House of Representatives

Explanatory Memorandum

(Circulated by authority of the Assistant Treasurer, Minister for Housing and Minister for Homelessness, Social and Community Housing, the Hon Michael Sukkar MP)

Chapter 3 - Miscellaneous and technical amendments

Outline of chapter

3.1 Schedule 3 makes a number of miscellaneous and technical amendments to various laws in the Treasury portfolio. These amendments are part of the Government's ongoing commitment to the care and maintenance of Treasury portfolio legislation.

3.2 These amendments make minor and technical changes to correct typographical and numbering errors, repeal inoperative provisions, remove administrative inefficiencies, address unintended outcomes, and ensure that the law gives effect to the original policy intent.

Context of amendments

3.3 Minor and technical amendments are periodically made to Treasury legislation to remove anomalies, correct unintended outcomes and generally improve the quality of laws. Making such amendments gives priority to the care and maintenance of Treasury portfolio legislation.

3.4 The process was first supported by a recommendation of the 2008 Tax Design Review Panel, which was appointed to examine how to reduce delays in the enactment of tax legislation and improve the quality of tax law changes. It has since been expanded to all Treasury portfolio legislation.

Summary of new law

3.5 These miscellaneous and technical amendments address technical deficiencies and legislative uncertainties in various Treasury laws by:

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correcting spelling and typographical errors;

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fixing incorrect legislative references;

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addressing unintended outcomes;

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adopting modern drafting practices;

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enhancing readability and administrative efficiency; and

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repealing redundant and inoperative provisions.

Detailed explanation of new law

Part 1 - Amendments commencing the day after Royal Assent

New Zealand auditors

3.6 Sections 324BB(5), 1280(4) and 1292(1)(a)(iii) of the Corporations Act 2001 are amended so that a firm is able to be appointed as auditor of a company or registered scheme if at least one member of the firm is a registered company auditor who is ordinarily resident in New Zealand in addition to being ordinarily resident in Australia. [Schedule 3, items 1 and 2, sections 324BB(5), 1280(4) and 1292(1)(a)(ii) of the Corporations Act 2001]

3.7 Currently a firm can only be appointed as auditor if at least one member of the firm is ordinarily resident in Australia. This change is in line with the policy intent of the Trans-Tasman Mutual Recognition Act 1997 which harmonises regulation in regards to goods and occupations between Australia and New Zealand.

Country by country reporting

3.8 Section 815-355(3)(a)(ii) of the Income Tax Assessment Act 1997 is amended to clarify the country by country reporting rules. A statement under these rules must contain details on the operations of entities that are members of the relevant country by country reporting group for the whole or part of the current income year. [Schedule 3, items 3 and 4, section 815-355(3)(a)(ii) of the Income Tax Assessment Act 1997]

3.9 This amendment applies to statements required to be provided to the Commissioner in relation to income years starting on or after 1 July 2020. [Schedule 3, item 5]

Recovery of overpayments

3.10 Section 24NAA is inserted into Part 4B of the Superannuation (Unclaimed Money and Lost Members) Act 1999. The section allows the Commissioner of Taxation to, in certain circumstances, recover amounts overpaid under Part 4B. [Schedule 3, item 6, section 24NAA of the Superannuation (Unclaimed Money and Lost Members) Act 1999]

3.11 For example, the Commissioner may make a payment under Part 4B and then discover that the amount paid exceeds the amount properly payable. In this situation the Commissioner may recover the excess from the superannuation provider to whom the payment was made or, in the case where the payment was transferred to another fund, the superannuation provider for the other fund.

3.12 However, the Commissioner cannot recover the excess from the superannuation provider for a fund if the fund does not hold an amount attributable to the overpayment.

3.13 Section 24NAA applies in relation to the recovery of overpayments on or after the commencement of these amendments, whether the overpayment occurred before, on or after that commencement. [Schedule 3, item 7]

3.14 Section 24NAA(8) makes apparent that the notice in section 24NAA(4)(a) is not a legislative instrument within the meaning of section 8(1) of the Legislation Act 2003.

