House of Representatives

Explanatory Memorandum

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

General outline and financial impact

Schedule 1 - Temporary full expensing of depreciating assets and other amendments

Schedule 1 to the Bill amends the temporary full expensing and backing business investment provisions in the income tax law to provide greater flexibility for entities to access the concessions. Schedule 1 to the Bill also makes other clarifications to the operation of the temporary full expensing and temporary loss carry back provisions.

Date of effect: The measure commences on the first day of the first quarter after Royal Assent.

Proposal announced: This measure was announced by the Treasurer, the Hon. Josh Frydenberg on 23 November 2020.

Financial impact: This measure is estimated to have the following receipts impact over the forward estimates period ($m):

.. not zero but rounded to zero

Human rights implications: Schedule 1 to the Bill does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 5.

Compliance cost impact: An exemption from the Regulation Impact Statement requirements applies as this measure is covered by the Prime Minister's exemption for COVID-19 related measures.

Schedule 2 - Amendments of the consumer data right

Schedule 2 to the Bill amends the CC Act by reallocating the responsibility for conducting sectoral assessments and making consumer data rules. Other miscellaneous amendments are also made to the CC Act to assist the clarity and efficiency of the CDR regime.

Date of effect: The amendments in Part 1 of Schedule 2 commence on the day after the Bill receives the Royal Assent. The amendments in Part 2 of Schedule 2 commence on the later of the day after the Bill receives the Royal Assent and 28 February 2021.

Proposal announced: Schedule 2 to the Bill implements the legislative changes required for the National Consumer Data Right - implementation measure from the 2020-21 Budget.

Financial impact: Nil.

Human rights implications: Schedule 2 to the Bill is compatible with human rights, because it engages but does not limit human rights. See Statement of Compatibility with Human Rights - Chapter 5.

Compliance cost impact: Schedule 2 to the Bill has no impact on compliance costs.

The Review into Open Banking in Australia (the Open Banking Report) has been certified as being informed by a process and analysis equivalent to a regulation impact statement for the purposes of implementing the Consumer Data Right and Schedule 2 to the Bill. The Open Banking Report can be found at this link:
https://treasury.gov.au/sites/default/files/2019-03/Review-into-Open-Banking-_For-web-1.pdf .

Schedule 3 - Incentivising charities to join the National Redress Scheme

Schedule 3 to the Bill amends the ACNC Act to incentivise basic religious charities that may be responsible for past institutional child sexual abuse to join the Redress Scheme.

Date of effect: The day after the end of the period of three months beginning on the day the Bill receives Royal Assent.

Proposal announced: This measure was announced by the Assistant Minister for Finance, Charities and Electoral Matters, Senator the Hon Zed Seselja and the Minister for Families and Social Services, Senator the Hon Anne Ruston on 27 November 2020.

Financial impact: This measure is estimated to result in an unquantifiable gain to revenue over the forward estimates period.

Human rights implications: Schedule 3 to the Bill raises human rights issues. See Statement of Compatibility with Human Rights - Chapter 5.

Compliance cost impact: The Office of Best Practice Regulation has certified the amendments in Schedule 3 to the Bill have no more than minor regulatory impacts.

Schedule 4 - Minor and technical amendments

Schedule 4 to the Bill makes a number of minor 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.

These amendments make minor and technical changes to correct typographical and numbering errors, bring provisions in line with modern drafting conventions, repeal inoperative provisions, remove administrative inefficiencies, address unintended outcomes and update references, ensuring Treasury laws improve to operate as intended.

Date of effect: Part 1 of Schedule 4 to the Bill commences the day after the Bill receives Royal Assent. Part 2 of Schedule 4 to the Bill commences on the first 1 January, 1 April, 1 July or 1 October after the day the Bill receives Royal Assent. The commencement of several items are contingent on the commencement of the following Acts or schedules within those Acts: Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020; Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019; and Family Law Amendment (Western Australia De Facto Superannuation Splitting and Bankruptcy) Act 2020.

Proposal announced: This measure was announced on 21 October 2020.

Financial impact: These amendments are estimated to have an unquantifiable impact on receipts over the forward estimates period.

Human rights implications: Schedule 4 to the Bill does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 5.

Compliance cost impact: The amendments have no more than a minor impact on compliance costs.