Explanatory Memorandum
(Circulated by authority of the Minister for Housing and Assistant Treasurer the Hon. Michael Sukkar MP)Chapter 4 - Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Improving the integrity of the thin capitalisation rules
4.1 Schedule 1 to this Bill 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 this Bill amends the ITAA 1997 to tighten Australia's thin capitalisation rules by:
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- requiring an entity to use the value of the assets, liabilities (including debt capital) and equity capital that are used in its financial statements;
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- removing the ability for an entity to revalue its assets specifically for thin capitalisation purposes; and
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- ensuring that non-ADI foreign controlled Australian tax consolidated groups and multiple entry consolidated groups that have foreign investments or operations are treated as both outward investing and inward investing entities.
Human rights implications
4.3 This Schedule does not engage any of the applicable rights or freedoms.
Conclusion
4.4 This Schedule is compatible with human rights as it does not raise any human rights issues. Online hotel bookings
4.5 Schedule 2 to this Bill 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
4.6 Schedule 2 to this Bill provides that offshore suppliers of rights to use commercial accommodation such as hotels or other accommodation in the indirect tax zone must include these supplies in working out their GST turnover. If the supplier's GST turnover equals or exceeds the registration turnover threshold then GST must be remitted for supplies that are taxable supplies.
Human rights implications
4.7 Schedule 2 to this Bill does not engage any of the applicable rights or freedoms.
Conclusion
4.8 Schedule 2 to this Bill is compatible with human rights as it does not raise any human rights issues.
Removing luxury car tax on re-imported cars refurbished overseas
4.9 Schedule 3 to this Bill 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
4.10 Schedule 3 removes liability for luxury car tax from cars that are re-imported following service, repair or refurbishment overseas.
Human rights implications
4.11 This Schedule does not engage any of the applicable rights or freedoms.
Conclusion
4.12 This Schedule is compatible with human rights as it does not raise any human rights issues.