Consumer protections

3.15 Sections 12DE and 12DN of the Australian Securities and Investments Commission Act 2001 are amended to substitute references to 'sale or grant, or the possible sale or grant' with 'supply, or the possible supply.' These sections relate to consumer protections on offers of rebates, gifts and prizes, and where the consumer protection provisions do not apply. These changes make the terminology consistent with other consumer protection provisions in the Australian Securities and Investments Commission Act 2001 and prevents the scope of sections 12DE and 12DN from being unintentionally narrowed. [Schedule 3, items 8, 9, 10, 11, 12, 13, 14, and 15 sections 12DE(1)(b)(iii), 12DE(2A)(b)(iii), 12DE(3A) 12DN(4), and 12DN(4A) of the Australian Securities and Investments Commission Act 2001]

Civil penalties

3.16 Amendments are made to correct drafting errors which misdescribed the payment period for infringement notices. The amendment provides that the payment period begins on the day after the infringement notice is given, rather than the day on which the infringement notice is given. [Schedule 3, items 16, 20, 24 and 28, section 12GXB(1)(h) of the Australian Securities and Investments Commission Act 2001, section 1317DAP(1)(h) of the Corporations Act 2001, section 75Y(1)(h) of the Insurance Contracts Act 1984 and section 288L(1)(h) of the National Consumer Credit Protection Act 2009]

3.17 Amendments are made to correct provisions affected by drafting errors misdescribing the payment period for infringement notices where the Australian and Securities Investment Commission refuses to make an arrangement for the notice to be paid in instalments and grammatical errors. The amendment ensures the payment period ends on the latest of the options. [Schedule 3, items 17, 18, 19, 21, 22, 23, 25, 26, 27, 29, 30 and 31 section 12GXC of the Australian Securities and Investments Commission Act 2001, section 1317DAQ of the Corporations Act 2001, section 75Z of the Insurance Contracts Act 1984 and section 288M of the National Consumer Credit Protection Act 2009]

Loss carry back choice

3.18 Section 160-16 is inserted into Division 160 of the Income Tax Assessment Act 1997 to clarify the mechanism through which an entity may change its loss carry back choice. Ensuring there is a clear mechanism through which entities may change their loss carry back choice is consistent with the broader intention of the regime which is designed to ensure entities have greater flexibility in utilising tax losses. [Schedule 3, item 33, section 160-16 of the Income Tax Assessment Act 1997]

3.19 A change of a loss carry back choice must be given to the Commissioner of Taxation in the approved form within the limited amendment period (as defined in section 170 of the Income Tax Assessment Act 1936) for an assessment for an income year.

3.20 A changed loss carry back choice applies as if it was always the entity's choice. That is, it takes effect from the day the original choice was made.

3.21 The Commissioner of Taxation may amend an assessment at any time for the purposes of giving effect to a changed loss carry back choice. This includes, for example, amending the assessment for the income year for which the choice relates as well as any assessment for any subsequent income years that are affected. Such changes may be required to give effect to a change in loss carry back choice as the change of choice may involve changes to the utilisation of a tax loss in the relevant income year, as well as the subsequent utilisation of these tax losses. [Schedule 3, item 32, section 170(10AA) of the Income Tax Assessment Act 1936]

Franking account balance

3.22 Sections 205-15(1) and 219-15(2) of the Income Tax Assessment Act 1997 are amended to ensure that a franking credit arises in circumstances where:

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a franking debit arises because the entity or company receives a tax offset refund;

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the entity or company's tax offset refund is subsequently reduced and the entity or company is liable to pay the Commonwealth the amount of the excess mentioned in section 172A(2) of the Income Tax Assessment Act 1936; and

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the entity or company pays the amount of the excess.

[Schedule 3, item 34 and 35, table item 4A of section 205-15(1) and table item 6A of section 219-15(2) of the Income Tax Assessment Act 1997]

3.23 In these circumstances, the amount of the franking credit is the difference (if any) between the amount of the franking debit and the amount the franking debit would have been if the tax offset refund were reduced by the amount of the excess. The credit arises on the day on which the amount of the excess is paid.

