Aboriginal and Torres Strait Islander Commission Amendment Bill 1997

This bill was introduced into the House of Representatives on 3 December 1997 by the Minister representing the Minister for Aboriginal and Torres Strait Islander Affairs. [Portfolio responsibility: Aboriginal and Torres Strait Islander Affairs]

The bill proposes to amend the Aboriginal and Torres Strait Islander Commission Act 1989 to:

• allow ATSIC to impose conditions to its consent to the disposal of an interest in ATSIC funded property;
• enable ATSIC to delegate to a Regional Council powers incidental to its funding powers;
• allow ATSIC to delegate its power to approve the disposal of residential property;
• provide that certain remedies for breaches of grant or loan conditions do not affect the availability of other remedies for such breaches to the Commission; and
• correct minor drafting errors.

Retrospectivity
Subclauses 2(2), (3) and (4)

Subclauses 2(2), (3) and (4) of this bill, if enacted, would provide for the amendments proposed in Schedule 1 to have retrospective effect from various dates. It seems to the committee, however, that the amendments are for the purpose of correcting grammatical and other similar errors in the legislation affected and make no substantive change to the law.

In these circumstances, the committee makes no further comment on these subclauses.

Australian Capital Territory (Planning and Land Management) Amendment Bill 1997

This bill was introduced into the House of Representatives on 4 December 1997 by the Minister for Regional Development, Territories and Local Government. [Portfolio responsibility: Regional Development, Territories and Local Government]

The bill proposes to amend the Australian Capital Territory (Planning and Land Management) Act 1988 to increase the maximum permissible limit for the grant of new estates to 999 years and remove the provision for prescribing periods longer than 99 years.

The committee has no comment on this bill.

Charter of Budget Honesty Bill 1996 [No. 2]

This bill was introduced into the House of Representatives on 5 December 1997 by the Treasurer. It is identical to the bill introduced into the House of Representatives on 11 December 1996 and passed by the Senate, with amendments, on 28 October 1997. [Portfolio responsibility: Treasury]

The bill proposes to implement arrangements to require governments to provide regular fiscal and economic reports. Further, the bill proposes that Secretaries to the Treasury and Department of Finance release a pre-election report to provide updated fiscal and economic projections and to publicly release the fiscal impact of announced election commitments as requested by the Government or Opposition.

The committee has no comment on this bill.

Commonwealth Superannuation Board Bill 1997

This bill was introduced into the House of Representatives on 3 December 1997 by the Minister for Finance and Administration. [Portfolio responsibility: Finance and Administration]

The bill proposes to establish a new body corporate, the Commonwealth Superannuation Board, to administer certain Commonwealth superannuation schemes for civilian employees and to manage the Funds of those schemes.

Inappropriate delegation of legislative power Subclause 8(1)

Subclause 8(1) of this bill, if enacted, would permit the Minister to make determinations which would vary the operation of any provision in Acts relating to superannuation for members of the Australian Public Service.

The committee notes that the explanatory memorandum indicates that the variations thus made must not result in the legislation falling outside the terms of the Superannuation Industry (Supervision) Act 1993. It appears to the committee that making the Minister's power to make determinations subject to the Superannuation Industry (Supervision) Act 1993 sufficiently circumscribes this delegation of legislative power.

In these circumstances, the committee makes no further comment on this subclause.

Inappropriate delegation of legislative power Subclause 8(9)

Subclause 8(9) of this bill, if enacted, would enable the Minister to give retrospective effect to the determinations which the Minister may make under subclause 8(1). These determinations would vary the operation of any provision in Acts relating to superannuation for members of the Australian Public Service.

The committee notes that the explanatory memorandum points out that the Superannuation Industry (Supervision) Act 1993 to which these determinations are subject, does not permit the reduction of benefits to members except in particular circumstances. The committee seeks the advice of the Minister on the particular circumstances in which a determination would be made which would reduce superannuation benefits to which members would otherwise be entitled.

Pending the Minister's advice, the committee draws Senators' attention to the 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.

