Explanatory Memorandum
(Circulated by authority of the Assistant Treasurer, the Hon Stuart Robert MP)General outline and financial impact
AMIT technical amendments
Schedule 1 to this Bill amends the TAA 1953, ITAA 1997, ITAA 1936, TLAA 2016 and the IT(TP)A 1997 to make a number of technical refinements to the income tax law so that the new tax system for MITs operates as intended.
Date of effect: The amendments generally apply in relation to the 2018-19 income year and later income years.
Proposal announced: The amendments were announced by the then Minister for Revenue and Financial Services on 19 July 2017.
Financial impact: This legislation contains technical amendments reflecting the policy intent of the 2015-16 MYEFO measure Managed investment trusts - adjustments to the new tax system. This measure was estimated to have an unquantifiable cost to revenue.
Human rights implications: This Schedule does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 5, paragraphs 5.1 to 5.4.
Compliance cost impact: Minimal.
Deductible gift recipients
Schedule 2 to this Bill amends the ITAA 1997 to update the list of specifically listed DGRs to include:
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- Australian Sports Foundation Charitable Fund;
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- Australian Women Donors Network;
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- Paul Ramsay Foundation Limited;
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- The Q Foundation Trust;
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- Smile Like Drake Foundation Limited; and
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- Victorian Pride Centre Ltd.
Date of effect: The amendments apply to gifts made to Australian Sports Foundation Charitable Fund after 30 June 2018 and before 1 July 2023.
The amendments apply to gifts made to Australian Women Donors Network, Smile Like Drake Foundation Limited and Victorian Pride Centre Ltd after 8 March 2018 and before 9 March 2023.
The amendments apply to gifts made to Paul Ramsay Foundation Limited after 30 June 2018 and before 1 July 2020.
The amendments apply to gifts made to The Q Foundation Trust after 31 December 2017 and before 1 January 2023.
Proposal announced: This Schedule fully implements the measure 'Philanthropy - updates to the list of specifically listed deductible gift recipients' from the 2018-19 Budget.
Financial impact: As at the 2018-19 Budget, the cost to revenue of this measure was estimated to be $0.6m over the forward estimates period to 2021-22, comprising ($m):
| 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 |
| - | .. | -0.2 | -0.2 | -0.2 |
- Nil
..Not zero but rounded to zero
Human rights implications: This Schedule does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 5, paragraphs 5.5 to 5.8.
Compliance cost impact: Nil.
Extending DGR status to entities promoting Indigenous languages
Schedule 3 to this Bill provides that entities that promote Indigenous languages may be endorsed as a DGR.
Date of effect: The amendments contained in Schedule 3 commence from 1 July 2019.
Proposal announced: This Schedule implements the measure 'Extending deductible gift recipient eligibility to organisations promoting Indigenous languages' which was announced in the 2017-18 MYEFO.
Financial impact: As at the 2017-18 MYEFO, this measure was estimated to have a negligible cost to revenue over the then forward estimates period comprising:
| 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 |
| - | - | - | .. | .. |
- zero
.. not zero but rounded to zero
Human rights implications: Schedule 3 does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 5, paragraphs 5.9 to 5.15.
Compliance cost impact: Nil.
Repeal of subsection 51(3) of the Competition and Consumer Act 2010
Schedule 4 repeals subsection 51(3) of the Competition and Consumer Act 2010 (CCA) and subsection 51(3) of Schedule 1 to the CCA (the Competition Code). The amendments remove the exemption for conditional licensing or assignment of IP rights such as patents, registered designs, copyright or eligible circuit layout rights from prohibitions on restrictive trade practices.
Date of effect: The day after the end of the period of six months beginning on the day this Bill receives the Royal Assent.
Proposal announced: This measure implements the Government's response to recommendation 15.1 of the Productivity Commission's Intellectual Property Arrangements Inquiry Report (December 2016) (the Report). The Government's response was released on 25 August 2017 and is available on the Department of Industry, Innovation and Science website.
Financial impact: Nil.
Human rights implications: This Schedule is compatible with human rights, and to the extent that it may limit human rights, those limitations are reasonable, necessary and proportionate. See Statement of Compatibility with Human Rights - Chapter 5, paragraphs 5.16 to 5.31.
Compliance cost impact: Expected to be low.
The Productivity Commission's Report was certified by the Office of Best Practice Regulation as a Regulatory Impact Statement-like process: OBPR ID number 21654.