Josh Frydenberg (Kooyong, Liberal Party, Assistant Treasurer) Share this | Hansard source

Firstly, I would like to thank those members on both sides of the House who have contributed to this debate. I welcome the opposition's decision not to oppose the bill. Schedule 1 makes the superannuation tax laws fairer. It is a measure that delivers on an election commitment. When individuals exceed their non-concessional contribution, they need no longer be subject to the highly punitive excess contribution tax regime. It will enable individuals to save for their retirement with more confidence.

Schedule 2 transfers the Commonwealth Ombudsman's investigative and complaint-handling function relating to tax law to the Inspector-General of Taxation. The transfer will concentrate scarce tax expertise in a single agency, enabling more efficient use of that expertise and improved customer focus. The changes will also simplify the scrutiny landscape.

Schedule 3 makes minor amendments to the taxation laws to ensure the proper functioning of capital gains tax provisions in relation to life insurance policies. The intention is that compensation and damages received by trustees and beneficiaries—for example, for a workplace injury—are not subject to capital gains tax. This schedule puts into legislation another of Labor's 92 announced but unenacted measures left to us on coming to government.

Schedule 4 clarifies the capital gains tax treatment of assets when one superannuation fund merges with another. This schedule will legislate yet another of Labor's announced but unenacted measures. Schedule 5 clarifies the ATO's ability to share information with Commonwealth, state and territory law enforcement agencies seeking proceeds of crime orders. Schedule 6 and the Excess Exploration Credit Tax Bill 2014 provide for the introduction of an exploration development incentive to encourage investment in small mineral exploration companies undertaking greenfield exploration in Australia. The coalition is delivering on another election commitment.

Schedule 7 makes a number of amendments across the tax law to provide certainty to taxpayers. They make sure the law operates as intended by correcting technical or drafting defects, removing anomalies and addressing unintended outcomes. I commend this bill to the House.

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