3.24 Because the amendments require the amount of the franking credit to be calculated by reference to the operation of the relevant franking debit provision (sections 205-30 and 219-30 of the Income Tax Assessment Act 1997), the rules in the relevant franking debit provision effectively apply to the calculation of the franking credit (to the extent that those rules are relevant). These rules include limiting the amount of the franking debit to the shareholder's share of the income tax liability of the company for the relevant income year (see the table in section 219-30(2) of the Income Tax Assessment Act 1997) and ensuring no debit arises on the part of a refund that is attributable a tax offset that is subject to the refundable tax offset rules because of section 67-30 of the Income Tax Assessment Act 1997 (see section 205-30(2) of the Income Tax Assessment Act 1997).

3.25 The purpose of the amendments is to ensure the entity or company's franking account balance is restored to the amount it would be if the entity or company had received the correct amount of tax offset refund in the first instance.

Protected information

3.26 Division 3 of Part 7 of the Foreign Acquisitions and Takeovers Act 1975 deals with confidentiality of information.

3.27 Protected information is defined in section 120 of the Foreign Acquisitions and Takeovers Act 1975 to mean information obtained under and in accordance with that Act (with certain exceptions). Section 130 of the Foreign Acquisitions and Takeovers Act 1975 provides that a person does not have to disclose information to a court, tribunal, authority or person having power to require the production of documents or answering of questions, except for the purposes of the Foreign Acquisitions and Takeovers Act 1975.

3.28 Amendments are made to clarify that a person cannot be required to share protected information (rather than any information) to a court, tribunal, authority or person having power to require the production of documents or answering of questions, except where the information is required for the purposes of the Foreign Acquisitions and Takeovers Act 1975. The unauthorised release of protected information could cause significant harm, particularly if it contains commercially sensitive information. Therefore it is appropriate that such information should be limited in its ability to be shared. [Schedule 3, item 36, section 130 of the Foreign Acquisitions and Takeovers Act 1975]

Extension of decision period

3.29 Section 61 of the Foreign Acquisitions and Takeovers Act 1975 prescribes a time limit for making decisions on exemption certificates. Currently, the Treasurer must make a decision before the end of a period prescribed by regulations (currently 30 days) or before a date the person has requested and the Treasurer has agreed to.

3.30 An additional limb is added to allow the Treasurer to extend or further extend the decision period for making decisions on exemption certificates by up to 90 days. This aligns the provision with section 77A of the Foreign Acquisitions and Takeovers Act 1975 that allows the Treasurer to extend the decision period for up to 90 days in relation to no objection notifications. [Schedule 3, item 37, section 61(1)(b) of the Foreign Acquisitions and Takeovers Act 1975]

3.31 The total period by which the Treasurer can extend the decision period is 90 days. However, multiple extensions may be granted which in aggregate must not exceed the maximum extension period of 90 days. For example the Treasurer can extend the time period three times, each for 30 days before making a decision. [Schedule 3, item 38, section 61A of the Foreign Acquisitions and Takeovers Act 1975]

3.32 The Treasurer must provide a reason to the applicant for the extension.

3.33 The amendments provide the Treasurer with the flexibility to extend the decision period where he considers that more time is required to consider the application for an exemption certificate. This is not uncommon in cases that are sensitive or significant, and a longer decision period may be necessary to allow time to consult with Commonwealth, State or Territory bodies, to consider their expert input or develop bespoke conditions. Additionally, the issues considered when assessing applications are often complex and may require a longer assessment period to ensure that any application made in relation to foreign investment are not contrary to Australia's national interest, which is a critical objective of the Foreign Acquisitions and Takeovers Act 1975.

3.34 The amendments do not allow for merits review of the decision to extend the time period. Furthermore, the natural justice hearing rule will not apply to decisions by the Treasurer to use this power. This is appropriate, as it allows the Treasurer to balance the needs of the applicant with the potential harm to the national interest of rushing consideration of the application for an exemption certificate.

3.35 The decision to grant a time extension is procedural in nature and it is not expected to affect substantive rights. Review mechanisms continue to apply to the substantive decision on an exemption certificate. The amendments also provide a safeguard in the absence of merits review and the natural justice hearing rule, particularly the requirement to give reasons in writing for the Treasurer's decision to extend the time period.

