Concetta Fierravanti-Wells (NSW, Liberal Party, Minister for International Development and the Pacific) Share this | Link to this | Hansard source

I present four government responses to committee reports as listed at item 16 on today's Order of Business. In accordance with the usual practice, I seek leave to have the documents incorporated in Hansard.

Leave granted.

The documents read as follows—

Australian Government response to the Senate Economics References Committee report: Out of reach? The Australian housing affordability challenge

Background

On 12 December 2013, the Senate referred an inquiry into affordable housing to the Senate Economics References Committee for inquiry and report by 26 June 2014.

Following extensive consultations and consideration of over 230 submissions, the Inquiry delivered its final report on 8 May 2015.

The final report, Out of reach? The Australian housing affordability challenge, provides 40 wide-ranging recommendations directed primarily toward improving home purchase affordability.

The Committee's report represents an extensive discussion of Australia's housing affordability issues and the related policy challenges faced by all levels of government.

The comprehensive nature of the report reflects the high quality of submissions received and evidence given at Inquiry hearings by individuals and organisations.

The Committee's recommendations canvassed a range of changes to Commonwealth and State and Territory taxation arrangements; improving the efficiency, effectiveness and equity of infrastructure funding arrangements; land supply, urban planning and zoning processes.

Improving housing affordability right across the housing spectrum must be a key objective for government at all levels. The response must be well targeted and coordinated

The Government ' s response to the Affordable Housing Inquiry

The Government's response to the Inquiry takes into account the outcomes from a range of housing processes that took place in 2015-16, including the Financial System Inquiry, the Competition Policy Review, the Review of Australia's Welfare System, and the House of Representatives' Inquiries into Foreign Investment into Residential Real Estate and Home Ownership.

This response encompasses a range of measures and actions the Government has introduced since the report was tabled in May 2015, including the Council on Federal Financial Relations Housing Supply Working Group and Affordable Housing Working Group, City Deals and most recently the Government's comprehensive housing affordability plan, announced in the 2017-18 Budget.

The Government is delivering a comprehensive housing affordability plan designed to improve outcomes across the housing spectrum

The Government will improve housing outcomes for Australians through:

unlocking housing supply,

creating the right incentives, and

improving outcomes for those most in need.

The Government's housing affordability plan intends to make more homes available for Australians by collaborating across all levels of government to increase the supply of housing. The plan will improve outcomes across the housing spectrum, from first home buyers through to Australians in need of affordable rental housing.

For the first time, homelessness funding has been made ongoing and is indexed, giving certainty to providers of homelessness services.

1. Unlocking supply

The Government will help boost the supply of housing and encourage a more responsive housing market by:

establishing a $1 billion National Housing Infrastructure Facility to address infrastructure chokepoints that are impeding housing development in critical areas of undersupply,

releasing surplus Commonwealth land, starting with a 127 hectare site in Maribyrnong Victoria, which will support up to 6,000 new homes, and

incentivising planning and zoning reforms across eight local government areas in Western Sydney facing strong population growth and housing affordability pressures through the Western Sydney City Deal.

2. Creating the right incentives

The Government is taking prudent steps to ensure incentives are better aligned with improving outcomes.

This includes:

assisting first home buyers to build a deposit inside superannuation. Voluntary contributions of up to $15,000 per year and $30,000 in total will attract concessional tax treatment under the First Home Super Saver Scheme,

allowing older Australians to contribute proceeds from downsizing their home into superannuation. Individuals aged 65 and over will be able to make a non-concessional contribution of up to $300,000 in proceeds from the sale of a principal residence into their superannuation,

strengthening the Capital Gains Tax (CGT) rules to reduce the risk that foreign residents avoid paying CGT in Australia,

safeguarding the opportunity for Australian buyers to purchase in new developments by introducing a 50 per cent cap on foreign ownership for pre-approvals in new developments, and

encouraging greater utilisation of Australian housing by introducing an annual vacancy charge for foreign owners of residential real estate where the property is not occupied or genuinely available on the rental market.

3. Improving outcomes for those most in need

The Government will improve outcomes in social housing and homelessness by:

working with State and Territory Governments to reform Commonwealth funding arrangements under a new National Housing and Homelessness Agreement (NHHA) to support improved outcomes across the housing spectrum,

providing additional funding of $375 million over three years as part of the new NHHA to fund front line homelessness services,

establishing the National Housing Finance and Investment Corporation to operate an affordable housing bond aggregator to provide cheaper and longer-term finance to the community housing sector,

providing $6 million to support the implementation of the Homes for Homes Initiative to encourage innovative and independent approaches to financing social and affordable housing,

working with states and territories to strengthen the regulation of the community housing sector, helping to build confidence and capacity for the future growth of the sector, and

encouraging social impact investing to support innovative approaches to reduce homelessness.