Company Law Review Bill 1997

This bill was introduced into the House of Representatives on 3 December 1997 by the Parliamentary Secretary (Cabinet) to the Prime Minister. [Portfolio responsibility: Treasury]

The bill proposes to amend the Corporations Law to:

• streamline the process of a setting up a company;
• remove the requirement for companies to have memoranda of association;
• enable companies limited by guarantee to convert into companies limited by shares;
• remove the requirement for proprietary companies to keep their registered offices open to the public and to have a common seal;
• facilitate the use of electronic technology to hold meetings;
• enable members of a proprietary company to pass all forms of resolution by signing a circulating resolution;
• require that 21 days notice is given individually to members for all general meetings;
• give certain members certain powers in relation to general meetings and proposed resolutions;
• recognise the right of members to ask questions about or comment on company management at annual general meetings;
• streamline the process for appointing a proxy;
• enable members of both public and proprietary companies to appoint proxies and allow that proxy documents are provided at least 48 hours before the meeting;
• enable a proxy to vote on a show of hands;
• set out rules for when an appointment specifies the way the proxy is to vote on a particular resolution;
• provide that the quorum for a general meeting will be two for both proprietary and public companies;
• no longer require that companies hold a statutory meeting or send members a statutory report following the issue of shares under their first prospectus;
• base the rules for meetings of members of collective investment schemes on those for companies;
• provide that shares will no longer have a par value;
• streamline provisions relating to the issue and conversion of shares, the redemption of redeemable preference shares, partly-paid shares and dividends;
• provide that capital reductions no longer require court confirmation;
• amend the rules in relation to a company acquiring its own shares;
• amend provisions to allow the buy-back of redeemable preference shares;
• retain the requirement to prepare a profit and loss statement and balance sheet and introduce the requirement to prepare a cash flow statement;
• enable a company or collective investment scheme to send its members a concise version of its annual report;
• revise over half the items currently required to be included in annual reports;
• facilitate electronic lodgment of returns with the ASC;
• introduce new procedures for ASC deregistration of defunct companies;
• enable a person to sue a deregistered company's insurer directly;
• rewrite rules for obtaining and using company names and Australian Company Numbers; and
• restrict the type of companies and the conditions applicable when companies are permitted to omit “Limited” from their names.

The committee has no comment on this bill.

Criminal Code Amendment Bill 1997

This bill was introduced into the Senate on 3 December 1997 by the Parliamentary Secretary to the Treasurer. [Portfolio responsibility: Justice]

The bill proposes to amend the Criminal Code Act 1995 to bring forward commencement of provisions which relate to the proof of an offence where the accused person is intoxicated. The provisions provide that self-induced intoxication cannot be considered in determining intent or voluntariness in relation to basic offences such as assault.

The committee has no comment on this bill.

Customs and Excise Legislation Amendment Bill (No. 3) 1997

This bill was introduced into the House of Representatives on 3 December 1997 by the Minister for Customs and Consumer Affairs. [Portfolio responsibility: Industry, Science and Tourism]

The bill proposes to amend the following Acts:

• Customs Act 1901 to clarify that the Act does not apply in, or in relation to, the external Territories;
• Customs Amendment Act (No. 1) 1997 to defer by six months the commencement of the reduced entry threshold for goods imported by the post;
• Australian Postal Corporation Act 1989 to correct an anomaly in the exercise of Customs' powers of examination of mail arriving into Australia from the external Territories; and
• Customs Act 1901 and Excise Act 1901 to make minor technical amendments.

Retrospectivity
Subclauses 2(2) and (3)

Subclauses 2(2) and (3) of this bill, if enacted, would provide for the amendments proposed in Schedule 1 to have retrospective effect from various dates. It seems to the committee, however, that the amendments are of a technical nature only and make no substantive change to the law.

In these circumstances, the committee makes no further comment on these subclauses.

Electoral and Referendum Amendment Bill 1997

This bill was introduced into the House of Representatives on 3 December 1997 by the Minister for Finance and Administration. [Portfolio responsibility: Finance and Administration]

The bill proposes to amend the Commonwealth Electoral Act 1918 and Referendum (Machinery Provisions) Act 1984 to:

