Bernie Ripoll (Oxley, Australian Labor Party) Share this | Link to this | Hansard source

I promise the House and the Minister for Defence, who is at the table, that my contribution on the Tax Laws Amendment (Confidentiality of Taxpayer Information) Bill 2010 will be brief. I know there are many items on today’s agenda. People’s tax affairs are very much a matter between themselves, the Taxation Office and God. This bill continues that spirit. Initially, 38 submissions formed part of the review of this legislation, and all broadly supported the intent to consolidate taxation secrecy and disclosure provisions. Some concerns were raised and they have been incorporated into the legislation.

The bill consolidates taxation secrecy and disclosure provisions currently scattered across a whole range of acts into a single framework. There are some 18 taxation acts, and this will bring them all together. Current provisions are spread across different types of taxation law and are drafted in different styles. This has led to inconsistency and in many cases confusion and complexity, and it only increases the regulatory burden and compliance costs and generally becomes a headache for ordinary people. These inconsistencies can also undermine the purpose of the current law in terms of the protection of taxpayer information. It is exceptionally important to ensure a proper system of taxation confidentiality and secrecy, particularly to give taxpayers themselves confidence in the tax system. The new framework will continue to prohibit the unauthorised provision of taxpayer information obtained or generated through administering a taxation law. This will remain a criminal offence.

There are times when we need to overcome ambiguities in definitions, and this applies particularly in areas such as protected information, taxation law and who is actually a taxation officer. This legislation clarifies those bits of information. It also sets out clear rules about the on-disclosure of information to non-taxation officers and it makes clear who can be the recipient of such information. The bill also introduces new disclosure provisions where public benefit outweighs taxpayer privacy. In all these systems and laws and regulations, if there is a great public interest or benefit—particularly where there is a benefit that outweighs the privacy of a particular taxpayer—then disclosure ought to be allowable under proper guidance. The bill will provide for greater disclosure to the Australian Securities and Investments Commission to facilitate enhanced cooperation between that regulator and the Australian Taxation Office in addressing fraudulent activity. This can only be a good thing. The bill has also been considered by the Senate Economics Legislation Committee, which recommended that it be passed.

This is a good bill which draws together a number of acts and reduces complexity. It will reduce costs over time. It also reduces the volume of taxation law and reflects the government’s commitment to simplifying the operation of taxation laws and removing bureaucracy, red tape and inconsistencies where they exist. I believe this bill strikes the right balance between protecting taxpayer information and facilitating the work of government. I understand there is broad acceptance of and a commitment to this bill across the chamber. I commend the bill to the House.

Tony Smith (Casey, Liberal Party, Deputy Chairman , Coalition Policy Development Committee) Share this | Link to this | Hansard source

by leave—When the Tax Laws Amendment (Confidentiality of Taxpayer Information) Bill 2010 was first introduced I circulated, on behalf of the shadow Assistant Treasurer, Senator Cormann, some amendments that we believed were important, that would have enhanced the bill and would have provided a number of protections since that time. There have been ongoing discussions between the minister’s office and the shadow Assistant Treasurer. We believe goodwill is being shown. A number of those amendments have been drafted and, whilst agreement has not been reached, I am advised there has been some significant progress.

The coalition is very concerned to ensure that taxpayers have a high level of confidence in the way the Taxation Office uses information. The amendments under negotiation seek to increase the reporting requirements on a number of categories of protected disclosures to ministers, law enforcement agencies and other government agencies. The proposed amendments will also seek to impose a greater level of internal oversight on certain types of disclosure by requiring a matter to be referred to a more senior officer, as recommended by a unanimous Senate Economics Legislation Committee report. Finally, the proposed amendments drafted by the coalition require that the ATO publish its internal procedures and that those procedures be disallowable instruments. This will give the parliament and the public an increased level of oversight of the way the Australian Taxation Office treats protected information.

I am advised, as I have said, that there has been significant progress and that the government has agreed to some of the amendments although it has concern with others. As a result, the discussions are ongoing and have not reached finality. Accordingly, the coalition will not be moving amendments in the House or opposing the bill. These negotiations will be ongoing and we will be moving amendments in the Senate when the bill goes there for further deliberations. Hopefully the government will agree to and support the amendments after further discussions.

Stephen Smith (Perth, Australian Labor Party, Deputy Leader of the House) Share this | Link to this | Hansard source

I thank the honourable member for Casey for his contribution; it accurately reflects the instructions I have from the Assistant Treasurer. Those discussions, which are taking place in goodwill, are ongoing and we may see a positive outcome in another place. Given that all members who wish to speak on the second reading have spoken, on behalf of the Assistant Treasurer I thank all members who have contributed to the debate on the Tax Laws Amendment (Confidentiality of Taxpayer Information) Bill 2010.

The bill reflects the government’s commitment to reducing the volume and complexity of the taxation law. The primary purpose of the bill is to consolidate into a single framework the taxation secrecy and disclosure provisions that are currently found across 18 different taxation acts. In doing so, it will overcome inconsistencies and ambiguities associated with the existing provisions.

The bill affirms the importance of maintaining a high level of protection of information provided by taxpayers. As with the current law, it will impose serious sanctions for the unauthorised disclosure of taxpayer information. The bill recognises that while the key principle of the taxation secrecy and disclosure framework is the protection of taxation information, there is often a public benefit in providing government agencies access to taxpayer information.

The bill also recognises that in certain circumstances the use of taxpayer information by agencies other than the Taxation Office can facilitate more effective delivery of government services and can greatly assist law enforcement efforts; however, it will also ensure that, where taxpayer information is shared with another agency, that agency has clear obligations to continue to maintain the integrity of that information.

Taxpayer information can play an important role in whole-of-government approaches to combating serious crime; therefore, the bill will allow taxation officers to disclose taxpayer information to a court or tribunal for the prosecution of particular offences. Disclosures will also be made to law enforcement agencies to assist with the new unexplained wealth regime.

The bill also gives effect to recommendations made by the Senate Standing Committee of Privileges with respect to disclosures to ministers and parliament. As recommended by the committee, the bill does not affect disclosures of taxpayer information to parliament and parliamentary committees. Such disclosures will continue to be governed by parliamentary privilege. However, the bill clarifies the circumstances in which disclosures can be made to ministers, ensuring that taxpayer information is only disclosed to a minister for specified purposes.

Public consultation on an exposure draft bill and on an earlier discussion paper confirmed that there was broad support to consolidate the existing tax secrecy and disclosure provisions. The government appreciates the input of interested parties to the draft bill, and many of the comments received have contributed to the development of the bill before us. On behalf of the Assistant Treasurer, I thank members for their contributions. I thank the honourable member for Casey for the spirit in which those discussions are ongoing. I commend the bill to the House.

Bill read a second time.