Jane Hume (Victoria, Liberal Party, Assistant Minister for Superannuation, Financial Services and Financial Technology) Share this | Hansard source

Firstly, I would like to thank those senators who have contributed to the debate this morning. I think for the most part it's been very constructive and supportive of the government's position. This bill, the Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019, amends the Corporations Act 2001, the A New Tax System (Goods and Services Tax) Act 1999 and the Taxation Administration Act 1953 to address illegal phoenixing activity.

Illegal phoenixing has been a problem for successive governments over many decades. Illegal phoenix activity hurts all Australians, including small businesses and individual contractors and suppliers that are left unpaid and out of pocket; customers who get scammed by not receiving their paid goods and services; and employees who haven't been paid their entitlements. Ultimately, all Australian taxpayers are the ones who bear the burden of unrecovered tax debts left behind by phoenix activity.

This bill will give our regulators additional enforcement and regulatory tools to better detect and disrupt illegal phoenix activity, and to prosecute and penalise directors and others who engage in or facilitate this illegal activity. There has been broad consultation with stakeholders on the policy and legislation. There is a parliamentary amendment put forward by the opposition that seeks a review of the operations of schedules 1, 3 and 4 of the bill five years after the act receives royal assent. The government, I should flag to the chamber, has agreed to this review after a five-year period. Five years, we believe, is an appropriate period for insolvency and tax law reform and should ensure there is sufficient data to support the review, so we will be supporting that amendment.

This bill was previously considered by the Senate Economics Legislation Committee, which recommended that the bill be passed. The Morrison government is committed to tackling illegal phoenixing activity to protect honest and hardworking Australians and small businesses, employees and taxpayers. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.