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senate vote 2020-06-17#2
Edited by
mackay staff
on
2020-07-17 08:11:34
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Title
Treasury Laws Amendment (2020 Measures No. 2) Bill 2020 - Second Reading- Treasury Laws Amendment (2020 Measures No. 2) Bill 2020 - Second Reading - Fair Work oversight
Description
- The majority voted in favour of an [amendment](https://www.openaustralia.org.au/senate/?gid=2020-06-17.23.1) to the usual [second reading motion](https://peo.gov.au/understand-our-parliament/how-parliament-works/bills-and-laws/making-a-law-in-the-australian-parliament/), which means it succeeded. It was introduced by Tasmanian Senator [Peter Whish-Wilson](https://theyvoteforyou.org.au/people/senate/tasmania/peter_whish-wilson) (Greens). Motions like these don't make any legal changes but are politically influential because they represent the will of the Senate.
- ### Motion text
- > *At the end of the motion, add:*
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- > *", but the Senate:*
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- > *(a) notes that:*
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- >> *(i) the JobKeeper scheme requires that employers that have decided to participate must ensure that all eligible employees are nominated for the scheme,*
- >>
- >> *(ii) the decision about employee eligibility is entirely at the discretion of employers, and*
- >>
- >> *(iii) there is currently no avenue for employees to dispute decisions made by their employer to include some, but not all, employees in the scheme; and*
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> *(b) calls on the Government to give the Fair Work Commission the power to deal with disputes about whether a worker of an employer participating the JobKeeper scheme is eligible for the JobKeeper payment".*- > *(b) calls on the Government to give the Fair Work Commission the power to deal with disputes about whether a worker of an employer participating the JobKeeper scheme is eligible for the JobKeeper payment".*
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senate vote 2020-06-17#2
Edited by
mackay staff
on
2020-07-17 08:11:11
|
Title
Bills — Treasury Laws Amendment (2020 Measures No. 2) Bill 2020; Second Reading- Treasury Laws Amendment (2020 Measures No. 2) Bill 2020 - Second Reading
Description
<p class="speaker">Zed Seselja</p><p>I move:</p><p class="italic">That this bill be now read a second time.</p>- The majority voted in favour of an [amendment](https://www.openaustralia.org.au/senate/?gid=2020-06-17.23.1) to the usual [second reading motion](https://peo.gov.au/understand-our-parliament/how-parliament-works/bills-and-laws/making-a-law-in-the-australian-parliament/), which means it succeeded. It was introduced by Tasmanian Senator [Peter Whish-Wilson](https://theyvoteforyou.org.au/people/senate/tasmania/peter_whish-wilson) (Greens). Motions like these don't make any legal changes but are politically influential because they represent the will of the Senate.
- ### Motion text
- > *At the end of the motion, add:*
- >
- > *", but the Senate:*
- >
- > *(a) notes that:*
- >
- >> *(i) the JobKeeper scheme requires that employers that have decided to participate must ensure that all eligible employees are nominated for the scheme,*
- >>
- >> *(ii) the decision about employee eligibility is entirely at the discretion of employers, and*
- >>
- >> *(iii) there is currently no avenue for employees to dispute decisions made by their employer to include some, but not all, employees in the scheme; and*
- >
- > *(b) calls on the Government to give the Fair Work Commission the power to deal with disputes about whether a worker of an employer participating the JobKeeper scheme is eligible for the JobKeeper payment".*
<p>I seek leave to have the second reading speech incorporated in <i>Hansard</i>.</p><p>Leave granted.</p><p class="italic"> <i>The speech read as follows—</i></p><p class="italic">This omnibus Bill includes a series of tax measures including a measure to amend the hybrid mismatch rules, continuing the Morrison Government's work on combating multinational tax avoidance, while ensuring that compliance burdens are kept to a minimum. The Bill also allows employers to report information already required for child support under Single Touch Payroll, further streamlining employer reporting to Government. The Bill establishes a deductible gift recipient general category for men's sheds and women's sheds and includes a number of other organisations on the list of deductible gift recipients. The Bill also includes a measure providing funding for Australia's continued financial support of the World Bank. Finally, this Bill will also allow the ATO to share critical JobKeeper-related information with the Fair Work Commission and the Fair Work Ombudsman to ensure employers comply with the scheme.