Steve Irons (Swan, Liberal Party, Assistant Minister to the Prime Minister) Share this | Hansard source

Firstly, I'd like to thank those members who have contributed to this debate, and the member for Grayndler for jumping up—even though he wasn't on the list! But I thank him for giving us enough time to finish off the summing up.

The government is continuing with important reforms to improve Australia's taxation regime for the managed funds industry. We are committed to setting an appropriate legislative framework for what is the largest managed funds industry in our region. Schedule 1 to the Treasury Laws Amendment (2018 Measures No. 5) Bill 2018 provides for a package of technical amendments that will clarify the law, provide industry with increased investment certainty and assist those entities considering whether to opt in to the attribution-managed investment trust regime. The schedule also includes an integrity measure that prevents investors in managed investment trusts from excluding certain income amounts from their cost base, to ensure that investors are paying the appropriate amount of tax.

Schedule 2 to this bill updates the list of specifically listed deductible gift recipients to include: the Australian Sports Foundation Charitable Fund, the Australian Women Donors Network; the Paul Ramsay Foundation Ltd, The Q Foundation Trust, the Smile Like Drake Foundation Ltd, and the Victorian Pride Centre. These changes ensure that taxpayers who make gifts or donations of $2 or more to these entities can claim an income tax deduction.

Each of these organisations promotes important aims. The Australian Sports Foundation Charitable Fund supports projects where sport is the vehicle to achieve charitable aims. The government is supporting the Australian Women Donors Network to provide a voice for gender-inclusive philanthropy across all focus areas, including education, health, disability, youth and the arts. The Paul Ramsay Foundation Limited pursues one or more of the following charitable purposes in Australia: advancing health, advancing education and advancing social or public welfare. The Q Foundation Trust advances education and engagement in science and technology in Australia.

By granting deductible-gift-recipient status to the Smile Like Drake Foundation Limited, the government is supporting research into preventing drowning. It provides water safety education programs for schools. The Victorian Pride Centre will own and operate a centre in the state of Victoria that will facilitate and host support services, facilities and resources for the lesbian, gay, bisexual, transgender and/or intersex community. Specifically listing these organisations will give them the certainty they need to fundraise successfully.

Schedule 3 to this bill extends deductible-gift-recipient status to entities promoting Indigenous languages. This extension of the deductible-gift-recipient status provides appropriate assistance through the tax system for the public to make donations to these organisations. This measure will enable entities promoting Indigenous languages to be endorsed as deductible gift recipients under the category of cultural organisations, subject to the entities meeting the other requirements for their deductible-gift-recipient status. This will enable taxpayers to claim an income tax deduction for donations of $2 or more to those entities. There are estimated to be 250 Aboriginal and Torres Strait Islander languages and over 600 dialects. The extension of the deductible-gift-recipient status to entities supporting Indigenous languages is just one measure that the government has in place to prevent the loss of these languages.

Schedule 4 of the bill repeals subsection 51(3) of the Competition and Consumer Act 2010. The Productivity Commission recommended repealing subsection 51(3) in its 2016 intellectual property arrangements inquiry report. The 2015 Competition Policy Review also recommended repealing subsection 51(3). Subsection 51(3) of the Competition and Consumer Act 2010 exempts licencing or assignment of intellectual property from most of the prohibitions of anticompetitive conduct under the Competition and Consumer Act. The Productivity Commission found that the rationale for the exemption has largely fallen away, as intellectual property rights and competition are no longer thought to be the fundamental conflict. The measure will ensure that commercial transactions involving intellectual property rights, including the assignment and licensing of such rights, will be subject to the prohibitions on anticompetitive conduct in the Competition and Consumer Act.

The measure will take effect on the day after the end of the period of six months, beginning on the day the bill receives the royal assent. This transitional period will allow individuals and businesses time to review existing arrangements to ensure they comply with the competition law. I commend this bill to the House.

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