• enable the Australian Electoral Commission (AEC) to delegate to staff its powers to supply and charge for certain goods and services;
• allow for the provision of the gender of electors for certain information purposes;
• allow relatives and friends to apply for the removal of certain electors from the roll on medical advice and without payment of an objection deposit;
• allow for electors to be removed from the roll in the period between the issue of the writ for an election and the close of rolls whose enrolment has been objected to;
• ensure that personal details of silent electors are not disclosed to persons inspecting applications for postal votes;
• allow the AEC to use the method of security printing of ballot papers instead of using watermarked ballot papers;
• disallow canvassing in and around hospitals that are polling places on polling day and in special hospitals during the five days before and including poll day;
• enable the AEC to conduct Senate scrutiny using a computer process;
• extend the two-candidate preferred count, as conducted in polling places on polling night, to the fresh scrutiny and declaration votes scrutinies, as conducted later by the Divisional Returning Officers and for the election of candidates based on a two-candidate preferred count;
• enable the release of confidential elector data to State and Territory electoral administrations;
• allow that the determination of State and Territory representation entitlements shall fall due in the thirteenth month of the first meeting of the House of Representatives (rather than the tenth month);
• bring the membership of the Redistribution Committee for the Australian Capital Territory into line with an equivalent body for a State;
• provide that comments and objections in relation to a redistribution are made available for public scrutiny;
• allow “community of interest” factors to be properly considered in relation to electoral variations between electorates;
• enable more opportunity for the public to object to proposed boundaries;
• allow certain Australians living overseas to apply for enrolment within two years of departure and to obtain eligible overseas status for a period of six years;
• reduce the nomination period by one day (to not less than 10 days or no more than 27 days), with the declaration of nominations to be held 24 hours after the close of nominations;
• increase from six to fifty the number of signatures required in support of a nomination by a candidate not endorsed by a registered political party;
• increase the deposit for nomination from $250 to $350 in the House of Representatives, and from $500 to $700 in the Senate;
• enable voters with a physical incapacity who cannot enter a polling place to vote outside the polling place;
• remove the possibility for voters to make a formal optional preferential vote on the ballot paper;
• allow that the declaration of the poll proceeds based on the result of the two candidate preferred count where, on the basis of first preference votes, the exclusion of all but two candidates for a House of Representatives Division is inevitable;
• remove the requirement for registered political parties to lodge returns of electoral expenditure; and
• allow registered political parties to lodge audited accounts in place of the annual return subject to certain conditions.

The committee has no comment on this bill.

Insurance Laws Amendment Bill 1997

This bill was introduced into the House of Representatives on 4 December 1997 by the Parliamentary Secretary (Cabinet) to the Prime Minister. [Portfolio responsibility: Treasury]

The bill proposes to amend the following Acts:

• Insurance Act 1973 to streamline the processes for form setting and lodgement of accounts and statements within the Insurance and Superannuation Commissioner by authorised insurers in Australia;
• Insurance (Agents and Brokers) Act 1984 to:
  • make certain technical amendments;
  • insert additional definitions; and
  • strengthen broker disclosure notification requirements;
• Insurance Contracts Act 1984 to:
  • place contracts of insurance over non-commercial marine pleasure craft owned by individuals within the scope of the Insurance Contracts Act 1984 and removing them from the ambit of the Marine Insurance Act 1909;
  • amend provisions relating to information flows between contracting parties; and
  • amend provisions relating to the insured's duty of disclosure; and
• Insurance Act 1973, Insurance (Agents and Brokers) Act 1984 and Insurance Supervisory Levies Collection Act 1989 to amend the prudential supervisory arrangements for Lloyd's of London to improve the security arrangements for Lloyd's underwriters' Australian policyholders.

Commencement
Subclause 2(4)

Subclause 2(4) of this bill provides that almost all of Schedule 2 to this bill will commence on Proclamation, with no date being fixed at which the Bill must come into force or be automatically repealed.

With respect to commencement provisions, the committee has placed importance on the Office of Parliamentary Counsel Drafting Instruction No. 2 of 1989. The Drafting Instruction provides, in part:

3. As a general rule, a restriction should be placed on the time within which an Act should be proclaimed (for simplicity I refer only to an Act, but this includes a provision or provisions of an Act). The commencement clause should fix either a period, or a date, after Royal Assent, (I call the end of this period, or this date, as the case may be, the 'fixed time'). This is to be accompanied by either:

(a) a provision that the Act commences at the fixed time if it has not already commenced by Proclamation: or

(b) a provision that the Act shall be taken to be repealed at the fixed time if the Proclamation has not been made by that time.

4. Preferably, if a period after Royal Assent is chosen, it should not be longer than 6 months. If it is longer, Departments should explain the reason for this in the Explanatory Memorandum. On the other hand, if the date option is chosen, [the Department of the Prime Minister and Cabinet] do not wish at this stage to restrict the discretion of the instructing Department to choose the date.

5. It is to be noted that if the 'repeal' option is followed, there is no limit on the time from Royal Assent to commencement, as long as the Proclamation is made by the fixed time.

6. Clauses providing for commencement by Proclamation, but without the restrictions mentioned above, should be used only in unusual circumstances, where the commencement depends on an event whose timing is uncertain (eg enactment of complementary State legislation).

