Sam Dastyari (NSW, Australian Labor Party) Share this | Hansard source

I am pleased to rise on behalf of the opposition to speak to the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Bill 2016. I can advise the chamber that Labor will be supporting this bill. This bill has been the subject of an inquiry by the Senate Economics Legislation Committee. Labor were particularly keen to scrutinise schedules 1 and 2 of the bill. In the other place, our shadow Assistant Treasurer, Mr Leigh, noted that, whilst Labor supported the intention of both these measures, we wanted to leave open the option of moving amendments in the Senate subject to the committee's findings. In light of the committee's inquiry and report, Labor do not believe it is necessary to move amendments of our own and we will be supporting the bill and the government's amendments.

The Deputy Chair of the Senate Economics Legislation Committee, Senator Ketter, made several observations in his additional comments. Senator Ketter noted that Labor senators welcomed the intent of the measures in schedule 1 but wanted to note that submissions to Treasury consultations during the exposure draft phase of the bill were not made public. I would appreciate it if the minister could clarify in his summing up remarks or during the Committee of the Whole debate on this bill whether the submissions have now been made public.

Senator Ketter also remarked that the explanatory memorandum of the bill and the committee report acknowledge the difficulty in enforcement, both in ensuring Australian consumers do not misrepresent their location status to avoid paying GST and in ensuring that foreign businesses collect GST revenue. Labor senators noted that the committee report makes reference to international experiences showing larger entities will voluntarily comply but does not make reference to smaller and medium-sized entities covered by the legislation.

Labor senators also noted the committee report acknowledges the possibility of an Australian Taxation Office review of the laws being required in the event that they do not operate as intended. Senator Ketter concluded his remarks by saying that on the understanding the government has done its due diligence in designing the measure, the intent of which Labor senators support, we nevertheless welcome the acknowledgement that an Australian Taxation Office review may be required in the future to ensure this measure operates as intended.

Ultimately, this is another tax bill and another reminder of the Treasurer's play-it-by-ear approach to tax reform. Mr Morrison has been all over the shop on tax reform; not even the resident galah would be able to keep up with him. Labor has concerns about the haphazard approach to tax reform and to this bill. I note that the government has had to bring forward amendments here in the Senate to address issues that were picked up during consultation. Whilst Labor will support these, it just serves to demonstrate that, when it comes to tax policy, the government is bouncing from one thing to another, and it is clear at a broad policy level and in the minutiae of tax changes, such as those in schedules 1 and 2 of this bill.

Labor supports the intent of these measures, in particular schedules 1 and 2, but believes it is important to make sure they operate as intended and that there are no unexpected adverse consequences. Once again, following the scrutiny applied by the Senate Economics Legislation Committee—and I thank Labor senators on that committee for their efforts—Labor will support this bill and the government's amendments. I thank the Senate.