.
Deductable gift recipients
1.32
Schedule 7 seeks to amend the ITAA to update the list of deductable gift recipients by adding, extending, and removing specific entities from the deductable gift recipient list.
1.33
Under income tax law, income tax deductions for taxpayers who make gifts of $2 or more to deductable gift recipients is permitted. To be a deductible gift recipient, an organisation must fall within one of the general categories set out in Division 30 of the ITAA or be listed by name in that division. Deductable gift recipient status helps eligible organisations attract public financial support for their activities—a mechanism to encourage philanthropy and to provide support for the not-for-profit sector.
1.34
The schedule implements the government’s goal of doubling philanthropy by 2030 by engaging collaboratively with the charitable sector.
Amendment of the Clean Energy Finance Corporation Act
1.35
Schedule 8 to the bill seeks to amend the Clean Energy Finance Corporation Act 2012 (CEFC Act) to enable the Clean Energy Finance Corporation (CEFC) to receive additional funds to implement election commitments made by the government, establish the Powering Australia Technology Fund, and to streamline the ability of the government to provide the CEFC with additional funds in the future. The schedule also clarifies the CEFC’s governance arrangements in specifying its nominated Minister.
1.36
The CEFC was established to facilitate increased flows of finance into the clean energy sector. The intent of the amendment is to modernise Australia’s electricity grids, lower the cost of electricity bills for consumers, help manage the transition of the electricity system, and increase renewables in the grid.
1.37
As stated by the Hon Stephen Jones MP, the measure ‘is a significant step in the government’s plan to reduce Australia’s emissions by 43 per cent on 2005 levels by 2030 and to net zero by 2050’.
1.38
The schedule fully implements the Powering Australia—Rewiring the Nation measure from the October 2022–23 Budget and the Low Emissions Technology Commercialisation Fund measure from the 2021–22 MYEFO.
Taxation of military superannuation benefits: Reversing the Douglas decision
1.39
On 4 December 2020, the full Federal Court found in Commissioner of Taxation v Douglas [2020] FCAFC 220 (the Douglas decision) that the invalidity pension paid under the Military Superannuation Benefits Scheme (MSBS) and invalidity pay under the Defence Force Retirement and Death Benefits Scheme (DFRDBS) that commenced on or after 20 September 2007 were not deemed as superannuation income streams within the meaning of the ITAA.
1.40
The Douglas decision identified a discrepancy in the statutory definition of a superannuation income stream that meant, contrary to the policy intent, that these types of pensions do not meet the definition of a superannuation income stream. As a result, payments from these pensions defaulted to being taxed as superannuation lump sums.
1.41
The purpose of amendments in Schedule 9 is to ensure that veterans affected by the Douglas decision will not face worse income tax outcomes by preserving the preferable tax outcomes for affected veterans.
1.42
To counterbalance any adverse impact affected by the retention of the decision, the schedule creates a non-refundable tax offset to ensure these veterans pay no more income tax or Medicare levy on their superannuation lump sums than they would pay if those benefits were still treated as superannuation income stream benefits for income tax purposes. The offset would also apply to spouse and children’s pensions paid out following the death of a member of a scheme affected by the decision.
Relevant inquiries
Senate Environment and Communications References Committee inquiry into the future of Australia’s video game development industry
1.43
On 22 June 2015, the Senate referred an inquiry into the future of Australia’s video game development industry to the Senate Environment and Communications References Committee for report by 29 April 2016.
1.44
The inquiry received 111 submissions as well as additional information and answers to questions on notice. The committee held four public hearings in both Melbourne and Canberra from February to March 2016.
1.45
The primary recommendation made by the committee was that the government introduce a scheme similar to the previous Australian Interactive Games Fund and an extension of the producer tax offset.
House of Representatives Standing Committee on Communications and the Arts inquiry into Sculpting a National Cultural Plan: Igniting a post–COVID economy for the arts
1.46
On 26 August 2020, the former Minister for Communications Cyber Security and the Arts, the Hon Paul Fletcher MP, referred an inquiry into Australia’s creative and cultural industries and institutions to the House of Representatives Standing Committee on Communications and the Arts.