The committee notes that paragraph 5 of the explanatory memorandum points out the unusual circumstances where uncertainty of the timing of an event would make paragraph 6 of the Drafting Instruction applicable. The explanatory memorandum states:

The main purpose of the amendments contained in Schedule 2 is to replace the current security arrangements applying to the authorisation and conduct of business of Lloyd's underwriters in Australia with new arrangements which will accommodate Lloyd's new trading structure and substantially improve the protection available to Lloyd's underwriters' Australian policyholders. If Schedule 2 were subject to commencement by default, and for some reason Lloyd's had not met the requirements of the new arrangements within the given time frame, this would lead to the untenable situation where the existing security arrangements would fall away with no substitute in place. While the Commissioner could immediately revoke authorisation for Lloyd's underwriters in Australia, this would only have the effect of not allowing Lloyd's underwriters to write new business in Australia. Existing liabilities would have no financial backing. Accordingly, it is extremely important that the commencement provision not permit the cessation of the current security until there is at least a simultaneous commencement of the new security.

In these circumstances, the committee makes no further comment on this subclause.

Power of entry and search without warrant
Item 5 of Schedule 2 - proposed subsection 80(1)

Proposed subsection 80(1), to be inserted in the Insurance Act 1973 by item 5 of Schedule 2 to this bill provides:

Entry on premises

(1) If the Commissioner or the inspector, while investigating the whole or a part of the affairs of a designated security trust fund, believes on reasonable grounds that it is necessary for the purposes of the investigation to enter land or premises occupied by:

(a) the trustee, or a former trustee, of the fund; or

(b) the custodian, or a former custodian, of the fund; or

(c) the investment manager, or a former investment manager, of the fund;

the Commissioner or the inspector may, at all reasonable times, enter the land or premises and may:

(d) examine books on the land or premises that relate to the affairs of the trust fund or that the Commissioner or inspector believes on reasonable grounds relate to those affairs; and

(e) take possession of any of those books for such period as the Commissioner or inspector thinks necessary for the purposes of the investigation; and

(f) make copies of, or take extracts from, any of those books.

This power of entry and search is not subject to any requirement that the officer obtain a judicially sanctioned search warrant before entering the premises.

The committee recognises that, in this respect, subclause 31(1) does not differ from similar provisions in taxation laws. For example, the Income Tax Assessment Act 1936 contains a provision (section 263) of similar effect. Another example occurs in the Superannuation Contributions Tax (Assessment and Collection) Act 1997.

There would appear, however, to be no basis in principle for giving officers enforcing insurance laws greater powers than officers enforcing criminal law where a judicially sanctioned warrant is generally required. The committee is also interested to receive advice on what might constitute “reasonable grounds” for exercising the power of entry.

Accordingly, the committee seeks the advice of the Treasurer on this issue.

Pending the advice of the Treasurer, the committee draws Senators' attention to the 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.

Abrogation of the right against self-incrimination
Item 5 of Schedule 2 - proposed subsections 82(3) and (4)

Proposed Division 4, to be inserted in the Insurance Act 1973 by item 5 of Schedule 2 to this bill, deals with investigations by the Commissioner. Proposed subsections 82(3) and (4) deal with the requirement for persons being examined by the Commissioner or the inspector to answer questions. The person is not excused from doing so on the grounds that it may incriminate him or her.

To protect the person under examination, however, proposed subsection 82(4), would make inadmissible in evidence against the person, in any criminal proceedings, any information or thing (including a document) obtained as a direct or indirect result of answering a question. This inadmissibility is subject to an exception with respect to a proceeding for an offence against proposed subsection 82(2). That provision makes it an offence intentionally or recklessly to give information or evidence that is false or misleading. The committee is concerned about all such exceptions, but is prepared to accept the position in these circumstances.

In these circumstances, the committee makes no further comment on this provision.

Law Officers Amendment Bill 1997

This bill was introduced into the House of Representatives on 3 December 1997 by the Attorney-General. [Portfolio responsibility: Attorney-General]

The bill proposes to amend the Law Officers Act 1964 to:

• remove the current entitlement to a judge's pension and payment in lieu of unused long service leave for future appointees to the office of Solicitor-General; and
• preserve the current Solicitor-General's accrued pension entitlements under the Act.

The committee has no comment on this bill.

Managed Investments Bill 1997

This bill was introduced into the House of Representatives on 3 December 1997 by the Parliamentary Secretary (Cabinet) to the Prime Minister. [Portfolio responsibility: Treasury]

The bill proposes to amend the Corporations Law to implement a new regime for the regulation of managed investment schemes. Each managed investment scheme is to be operated by a single responsible entity; most of the schemes must be licensed by the Australian Securities Commission and submit compliance plans to the ASC; and will be required to hold a securities dealer's licence.

