Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024, Capital Works (Build to Rent Misuse Tax) Bill 2024

Sue Lines

Senators, with the concurrence of the Senate I shall incorporate in the Hansard a statement from the Chair of Committees, Senator McLachlan, on the framing of government amendments to the bill. If there is no objection, it is so ordered. The Chair of Committees has ruled the government amendments be dealt with as amendments rather than requests.

The statement read as follows

According to the statement of reasons for the government amendments on sheet PC122, amendments (13) and (14) are covered by section 53 of the Constitution because the amendments "will increase some entities' liability to build to rent development misuse tax". A number of other amendments are noted to be consequential on amendments (13) and (14) and it is suggested that they too be framed as requests. The statement of reasons reflects the advice to the government from Parliamentary Counsel but the Clerk's view is that this does not accord with the precedents of the Senate.

The effect of section 53 of the Constitution is that any change proposed to a bill that imposes tax must be framed as a request. This requirement does not automatically extend to other bills dealing with taxation.

In this regard, Odgers' Australian Senate Practice notes:

In relation to amendments which might increase tax payable, the constitutional provision refers to an amendment which would increase any proposed charge or burden, and the view taken in the Senate since 1903 is that a bill dealing with taxation does not contain a proposed charge or burden unless it is a bill imposing taxation. Amendments of this kind are therefore directed by the chair to be moved as amendments. [14th edition, p. 419]

I have considered the views of Parliamentary Counsel and the Clerk and consider that the Clerk's view is consistent with the precedents of the Senate. I therefore rule that amendments (13) and (14), and their consequential amendments, should be framed as amendments, not requests.

I will now deal with Committee of the Whole amendments circulated by the opposition. As these amendments were not circulated within the required timeframe, they can only be considered by leave.

Anne Ruston

I seek leave to have the amendments on sheets 2752 revised and 2753 considered.

Leave granted.

Sue Lines

The question is that the amendments on sheet 2752 revised and sheet 2753 revised, circulated by the opposition, be agreed to.

Opposition's circulated amendments to the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024

SHEET 2752 REVISED

(1) Schedule 4, item 1, page 66 (line 27), omit "Note", substitute "Note 1".

(2) Schedule 4, item 1, page 66 (after line 28), after the note, insert:

Note 2: Subsection (3) does not apply to commercially sensitive information (see subsection 3DB(9)). Section 3EB contains requirements for commercially sensitive information.

(3) Schedule 4, item 1, page 71 (line 1), omit "Note", substitute "Note 1".

(4) Schedule 4, item 1, page 71 (after line 3), after the note, insert:

Note 2: Paragraph (1)(a) and subsection (2) do not apply to commercially sensitive information (see subsection (10)). Section 3EB contains requirements for commercially sensitive information.

(5) Schedule 4, item 1, page 71 (line 7), at the end of the heading to subsection 3DB(4), add "general".

(6) Schedule 4, item 1, page 71 (after line 25), at the end of section 3DB, add:

Exemptions commercially sensitive information

(9) Subsection 3D(3) does not apply to information covered by subsection 3EA(1) (commercially sensitive information).

(10) Paragraph (1)(a) and subsection (2) of this section do not apply to information covered by subsection 3EA(1) (commercially sensitive information).

(11) Subsections (9) and (10) do not limit subsections (4) to (8).

(7) Schedule 4, page 71 (before line 26), before item 2, insert:

1A Before section 3E

Insert:

3EA Commercially sensitive information

(1) This subsection covers information if:

(a) either of the following apply:

(i) apart from the operation of subsection 3DB(9), an entity would be required to publish the information in compliance with subsection 3D(3);

(ii) apart from the operation of subsection 3DB(10), an entity would be required to publish the information in compliance with paragraph (1)(a) and subsection (2) of that section; and

(b) the entity reasonably believes that the publication of the information is likely to cause serious harm to the entity's commercial position.

(2) However, subsection (1) does not cover information that relates to a jurisdiction specified in a determination under subsection 3DA(4).

