House of Representatives

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 make amendments to reduce the regulatory burden and the cost for taxpayers and improve compliance with tax laws. The bill also delivers on the government's election commitment to provide greater flexibility for downsizers aged 55 years and over to make contributions into their superannuation.

Schedule 1 to the bill makes it easier for small businesses to comply with their record-keeping obligations. If a business is genuinely struggling to keep appropriate tax records, the Commissioner of Taxation will be allowed to offer the business a choice to undertake a record-keeping course rather than paying financial penalties.

The education course will be free, take approximately two hours to complete, and is expected to be delivered online.

Schedule 2 to the bill extends existing third-party reporting requirements to operators of electronic platforms in the sharing economy. Platform operators will be required to report to the Australian Taxation Office (ATO) information regarding certain transactions that occur on their platforms, such as seller identification and payment details. This information will assist the ATO in its administration of the tax system and ensure sellers on these platforms are meeting their tax obligations.

As Australia's sharing economy continues to grow, a transparency gap has emerged as existing tax reporting requirements do not adequately capture information about transactions in this part of the economy.

Extending existing third-party reporting requirements to operators of electronic platforms will address this transparency gap, helping to level the tax compliance playing field with other business operators in the economy.

Schedule 3 to the bill amends the Income Tax Assessment Act 1936 and makes consequential amendments to the Fringe Benefits Tax Act 1986 to remove the exclusion as deductible expenses of the first $250 of expenses for prescribed courses of education.

These amendments will reduce compliance costs for individuals claiming self-education expense deductions.

The changes will apply to assessments for the 2022-23 income year and later income years, following royal assent.

Schedule 4 to the bill allows small businesses to seek orders from the Administrative Appeals Tribunal (AAT) that stay, or otherwise affect, ATO debt recovery actions while the small business is disputing the underlying tax assessment in the Small Business Taxation Division of the AAT.

These amendments implement the 2021-22 budget measure 'Increased powers for the Administrative Appeals Tribunal in relation to small business taxation decisions'.

Small businesses will save in court and legal fees and as much as 60 days waiting for a decision, compared with the current process of applying to a state or federal court for a stay on debt recovery.

These orders will be subject to integrity checks intended to prevent aggressive taxpayers, without genuine disputes, from receiving stay orders sought with the intention of frustrating the recovery of genuine tax debts.

Schedule 5 to the bill expands eligibility for those aged 55 years and over to make downsizer contributions into superannuation.

This will allow more Australians to make a one-off post-tax contribution of up to $300,000 per person when they sell their family home.

This modest change in the eligibility age for the downsizer program complements the government's comprehensive plan on housing to improve access and affordability. This measure will increase the availability of suitable housing for growing Australian families by encouraging more older Australians to downsize to homes that better meet their needs.

Full details of the measures are contained in the explanatory memorandum.

Debate adjourned.