Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Hansard source

I move opposition amendment (1) on sheet 8452:

(1) Schedule 3, page 10 (after line 29) after item 3, insert:

3A At the end of Subdivision 118-F Add:

118-455 Impact Assessment of this Subdivision

(1) As soon as practicable after 24 months after the Treasury Laws Amendment (Tax Integrity and Other Measures) Act 2018 receives the Royal Assent, the Minister must cause an impact assessment of the operation of this Subdivision and other related tax concessions to be conducted.

(2) The impact assessment must:

(a) examine the operation of the tax concession regime for:

  (i) investments made through a *VCLP, *ESVCLP or *AFOF; and

  (ii) investments made directly by foreign residents registered under Part 3 of the Venture Capital Act 2002; and

(b) be conducted by the Department and Innovation and Science Australia; and

(c) make provision for public consultation.

(3) For the purposes of conducting the impact assessment, the reference to Innovation and Science Australia in item 6 of the table in subsection 355-65(4) of Schedule 1 to the Taxation Administration Act 1953 is taken to include the Secretary of the Department.

(4) The Minister must cause a written report about the impact assessment to be prepared.

(5) The Minister must cause a copy of the report to be tabled in each House of the Parliament within 15 sitting days of that House after the day on which the report is given to the Minister.

This amendment requires the minister to instigate an impact assessment of the venture capital tax concession provisions overall, including the measures in schedule 3 to this bill, to ensure they're operating as intended. This impact assessment would be conducted by Treasury and by Innovation and Science Australia, and would be required to commence 24 months after this bill receives royal assent. Labor's position strikes the right balance in supporting this particular measure but also requires the government to conduct a comprehensive, transparent review of the venture capital tax concession framework.