3.36 While the Treasurer is not required to consult with the applicant before extending the decision period, the applicant will still be afforded natural justice in respect of the substantive decision making process, including in relation to decisions by the Treasurer about whether to apply conditions to the exemption certificate.

3.37 The amendments apply in relation to an application for an exemption certificate made on or after the day of commencement. [Schedule 3, item 39]

Temporary full expensing

3.38 Existing section 40-157 of the Income Tax (Transitional Provisions) Act 1997 is amended to clarify that, in working out the cost of a depreciating asset that is capital works for the purpose of calculating an entity's total cost of investment for the 2016-17 to 2018-19 income years, sections 40-45 and 40-215 of the Income Tax Assessment Act 1997 are disregarded. This clarification ensures the investment test interacts appropriately with the existing provisions in Division 40 of the Income Tax Assessment Act 1997. [Schedule 3, item 40, section 40-157 of the Income Tax (Transitional Provisions) Act 1997]

3.39 The amendment applies to taxpayers who rely on sections 40-160 and 40-170 of the Income Tax (Transitional Provisions) Act 1997 when working out the decline in value of an asset at or after 2020 budget time (consistently with the temporary full expensing regime). [Schedule 3, item 41]

Part 2 - Amendments commencing first day of the next quarter

Repeal of redundant provisions

3.40 The following sections are repealed as these provisions are now redundant, due to the passage of time:

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sections 293-115(6) and (7) and 293-145(2) and (2A) of the Income Tax Assessment Act 1997; and

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section 133-130(3) and (4) of Schedule 1 to the Taxation Administration Act 1953.

[Schedule 3, items 42 and 43, sections 293-115 and 293-145 of the Income Tax Assessment Act 1997 and section 133-130 of Schedule 1 to the Taxation Administration Act 1953]

GST free cars

3.41 Section 38-510(1)(a) of A New Tax System (Goods and Services Tax) Act 1999 requires that a person with a specific type of disability holds a current medical eligibility certificate issued by the Managing Director of the 'nominated company' in order to access the GST-free supply of a vehicle. That company no longer issues certificates.

3.42 Section 38-510(1)(a) is amended to allow medical practitioners to issue medical eligibility certificates for the purposes of section 38-510. [Schedule 3, item 44, section 38-510 of the A New Tax System (Goods and Services Tax) Act 1999]

3.43 The amendment ensures that medical eligibility certificates can continue to be issued, allowing the supply of GST-free vehicles to those who meet the other eligibility requirements.

3.44 A consequential amendment is made to the definition of disabled person in the A New Tax System (Luxury Car Tax) Act 1999. [Schedule 3, item 46, sections 27-1 of the A New Tax System (Luxury Car Tax) Act 1999]

3.45 The definition of officer in section 195-1 is amended because it is redundant as a result of the amendment to section 38-510(1)(a). [Schedule 3, item 45, section 195-1 of the A New Tax System (Goods and Services Tax) Act 1999]

Agents of covered entities

3.46 Division 355 of Schedule 1 to the Taxation Administration Act 1953 contains provisions to protect the confidentiality of taxpayer information. Section 355-25 provides that it is an offence for a tax officer to make a record of information or disclose protected information either to another entity (other than the primary entity or an entity specified in section 355-25(2)) or to a court or tribunal.

3.47 Entities specified in section 355-25(2) include:

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a representative of an incapacitated entity where the taxpayer is the incapacitated entity;

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a legal personal representative (which includes an executor or administrator of a taxpayer that has died, the trustee of an estate of a taxpayer under a legal disability, or a person who holds a general power of attorney granted by the taxpayer); and

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a guardian, where the taxpayer is a minor or suffers from mental incapacity.

3.48 Under the current provisions, a tax officer is unable to directly disclose protected information about the taxpayer to a tax agent, a BAS agent or a legal practitioner of an entity listed above who represents the taxpayer.

