Second Reading Speech
Mr JONES (Whitlam - Assistant Treasurer and Minister for Financial Services)I move:
That this bill be now read a second time.
The bill will amend the International Tax Agreements Act 1953 to implement the agreement reached between Australia and India on 2 April 2022 as part of the Australia-India Economic Cooperation and Trade Agreement.
Specifically, the bill will adjust the taxation on certain payments or credits made to Indian residents providing technical services remotely to Australian customers. It aligns Australia's tax treatment of Indian residents providing technical services remotely with residents from other countries.
As Australia's seventh largest trading partner, India shares a close economic relationship with Australia. This measure will further strengthen that relationship.
In accordance with the trade agreement's side letters on taxation, this measure will commence on the latter of the day of royal assent and the day the trade agreement enters into force. It will apply to assessments for income years starting on or after the commencement of this amendment. It does not commence at all if the trade agreement never enters into force.
Full details of the measure are contained in the explanatory memorandum.
Debate adjourned.
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