Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Josh Frydenberg MP)General outline and financial impact
Schedule 1 - Amendments relating to Coronavirus economic response payments
Schedule 1 to the Bill amends the Payments and Benefits Act to allow the Treasurer to make rules for an additional kind of Coronavirus economic response payment to an entity where the payment is to provide support to the entity because it has been adversely affected by restrictions imposed by a State or Territory by way of a public health order that is directed at preventing or controlling the transmission of the Coronavirus between members of the public.
This measure facilitates the Government introducing support payments for entities adversely affected by a significant lockdown imposed by a State or Territory that affects the entities in relation to a period between 1 July 2021 and 31 December 2022.
Date of effect: The Treasurer may establish a new payment scheme after the Bill receives the Royal Assent in relation to a period occurring between 1 July 2021 to 31 December 2022.
Proposal announced: Not previously announced.
Financial impact: Nil.
Human rights implications: Schedule 1 to the Bill does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 6.
Compliance cost impact: An exemption from Regulation Impact Statement requirements was granted by the Prime Minister as there were urgent and unforeseen events.
Schedule 2 - Disclosure of tax information to Australian government agencies to facilitate COVID-19 business support programs
Schedule 2 to the Bill makes amendments to the tax secrecy provisions in the TAA 1953 to allow protected information to be disclosed to Australian government agencies for the purposes of administering COVID-19 business support programs.
Date of effect: The amendments commence the day after Royal Assent.
Proposal announced: Not previously announced.
Financial impact: The amendment is estimated to have no impact on receipts over the forward estimates period.
Human rights implications: Schedule 2 to the Bill raises human rights issues. See Statement of Compatibility with Human Rights - Chapter 6.
Compliance cost impact: An exemption from Regulation Impact Statement requirements was granted by the Prime Minister as there were urgent and unforeseen circumstances.
Schedule 3 - Tax-free treatment of payments from COVID-19 business support programs
Schedule 3 to the Bill makes amendments to the income tax law to make payments received by eligible businesses under certain COVID-19 business support programs administered by the Commonwealth non-assessable non-exempt income so that the payments are not subject to income tax.
Date of effect: The amendments commence the day after Royal Assent. The amendments apply to assessments for income years ending on or after 1 July 2021.
Proposal announced: Not previously announced.
Financial impact: The amendments are estimated to have no impact on receipts over the forward estimates period.
Human rights implications: Schedule 3 to the Bill does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 6.
Compliance cost impact: An exemption from Regulation Impact Statement requirements was granted by the Prime Minister as there were urgent and unforeseen circumstances.
Schedule 4 - Modification power
This Schedule was prepared by the Attorney-General's Department.
Schedule 4 to the Bill amends Schedule 5 to the Coronavirus (Measures No. 2) Act to reintroduce a temporary mechanism for responsible Ministers to change arrangements for meeting information and documentary requirements under Commonwealth legislation, including requirements to give information and produce, witness and sign documents, in response to the challenges posed by COVID-19. This mechanism was previously included in Schedule 5 to the Coronavirus (Measures No. 2) Act as a temporary measure terminating at the end of 31 December 2020. The Bill will ensure that the mechanism is reintroduced under Schedule 5 to the Coronavirus (Measures No. 2) Act, in response to the ongoing challenges posed by COVID-19, and the mechanism will have effect until 31 December 2022.
Date of effect: The amendments commence the day after Royal Assent.
Proposal announced: Not previously announced.
Financial impact: Nil.
Human rights implications: Schedule 4 to the Bill does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 6.
Compliance cost impact: An exemption from Regulation Impact Statement requirements was granted by the Prime Minister as there were urgent and unforeseen circumstances.
Schedule 5 - Tax-free treatment of COVID-19 disaster payments
Schedule 5 to the Bill amends the income tax law to make Commonwealth COVID-19 disaster payments to individuals non-assessable non-exempt income so that the payments are not subject to income tax.
Date of effect: The amendments apply to the 2020-21 income year and later income years for qualifying payments.
Proposal announced: Not previously announced.
Financial impact: This measure is estimated to result in a small but unquantifiable decrease in receipts over the forward estimates period.
Human rights implications: Schedule 5 to the Bill does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 6.
Compliance cost impact: An exemption from Regulation Impact Statement requirements was granted by the Prime Minister as there were urgent and unforeseen circumstances.
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