3.49 Section 355-25(2) is amended to add provisions that provide that a covered entity to whom protected information can be disclosed to includes the registered tax agent or BAS agent of another covered entity mentioned in sections 355-25(2)(c) to (e) or the legal practitioner representing those entities in relation to the affairs of the taxpayer. [Schedule 3, item 47, section 355-25 of Schedule 1 to the Tax Administration Act 1953]

3.50 The amendment of section 355-25 applies in relation to the making of a record or the disclosure of information occurring on or after the commencement of the amendment, whether the information was acquired before, on or after that commencement. [Schedule 3, item 48]

Deductible gift recipient

3.51 Item 6.2.9 of section 30-55(2) is amended to update the former entity name of 'the Nature Foundation SA Incorporated' with 'the Nature Foundation Limited'. A consequential amendment has been made to table item 77A in section 30-315 [Schedule 3, items 49 and 50, section 30-55 of the Income Tax Assessment Act 1997]

3.52 These amendments apply in relation to gifts or contributions made on or after 12 December 2019. This amendment will allow the entity to continue to receive tax deductible gifts. [Schedule 3, item 51]

Expired deductible gift recipient

3.53 A number of amendments have been made to repeal deductable gift recipient listings that have expired. [Schedule 3, items 52, 53, 54, 55, 56, 57, 58 and 59, sections 30-25, 30-40, 30-50, 30-80, 30-105 and 30-315 of the Income Tax Assessment Act 1997]

Deductible gift recipient

3.54 Item 12.2.2 of Section 30-100(2) is amended to reflect the change in the entity name from Australian Business Arts Foundation Ltd to Creative Partnerships Australia Ltd. [Schedule 3, item 60, section 30-100 of the Income Tax Assessment Act 1997]

3.55 This amendment will allow the entity to continue to receive tax deductible gifts. Consequential amendments have been made to the index in section 30-315 to update the entity's name. [Schedule 3, items 61 and 62, section 30-315 of the Income Tax Assessment Act 1997]

3.56 These amendments apply in relation to gifts or contributions made on or after 5 October 2020. [Schedule 3, item 63]

Approved economic infrastructure facility exception

3.57 Section 12-439(4) of the Taxation Administration Act 1953 is amended to correct a referencing error and clarify that the Treasurer may approve a facility if an application is made under section 12-439(3) rather than section 12-439(2). [Schedule 3, item 64, section 12-439 of the Tax Administration Act 1953]

Finance leases

3.58 Existing section 705-56(1) of the Income Tax Assessment Act 1997 modifies the operation of the consolidation tax cost setting rules when an entity that is the lessor or lessee under a lease of a depreciating asset joins a consolidated group, and the entity treats the lease as a finance lease under the accounting standards. Section 711-45(2A) of the Income Tax Assessment Act 1997 makes a corresponding modification if the entity subsequently leaves the consolidated group.

3.59 From 1 January 2019, the new Accounting Standard for Leases (AASB 16) applies to introduce a single accounting model for lessees. The new standard requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee no longer classifies leased assets or liabilities as an operating lease or a finance lease.

3.60 Amendments have been made to section 705-56(1) of the Income Tax Assessment Act 1997 to expand the operation of the modified tax cost setting rule so that it is not limited to finance leases but applies to all leases where the joining entity is the lessor or lessee under a lease of a depreciating asset to which Divisions 40 applies. [Schedule 3, items 65, 66 and 67, sections 705-25(5) (note 2), 705-56 (heading) and 705-56(1) of the Income Tax Assessment Act 1997]

3.61 This change ensures there is consistency with the changes to AASB 16 to ensure that the provisions are not limited to finance leases.

3.62 Amendments have been made to section 711-45(2A) of the Income Tax Assessment Act 1997 to reflect the corresponding modified tax cost setting rule if the entity subsequently leaves the consolidated group. [Schedule 3, item 68, section 711-45(2A) (heading) of the Income Tax Assessment Act 1997]

3.63 The amendments to expand the operation of the modified tax cost setting rules to all leases apply in relation to an entity that becomes a subsidiary member of a tax consolidated group or a multiple entry consolidated group on or after 1 January 2019. [Schedule 3, item 69]

Low pool value

3.64 Section 328-180 (6) of the Income Tax (Transitional Provisions) Act 1997 is amended to correct a typographical error and ensure the law refers to "low pool value" (rather than "low value pool"). [Schedule 3, item 70, section 328-180 of the Income Tax (Transitional Provisions) Act 1997]

Refund of excess low balance fees

3.65 Section 291-25 of the Income Tax Assessment Act 1997 outlines an individual's concessional contributions for a financial year.

