Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Scott Morrison MP)General outline and financial impact
Increasing the transparency of foreign ownership of water entitlements
Schedule 1 to this Bill amends the Register of Foreign Ownership of Agricultural Land Act 2015 (the Act) to establish a Register of Foreign Ownership of Water Entitlements (Water Register) to be administered by the Commissioner of Taxation (Commissioner). This Bill provides for the collection of information and publication of statistics about foreign holdings of registrable water entitlements and long term contractual water rights. The Bill allows for increased transparency on the levels of foreign ownership in water entitlements.
Date of effect: The amendments apply from the date the Bill receives Royal Assent.
Proposal announced: The National Register of Foreign Ownership of Water Entitlements was announced in the 2016-17 Budget.
Financial impact: nil
Human rights implications: This Bill does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 1, paragraphs 1.85 to 1.108.
Compliance cost impact: Low. The compliance cost impact is minimised by utilising the existing Agricultural Land Register framework.
Summary of regulation impact statement
Regulation impact on business
Impact: Small. The compliance cost has been minimised by utilising the existing Agricultural Land Register. Foreign persons who hold both agricultural land and certain water entitlements and rights will be able to notify the Commissioner through the same online portal. The regulatory burden has also been minimised by reducing the frequency of reporting.
Main points:
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- The measure has a small overall regulatory cost of $100,000 per annum.
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- A national Water Register that is considered comprehensive and reliable will help to inform debate about the level of foreign ownership of water entitlements.
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- Public consultation took place on the approach to implementing the Water Register and on an exposure draft of the legislation.
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- Overall, stakeholders were supportive of the register but sought to minimise the regulatory burden.