1.47
The committee received 351 submissions and additional information and held four public hearings. In its report, the committee recognised the enormous potential of the interactive games sector for Australia and welcomed the implementation of a DGTO.
Parliamentary Joint Standing Committee on Trade and Investment Growth inquiries into Diversifying Australia’s Trade and Investment Profile and Trade transformation
1.48
On 26 February 2020, the Parliamentary Joint Standing Committee on Trade and Investment Growth resolved to inquire into diversifying Australia’s trade and investment profile.
1.49
The inquiry received 164 submissions and additional information and held seven public hearings between July and October 2020. In its final report the committee considered that a greater focus on innovative and emerging sectors, including the digital gaming industry, will support Australia’s long term economic growth.
1.50
On 31 July 2019, the former Minister for Trade, Tourism and Investment, Senator the Hon Simon Birmingham, asked the committee to inquire into and report on supporting Australia’s exports and attracting investment.
1.51
The inquiry received 46 submissions as well as additional information and answers to questions on notice. The committee held public hearings in Canberra and Sydney between September 2019 and February 2020.
1.52
In its report tabled on 10 June 2020, the committee recommended that the government introduce a refundable tax offset for video game development in Australia, similar to offsets provided to the film and television production industries.
Senate Select Committee on Australia as a Technology and Financial Centre
1.53
On 19 May 2021, the Senate Select Committee on Australia as a Technology and Financial Centre released an issues paper focusing on a number of matters including the regulation of cryptocurrencies and digital assets.
1.54
The committee received 88 submissions and held three public hearings in August and September 2021. In its final report, the committee considered that taxation rules for digital assets require further clarification.
Review of the Taxation Treatment of Digital Assets and Transactions in Australia
1.55
On 21 March 2022, the former government released the terms of reference for a review to be undertaken by the Board of Taxation (the board) into the appropriate policy framework for the taxation of digital assets and transactions in Australia. In August 2022, the board conducted an extensive consultation process, including undertaking numerous sessions with stakeholders and seeking feedback through a submission process concluding on 30 September 2022, for report by 30 September 2023.
Provisions of the bill
Overview of the amendments
Schedule 1 — Digital Games Tax Offset
1.56
Schedule 1 to the bill would amend the ITAA, introducing the DGTO—a 30 per cent refundable tax offset for eligible businesses that spend a minimum of $500,000 on qualifying Australian development expenditure.
1.57
The schedule outlines the eligibility criteria, the method for calculation, and how the offset will be administered through the creation of a new Division 378 of the ITAA, stipulating that:
Only companies that carry on their businesses and game development activities in Australia would be eligible.
All entertainment and educational games would be eligible, provided they can receive a classification rating from the Australian Classifications Board, are broadly available to the public, and do not involve gambling-like elements nor used for advertising or for commercial purposes.
Expenditure that is incurred in relation to the development of the game primarily related to developmental roles and activities and is not excluded expenditure is deemed as qualifying expenditure.
1.58
The DGTO would be capped at $20 million per company (or group of companies who are consolidated or related per year). As specified in the EM, reaching this cap would require approximately $66.7 million in eligible expenditure annually.
1.59
The DGTO would be administered by a company applying for a certificate, stating the amount of expenditure on which the offset will be determined. The offset would then be claimed through the income tax process.
Schedule 2—Taxation of digital currency
1.60
As outlined above, Schedule 2 would amend the ITAA so that Bitcoin and similar digital currencies continue not to be treated as foreign currency, even if they are recognised as a legal tender by a foreign jurisdiction.
1.61
To achieve this, the schedule:
amends the definition of foreign currency in the ITAA to exclude digital currencies adopted from the A New Tax System (Goods and Services Tax) Act 1999 (GST Act);
amends the GST Act definition of digital currency to ensure it excludes government-issued digital currencies and includes digital currencies that are not government-issued, but have been adopted as a legal tender; and
amends the ITAA to include a power to make regulations to provide for further exclusions from the definition of foreign currency in the ITAA.
