John Alexander (Bennelong, Liberal Party) Share this | Hansard source

I rise to speak on the Treasury Laws Amendment (2020 Measures No. 4) Bill 2020. Whilst it might not sound like the most glamorous bill to come before our parliament, it's an important one comprised of a number of streamlining and integrity measures. Schedule 1 of the bill will amend the Income Tax Assessment Act 1997 to make refunds on large-scale generation shortfall charges non-assessable, non-exempt, for income tax purposes. Why is this important? Well, it will provide certainty that no tax is payable when energy retailers and other liable entities receive a refund of the large-scale generation certificate shortfall charge. This will enable the market for large-scale generation certificates to work as intended, meeting targets for energy while minimising cost impacts ensuring affordable electricity for consumers.

Now, more than ever, affordable energy is crucial as we look to recover from the economic impact of COVID-19. This government has always been focused on ensuring energy is affordable and reliable for households and businesses whilst at the same time honouring our commitments to reduce emissions. Importantly, I note there are no changes to renewable energy targets, no decrease in penalties for noncompliance. It will simply provide certainty for taxpayers so that they are not inadvertently disadvantaged when they receive a refund of shortfall charges.

Schedule 2 of the bill addresses the transitional provisions relating to the repeal of the Superannuation (Resolution of Complaints) Act 1993. These amendments will ensure that the closure of Superannuation Complaints Tribunal is smooth, that administrative arrangements are in place to allow ASIC to undertake ongoing management of Superannuation Complaints Tribunal records and that any outstanding cases are appropriately passed on to the Australian Financial Complaints Authority.

It was in 2017 that the government agreed to the recommendations of the Ramsay review to establish the Australian Financial Complaints Authority, AFCA, to replace the Superannuation Complaints Tribunal. The review's recommendation was that there be a single external dispute resolution body for all financial disputes—that is, AFCA. AFCA are there to assist consumers and small businesses with fair, free and independent dispute resolution for financial complaints. They are impartial and independent, and I have encouraged my constituents to reach out to them when they have been unable to resolve complaints directly with their financial services provider.

Turning now to schedule 3 of this bill, which considers industry code penalties under part IVB of the Competition and Consumer Act 2010, the government will establish a more effective enforcement regime to encourage greater compliance of the franchise code by amending the Competition and Consumer Act of 2010 to increase the maximum civil pecuniary penalty available for a breach of an industry code from 300 to 600 penalties points and increasing the civil pecuniary penalties for breaches of the franchising code accordingly. I note that it is in response to the Parliamentary Joint Committee on Corporations and Financial Services report FairnessIn Franchising that the government has committed to increasing civil penalties available for breaches of the Franchising Code of Conduct. It is imperative that we provide a strong deterrent against breaches of the franchising code across the franchising sector. Such penalties in the code are appropriate and necessary. Having sufficient penalties will allow the Australian Competition and Consumer Commission to help protect prospective vulnerable franchisees against exploitive behaviour by their franchisors.

In recent times I've been contacted by local car dealership franchisees raising concerns regarding how they were treated by their franchisor. Like many small and family businesses, Australia's automotive dealers are vital pillars of our local communities, major employers and part of the lifeblood of our economy. However, the power imbalance between new car dealers and manufacturers meant it could be difficult for dealers to negotiate terms and receive fair compensation at the end of an agreement and effectively resolve disputes. That's why it was great news when the government announced an automotive franchising reform package to support Australia's hardworking automotive dealers. We want to deter exploitive behaviour and ensure Australia's largest franchisors do not see fines as merely a cost of doing business.

Lastly, I will speak about schedule 4 of the bill, which addresses the extension of modification power. This measure extends the power which allows responsible ministers to change arrangements for complying with information and documentary requirements under Commonwealth legislation in response to challenges posed by the coronavirus pandemic. The extension of this power addresses continuing difficulties experienced by individuals, businesses and government agencies in complying with information and documentary requirements, including requirements to witness and sign documents. It is important to provide the flexibility to temporarily adjust information and documentary requirements in order to ensure the continuation of business transactions and government service delivery.

Australia has done a fantastic job in navigating through the COVID-19 pandemic over the last year. Australians have all played their part and we should be very proud of our efforts, particularly when you look around the world and see how other countries have been unable to effectively control the virus. We are now able to reap the rewards of our sacrifices and efforts as we get back out there and enjoy our wonderful, safe and prosperous country. We have already seen the tremendous way in which our economy has bounced back, which was made possible because we got COVID-19 under control.

However, we must not get complacent, with many businesses doing it tough following the economic hit of the pandemic and, hence, the necessity of providing a mechanism to extend the operation of the temporary mechanism. The mechanism allows for further extensions in response to the coronavirus pandemic to occur more flexibly and in a timely manner should the coronavirus pandemic continue to cause difficulties in complying with information and documentary requirements. This provides continued flexibility to enable necessary temporary adjustments to legal obligations. Understandably, it is important to allow further extensions to occur more flexibly and in a timely manner should the coronavirus pandemic continue to cause difficulties in complying with information and documentary requirements. As I noted when I rose, these matters are vital and necessary in streamlining and integrity measures.

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