Airports Amendment Bill 1999
This bill was introduced into the House of Representatives on 11 February
1999 by the Minister for Transport and Regional Services. [Portfolio responsibility:
Transport and Regional Services]
The bill proposes to amend the Airports Act 1996 to:
- extend the time available to some airport lessees to have access undertakings
to airport services approved by the Australian Competition and Consumer
Commission;
- capture activities of a non-structural nature that intrude into protected
airspace and may impair the ability to pilot an aircraft; and
- make technical amendments.
The Committee has no comment on this bill.
Bounty (Ships) Amendment Bill 1999
This bill was introduced into the House of Representatives on 10 February
1999 by the Parliamentary Secretary to the Minister for Industry, Science
and Resources. [Portfolio responsibility: Industry, Science and Resources]
The bill proposes to amend the Bounty (Ships) Act 1989 to:
- extend the payment of the shipbuilding construction bounty from 1
July 1999 until 31 December 2000 at a rate of three per cent;
- establish a phasing arrangement for vessels which are contracted for
sale on or before 31 December 2000 and delivered on or before 31 December
2003;
- provide transitional arrangements;
- provide for the payment of a research and development bounty (the
Shipbuilding Innovation Scheme (SIS)) to registered shipbuilders for
eligible research and development expenditure;
- provide that SIS apply only to construction and modification completed
on or before 30 June 2004; and
- make amendments consequential on new administrative arrangements.
The Committee has no comment on this bill.
Customs Tariff Amendment Bill (No. 1) 1999
This bill was introduced into the House of Representatives on 11 February
1999 by the Minister representing the Minister for Industry, Science and
Resources. [Portfolio responsibility: Justice and Customs]
The bill proposes to amend the Customs Tariff Act 1995 to:
- phase down the customs rate of duty for textiles, clothing and footwear
from 1 January 2005; and
- repeal the Textiles, Clothing and Footwear Import Credits Scheme from
30 June 2000.
The Committee has no comment on this bill.
Financial Management Legislation Amendment Bill 1999
This bill was introduced into the House of Representatives on 10 February
1999 by the Parliamentary Secretary to the Minister for Finance and Administration.
[Portfolio responsibility: Finance and Administration]
The bill proposes to enable Commonwealth financial legislation to move
to an integrated accrual budgeting, resource management and financial
reporting framework primarily by:
- repealing provisions dealing with fund accounting and
establishing Special Accounts within the Consolidated Revenue
Fund (CRF);
- effecting the merger of the Loan Fund, Reserved Money Fund and Commercial
Activities Fund with the CRF;
- removing the requirement for debiting and crediting various transactions
to the CRF;
- repealing the Loan Consolidation and Investment Reserve Act 1955;
and
- removing the requirement for monthly reporting of the cash transactions
of funds, with arrangements for a phase-in of accrual based monthly
statements from 1 July 1999.
Insufficient Parliamentary scrutiny
Proposed new section 22
Item 17 in the Schedule to this bill proposes to insert a new section
22 in the Financial Management and Accountability Act 1997. This
section will apply to determinations made by the Finance Minister relating
to the establishment of Special Accounts. Under proposed section
22, such determinations are disallowable instruments, but the disallowance
motion must be passed within 5 sitting days of the tabling of the
determination. Under proposed subclause 22(4), if no such resolution is
passed, the determination becomes effective on the day immediately after
the last day on which such a resolution could have been passed.
The Committee notes that the usual period for disallowance (under the
Acts Interpretation Act 1901) is 15 days. In principle, a reduction
in this period may constrain the ability of the Parliament to undertake
proper scrutiny of disallowable instruments. Any such constraint should
be justified by weighty reasons.
The Committee notes that proposed section 22 is in much the same form
as the existing provision. This provision was considered by the Committee
in Alert Digest No 1 of 1997. In its consideration of that provision,
the Committee observed that:
- subclause 22(4), which provides that a determination is not to come
into effect until after the expiry of the disallowance period, differs
from the usual approach under which a determination takes effect before
the disallowance period and remains operative unless it is disallowed;
and
- the Explanatory Memorandum notes that subclause 22(4) thus avoids
the legal and practical problem that drawings against a lawfully available
appropriation cannot be subsequently disallowed and recovered.
With regard to the existing section 22, the Committee concluded that
it achieves the necessary balance between the need to allow sufficient
time for Parliamentary scrutiny of the determinations and the need not
to delay unduly legitimate financial transactions of the Government.
The Explanatory Memorandum to the current bill states that proposed section
22 serves the same purpose as the repealed section 22, but refers
to determinations relating to Special Accounts (which are intended
to replace the Funds regulated by the existing provision).
The Committee's acceptance of the existing provision is equally applicable
to the provision which proposes to replace it. A shorter disallowance
period, together with a qualification that ensures that the subordinate
legislation cannot take effect until after that disallowance period has
passed, seems to achieve an appropriate balance between the financial
needs of government and the need for Parliamentary scrutiny.
