Explanatory Memorandum
(Circulated by authority of the Minister for Housing and Assistant Treasurer, the Hon Michael Sukkar)General outline and financial impact
Genuine redundancy and early repayment scheme payments alignment with pension age
Schedule 1 to the Bill amends the tax law to extend the concessional taxation treatment for genuine redundancy and early retirement scheme payments to amounts paid to individuals who are 65 or more years of age provided the dismissal or retirement occurs before they reach pension age.
Date of effect: This measure applies to payments made to individuals who are dismissed or retire on or after 1 July 2019.
Proposal announced: Schedule 1 to the Bill implements the measure announced by the Treasurer in the 2018-19 Mid-Year Economic and Fiscal Outlook (MYEFO) as, 'Genuine Redundancy Payments - aligning access to the tax-free component with the Age Pension age'.
Financial impact: As at the 2018-19 MYEFO, this measure was estimated to have the following cost to revenue:
| 2018-19 | 2019-20 | 2020-21 | 2021-22 |
| .. | -$5m | -$6m | -$7m |
.. not zero, but rounded to zero
Human rights implications: This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 6.
Compliance cost impact: This measure will result in a low increase in implementation costs in the short term. There will be no ongoing compliance costs for employers.
Luxury Car Tax Refund Entitlements
Schedule 2 to the Bill amends the LCT refund arrangements for eligible primary producers and tourism operators to provide a full refund of LCT, up to a cap of $10,000, for eligible vehicles.
Date of effect: The amendments apply to cars supplied or imported on or after 1 July 2019.
Proposal announced: This Schedule fully implements the measure 'Luxury Car Tax - increased refunds for eligible primary producers and tourism operators' from the 2019-20 Budget.
Financial impact: As at the 2019-20 Budget, this measure was estimated to reduce revenue by $11.0 million over the forward estimates period, comprising:
| 2019-20 | 2020-21 | 2021-22 | 2022-23 |
| -$2.0m | -$3.0m | -$3.0m | -$3.0m |
Human rights implications: This Schedule does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 6.
Compliance cost impact: Nil.
Australian Energy Regulator
Schedule 3 to the Bill expands the board of the Australian Energy Regulator from three members to five members and makes other changes to ensure that the expanded board can operate efficiently.
Date of effect: To be set by proclamation.
Proposal announced: This Schedule implements the measure first announced in December 2015, as part of the COAG Energy Council response to the Vertigan Review.
Financial impact: Nil.
Human rights implications: This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 6.
Compliance cost impact: Nil.
Consumer Data Right-Deletion requests
Schedule 4 to the Bill creates a requirement that consumer data rules include an obligation on accredited data recipients to delete CDR data in response to a request from a CDR consumer for that CDR data
Date of effect: Day after Royal Assent.
Proposal announced: This Schedule implements the amendment to announced on 1 August 2019.
Financial impact: Nil.
Human rights implications: This Schedule engages human rights. See Statement of Compatibility with Human Rights - Chapter 6.
Compliance cost impact: This measure is expected to result in a minor overall compliance cost impact, comprising a small implementation impact and a small increase in ongoing cost.
Interest on superannuation payments by the Commissioner of Taxation
Schedule 5 to the Bill amends the Superannuation (Unclaimed Money and Lost Members) Act 1999 to correctly allow for regulations to be made to prescribe a rate of interest which is payable on amounts held by the Commissioner which are proactively reunified into a person's superannuation accoun t, as originally intended.
Schedule 5 to the Bill also amends the Superannuation (Unclaimed Money and Lost Members) Regulations 1999 to prescribe a rate of interest payable on inactive low balance accounts and amounts proactively reunified by the Commissioner.
Date of effect: The day after Royal Assent. Interest will be paid on all amounts proactively reunified after this date.
Proposal announced: This Schedule implements part of the Protecting Your Super Package announced in the 2018-19 Budget.
Financial impact: Nil. The cost associated with this amendment was included in the financial impact of the Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018.
Human rights implications: This Schedule does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 6.
Compliance cost impact: Nil