The committee has no comment on this bill.

NRS Levy Imposition Bill 1997

This bill was introduced into the House of Representatives on 3 December 1997 by the Minister representing the Minister for Communications, the Information Economy and the Arts. [Portfolio responsibility: Communications, the Information Economy and the Arts]

The bill proposes to impose a levy on participating carriers to provide funding for the National Relay Service (NRS). It is intended that the NRS will be provided by a person, who may or may not be a carrier, under a contract with the Commonwealth and that the cost of the NRS will be met by carriers depending on their eligible revenue or timed traffic.

The committee has no comment on this bill.

Primary Industries and Energy Legislation Amendment Bill (No. 3) 1997

This bill was introduced into the House of Representatives on 3 December 1997 by the Minister for Customs and Consumer Affairs. [Portfolio responsibility: Primary Industries and Energy]

The bill proposes to:

• amend 9 portfolio Acts to give the portfolio bodies full responsibility for the employment of their CEOs; and

amend the following Acts:

• Agricultural and Veterinary Chemicals (Administration) Act 1992 to:
  • provide a wider scope from which applicants with experience in occupational health and safety can be considered for appointment as a Director of the National Registration Authority for Agricultural and Veterinary Chemicals (NRA); and
  • provide for an additional Director of the NRA with experience in the development or administration of Commonwealth government policy;
• Australian Horticultural Corporation Act 1987 to:
  • reduce the number of “other members” on the Australian Horticultural Corporation Selection Committee from seven to three, four or five; and
  • repeal the Corporation's export trading powers;
• Australian Wine and Brandy Corporation Act 1980 to correct a drafting error in relation to regulation-making powers;
• Dairy Produce Act 1986 to repeal clauses which provide for the exclusion of people aged 65 and over from holding membership on the Board of the Australian Dairy Corporation;
• Farm Household Support Act 1992 to annul Farm Household Support scheme debts;
• Income Tax Assessment Act 1936 and Income Tax Assessment Act 1997 to make consequential amendments in relation to the annulment of the Farm Household Support scheme debts;
• Petroleum (Submerged Lands) Act 1967 to amend the descriptions of the Adjacent Areas defined in respect of Western Australian and the Territory of Ashmore and Cartier Islands;
• Primary Industries and Energy Research and Development Act 1989 to reduce Commonwealth funding to the Fisheries Research and Development Corporation in 1997-98 by $3.612 million; and
• Primary Industries Councils Act 1991 to abolish the Australian Pig Industry Council.

The committee has no comment on this bill.

Social Security and Veterans' Affairs Legislation Amendment (Budget and Other Measures) Bill 1997

This bill was introduced into the House of Representatives on 3 December 1997 by the Minister representing the Minister for Social Security. [Portfolio responsibility: Social Security]

The bill proposes to amend the following Acts:

• Social Security Act 1991 to:
  • extend qualification for carer payment to the carers of profoundly disabled children under the age of 16;
  • allow a person to cease caring for a person for up to 63 days in a calendar year and still continue to qualify for carer payment;
  • ensure that lump sum payments received by social security recipients will be consistently treated as either income over 12 months or a deemed asset;
  • impose preclusion periods on certain high income seasonal, intermittent and contract workers following cessation of the work period; and
  • take account of the introduction of the exceptional circumstances relief payment and restart income support;
• Social Security Act 1991 and Veterans' Entitlements Act 1986 to change the means testing of income streams;
• Social Security Act 1991 and Social Security Legislation Amendment (Parenting and Other Measures) Act 1997 to make amendments consequent upon the amendments relating to seasonal worker preclusion periods;
• Social Security Act 1991 and Student and Youth Assistance Act 1973 to reflect the role of the Commonwealth Services Delivery Agency in relation to payments to the unemployed; and
• Bankruptcy Act 1966, Child Support (Assessment) Act 1989, Data-matching Program (Assistance and Tax) Act 1990, Farm Household Support Act 1992, Health Insurance Act 1973, Income Tax Assessment Act 1997, Medicare Levy Act 1986 and Veterans' Entitlements Act 1986 to reflect the change of term from “family payment” and associated references to “family allowance”.

The committee has no comment on this bill.