Schedule 3—Reducing the compliance burden of record keeping for FBT
1.62
As outlined above, Schedule 3 of the bill would amend the Fringe Benefit Tax Assessment Act 1986 (FBTAA) to reduce compliance costs for employers finalising their FBT returns.
1.63
Amendments to the FBTAA will provide the Commissioner of Taxation with the power to make determinations, by legislative instrument, to allow employers finalising FBT returns to rely on adequate alternative records (holding all the prescribed information) instead of seeking the information again by way of statutory evidentiary documents, such as prescribed employee declarations.
1.64
The amendments would not change or reduce what information employers need to hold to support their FBT return under the FBTAA but would alter the prescriptive format and process for obtaining and holding that information.
Schedule 4—Skills and training boost
1.65
The establishment of the temporary Skills and Training Boost would be given effect through amendments to the Income Tax (Transitional Provisions) Act 1997 (IT(TP) Act) in Schedule 4 of the bill.
1.66
The bonus deduction would be made available to entities that meet the definition of a small business entity under section 328–110 of the ITAA that incur eligible expenditure on external training delivered to employees of the business by registered providers.
1.67
The boost would be calculated as 20 per cent of the amount of expenditure that is both deductable under another taxation law provision (whether partially or wholly in the income year which the expenditure is incurred) and eligible for the bonus deduction under the special rules introduced by these amendments, which set out when the bonus deduction can be claimed.
1.68
Under the boost, expenditure for training persons other than employees is not eligible for the bonus deduction (for example, non-employee business owners such as sole traders, partners in a partnership and independent contractors—who are not ‘employees’ of the business within the ordinary meaning).
Schedule 5—Technology Investment Boost
1.69
The establishment of the temporary Technology Investment Boost would be given effect through amendments to the IT(TP) Act in Schedule 5 of the bill. On implementation, the boost would allow small businesses (that meet the definition under the ITAA) to claim a bonus deduction equal to 20 per cent of their eligible expenditure incurred on expenses and depreciating assets for the purposes of their digital operations or digitising their operations.
1.70
The bonus deduction would apply to the total of eligible expenditure of up to $100,000 per income year or specified time period, up to a maximum bonus deduction of $20,000 per income year or specified time period. Small businesses would be eligible for the bonus deduction if they meet these requirements in the income year in which the expenditure is incurred.
Schedule 6—Financial reporting and auditing requirements for superannuation entities
1.71
Schedule 6 to the bill would amend the Corporations Act 2001 (Corporations Act), the Australian Securities and Investments Act (ASIC Act) and the Superannuation Industry (Supervision) Act 1993 (SIS Act) to extend and adapt the financial reporting and auditing requirements in Chapter 2M of the Corporations Act to apply to registrable superannuation entities.
Schedule 7—Deductible gift recipients
1.72
Schedule 7 seeks to amend Division 30 of the ITAA 1997 to update the list of deductable gift recipients by adding six entities, namely:
Melbourne Business School Limited;
Leaders Institute of South Australia Incorporated;
St Patrick’s Cathedral Melbourne Restoration Fund;
Jewish Educational Foundation (Vic) Ltd;
Australian Education Research Organisation Limited; and
Australians for Indigenous Constitutional Recognition Ltd.
1.73
The schedule also intends to extend the deductable gift recipient (DGR) listings of:
Sydney Chevra Kadisha, to apply to gifts made on or after 31 December 2017 and on or before 30 June 2024; and
Australian Women Donors Network, to apply to gifts made on or after 8 March 2018.
1.74
The schedule also removes the DGR listing of Mt Eliza Graduate School of Business and Government Limited from 1 January 2023.
Chapter 8—Amendment of the Clean Energy Finance Corporation Act 2012
1.75
Schedule 8 to the bill would amend section 46 of the CEFC Act to require the CEFC Special Account to be credited with $11.5 billion as soon as practicable after the amendments commence.