However, the Committee is concerned that the Parliament may not be aware
that a shorter disallowance period applies to such determinations. Where
such determinations are introduced, the Committee suggests that the Parliament
should be specifically informed that they are subject to a disallowance
period of less than 15 days. Indeed, as a matter of principle, the Parliament
should be informed of shorter disallowance periods whenever they apply
to disallowable instruments tabled in either House.
Other than this, the Committee makes no further comment on this provision.
Further 1998 Budget Measures Legislation Amendment (Social Security)
Bill 1999
This bill was introduced into the House of Representatives on 11 February
1999 by the Minister for Community Services. [Portfolio responsibility:
Family and Community Services]
The bill proposes to amend the following Acts:
Social Security Act 1991 to:
- abolish the concept of special maintenance;
- provide for a Community Development Employment Projects (CDEP) participant
supplement of $20 per fortnight;
- provide access for CDEP workers to rent assistance, bereavement payments,
telephone allowance; pharmaceutical allowance and the health care card;
- rationalise income tests in relation to CDEP wages to provide for
a direct deduction up to the equivalent of the maximum basic rate of
allowance;
- introduce a special employment advance for people in financial hardship
moving from social security payments into work where money has been
earned but not yet paid;
- abolish the employment entry payment and narrow application of the
education entry payment provisions;
- establish a one-off crisis payment to assist people in financial hardship
when they are forced to leave their home and establish a new one due
to a limited number of circumstances;
- extend the application of the payment of a social security pension
to people overseas to people who have transferred to an age pension
whilst overseas;
- amend provisions relating to the rates of pensions payable under portability
arrangements;
- allow the waiver of some debts arising under an international social
security agreement;
- ensure that persons who seek, and are offered, work outside of their
local area will be required to accept that work, or be subject to an
activity test breach;
- tighten arrangements for unemployed persons who move to an area of
lower employment prospects;
- remove inconsistencies in the application of the liquid assets test
waiting period to claims for newstart allowance and sickness allowance
where the claimant or their partner is an education leaver;
- introduce a two-tiered payment structure for austudy pensioner education
supplement, geared to the study load taken by the student;
Social Security Act 1991 and Health Insurance
Act 1973 to ensure the newly arrived residents' waiting
period is consistently applied to all prospective migrants and that the
waiting period is served in Australia; and
Health Insurance Act 1973 to make a minor technical correction.
The Committee has no comment on this bill.
Taxation Laws Amendment (Software Depreciation) Bill 1999
This bill was introduced into the House of Representatives on 11 February
1999 by the Minister for Financial Services and Regulation. [Portfolio
responsibility: Treasury]
The bill proposes to amend the Income Tax Assessment Act 1936 and
Income Tax Assessment Act 1997 to:
- allow a taxation deduction to be claimed over 2½ years for spending
incurred in acquiring, commissioning or developing software; and
- allow an immediate deduction for expenditure in acquiring new software
or substantially rebuilding current software which has the predominant
nature of ensuring Y2K compliance.
Retrospective effect
Item 21
Item 21 in the Schedule to this bill states that the amendments made
by this Schedule apply to expenditure on software after 10am on 11 May
1998 the day before last year's Budget. However, these amendments
are beneficial to taxpayers.
In these circumstances, the Committee makes no further comment on
these provisions.
Textile, Clothing and Footwear Strategic Investment Program Bill 1999
This bill was introduced into the House of Representatives on 11 February
1999 by the Minister representing the Minister for Industry, Science and
Resources. [Portfolio responsibility: Industry, Science and Resources]
The bill proposes to establish the framework for the implementation of
a five year Textile, Clothing and Footwear Strategic Investment Program.
Abrogation of the privilege against self-incrimination
Clause 36
Clause 36 of this bill, if enacted, will abrogate the privilege against
self-incrimination. However, proposed subclause 36(2) states that any
information obtained, either directly or indirectly, as a result of compulsion
will be inadmissible in evidence in criminal proceedings against the person
compelled (other than proceedings for making a false statement).
In these circumstances, the Committee makes no further comment on
this provision.
Year 2000 Information Disclosure Bill 1999
This bill was introduced into the House of Representatives on 11 February
1999 by the Minister representing the Minister for Communications, Information
Technology and the Arts. [Portfolio responsibility: Communications, Information
Technology and the Arts]
The bill proposes to provide for voluntary disclosure and exchange of
information about Year 2000 problems, remediation efforts and compliance.
The Committee has no comment on this bill.
