Julie Owens (Parramatta, Australian Labor Party) Share this | Hansard source

On behalf of the Standing Committee on Economics, I present the committee's advisory report incorporating a dissenting report on the Tax and Superannuation Laws Amendment (2013 Measures No. 2) Bill 2013 together with the minutes of proceedings and I ask leave of the House to make a short statement in connection with the report.

Leave granted.

The committee supports the passage of the Tax and Superannuation Laws Amendment (2013 Measures No. 2) Bill 2013 which makes important and beneficial taxation and superannuation changes. The committee also recommends that the Treasury undertake further consultation with industry groups on an aspect of schedule 5 of the bill.

There are eight schedules in the bill. The committee did not receive any submissions on schedules 2, 3, 4, 7 and 8. The report focuses on issues raised in the other schedules—1, 5 and 6. Schedule 1 defines a 'documentary' for the purpose of accessing film tax offsets and makes explicit that game shows are not eligible programs. Currently, there is no definition of a documentary in the Income Tax Assessment Act 1997. The definition of 'documentary' to be inserted is based on the Australian Communications and Media Authority Guidelines, as was used by Screen Australia prior to the Lush House case. In the committee's view, it is a reasonable response by the Australian government to reinstate the definition that Screen Australia had previously used in administering the producer offset. The committee noted industry stakeholder concerns that the definition lacks flexibility. The committee believes there is a need for ongoing dialogue between Screen Australia and the industry to ensure that the application of the definition in schedule 1 remains responsive to the evolving documentary genre.

Schedule 2 exempts from income tax the ex-gratia payment made to people affected by natural disasters in Australia during June 2011-12 and 2012-13. It is warranted to extend these disaster assistance plan payments and their tax exempt status to New Zealand citizens holding non-protected special category visas who were affected by these disasters.

Schedule 3 enables eligible businesses to continue to pay GST instalments if they subsequently move into a net refund position. It will allow businesses to continue to make their business activity statements annually and retain the cost advantage of not having to submit a quarterly statement. Entities that are not paying GST by instalments and are already in a net refund position remain ineligible to use the instalment option.

Schedule 4 adds six entities to the list of deductible gift recipients, making donations to these organisations tax deductible. Schedule 5 will provide a legislative basis for identifying and merging multiple superannuation accounts within the same fund. Many super funds are already performing these mergers. Groups who participated in the inquiry supported the intent of schedule 5 to reduce the amount affected members pay in multiple sets of administration fees and insurance premiums and consequently increase retirement savings.

However, some industry groups expressed concern that the wording of the proposed subsection 108A(1)(c) could place undue liability on trustees by obligating them to examine each individual member's best interests rather than on a general trust fiduciary law basis, which is understood as acting in the collective best interests of members. The committee's view is that schedule 5 is making an important change to help super members maximise their retirement savings but recommends further Treasury consultation with industry groups to ensure that undue liability is not being inadvertently placed on trustees who are working in good faith for the benefit of their members. The committee also urges the Australian Prudential Regulation Authority to provide funds with guidance on circumstances which should trigger individual consideration of what constitutes a member's 'best interests'. Where funds are dealing with complex cases, the committee believes trustees should seek input from the affected members.

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