</p><p class="italic">Schedule 1 to the Bill amends the <i>Income Tax Assessment Act</i><i>1997</i>, continuing the Government's commitment to tackling multinational tax avoidance, by improving Australia's hybrid mismatch rules, which arebased on one of 15 Actions from the OECD/G20 Base Erosion and Profit Shifting Project.</p><p class="italic">The hybrid mismatch rules are designed to prevent multinational companies from exploiting differences in the tax treatment of instruments or entities between jurisdictions, which enable those companies to defer or reduce tax.</p><p class="italic">The amendments in this Bill will ensure that the hybrid mismatch rules operate as intended and help to ensure the integrity of Australia's income tax laws and their application to multinational enterprises. The amendments achieve this by making technical changes to the rules which clarify their operation and prevent the rules from applying in inappropriate circumstances.</p><p class="italic">Schedule 2 to the Bill amends the <i>Taxation Administration Act 1953</i> to broaden the information employers can voluntarily report under the Single Touch Payroll rules, to include employer withholding of child support deductions and child support garnishee amounts. This measure will further streamline employer reporting to Government demonstrating the efficiency gains for employers provided by Single Touch Payroll.</p><p class="italic">Schedule 3 to the Bill amends the <i>Income Tax Assessment Act</i><i>1997</i> to establish a deductible gift recipient (DGR) general category for men's sheds and women's sheds. This will enable sheds to more easily access DGR status from 1 July 2020, which in turn, helps them attract public financial support for their activities. The Morrison Government fully supports the important work undertaken by men's sheds and women's sheds.</p><p class="italic">Donors to DGR-endorsed sheds can claim an income tax deduction for donations of $2 or more. The DGR tax arrangements are intended to encourage philanthropy and provide support for the not-for-profit sector.</p><p class="italic">There are currently over 1,000 men's Sheds and around 20 women's sheds. The number of sheds is growing as the movement gains traction for its community work and benefits.</p><p class="italic">Eligibility for endorsement in this new DGR category requires sheds to demonstrate that their activities advance mental health, and prevent or relieve social isolation.</p><p class="italic">Schedule 4 to the Bill amends the <i>International Finance Corporation Act 1955</i> and <i>International Monetary Agreements Act 1947</i>.</p><p class="italic">The World Bank's International Bank for Reconstruction and Development (IBRD) and the International Finance Corporation (IFC) play a vital role in providing financial assistance and advisory services to middle and low income developing countries.</p><p class="italic">This assistance creates significant benefits throughout our Indo-Pacific region, allowing countries to reduce poverty and build shared prosperity through investment in much-needed physical infrastructure and improved social outcomes.</p><p class="italic">The IBRD and IFC periodically raise capital to fund their activities by issuing new shares to member countries such as Australia.</p><p class="italic">However, our participation in these capital raisings is a costly and time-consuming process; requiring the drafting and introduction of new legislation for each instance where Australia subscribes to an IBRD or IFC capital increase.</p><p class="italic">These amendments aim to streamline the process by creating a clear legislative framework for Australia to enter into agreements, or amend existing agreements, to subscribe to capital increases. The amendments also establish standing special appropriations that will facilitate payments that Australia has committed to in subscribing to capital increases.</p><p class="italic">As these types of purchases of shares in the World Bank Group constitute a formal international treaty action, they will always be subject to oversight and consideration by the Joint Standing Committee on Treaties.</p><p class="italic">The passage of these amendments will also enable Australia to make its</p><p class="italic">A$154 million contribution to the IBRD's latest capital raising that was announced in October 2018.</p><p class="italic">Schedule 5 to the Bill amends the <i>Income Tax Assessment Act 1997</i> to include C.E.W Bean Foundation, Governor Phillip International Scholarship Trust, High Resolves, Australian Academy of Law, Foundation Broken Hill, Motherless Daughters, Superannuation Consumers' Centre and the Headstone Project (Tasmania) on the list of DGRs. This will allow members of the public to receive income tax deductions for the donations they make to these eight organisations.</p><p class="italic">Schedule 6 to the Bill will allow the Australian Taxation Office to share JobKeeper-related information with the Fair Work Commission and the Fair Work Ombudsman. Access to this information will help the Fair Work Commission and Fair Work Ombudsman address JobKeeper-related compliance issues, in relation to obligations under the Fair Work Act 2009. This measure will help the JobKeeper scheme operate efficiently and equitably.