Andrew Leigh (Fenner, Australian Labor Party, Shadow Assistant Treasurer) Share this | Hansard source

Labor agrees to support this bill, the Treasury Laws Amendment (2017 Measures No. 1) Bill 2017, which puts in place a number of straightforward technical amendments. Schedule 1 implements minor technical changes to the income tax law to ensure that the National Innovation and Science Agenda measures in the Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 operate in accordance with their original policy intent. That act in 2016 implemented measures to provide concessional tax treatment for investors in innovative, potentially high-growth start-ups and reform tax arrangements for venture capital limited partnerships to improve access to capital and make the regime more user-friendly and more internationally competitive.

Currently investors that invest through an interposed trust—that being an investment trust operated through an intermediary—are not able to access the capital gains concessions provided by these two measures. However, it was intended that those measures would apply to these types of investors. So schedule 1 of the bill makes technical corrections to ensure that the Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 operates in accordance with the original policy intent, meaning that investors investing through an interposed trust are able to access the capital gains concessions provided by the tax incentives for early-stage investors and venture capital investment measures.

Schedule 2 of the bill amends the Australian Securities and Investments Commission Act to allow ASIC to more readily share confidential information with the Commissioner of Taxation. It does so by specifying that the sharing of confidential ASIC information with the Commissioner of Taxation is an authorised use and disclosure of that information.

ASIC and the Commissioner of Taxation, understandably, operate around strict confidentiality rules relating to the use and disclosure of their information. ASIC is able to share confidential information with certain prescribed individuals and entities, including the minister, the Reserve Bank and the Australian Prudential Regulation Authority. But, as things currently stand, ASIC cannot share information with the Commissioner of Taxation unless the chairperson or delegate of ASIC is satisfied that doing so would enable or assist the Commissioner of Taxation to perform or exercise their functions or powers. This is in addition to the Commissioner of Taxation—him or herself—being satisfied that they have the authority to receive and utilise the information.

The result causes inefficiencies and hinders effective collaboration between the agencies in ensuring compliance and in investigating potential illegal activity. Where ASIC has shared information with the Commissioner of Taxation, the information, under this bill, would remain protected from unauthorised disclosure, as division 355 of schedule 1 to the Taxation Administration Act 1953 makes the unauthorised disclosure of confidential information an offence.

As I said at the outset, the amendments in this bill are uncontroversial. They should assist start-ups and assist ASIC and the ATO to work together to investigate corporate and tax fraud. Labor is pleased to support the speedy passage of this bill through the House.

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