Explanatory Memorandum
(Circulated by authority of the Assistant Treasurer, the Hon Stuart Robert MP)Chapter 4 Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Income tax exemption for flood assistance support
4.1 Schedule 1 is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
4.2 Schedule 1 to the Bill amends the ITAA 1997 to make grants non-assessable non-exempt income if they:
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- are Category C or D measure disaster recovery grants paid to small businesses, primary producers or non-profit organisations; and
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- relate to flooding that commenced in Australia in the period between 25 January 2019 and 28 February 2019 (inclusive).
4.3 As a result, Category C and D measure grants to small businesses, primary producers and non-profit organisations affected by floods in North Queensland in late January 2019 and that continued into February 2019 are non-assessable non-exempt income.
4.4 Schedule 1 to the Bill also amends the ITAA 1997 to make grants to primary producers non-assessable non-exempt income if the grants are for repairing or replacing farm infrastructure, restocking or replanting, and they are provided for the purposes of an agreement between the Commonwealth and a State or Territory to assist primary producers affected by the flooding.
4.5 As a result, these grants to primary producers in North Queensland affected by floods in late January 2019 that continued into February 2019 are non-assessable non-exempt income.
Human rights implications
4.6 Schedule 1 to the Bill does not engage any of the applicable rights or freedoms.
Conclusion
4.7 Schedule 1 to the Bill is compatible with human rights as it does not raise any human rights issues. Income tax exemption for storm assistance payments
4.8 Schedule 2 is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
4.9 Schedule 2 to the Bill amends the ITAA 1997 to exempt from income tax certain payments to primary producers that relate to storm damage sustained on or around 25 October 2018.
4.10 Payments may be made by the Foundation for Rural and Regional Renewal under grants totalling $1 million from the Commonwealth to support primary producers in the Fassifern Valley, Queensland, affected by the storm.
Human rights implications
4.11 Schedule 2 to the Bill does not engage any of the applicable rights or freedoms.
Conclusion
4.12 Schedule 2 to the Bill is compatible with human rights as it does not raise any human rights issues. Loan scheme for eligible primary producers affected by floods in Northern Queensland
4.13 Schedule 3 is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
4.14 Schedule 3 to the Bill appropriates an amount of $1.75 billion from the Consolidated Revenue Fund. The appropriation is a special appropriation to allow the Commonwealth to implement a loan scheme to provide urgent assistance to eligible primary producers affected by the 2019 floods in Northern Queensland.
Human rights implications
4.15 Schedule 3 to the Bill does not engage any of the applicable rights or freedoms.
Conclusion
4.16 Schedule 3 to the Bill is compatible with human rights as it does not raise any human rights issues.