3.66 The amendments clarify that a fee refund paid by a trustee to a member's superannuation account is not a concessional contribution. This means the amount refunded does not count towards the member's concessional contribution cap. A fee must be refunded to the member under the Superannuation Industry (Supervision) Act 1993 if the account is a low balance account, and the total fees for the year are above the maximum level. [Schedule 3, item 71, section 291-25 of the Income Tax Assessment Act 1997]

3.67 The amendment applies from the 2021-22 financial year. [Schedule 3, item 72]

Part 3 - Other amendments

Delegation of powers related to unclaimed money

3.68 The Life Insurance Act 1995 is amended to allow the Treasurer to delegate any of his or her powers and functions relating to reuniting unclaimed money payable in respect of life insurance policies. Specifically, the amendment provides that the Treasurer can delegate any of his or her functions and powers to either a non-corporate Commonwealth entity for which the Treasurer is the responsible Minister or to a member or staff member of such an entity. [Schedule 3, items 73 and 74, section 216 of the Life Insurance Act 1995]

3.69 Currently, the Treasurer would need to authorise the Australian Securities and Investments Commission to exercise these powers and functions, as there is no ability for them to be delegated.

3.70 The amendment will allow the Treasurer to delegate these powers and functions to the Australian Securities and Investments Commission. This will provide administrative efficiencies and ensure that unclaimed money claims can continually be assessed and resolved without significant delays.

3.71 The powers and functions that can be delegated are not of an enforcement or exemptions nature, or ones that could materially affect a person's rights. Given their administrative natur e, it is appropriate for them to be delegated to staff members who are lower than Senior Executive Service level. This will improve efficiencies and avoid delays in dealing with unclaimed money claims.

KiwiSaver scheme

3.72 Various amendments are made to the Superannuation (Unclaimed Money and Lost Members) Act 1999 to ensure that New Zealand-sourced amounts held under that Act are treated consistently with the rules in Part 12A of the Superannuation Industry (Supervision) Regulations 1994. Part 12A sets out matters to implement the Arrangement between the Government of Australia and the Government of New Zealand on Trans-Tasman Retirement Savings Portability. [Schedule 3, items 78, 79, 80, 81, 82, 83, 84, 85, 95, 96, and 97, sections 8, 17, 20H, 20QF, 21E, 24G and 24NA of the Superannuation (Unclaimed Money and Lost Members) Act 1999]

3.73 The effect of the amendments is that amounts held by the Commissioner of Taxation under the Superannuation (Unclaimed Money and Lost Members) Act 1999 which include a New Zealand-sourced amount cannot be paid out under that Act to self-managed superannuation funds, funds which have not notified the Commissioner they accept New Zealand-sourced amounts or, in certain circumstances, persons who do not satisfy the New Zealand eligibility age.

3.74 The amendments also ensure that amounts held by the Commissioner under Part 3D of that Act can, consistent with amendments provided by Schedule 2 to the Treasury Laws Amendment (2020 Measures No. 5) Act 2020, be paid to New Zealand KiwiSaver scheme providers. [Schedule 3, items 86, 87, 88, 89, 90, 91, 92, 93 and 94, sections 22B, 22E and 22F of the Superannuation (Unclaimed Money and Lost Members) Act 1999]

3.75 The amendments apply in relation to payments of amounts made by the Commissioner on or after the commencement of Division 2 of Part 3 of Schedule 3 to the Bill, regardless of when the amounts were received by the Commissioner. [Schedule 3, item 99]

3.76 The amendments also require the Commissioner to administer any money paid to them under the Superannuation (Unclaimed Money and Lost Members) Act 1999 in a way that allows any New Zealand-sourced amount to be identified separately. This requirement applies in relation to money paid to the Commissioner under that Act on or after the commencement of Division 2 of Part 3 of Schedule 3 to the Bill. [Schedule 3, items 98 and 99, section 49AA of the Superannuation (Unclaimed Money and Lost Members) Act 1999]

