Senate

Revised Explanatory Memorandum

(Circulated by authority of the Assistant Treasurer, the Hon Stuart Robert MP)

General outline and financial impact

Extending support for craft brewers

The Bills amend the Excise Tariff Act and the Excise Act to extend concessional rates of excise to brewers that supply draught beer in kegs or other containers that have a capacity of 8 litres or more that are designed for use with a pressurised gas delivery system or pump delivery system.

Separate amendments to the Customs Tariff Act 1995 will also be made to give effect to the measure concerning imported draught beer.

Date of effect: The amendments made by the Bills apply to relevant goods entered for home consumption on or after 1 July 2019.

Proposal announced: The Bills partially implements the measure 'Alcohol Taxation - extending support for craft brewers and distillers' from the 2018-19 Budget. The amendments to excise-equivalent customs duty concerning concessional rates of duty for imported beer are being implemented separately by amendments to customs legislation.

The increase in the alcohol excise refund is subject to the making of the revised limit of $100,000 each financial year by regulations under the Excise Regulation 2015.

Financial impact: As at the 2018-19 Budget, the measure was estimated to have the following cost to revenue over the forward estimates period:

- Nil

Human rights implications: The Bills do not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 5.

Compliance cost impact: The amendments made by the Bills are expected to be minor and machinery in nature and therefore the potential compliance cost impact is expected to be minimal.

Global Infrastructure Hub Ltd.

Schedule 3 to the Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to continue to provide the Global Infrastructure Hub Ltd (the Hub) with an exemption from the liability to pay income tax on its ordinary and statutory income.

Date of effect: Commencing the first 1 January, 1 April, 1 July or 1 October after Royal Assent.

Proposal announced: This Schedule fully implements the measure 'Income tax exemption for the Global Infrastructure Hub' from the 2018-19 MYEFO.

Financial impact: The measure is estimated to have no revenue impact over the forward estimates period.

Human rights implications: This Schedule does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 5.

Compliance cost impact: Minor impact.

Miscellaneous amendments

Schedule 4 to the Bill makes a number of miscellaneous amendments to legislation in the Treasury portfolio. These amendments are part of the Government's commitment to the care and maintenance of the Treasury portfolio legislation.

These amendments make minor technical changes to correct spelling errors, bring provisions in line with drafting conventions and repeal inoperative provisions. The Schedule also makes minor technical amendments to remove administrative inefficiencies and clarifies the law to ensure that it operates in accordance with policy intent.

Date of effect: These amendments have various commencement and application dates. Most amendments commence from the day after this Bill receives Royal Assent or the first quarter beginning on or after the day this Bill receives Royal Assent. This Chapter details the commencement and application dates of amendments that commence or apply from a different time. Where amendments have retrospective application, the effect of that retrospectivity is also explained.

Proposal announced: This Schedule fully implements the measure 'Miscellaneous Amendments - ongoing care and maintenance of Treasury portfolio legislation' from the 2018-19 MYEFO. Some amendments were announced earlier upon the release of the exposure draft on the Treasury website on 22 October 2018.

Financial impact: These amendments are estimated to have a negligible financial impact over the forward estimates period.

Human rights implications: This Schedule does not raise human rights issue. See Statement of Compatibility with Human Rights - Chapter 5.

Compliance cost impact: Negligible.