1.76
The amendment in this schedule would also remove the need to amend the CEFC Act, for any future funding increases to the CEFC from the government to enable the provision of additional funding if required to support the energy transition.
1.77
The schedule implements a new arrangement, whereby the Minister administering the CEFC Act as specified by the Administrative Arrangements Order automatically becomes the nominated Minister.
Chapter 9—Taxation of military superannuation benefits
1.78
Schedule 9 would amend the Income Tax Assessment (1997 Act) Regulations 2021, ITAA, and the Income Tax (Transitional Provisions) Act 1997.
1.79
The schedule would establish a non-refundable tax offset for certain members of the MSBS and DFRDBS by amending the definition of ‘superannuation income stream’ in subsection 307–70(2) of the ITAA. Veterans who would face a higher tax liability as a result of the Douglas decision would have their income tax liability reduced to the amount it would be if the benefits were treated as a superannuation income stream benefit.
1.80
Any benefits to which the Douglas decision may apply to beyond the MSBS and DFRDB benefits, would continue to be taxed as superannuation income streams, by amending the legislative definition of superannuation income streams. The measure also includes a transitional provision to ‘ensure that certain non-military invalidity benefits that received lump sum status prior to the decision are not disturbed by this reversal, while the government considers the appropriate future treatment of these pensions’.
1.81
The proposed amendments would retrospectively and prospectively reverse the impact of the Douglas decision in relation to all schemes, other than invalidity and death benefits for beneficiaries of invalidity pensioners paid from MSBS and the DFRDBS that commence on or after 20 September 2007.
Consultation
Digital Games Tax Offset
1.82
To inform policy design, the Department of the Treasury (Treasury) sought feedback from stakeholders on the proposed reforms in Schedule 1 through two formal consultation processes. The consultation process on the associated exposure draft and explanatory material to inform the implementation of the DGTO was conducted from 21 March to 18 April 2022.
1.83
Feedback was sought from a wide range of stakeholders, including game developers and studios across Australia, international game development firms, and other industry stakeholders and peak industry association bodies. Based on industry feedback changes were made to strengthen the legislation.
Taxation treatment of digital currency
1.84
A consultation process on Schedule 2 was undertaken by Treasury to inform the exposure draft and explanatory materials to exclude crypto assets, such as bitcoin, from being treated as a foreign currency for Australian income tax purposes. The consultation process was undertaken from 6 September to 30 September 2022.
Fringe Benefits Tax—record keeping
1.85
In relation to Schedule 3, a consultation process was undertaken by Treasury between 9 and 30 September 2022 on the exposure draft legislation to reduce FBT record keeping compliance costs for employers maintaining good corporate records.
Skills and training boost
1.86
Treasury sought feedback from stakeholders on the proposed Schedule 4 to introduce a Skills and Training Boost to support small businesses to train and upskill their employees. A detailed public consultation process on the exposure draft legislation and accompanying explanatory materials was undertaken between 29 August and 19 September 2022, receiving a total of 24 submissions (including one confidential submission), from a broad range of industry and community stakeholders.
Technology investment boost
1.87
Treasury undertook a consultation process on exposure draft legislation to introduce a Technology investment boost to help small businesses operate digitally. The process was undertaken between 29 August and 19 September 2022 with 18 submissions received from various stakeholders.
Taxation of military superannuation benefits
1.88
Treasury sought feedback from stakeholders on the proposed reforms on the taxation of military superannuation benefits through a consultation process conducted from 25 July and 5 August 2022.
1.89
As stated in the Explanatory Memorandum (EM), in response to feedback received during the consultation process, technical amendments were made to the schedule (as well as additional material, including examples were added to the EM) to clarify its operation.
Commencement
1.90
The various schedules of the bill come into effect as outlined in the table below:
Table 1.1: Commencement information
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Sections 1 to 3 and anything in this Act not elsewhere covered by this table
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The day this Act receives Royal Assent.