Superannuation Legislation (Commonwealth Employment) Repeal and Amendment Bill 1997

This bill was introduced into the House of Representatives on 3 December 1997 by the Minister for Finance and Administration. [Portfolio responsibility: Finance and Administration]

The bill proposes to change superannuation arrangements for Commonwealth employees by amending the following Acts:

• Superannuation Act 1990 to close the Public Sector Superannuation Scheme (PSS) to new members from 1 July 1998;
• Superannuation Act 1976 and Superannuation Act 1990 to allow Commonwealth Superannuation Scheme (CSS) and PSS members to choose to leave those schemes for another scheme offered by, or arranged with, their employer;
• Superannuation Act 1976 to:
  • improve access to superannuation spouse benefits in certain circumstances where the retirement pensioner commenced a marital relationship after age 60 years;
  • provide an option for age and early age retirees to reduce their pension entitlements and increase reversionary benefits payable to their spouse or to any children of the retiree;
  • enable certain payments payable from other superannuation funds or schemes to be paid into the CSS Fund; and
  • restore the original intention in relation to the acceptance of late elections for preservation of rights;
• Superannuation Benefits (Supervisory Mechanisms) Act 1990 to provide that a determination made under the Act in relation to agencies meeting certain requirements in setting up superannuation arrangements for their employees will be a disallowable instrument;
• Parliamentary Contributory Superannuation Act 1948 to:
  • improve access to superannuation spouse benefits in certain circumstances where the retirement pensioner commenced a marital relationship after age 60 years;
  • rectify anomalies and technical errors in relation to orphan benefits;
  • rectify anomalies and technical errors in relation to the maximum reversionary benefit payable where there is more than one beneficiary;
  • amend the arrangements relating to transfer values;
  • cease the application of the inwards transfer value arrangements to persons who become Members of Parliament after the date Royal Assent is given to this bill;
• Administrative Appeals Tribunal Act 1975, Law Officers Act 1964 and Workplace Relations Act 1996 in relation to people who leave the CSS or PSS to join the Judges' Pension Scheme to assist the schemes to comply with the national regulatory system for superannuation schemes.

The bill also proposes to repeal the Superannuation Act 1922, Superannuation Act 1976, Superannuation Act 1990, Superannuation (Productivity Benefit) Act 1988 and the superannuation and retirement income provisions of the Papua New Guinea (Staffing Assistance) Act 1973. However, in most circumstances, the repealed legislation will continue to operate through the application of the Superannuation Legislation (Commonwealth Employment–Savings and Transitional Provisions) Act 1997.

Delegated legislation with retrospective effect
Item 14 of Schedule 1 - proposed subsection 3(1A)

Proposed subsection 3(1A), to be inserted in the Superannuation Act 1976 by item 14 of Schedule 1 to this bill, would allow delegated legislation to be made which might have retrospective effect. Subsection 48(2) of the Acts Interpretation Act 1901, however, ensures that such measures are of no effect if they would prejudicially affect any person other than the Commonwealth. Hence, any retrospectivity would not trespass unduly on personal rights and liberties.

The committee appreciates the intention of the legislation but is concerned that the bill allows delegated legislation to be made which may have retrospective and prejudicial effect, notwithstanding the safeguards provided by the Acts Interpretation Act 1901. The committee notes, however, that the role of the Senate Regulations and Ordinances Committee is to scrutinise delegated legislation and to pursue any possible instances of undue trespass on personal rights and liberties in delegated legislation and therefore draws this item to the attention of that committee.

In these circumstances, the committee makes no further comment on this provision.

Superannuation Legislation (Commonwealth Employment—Saving and Transitional Provisions) Bill 1997

This bill was introduced into the House of Representatives on 3 December 1997 by the Minister for Finance and Administration. [Portfolio responsibility: Finance and Administration]

The bill proposes to make savings and transitional provisions arising out of amendments to, and subsequent repeals of, five Acts by the Superannuation Legislation (Commonwealth Employment) Repeal and Amendment Bill 1997 and the Commonwealth Superannuation Board Bill 1997.

The committee has no comment on this bill.

Taxation Laws Amendment Bill (No. 7) 1997

This bill was introduced into the House of Representatives on 4 December 1997 by the Parliamentary Secretary (Cabinet) to the Prime Minister. [Portfolio responsibility: Treasury]

The bill proposes to amend the following Acts:

