Guy Barnett (Tasmania, Liberal Party) Share this | Hansard source

I thank Senator Sherry and Senator Brandis for that dialogue across the chamber. I am pleased that the minister is willing to accept those amendments put by the coalition.

During his second reading speech, the minister referred to the number of small businesses affected. He said there would be 6,800 entities paying $284 a year in the first year. The advice I have from AUSTRAC is that they have estimated that in that first year there will be 8,512 leviable entities subject to the base component. Clearly there is a difference of 1,712 small business entities between your advice and the advice provided by AUSTRAC. For the record, I think we should get clarity around how many entities are likely to be required to pay that base component.

You suggested that we said there had not been adequate consultation, but we did not say that. I did not say that; I said there had been consultation. What we were supporting in our recommendation was an education and information effort by the government going forward, bearing in mind this is starting on Friday next week, 1 July. I ask the govern­ment to positively consider a proper education campaign going forward. Of course there has been consultation, and there was a discussion paper. I make the point that the cost recovery model did change earlier this year. Here we are in June; it changed in January or February or thereabouts. So you cannot just say that business across the board is totally up to date with exactly where we are. There have been changes along the way. AUSTRAC knows this and the government knows this, and that is why businesses need to be advised of the latest developments and changes and exactly how they will be affected.

The minister also said in his second reading speech that there would be no late payment penalty for the first three months. We recommended that it be extended for at least six months through to the end of this year because the first three months is not adequate—it should be six months.

I thank the minister for agreeing to Senator Brandis's recommendations and the coalition's amendments and look forward to his feedback on the number of entities that will be subject to the base component.