Linda Reynolds (WA, Liberal Party) Share this | Link to this | Hansard source

The question is that the bill stand as printed.

(Quorum formed)

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

Last night I took a while explaining to the Senate the government's amendments and our position on the opposition's amendments—and I am pleased to remind the Senate that we are supportive of the opposition's amendments. Unsurprisingly, we are also supportive of the government amendments. I seek leave to move government amendments (1) and (2) on sheet GB134 together.

Leave granted.

I move:

(1) Schedule 1, item 15, page 16 (after line 21), after subitem (2), insert:

  High Value Accounts

  (2A) For the purposes of subsections 396-105(1) and (2) in Schedule 1 to the Taxation Administration Act 1953, as amended by this Schedule, an account maintained by a Reporting Financial Institution on 1 July 2017 is treated as being a Reportable Account (within the meaning of the CRS) on that day if the account:

  (a) would be a Reportable Account (within the meaning of the CRS) on that day if the Reporting Financial Institution applied the due diligence procedures described in the CRS in relation to the account on or before that day; and

  (b) is a High Value Account (within the meaning of the CRS) on 30 June 2017.

(2) Schedule 1, item 15, page 17 (line 1), after "subitem", insert "(2A) or".

I remind the Senate, as I explained last night, that the government is introducing these amendments in order to ensure that the provisions operate as intended. These changes correct a technical anomaly in the original bill so that statements relating to pre-existing individual accounts that are high-value accounts as of 30 June 2017 must be reported to the tax commissioner by 31 July 2018. It ensures that this timing is required regardless of whether the reporting financial institution conducts its due diligence procedures of these accounts between 1 July 2017 and 31 December 2017 or between 1 January 2018 and 31 July 2018.

The timing provisions in the bill have been carefully crafted to ensure that we align with OECD guidance on collection, review and exchange of information, noting that some of that may be influenced by the opposition amendments that we are willing to accept. I commend the government's amendments to the Senate.

Claire Moore (Queensland, Australian Labor Party, Shadow Minister for Women) Share this | Link to this | Hansard source

I advise that Labor is supporting the government's amendments.

Question agreed to.

by leave—I move opposition amendments (1) to (6) on sheet 7840 together:

(1) Schedule 1, item 13, page 7 (after line 20), insert:

This Subdivision also requires the Commissioner to report on certain Reportable Accounts that are maintained by Australian Reporting Financial Institutions.

(2) Schedule 1, item 13, page 14 (after line 14), after section 396-135, insert:

396-136 Report on Reportable Accounts maintained by Australian Reporting Financial Institutions

(1) This section applies if:

  (a) the Commissioner receives one or more statements under subsection 396-105(2) in relation to:

     (i) the 2018 calendar year; or

     (ii) a calendar year commencing after 2018; and

(b) the statement contains information about a Reportable Account (within the meaning of the CRS); and

  (c) the total number of accounts of the kind mentioned in paragraph (b) for a jurisdiction (other than Australia) that is a Reportable Jurisdiction (within the meaning of the CRS) (the relevant jurisdiction) for the calendar year is 6 or more.

(2) The Commissioner must, no later than 31 December of the year following the calendar year, prepare and give to the Minister a report that sets out for each relevant jurisdiction in relation to the calendar year the following information:

  (a) the total number of accounts of the kind mentioned in paragraph (1)(b);   

  (b) the sum of the amounts in those accounts.

(3) The Minister must cause a copy of the report given under subsection (2) to be tabled in each House of the Parliament within 15 sitting days of that House after the day on which the Minister receives the report.

(4) The report given under subsection (2) is not a legislative instrument.

(3) Schedule 1, item 14, page 15 (cell at table item 6, column 2), omit "2019", substitute "2018".

(4) Schedule 1, item 15, page 16 (after line 21), after subitem (2), insert:

  Preexisting Entity Accounts

  (2A) For the purposes of subsections 396-105(1) and (2) in Schedule 1 to the Taxation Administration Act 1953, as amended by this Schedule, an account maintained by a Reporting Financial Institution on 1 July 2017 is treated as being a Reportable Account (within the meaning of the CRS) on that day if the account:

  (a) would be a Reportable Account (within the meaning of the CRS) on that day if the Reporting Financial Institution applied the due diligence procedures described in the CRS in relation to the account on or before that day; and

  (b) is a Preexisting Entity Account (within the meaning of the CRS).

(5) Schedule 1, item 15, page 16 (lines 22 to 33), omit subitem (3), substitute:

  Statements

(3) Despite subsection 396-105(6) in Schedule 1 to the Taxation Administration Act 1953, to the extent that a statement under subsection 396-105(2) in that Schedule for 2017 relates to an account that is a Lower Value Account (within the meaning of the CRS), the statement must be given to the Commissioner no later than 31 July 2019.

Note: Section 388-55 in that Schedule allows the Commissioner to defer the time for giving an approved form.

(6) Schedule 1, item 15, page 17 (line 1), after "subitem", insert "(2A) or".

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

As I indicated before, the government is happy to support these opposition amendments. In the spirit of helpfulness I advise that, as we understand it, Labor has proposed amendments to require the Commissioner of Taxation to publish an annual report providing aggregated, de-identified data on the financial holdings of foreign nationals in Australia. The de-identified data will indicate the aggregate number of accounts held by nationals of each country and the aggregate dollar value of holdings in the accounts.

The Labor Party is also proposing an amendment that varies commencement dates. The original time frame proposed by the legislation arose as a result of the agreement between OECD countries. The amendment is similar in form to the amendment that was tabled when this bill was debated in the House. However, having sought some further clarification, the government is happy to support that amendment, which will bring forward from 31 July 2019 to 31 July 2018 the deadline for reviewing entity accounts to be finalised and align it with the time frame outlined in the bill for high-value, individual accounts.

Question agreed to.

Bill, as amended, agreed to.

Bill reported with amendments; report adopted.