Youth Allowance Consolidation Bill 1999
This bill was introduced into the House of Representatives on 11 February
1999 by the Minister for Community Services. [Portfolio responsibility:
Family and Community Services]
The bill proposes to amend the:
- Social Security Act 1991 to incorporate provisions contained
in the Social Security (Fares Allowance) Rules 1998, Social Security
Student Financial Supplement Scheme 1998, the Social Security (Family
Actual Means Test) Regulations 1998; and
- Social Security Act 1991 and five other Acts to make consequential
and technical amendments related to the implementation of the youth
allowance package.
Retrospective effect
Subclauses 2(3) to (13)
Schedule 4 to this bill proposes to amend the Social Security Act
1991 to address certain technical issues identified during the
implementation of the youth allowance package. The Explanatory Memorandum
notes that these amendments make minor drafting clarifications and
technical refinements to ensure that the youth allowance package operates
in line with the original policy intentions, including the alignment where
appropriate with the pre-existing AUSTUDY provisions. By virtue
of subclauses 2(3) to (13), the items in Part 2 of Schedule 4 are to be
taken to have commenced at various times on 1 July 1998.
Schedule 5 to the bill amends legislation other than the Social Security
Act to reflect the new placement and structure of the student financial
supplement scheme provisions. By virtue of subclause 2(3), Part 2 of Schedule
5 is also to be taken to have commenced on 1 July 1998.
By virtue of subclause 2(14), Part 3 of Schedule 4 is to be taken to
have commenced on 20 September 1998, and by virtue of subclause 2(15),
Part 4 of Schedule 4 is to be taken to have commenced on 1 January 1999.
While it is likely that the various amendments proposed in these Schedules
are technical or consequential, and make no substantive change to the
law, the Explanatory Memorandum does not clarify the need for retrospectivity.
The Committee, therefore, seeks the Minister's advice on the need
for retrospectivity in the application of Schedules 4 and 5 of the bill.
Pending the Minister's advice, the Committee draws Senators' attention
to the provisions, as they may be considered to trespass unduly on personal
rights and liberties in breach of principle 1(a)(i) of the Committee's
terms of reference.
Use of tax file numbers
Proposed new sections 1061ZZBP and 1061ZZBQ
Schedule 2 to this bill proposes to amend the Social Security Act
1991 (the Act) to incorporate the student financial supplement provisions
currently contained in separate legislation. The Explanatory Memorandum
notes that, for the most part, there is no change in effect between
the provisions of the Financial Supplement Scheme and those of the new
Chapter 2B [of the Social Security Act].
Among the provisions to be incorporated in Chapter 2B of the Act are
proposed new sections 1061ZZBP and 1061ZZBQ. These sections, if enacted,
would make the payment of financial assistance to category 2 students
conditional upon the recipient providing either his or her tax file number,
or that of his or her parent or parents.
With regard to these provisions, the Explanatory Memorandum states that
the tax file number provisions have been put into the standard Social
Security Act form. It further states that these provisions
are applicable only to category 2 students because category 1 students
are already subject to such rules under their substantive payments.
The Committee recognises that these clauses are not new, and have been
included to minimise the opportunity for fraud against the Commonwealth.
The provision of a tax file number is now a common requirement throughout
social security (and other related) legislation. However, the Committee
notes the words of the then Treasurer in the Parliament on 25 May 1988
when referring to the proposed introduction of the tax file number scheme:
The only purpose of the file number will be to make it easier for the
Tax Office to match information it receives about money earned and interest
payments.
This system is for the exclusive and limited use of the Tax Office
it will simply allow the better use of information the Tax Office already
receives.
The Committee also notes the words of the then member for Kooyong in
the Parliament on 21 December 1990, that since the inception of
the tax file number in 1988 as an identifying system, we have seen the
gradual extension of that system to other areas by way of a process sometimes
referred to as function creep.
This process has continued and grown over a number of years, irrespective
of the governing party of the day, and in spite of assurances that it
would not occur. The provisions of this bill represent yet another example
of this process.
In these circumstances, the Committee draws Senators' attention to
the provisions, as they may be considered to trespass unduly on personal
rights and liberties in breach of principle 1(a)(i) of the Committee's
terms of reference.
Provisions imposing criminal sanctions for failure to provide information
The Committee's Eighth Report of 1998 dealt with the appropriate
basis for penalty provisions for offences involving the giving or withholding
of information. The following Table sets out the penalties for such offences
in the legislation covered in this Digest.
TABLE
Act |
Section/Subsection |
Offence |
Penalty |
Textile, Clothing and Footwear Strategic Investment Program
Bill 1999 |
34(3)
45
46
47
|
Fail to comply with a notice requiring information or
the giving of evidence
Knowingly provide false or misleading information
Knowingly provide false or misleading evidence
Knowingly provide false or misleading document
|
20 penalty units
12 months
12 months
12 months
|
Social Security Act 1991 |
1061ZZBW |
Fail to comply with notice requiring information as to
stated events or changed circumstances |
6 months |