Explanatory Memorandum
(Circulated by authority of the Minister for Housing and Assistant Treasurer, the Hon Michael Sukkar)General outline and financial impact
FinTech Sandbox Regulatory Licensing Exceptions
Schedule 1 to this Bill amends the Corporations Act 2001 and National Consumer Credit Protection Act 2009 to expand the regulation-making powers to allow the regulations to provide for exemptions from the Australian Financial Services Licence and Australian Credit Licence requirements for the purposes of testing financial and credit products and services under certain conditions.
Date of effect: The amendments take effect the day after Royal Assent.
Proposal announced: This measure was announced in the 2017-18 Budget by the Treasurer on 9 May 2017.
Financial impact: Nil.
Human rights implications: This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 3.
Compliance cost impact: Saving of $0.6 million.
Innovation measures
Schedule 2 to this Bill amends the ITAA 1997 venture capital and early stage investor tax concession provisions to make minor changes to ensure that the provisions operate as intended.
Date of effect: The amendments made by this Bill generally apply on and from 1 July 2018.
The amendments relating to investments by MITs in both ESVCLPs and VCLPs apply from 1 July 2016.
Proposal announced: The amendments made by Schedule 2 partly implement the measure announced by the Treasurer on 15 and 21 March 2016 and in the 2016-17 Budget as part of the National Innovation and Science Agenda - expanding tax incentives for early stage investors and National Innovation and Science Agenda - expanding the new arrangements for venture capital limited partnerships.
Financial impact: This measure is estimated to result in a negligible impact on revenue over the forward estimates period, comprising:
| 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 |
| - | - | .. | .. | .. |
.. Not zero but rounded to zero
- Nil
Human rights implications: This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 3.
Compliance cost impact: The measure is expected to result in a small overall compliance cost impact, comprising a small implementation impact and a small increase in ongoing costs.