Kelly O'Dwyer (Higgins, Liberal Party, Minister for Revenue and Financial Services) Share this | Hansard source

I thank the member for Mackellar for his sterling contribution to this debate on the Treasury Laws Amendment (Black Economy Taskforce Measures No. 1) Bill 2018. Firstly, I'd like to thank those members who have contributed to this debate.

This bill is the first instalment in the government's legislative response to the Black Economy Taskforce interim report. In last year's budget, the government responded to the Black Economy Taskforce's interim report by announcing measures to address the growing economic and social problem of the black economy. The non-reporting of income by contractors and the use of technology to conceal income are two such black economy activities that are targeted in this bill. More broadly, participation in the black economy undermines the community's trust in the tax system, creates an uneven playing field for business, fosters the exploitation of workers and results in loss of government revenue and undue welfare expenses.

Schedule 1 to this bill bans the manufacture, distribution, possession, sale and use of sale suppression technology. This technology has no legitimate use and allows businesses to understate their income. Large penalties for the use and possession of this software will strongly discourage its use. Currently, penalties are confined to the taxpayer for minimising their tax obligations. This is not a sufficient deterrent to this behaviour. This bill casts the net over those involved in manufacturing, supplying and using this software.

Schedule 2 to this bill provides that businesses that are in the courier or cleaning industries will be required to report to the Australian Taxation office details of payments they make to contractors who provide courier or cleaning services. The expansion of the taxable payments reporting system to the high-risk industries of couriers and cleaning will result in improved compliance in GST and income reporting.

The government is committed to countering the black economy and its practices in Australia. I commend the bill to the House.

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