3EB Requirements for commercially sensitive information

(1) If an entity did not publish information because of the operation of subsection 3DB(9) or (10), the entity must:

(a) include a statement in the document mentioned in paragraph 3D(3)(b) or subsection 3DB(1) (as the case requires) to the effect that the entity has not published commercially sensitive information; and

(b) at the same time as the entity gives the Commissioner the document in paragraph (a), give the Commissioner a separate document that:

(i) contains a brief description of the information; and

(ii) sets out the reasons for the entity's belief that publishing the information is likely to cause serious harm to the entity's commercial position.

(2) The entity must publish the information by giving a document containing the information to the Commissioner in the approved form within 5 years after:

(a) if subsection 3DB(9) applies—the end of the reporting period mentioned in subsection 3D(3); or

(b) if subsection 3DB(10)—the entity becomes aware of the error mentioned in paragraph 3DB(1)(a).

(3) The Commissioner must, as soon as practicable after receiving the document given in accordance with subsection (2) of this section, make the information available on an Australian government website.

3EC Review of certain country by country reporting provisions

(1) After the end of the 2-year period beginning at the commencement of this section, the Minister must cause to be conducted a review of the operation of sections 3D, 3DA, 3DB, 3EA and 3EB.

Report

(2) A report of the review must be given to the Minister within 12 months after the end of the 2-year period mentioned in subsection (1).

(3) The Minister must cause copies of a report under subsection (2) to be tabled in each House of the Parliament within 15 sitting days of that House after the Minister receives the report.

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SHEET 2753 REVISED

(1) Schedule 7, page 83 (lines 1 to 13), omit the Schedule, substitute:

Schedule 7 — $30,000 instant asset write-off for small business entities

Income Tax Assessment Act 1997

1 Subsection 328-175(10) (note 3)

Omit "on or after 12 May 2015", substitute "between 12 May 2015 and 30 June 2024".

2 Section 328-180 (heading)

Omit "$1,000", substitute "$30,000".

3 Paragraph 328-180(1)(b)

Omit "$1,000", substitute "$30,000".

4 Paragraph 328-180(2)(a)

Omit "$1,000", substitute "$30,000".

5 Paragraph 328-180(3)(a)

Omit "$1,000", substitute "$30,000".

6 Subsection 328-205(4) (example)

Repeal the example, substitute:

Example: When Hannah's van was allocated to her general small business pool for the 2023-24 income year, she estimated that it would be used 50% for her florist business. Due to increasing business, Hannah estimates the van's use to be 70% for the 2024-25 year, and 90% for the 2025-26 year. She makes an adjustment under section 328-225 for both those years.

Hannah sells the van for $30,000 at the start of the 2027-28 income year. She must now average the business use estimates for the van for the year it was allocated to the pool and the next 3 years to work out the taxable purpose proportion of its termination value. The average is worked out as follows:

The taxable purpose proportion of the van's termination value is, therefore:

75% of $30,000 = $22,500

7 Subsection 328-210(1)

Omit "$1,000", substitute "$30,000".

8 Subsection 328-210(3) (example)

Repeal the example, substitute:

Example: Alice's Landscaping is a small business entity for the 2024-25 income year and chooses to use this Subdivision for that year. The business has an opening pool balance of $35,000 for its general small business pool for that year.

During that year, Alice acquired a new car for $50,000. The taxable purpose proportion of its adjustable value is:

$50,000 x 80% business use estimate = $40,000

Alice also sold her business truck for $46,600 during that year. The truck was used 100% in the business.

To work out whether she can deduct an amount under this section, Alice uses this calculation:

$35,000 + $40,000—$46,600 = $28,400

Because the result is less than $30,000, Alice can deduct the $28,400 for the income year. The pool's closing balance for the year is zero.

9 Subsection 328-215(4)

Omit "$1,000", substitute "$30,000".

10 Subsection 328-250(1)

Omit "$1,000", substitute "$30,000".

11 Subsection 328-250(4) (heading)

Omit "$1,000", substitute "$30,000".

12 Subsection 328-250(4) (note)

Before "or 328-181", insert "in relation to income years ending on or before 30 June 2024".

13 Subsection 328-253(4) (heading)

Omit "$1,000", substitute "$30,000".

14 Subsection 328-253(4) (note)

Before "or 328-181", insert "in relation to income years ending on or before 30 June 2024".