Andrew Leigh (Fenner, Australian Labor Party, Assistant Minister for Competition, Charities and Treasury) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

This bill contains six schedules which range from red tape to red carpet and deliver better financial outcomes while improving the integrity of the Australian taxation system.

Schedule 1 to the bill delivers the first tranche of the Delivering Better Financial Outcomes package, the government's response to the Quality of Advice Review.

It amends the Corporations Act 2001 to streamline ongoing fee renewal and consent requirements into a single form, provide more flexibility for advice providers in how financial services guide requirements can be met, simplify the rules banning conflicted remuneration and introduce new consumer consent requirements for certain insurance commissions. This schedule also amends the Superannuation Industry (Supervision) Act 1993 and Income Tax Assessment Act 1997 to provide a clear legal basis for the payment of advice fees from superannuation and associated tax consequences.

These amendments support improved access to affordable financial advice for millions of Australians by cutting onerous red tape that adds to the cost of advice with no benefit to consumers.

Schedule 2 to the bill updates the petroleum resource rent tax general anti-avoidance rules so that they align with the more robust approach of the general anti-avoidance provisions contained in part IVA of the Income Tax Assessment Act 1936.

Schedule 3 to the bill amends the Petroleum Resource Rent Tax Assessment Act 1987 to clarify the meaning of the phrase 'exploration for petroleum'. It also clarifies that mining, quarrying or prospecting rights cannot be depreciated for income tax purposes until they are used, not merely held and the circumstances in which the issue of new rights over areas covered by existing rights lead to income tax adjustments.

Schedule 4 to the bill amends domestic legislation governing Australia's agreements with international financial institutions to automatically incorporate amendments made to the treaties between Australia and these institutions. This reflects modern drafting practises and will avoid administratively burdensome processes, helping Australia honour its commitments to the international financial institutions that we are a member of.

Schedule 5 to the bill amends various laws in the Treasury portfolio to ensure those laws operate in accordance with policy intent, makes minor changes to improve administrative outcomes and remedies unintended consequences, as well as corrects technical and drafting defects.

Schedule 6 to the bill amends the Income Tax Assessment Act 1997 to make changes to the location tax offset to attract international investment in the Australian screen industry and provide domestic employment and training opportunities.

The location tax offset is a refundable tax offset designed to encourage large-scale film and television productions to film in Australia. These changes increase the rate of the location tax offset from 16.5 per cent to 30 per cent.

The minimum qualifying Australian production thresholds will also increase to $20 million and $1.5 million per hour for television series.

To maximise the domestic employment and training opportunities these productions provide in the Australian screen industry, the changes introduce new eligibility criteria, requiring productions to meet the minimum training obligations or contribute to the broader workforce and infrastructure capacity of the sector, as well engage one or more Australian post, digital and visual effects provider to work on the production.

Schedule 6 also introduces an alternative minimum expenditure threshold to the producer tax offset for drama series of $35 million per season in qualifying Australian production expenditure.

This change will allow iconic long-form Australian drama series that film significant numbers of hours over a season to be eligible to access the producer tax offset where they have not been able to meet the existing per hour expenditure threshold.

Finally, the Legislative and Governance Forum on Corporations and the GST policy and administration sub-group were notified of relevant amendments in the bill.

I want to thank the office of the Assistance Treasurer, who is on leave this week, for their assistance in preparing this bill and these remarks. Full details of the measure are contained in the explanatory memorandum. I commend the bill to the House.

Debate adjourned.