Nigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | Hansard source

First of all, I would like to thank those senators who have contributed to this debate on the Tax and Superannuation Laws Amendment (2014 Measures No. 7) Bill 2014 and the Excess Exploration Credit Tax Bill 2014.

Schedule 1 demonstrates that the government is committed to ensuring that individuals need no longer be disproportionately penalised for inadvertently exceeding their superannuation non-concessional contribution caps. Individuals will have greater confidence to save long term for their retirement.

Schedule 2 will provide for more efficiency in government by transferring the tax-complaints-handling and tax investigative functions of the Commonwealth Ombudsman to the Inspector-General of Taxation. The transfer will simplify tax scrutiny by replacing the split jurisdiction that exists currently with a single-agency jurisdiction over tax complaints and systemic reviews.

Schedule 3 ensures that life insurance policies are treated properly in the capital gains tax provisions of the taxation law.

Australians look for certainty in the superannuation tax and regulatory laws when saving for retirement. Schedule 4 shows that this government will deliver on that front. The measure will clarify that superannuation fund mergers will not trigger a tax integrity rule. This provides greater certainty for superannuation funds undertaking fund mergers to achieve greater efficiencies and comply with regulatory requirements. It also ensures that members do not incur a potential unintended tax disadvantage from the merger.

Schedule 5 clarifies the position of Commonwealth, state and territory law enforcement agencies regarding the ability of the Australian Taxation Office to share information with them.

Schedule 6 and the Excess Exploration Credit Tax Bill 2014 deliver on this government's election commitment to provide an exploration development incentive which will encourage greenfields exploration expenditure by junior exploration companies. The incentive recognises that the future prosperity of the mining sector and the Australian economy is dependent on our ability to make new mineral discoveries. It also recognises a tax disadvantage that junior exploration companies face relative to large miners and explorers. The cost of the incentive is capped at $100 million over three years. The scheme will be reviewed in 2016 and, subject to the outcome of the review, may be extended for a further period. The incentive is similar to a scheme in Canada which has been described as a spectacular success. The Canadian scheme has been extended numerous times since its introduction.

Schedule 7 provides increased certainty for taxpayers by making a number of tax law amendments. These address unintended legislative outcomes, correct defects in the law and make sure that the law operates as intended. I commend the bills to the Senate.

Question agreed to.

Bills read a second time.