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Schedules 1 to 5
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1 January, 1 April, 1 July, or 1 October to occur after the day this Act receives Royal Assent.
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Schedule 6
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1 July 2023.
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Schedule 7
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1 January, 1 April, 1 July or 1 October to occur after the day this Act receives Royal Assent.
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Schedules 8 and 9
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The day after this Act receives Royal Assent.
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Source: Treasury Laws Amendment (2022 Measures No. 4) Bill 2022, p. 2.
Note: This table only relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
Financial impact
1.91
According to the EM, the measure is estimated to have the following financial impact over the forward estimates period:
Table 1.2: Financial impact of measures per schedule ($m)
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Schedule 1
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The measure is estimated to increase payments by $34.9 million over the four years from 2021–22, increasing by $10.6 million in 2023–24 and $24.3 million in 2024–25.
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Schedule 2
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The measure has no financial impact.
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Schedule 3
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The measure is estimated to result in a small but unquantifiable decrease in receipts over the forward estimates period.
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Schedule 4
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The measure is estimated to decrease receipts by $550 million over the forward estimates period, reducing by $150 million in 2023–24, $250million in 2024–25, and $150 million in 2025–26.
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Schedule 5
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The measure is estimated to decrease receipts by $1.0 billion over the forward estimates, reducing by $500 million during 2023–24, $350 million during 2024–25, and $150 million in 2025–26.
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Schedule 6
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The measure has no financial impact.
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Schedule 7
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The listing of the Jewish Education Foundation (Vic) Ltd and Australian Education Research Organisation Limited was part of the 2021–22 MYEFO and was estimated to have a negligible cost from 2022–23 to 2025–26.
The listing of the Melbourne Business School Limited, Leaders Institute of South Australia Incorporated, St Patrick’s Cathedral Melbourne Restoration Fund, extending the listing for the Sydney Chevra Kadisha and removing the listing of Mt Eliza Graduate School of Business and Government Ltd was part of the March 2022–23 Budget and was estimated to decrease receipts by $6.3 million from 2023–24 to 2025–26.
The listing of the Australians for Indigenous Constitutional Recognition Ltd and extending the listing of Australian Women Donors Network was part of the October 2022–23 Budget and was estimated to decrease receipts by $0.8 million from 2023–24 to 2025–26.
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Schedule 8
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The credits to the CEFC Special Account will not have an impact on the underlying cash balance.
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Schedule 9
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This schedule is estimated to decrease receipts by $60 million from 2022–23 to 2025–26.
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Source: EM, pp. 1–11.
Legislative scrutiny
1.92
In its Scrutiny Digest 1 of 2023, the Senate Standing Committee on the Scrutiny of Bills (the Scrutiny Committee) did not raised concerns regarding the bill.
Human rights implications
1.93
As discussed in the EM, the Statement of Compatibility with Human Rights argues that the bill is compatible with human rights and freedoms recognised in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011, and thus does not raise any human rights concerns.
1.94
In its Report 1 of 2023, the Parliamentary Joint Committee on Human Rights reported that the bill did not raise any human rights concerns.
Regulatory impact statements
1.95
The EM offers no discussion about a Regulatory Impact Statement (RIS) for each of the Schedules within the bill. Regarding Schedule 6, the EM states that the Financial Services Royal Commission final report has been certified as being informed by a process and analysis equivalent to a RIS for the purposes of the government decision to implement this reform.
Conduct of the inquiry
1.96
The committee advertised the inquiry on its website and wrote to relevant stakeholders and interested parties inviting written submissions by 7 December 2022. The submission date was subsequently extended until 31 January 2022.
1.97
The committee received 29 submissions, as well as additional information and answers to questions on notice, which are listed at Appendix 1.
1.98
The committee held one public hearing for the inquiry on 21 February 2023. The names of witnesses who appeared at the hearing can be found at Appendix 2.
Acknowledgements
1.99
The committee thanks all individuals and organisations who assisted with the inquiry, especially those who made written submissions and participated in the public hearing.