The Government is providing housing solutions across the entire housing spectrum - from Australians struggling to put a roof over their head to those in affordable housing, private renters and first home buyers

Australian Government response to the Senate Legal and Constitutional Affairs Legislation Committee report:

Australian Citizenship Legislation Amendment (Strengthening the Requirements for Australian Citizenship and Other Measures) Bill 2017 [Provisions] March 2018

Introduction

On 15 June 2017, the Australian Citizenship Legislation Amendment (Strengthening the Requirements for Australian Citizenship and Other Measures) Bill 2017 (the Bill) was introduced into the Parliament.

On 22 June 2017, the Senate referred the Bill to the Senate Legal and Constitutional Affairs Legislation Committee for inquiry and report by 5 September 2017.

The Bill was passed by the House of Representatives on 14 August 2017 and introduced into the Senate on 15 August 2017. The Bill was discharged from the Senate notice paper on 18 October 2017. Prior to the Bill being discharged from the Senate notice paper, the Government circulated proposed amendments to the Bill.

The amendments provide that the measures announced on 20 April 2017 will commence on 1 July 2018, rather than applying to applications for citizenship made on and after 20 April 2017. The amendments also provide that the English language requirement be changed from 'competent' to 'modest' English (a change from the equivalent of an International English Language Testing System (IELTS) score of 6 to 5 or equivalent test score).

On 5 September 2017, the Committee released its report. The report made four recommendations, which are addressed below.

Recommendations

Recommendation 1

3.122 That the Government clarify the standard for English-language competency required for citizenship, noting that the required standard should not be so high as to disqualify from citizenship many Australians who, in the past, and with a more basic competency in the English language, have proven to be valuable members of the Australian community.

Response — Noted

Amendments circulated by the Government on 18 October 2017 propose to set the English language requirement at a 'modest' level of English. This is equivalent to an International English Language Testing System (IELTS) score of 5 or equivalent test score.

Recommendation 2

3.123 That the Government reconsider the imposition of a two-year ban on applications for citizenship following three failed attempts of the citizenship test, and consider other arrangements that allow additional tests on a cost-recovery basis that would deter less-genuine applicants.

Response — Noted

Recommendation 3

3.124 That the Government consider introducing some form of transitional provisions for those people who held permanent residency visas on or before 20 April 2017 so that the current residency requirements apply to this cohort of citizenship applicants.

Response — Noted

Amendments circulated by the Government on 18 October 2017 propose to commence the new residency requirement on 1 July 2018. A person who makes an application for citizenship before 1 July 2018 would be subject to the current residency requirement.

Recommendation 4

3.125 That the Senate pass the Bill.

Response — Noted

The Bill was discharged from the Senate notice paper on 18 October 2017.

Australian Government Response to the Joint Standing Committee on the National Disability Insurance Scheme: Progress Report

General issues around the implementation and performance of the NDIS

Joint Standing Committee on the National Disability Insurance Scheme: Progress Report , March 2018

The Australian Government welcomes this progress report and recognises the ongoing work of the Joint Standing Committee on the National Disability Insurance Scheme (NDIS) in reviewing the implementation and administration of the NDIS. This includes the process that people with disability go through to become scheme participants, and how they have received and used their package of supports.

The Joint Standing Committee has made five recommendations, to which the Government has agreed four and agreed-in-principle to one.

Government response to the Joint Standing Committee on the National Disability Insurance Scheme: Progress Report

Australian Government response to the Joint Standing Committee on Trade and Investment Growth report:

Leveraging our advantages: The trade relationship between Australia and Indonesia March 2018

Introduction

The Australian Government thanks the Joint Standing Committee on Trade and Investment Growth for its inquiry report into Australia's trade and investment relationship with Indonesia. The Committee's report contains valuable insights into how Australia can benefit from an enhanced trade relationship with Indonesia, particularly in the context of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) currently under negotiation.

As the report notes, trade and investment is one element of the Australia-Indonesia bilateral relationship that has historically lagged behind the others. In 2016, Indonesia was only Australia's 13th largest trading partner - lower than New Zealand or Thailand, which have comparatively smaller economies. However, in line with Indonesia's rapidly developing economy, Australia is presented with an opportunity to strengthen the economic relationship to the significant benefit of both countries. The IA-CEPA is an important part of our efforts to make the most of this opportunity, including in areas such as healthcare, tourism, education and agricultural products.

The report's recommendations include that the Australian Government develop an information campaign to actively promote the business opportunities presented by the IA-CEPA. The Government supports this recommendation, and will engage with the private sector following finalisation of the agreement to ensure that Australian businesses are in a position to reap the benefits of its implementation.

The report further recommends that the Government prioritises the development of infrastructure in Northern Australia to facilitate maritime, education and tourism services partnerships with Indonesia. The Government is fully cognisant of the need for greater investment in infrastructure in Northern Australia to benefit from its proximity to Asian markets. The potential benefits are outlined in the Northern Australia White Paper and the Northern Australia Audit: Infrastructure for a Developing North report from January 2015.

