Second Reading Speech
Ms O'Dwyer (Minister for Revenue and Financial Services)I move:
That this bill be now read a second time.
Today, I introduce a bill to implement two government measures.
Schedule 1 of this bill makes minor technical amendments to the income tax law to ensure that two National Innovation and Science Agenda (NISA) measures operate in accordance with their original policy intent.
These measures are the Tax Incentives for Early Stage Investors measure and the New Arrangements for Venture Capital Limited Partnerships measure. Together, they are designed to promote a culture of entrepreneurship by connecting start-up companies with investors who have both the requisite funds and business experience to assist entrepreneurs to build successful, innovative companies.
These two measures, together with the minor technical amendments in schedule 1, demonstrate the government's commitment to encouraging and supporting innovative new businesses.
The amendments will clarify the tax law to provide certainty for investors who are looking to invest in start-ups and certain venture capital arrangements through a single interposed trust and will ensure that these investors are able to access the capital gains tax concessions provided by the Tax Incentives for Early Stage Investors and the New Arrangements for Venture Capital Limited Partnerships measures.
Schedule 2 of the bill amends the Australian Securities and Investments Commission Act 2011to streamline the process by which the Australian Securities and Investments Commission may share confidential information with the Australian Taxation Office for its use in the performance of its functions.
The amendment mirrors the existing arrangements in place for the Australian Securities and Investments Commission to share information with the Reserve Bank of Australia and the Australian Prudential Regulation Authority. It will enable more timely collaboration between the Australian Securities and Investments Commission and the Australian Taxation Office during investigations into illegal or high-risk activities, for example, illegal phoenixing activity.
Full details of the two measures are contained in the explanatory memorandum.
Debate adjourned.
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