• Income Tax Assessment Act 1997 to:
  • provide for the tax deductibility of expenses incurred in contesting an election for delegates to the Constitutional Convention;
  • allow income tax deductions for gifts made to the National Nurses' Memorial Trust;
  • ensure that the rewrite of the income tax law reflects recent changes to the exempt entities provisions in relation to charitable trusts and makes consequential amendments to the Income Tax Assessment Act 1936; and
  • make technical amendments to ensure that depreciation rules relating to ownership of lessors' fixtures operate appropriately and properly reflect connecting provisions in the Income Tax Assessment Act 1936;
• Sales Tax (Exemptions and Classifications) Act 1992 to exempt certain goods from sales tax to effect the Status of Forces Agreement between the Government of Australia and the Government of Malaysia which was entered into on 3 February 1997;
• Income Tax Assessment Act 1936 to:
  • rationalise the remittance obligations of withholders under the Pay-As-You-Earn, Prescribed Payments and Reportable Payments schemes and make consequential amendments to the Child Support (Registration and Collection ) Act 1988; Crimes (Taxation Offences) Act 1980, Income Tax Assessment Act 1936 and Taxation (Interest on Overpayments and Early Payments) Act 1983;
  • allow taxpayers to use an asset register instead of source documents for capital gains tax record keeping purposes; and
  • introduce a general anti-avoidance provision that applies to franking credit trading and dividend streaming schemes where one of the purposes of the scheme is to obtain a franking credit benefit;
• Superannuation Guarantee (Administration) Act 1992 to:
  • require employers to make superannuation contributions on behalf of an employee to a complying superannuation fund or scheme or retirement savings account in compliance with the “choice of fund requirements”; and
  • increase the amount of Superannuation Guarantee Charge payable by the employer where these contributions do not comply with the choice of fund requirements;
• Retirement Savings Accounts Act 1997 and Superannuation Industry (Supervision) Act 1993 to make consequential amendments on the amendments made to the Superannuation Guarantee (Administration) Act 1992;
• Income Tax Assessment Act 1936, Fringe Benefits Tax Assessment Act 1986 and Income Tax Assessment Act 1997 to ensure that all advances, loans and other credits (unless they come within a defined class of exclusions) by private companies to shareholders and their associates are deemed to be dividends to the extent that there are realised or unrealised profits in the company; and
• Income Tax Assessment Act 1997 and Income Tax Assessment Act 1936 to provide for a new tax offset (the savings rebate) for resident individuals in respect of savings and investment income and underacted superannuation contributions.

Retrospectivity
Items 9 and 26 of Schedule 8

Items 9 and 26 of Schedule 8 would provide that the amendments proposed by Schedule 8 will apply from 7.30pm on Budget night, 13 May 1997, and therefore prior to Royal Assent. The committee notes that the amendments give effect to a budget announcement.

The committee has previously indicated that, in relation to retrospectivity, budget measures are something of a special case. In a paper titled The Operation of the Senate Standing Committee for the Scrutiny of Bills, 1981-85, the then Chairman of the Committee, Senator Tate, said:

It is customary ... for budgetary measures to be made retrospective to the date of their announcement on Budget night and for changes to taxes, levies, fees to be given effect from the date of their introduction into Parliament.

In these circumstances, the committee makes no further comment on these provisions.

Taxation Laws (Technical Amendments) Bill 1997

This bill was introduced into the House of Representatives on 4 December 1997 by the Parliamentary Secretary (Cabinet) to the Prime Minister. [Portfolio responsibility: Treasury]

The bill proposes to amend the following Acts:

• Taxation Administration Act 1953 and Income Tax Assessment Act 1936 to:
  • enable interest payable on distributions received by companies and superannuation funds from non-resident trust estates, that are not taxed at a comparable rate in foreign countries, to be subject to the self-assessment process;
  • remove the requirement for various elections to be in writing and given to the Commissioner; and
  • enable the Commissioner to amend an assessment outside the usual time period, to give effect to a private ruling;
• Income Tax Assessment Act 1997 and Income Tax Assessment Act 1936 to ensure that the film component of a company's tax loss is calculated separately for each period in an income year;
• Fringe Benefits Tax Assessment Act 1986 to make minor amendments in relation to the retention of statutory evidentiary documents;
• Income Tax Assessment Act 1936 to:
  • amend the provisions which set out the rules for calculating the amount of the deduction for car parking expenses incurred by self-employed persons;
  • ensure that the rollover of the post-June 1994 invalidity component of an eligible termination payment to purchase an annuity or superannuation pension does not change the “tax free” status of the component;
  • ensure that bankrupt estates administered by a registered trustee will be given the same tax treatment as estates administered by the Official Receiver;
  • amend the definition of “eligible investment business” to ensure that the definition specifically includes secured loans;
  • ensure that the franking surplus of a demutualising life or general insurance company, a mutual affiliate company, or wholly-owned subsidiary is to be reduced to nil;
  • ensure that the spouse rebate is reduced by a taxpayer's entitlements to certain benefits paid by the Department of Social Security;
  • provide a foreign tax credit for Australian tax paid by a foreign investment fund;
  • amend the definition of “associate”;
  • ensure that life assurance companies; superannuation funds, registered organisations and pooled superannuation trusts holding shares indirectly through a trust or partnership receive the same franking benefits as those who hold the shares directly;
  • provide that where a beneficiary of a discretionary trust has an interest in a public entity and the trust deed provides that the entity is a potential beneficiary of the trust, then the entity will not be deemed to control the trust for the purposes of the $5 million threshold test;
  • clarify that a payment received by a person from the sale of a debt that would otherwise be a reportable payment is subject to the reportable payment system; and
  • ensure that provisional tax credits cannot be applied against provisional tax notified for a later year that is not due and payable;
• Taxation Administration Act 1953 to permit regulations to provide that a decision by the Commissioner of Taxation is reviewable by the Administrative Repeals Tribunal; and
• Income Tax Assessment Act 1936, Income Tax Assessment Act 1997, Taxation Laws Amendment Act (No. 4) 1995, Taxation Laws Amendment Act (No. 2) 1997, Statute Law Revision Act 1996 and Industry Research and Development Act 1986 to make technical amendments.