The Australian Government continues to work with the Government of Indonesia towards the finalisation of an ambitious and high-quality IA-CEPA that will boost our bilateral trade and investment relationship and result in expanded economic opportunities for both countries.

Response to the recommendations

Recommendation 1

The Committee recommends that, subject to the finalisation of a satisfactory Indonesia Australia Comprehensive Economic Partnership Agreement (IA-CEPA), the Australian Government develop a campaign to actively promote the business opportunities presented by the agreement.

Response:

The Government accepts the recommendation.

The Government has an extensive program of outreach on its free trade agreement (FTA) agenda, including broad and regular promotion and consultation with all interested stakeholders. The Government will continue to explore new options for the dissemination of information on FTAs, including IA-CEPA.

Recommendation 2

The Committee recommends that, subject to the finalisation of a satisfactory Indonesia Australia Comprehensive Economic Partnership Agreement (IA-CEPA), the Australian Government gives priority to the development of infrastructure in Northern Australia that is beneficial to developing maritime, education and tourism services partnerships with Indonesia.

Response:

The Government accepts this recommendation in principle.

The recommendation is broadly aligned with the Northern Australia White Paper (the White Paper) and the Northern Australia Audit: Infrastructure for a Developing North report, which detail a range of initiatives and measures to unlock the full economic potential of northern Australia. The Australian Government supports the development of maritime, education and tourism services partnerships with Indonesia, as well as supporting priority industries identified in the White Paper such as food and agribusiness; resources and energy; and healthcare, medical research and aged care.

Recommendation 3

The Committee recommends that the Australian Government, through the IA-CEPA negotiations, focus on the reduction of non-tariff barriers to trade such as the standardisation of food and pharmaceutical labelling and certification requirements.

The Committee further recommends that the Australian Government establish a national food and pharmaceutical certification process, agreed by the Indonesian Government, to simplify this process for Australian exporters.

Response:

1. "that the Australian Government, through the IA-CEPA negotiations, focus on the reduction of non-tariff barriers to trade"

The Government accepts this recommendation.

IA-CEPA negotiating rounds include dedicated sessions on how the agreement will identify and address non-tariff barriers to trade. Both Australia and Indonesia agree in principle to the inclusion of these issues in negotiations and the final text of the agreement.

2. " that the Australian Government establish a national food and pharmaceutical certification process, agreed by the Indonesian Government, to simplify this process for Australian exporters "

The Government notes this recommendation.

The Government is actively working with the Indonesian government to address differences in standards and to simplify processes for exporters. As an early outcome of ongoing IA-CEPA negotiations, Standards Australia and its Indonesian counterpart, Badan Standardisasi Nasional (BSN) are undertaking a joint standards mapping study. The study will help identify possible areas for enhanced standards harmonization, technical alignment and regulatory coherence between Australia and Indonesia to help improve trade between the two countries.

Recommendation 4

The Committee recommends that the text of the IA-CEPA should not include provisions which waive labour market testing, or which include ISDS provisions, and the final text of the agreement should be accompanied by independent analysis conducted by either the Productivity Commission or equivalent organisation.

Response:

1. "that the text of the IA-CEPA should not include provisions which waive labour market testing"

The Government does not accept this recommendation.

All of Australia's trade agreements with provisions on the temporary movement of professionals also include waivers of labour market testing for certain categories of professionals. Australia has existing commitments with Indonesia on the temporary movement of skilled professionals through the World Trade Organization and the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). The Government has made clear that Australia's revised visa system will be implemented in accordance with our international trade obligations.

2. "or which include ISDS provisions"

The Government does not accept this recommendation.

The Government takes a case-by-case approach to the inclusion of ISDS commitments in international trade agreements. Bilateral investment with Indonesia is already subject to ISDS under the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) and the 1992 bilateral investment treaty.

Negotiations on investment-related commitments in IA-CEPA are ongoing and, should ISDS provisions be included in IA-CEPA, they will reflect widely accepted modern rules on the treatment of investors, including robust safeguards to preserve the Government's right to regulate in the public interest.

3. "the final text of the agreement should be accompanied by independent analysis conducted by either the Productivity Commission or equivalent organisation"

The Government does not accept this recommendation.

Economic analysis of trade agreements is only one tool to assess whether an agreement is in the national interest. DFAT commissions economic modelling of trade agreements on a case-by-case basis. Statistical and methodological limitations mean that current models are unable to estimate the total impact of an FTA on the economy. It is difficult to accurately model the impact of changes to non-tariff barriers, trade facilitation, increased regulatory certainty and other rules-based aspects of trade agreements. Moreover, statistics on international trade in services and investment flows are incomplete.

As with all trade agreements, once completed, IA-CEPA will be tabled in Parliament along with a National Impact Assessment (NIA). The NIA will include consideration of the foreseeable economic effects of IA-CEPA and any direct financial costs to Australia.