Louise Pratt (WA, Australian Labor Party, Shadow Minister for Environment and Water (Senate)) Share this | Link to this | Hansard source

Today I am speaking on behalf of the opposition about the Proceeds of Crime Amendment (Proceeds and Other Matters) Bill 2017. I indicate to the Senate that the opposition is supporting this legislation. We support the making of a number of technical amendments to the Proceeds of Crime Act to close loopholes in our proceeds-of-crime regime that have been identified in recent case law. Serious and organised crime is estimated to be costing Australia a massive $36 billion a year. This profit is coming at the expense of all Australians and does not even begin to touch the human cost of this crime, the harm to families and communities right around the country. We believe we have a responsibility to all Australians to ensure our laws are working to stop criminals from causing harm to our community. Our proceeds-of-crime regime plays an important role in deterring and preventing crime. The regime aims to deny perpetrators of crime the profits and instruments of their crimes and in doing so suppress criminal activity and return the proceeds of these crimes to society.

Since the Proceeds of Crime Act was first introduced by the Hawke Labor government nearly 30 years ago, crime has changed dramatically. Major crimes such as drug trafficking, human trafficking and financial crime often have an international element today. Criminals are using technology and complex financial arrangements to hide the proceeds of their crimes through increasingly sophisticated networks and structures. They're constantly searching for new loopholes in our laws. This is why it's important that our regime stays up to date. The government highlighted in their explanatory memorandum some loopholes in our regime through recent case law. There is particular concern that people may be able to wash dirty money through mortgages, renovations and home improvements in order to avoid confiscation.

This bill aims to close those loopholes. The bill will ensure the Commonwealth's unexplained wealth regime covers situations in which wealth is derived or realised directly or indirectly from certain offences. The bill will also clarify that property becomes proceeds or an instrument of an offence under the act when proceeds or an instrument are used to improve the property or discharge an encumbrance, security or liability incurred in relation to the property. This would cover money that goes into alterations, repairs or other modifications to a property. Finally, the bill also clarifies that wealth or property will be lawfully acquired only in circumstances where the property or wealth is not proceeds or an instrument of an offence.

These changes do not affect existing protections in the Proceeds of Crime Act, which would continue to apply. These include the court's power to refuse to issue a restraining order if it would not be in the public interest or in the court's power to make allowances for expenses to be made out of property covered by a restraining order. Critically, this bill does not affect subsection 330(4) of the Proceeds of Crime Act, which prevents innocent parties from being punished for acquiring proceeds or instruments of crime if they do so without knowledge of this fact or in circumstances that would not arouse reasonable suspicion. The Law Council of Australia in the Senate Legal and Constitutional Affairs Legislation Committee's inquiry into this bill did express concerns about the adequacy of existing protections in the Proceeds of Crime Act. While Labor agrees that the protections in the Proceeds of Crime Act should be strengthened, we believe the amendments proposed by the government in this bill are necessary and urgent reforms, and we will be supporting the bill unamended. We would be happy to work with the government to strengthen the protections in the Proceeds of Crime Act and indeed, where appropriate, address the Law Council of Australia's concerns.

In conclusion, crime in our country has a devastating effect on our community, and many of the most profitable crimes such as drug crime, cybercrime and fraud affect some of the most vulnerable members of our community. They hit the young, the elderly, and the poorest hardest. If there are loopholes in our proceeds-of-crime regime, criminals will use these loopholes to make a profit off the misery of others. Labor is committed to ensuring that our proceeds-of-crime regime is up to date and robust. We believe that no criminal should profit from their crime. We will be supporting this bill.

Anne Ruston (SA, Liberal Party, Assistant Minister for Agriculture and Water Resources) Share this | Link to this | Hansard source

I'd like to thank senators for their contribution to the debate. The bill will ensure that authorities retain the powers necessary to appropriately identify, restrain and forfeit property that is linked to criminal offending. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.