3.77 Amendments are also made to ensure the guide material in section 7 of the Superannuation (Unclaimed Money and Lost Members) Act 1999 is accurate. The amendments ensure the guide material indicates that the Commissioner can pay amounts to KiwiSaver scheme providers. [Schedule 3, items 75, 76 and 77, section 7 of the Superannuation (Unclaimed Money and Lost Members) Act 1999]

Amendments to the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020

3.78 The Modernising Business Registers program transfers various registers from ASIC to the Registrar and is implemented largely by the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020. The Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 amends various other Acts which establish the registers and registry regimes. The need to stagger the transfer of the registers was not anticipated in the commencement, application, and transitional provisions of the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020. This Bill amends such provisions to enable the staggered transfer.

3.79 The commencement date for item 1261 of Schedule 1 of the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 is amended to be the day after this Bill receives Royal Assent. [Schedule 3, items 100 and 102, item 1261 of Schedule 1 to the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020]

3.80 The application and transitional provisions relating to Schedule 1 to the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 which are being inserted into various Acts by the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 are amended so that they operate as needed for the staggered transfer. [Schedule 3, items 101, 103, 104, 105 and 106, items 359, 1345, 1414, and 1465-1467 of Schedule 1 to the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020]

3.81 As part of this amendment, item 3 of Schedule 3 to the Business Names Registration (Transitional and Consequential Provisions) Act 2011 would have been added by item 359 of Schedule 1 to the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 is omitted. This item is not necessary due to the staggered transfer.

3.82 Division 3 of Part 3 of Schedule 1 to this Bill has a retrospective commencement to ensure that the provisions being amended operate as intended at times appropriate for the staggered transfer. To provide certainty to all stakeholders and simplify the operation of the commencement provisions, a fixed commencement time immediately after the initial commencement of section 2 of the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 is appropriate. The retrospective commencement of Division 3 is unlikely to adversely affect any persons because it is preventing the retrospective operation of the affected provisions (which, if unamended, may have detrimental effects). [Section 2]

3.83 The commencement provisions for various items in Schedule 4 to the Treasury Laws Amendment (2020 Measures No. 6) Act 2020 relating to the Modernising Business Registers program are amended to ensure the items achieve their intended outcomes despite the staggered transfer. [Schedule 3, items 107 and 108, section 2(1) of the Treasury Laws Amendment (2020 Measures No. 6) Act 2020]

3.84 Setting the commencement of items 115 to 120 and 127 to 142 (which amend the Corporations Act 2001, the Superannuation Industry (Supervision) Act 1993 and the Taxation Administration Act 1953 to reflect the transfer of registry functions) to be on a day or days to be fixed by Proclamation allows the flexibility necessary to align them with the staggered transfer. The final dates specified for the commencement of these items reflect the latest advice about the schedule for transferring registers.

3.85 The commencement of items 143 and 144 (which amend the Taxation Administration Act 1953 to enable the disclosure of protected information to the Registrar) is retrospective and set to the date on which the Registrars were created. These items were intended to commence at the time the Registrars were created, however their commencement provisions did not operate as intended.

3.86 Division 4 of Part 3 of Schedule 1 to this Bill has a retrospective commencement to ensure that the relevant items in Schedule 4 to the Treasury Laws Amendment (2020 Measures No. 6) Act 2020 operate as intended. The reasons for retrospective commencement of items 143 and 144 are set out above. Items 115 to 120 and 127-142 need to commence before registry functions are transferred from the Australian Securities and Investments Commission to the Registrar by the commencement of various items in the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020. To provide certainty to all stakeholders and to significantly simplify the operation of the commencement provisions, a fixed commencement time immediately after the initial commencement of section 2 of the Treasury Laws Amendment (2020 Measures No. 6) Act 2020 is appropriate. The retrospective commencement of Division 4 is unlikely to adversely affect any persons because it is preventing the retrospective operation of provisions which, if unamended, may have detrimental effects. [Section 2]