Senate

Supplementary Explanatory Memorandum

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

Chapter 2 - Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Amendments to the Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019

2.1 These amendments are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview

2.2 The amendments to Schedule 3 to the Bill make clear that deductions are available for entities that incur costs in holding land:

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that becomes or is treated as being vacant due to significant and unusual events or occurrences outside the reasonable control of the entity, such as fire, flood, or substantial building defects;

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while carrying on a business of primary production; or

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that is used by another entity in carrying on a business.

2.3 The amendments ensure that the integrity rules set out in Schedule 3 do not adversely affect:

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entities solely because land the entity holds is affected by a natural disaster or other unforeseeable event beyond their control;

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primary producers because of the ways in which many forms of primary production make use of land; and

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land being used for business purposes under arm's length arrangements.

Human rights implications

2.4 These amendments do not engage any of the applicable rights or freedoms.

Conclusion

2.5 These amendments are is compatible with human rights as they do not raise any human rights issues.