Retrospectivity
Subclauses 2(5) to (7) and (11) to (16)

Subclauses 2(5) to (7) and (11) to (16) of this bill, if enacted, would provide for some of the amendments proposed by this bill to commence prior to Royal Assent. It seems to the committee, however, that the amendments are of a technical nature only and make no substantive change to the law.

In these circumstances, the committee makes no further comment on these subclauses.

Retrospective application
Subitem 27(3) of Schedule 6

Subitem 27(3) of Schedule 6 to this bill, if enacted, would provide for the amendment proposed by item 4 to apply from Budget night 1995.

The committee notes, however, that the explanatory memorandum states, in paragraph 1.82 that the amendment is 'clarificatory only and does not change the meaning of the relevant provision'.

In these circumstances, the committee makes no further comment on this subclause.

Retrospective application
Subitem 27(5) of Schedule 6

Subitem 27(5) of Schedule 6 to this bill, if enacted, would provide for the amendment proposed by item 7 to apply from 1 July 1988. It appears to the committee, however, that the amendment is beneficial to taxpayers.

In these circumstances, the committee makes no further comment on this subclause.

Telecommunications Amendment Bill (No. 2) 1997

This bill was introduced into the House of Representatives on 3 December 1997 by the Minister representing the Minister for Communications, the Information Economy and the Arts. [Portfolio responsibility: Communications, the Information Economy and the Arts]

The bill proposes to deal with the operation and funding of the National Relay Service (NRS) which provides people who are deaf, hearing, or speech impaired, with access to the standard telephone service on terms, and in circumstances, that are comparable to those on which other Australians have access to a standard telephone service.

The committee has no comment on this bill.

Therapeutic Goods Legislation Amendment Bill 1997

This bill was introduced into the House of Representatives on 3 December 1997 by the Parliamentary Secretary to the Minister for Health and Family Services. [Portfolio responsibility: Health and Family Services]

The bill proposes to amend the following Acts:

• Therapeutic Goods Act 1989 to:
  • introduce a “data protection regime” to provide a five-year period of protection for information lodged about a new active component in relation to an application to register therapeutic goods, not being therapeutic devices;
  • enable the Secretary to obtain more detailed information about the manufacturing processes and premises of an applicant seeking to list its therapeutic goods in the Australian Register of Therapeutic Goods, or from a person whose goods are already listed in the Register;
  • enable the Secretary to prevent persons in control of another licensee convicted of an offence against the Act, or a law of a State or Territory in relation to therapeutic goods, from immediately applying for and obtaining another manufacturing licence through another person, such as a new or different company; and
  • provide for the Governor-General to make regulations associated with the issue of import and export licences and permits for therapeutic goods imported into or exported from Australia; and
• Customs Act 1901 to make amendments consequent upon the Governor-General's power to regulate the issue of import and export permits and licences under the Therapeutic Goods Act 1989.

The committee has no comment on this bill.

Workplace Relations Amendment (Superannuation) Bill 1997

This bill was introduced into the House of Representatives on 4 December 1997 by the Minister for Workplace Relations and Small Business. [Portfolio responsibility: Workplace Relations and Small Business]

The bill proposes to amend the Workplace Relations Act 1996 to remove superannuation from the allowable award matters set out in the Act. The effect of the amendment will be that the Australian Industrial Relations Commission will not be permitted to deal with disputes about superannuation by arbitration.

The committee has no comment on this bill.