</p><p class="italic">Full details of these measures are contained in the Explanatory Memorandum.</p> <p class="speaker">Katy Gallagher</p><p>I rise to speak on the Treasury Laws Amendment (2020 Measures No. 2) Bill 2020 on behalf of the opposition. At the outset, I will confirm that the opposition will be supporting this bill. This bill contains six schedules relating to various aspects of Treasury legislation. The measures contained in the bill are technical and non-controversial.</p><p>Schedule 1 of the bill amends the hybrid mismatch rules in the Income Assessment Act 1997. 'Amends' is perhaps a generous assessment of this measure. The measure clarifies certain aspects and is expected to have a minor, unquantifiable revenue impact over the forward estimates period. We've heard the government make strong claims about how much they are doing to combat multinational tax avoidance, but you have to laugh when the strongest measure they've brought forward this year is a few minor typo corrections and clarifications in the more obscure chapters of the Income Tax Administration Act 1997. The government must urgently act to end multinational tax avoidance.</p><p>Schedule 2 of the bill allows the Single Touch Payroll system to include employer withholding of child support deductions from salary and wages. This measure will further streamline and simplify our child support and family law system.</p><p>Schedule 3 amends the designated gift recipient rules in the Income Tax Assessment Act 1997 to include a new category for community sheds. This means that men's and women's sheds across the country will now be eligible to receive tax-deductible gifts. There are now more than 1,200 men's and women's sheds across Australia. These sheds are doing vital work, building connections and communities. This work is more important now than ever before as our community recovers and rebuilds following the coronavirus pandemic.</p><p>Schedule 4 of the bill amends the International Finance Corporations Act 1955 and International Monetary Agreements Act 1947, to allow the government to meet obligations to the World Bank's International Bank for Reconstruction and Development and the International Finance Corporation that they have under this bill. These measures support the provision of financial assistance and advisory services to middle- and low-income countries. Of course, Labor supports them. Labor will continue to offer the government bipartisan support for Australia's participation in important global institutions.</p><p>Schedule 5 of the bill adds a number of specified designated gift recipients to the broader list of specified designated gift recipients. Labor welcomes the inclusion of the Superannuation Consumers' Centre and welcomes their advocacy of the interests of ordinary Australians in the superannuation sector. I'm glad that we're now hearing more from people who represent the interests of ordinary Australians in the super sector, whether the union movement or the consumer movement.</p><p>Schedule 6 provides for the Australian tax office to share information on JobKeeper payments with the Fair Work Ombudsman and the Fair Work Commission. This will allow the Fair Work Ombudsman to better address JobKeeper related compliance issues, particularly where employers are rorting the system and pocketing funds. We welcome the government's decision to allow the Fair Work Ombudsman to do their job here, but we would encourage the government to go further. I'm speaking about the $6 billion in superannuation guarantee levy payments that are rightfully earned by Australian workers but snatched away by their employers to fatten their own profit margins. The Fair Work Commission and the Fair Work Ombudsman could be part of that solution, and yet at this point these bodies do not have the powers or the information necessary to tackle the problem of superannuation theft.</p><p>Unlike minimum wages, sick leave, annual leave or parental leave, the universal right to superannuation is not included in the National Employment Standards. This means that ordinary workers are powerless to pursue super theft claims through the Fair Work Commission and means that the Fair Work Ombudsman is toothless in the face of this $6 billion problem. This means that workers are powerless to organise through their union to take action through the Fair Work Commission to stop having their superannuation stolen by their employer, and this is not good enough. While we welcome and support the government's decision to allow these bodies to access information relating to JobKeeper and appropriately enforce compliance around this measure, we do call on the government to act to end superannuation theft and to give the Fair Work Commission and the Fair Work Ombudsman the powers that they need to do so. I commend the bill to the chamber.</p> <p class='motion-notice motion-notice-truncated'>Long debate text truncated.</p>
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