Explanatory Memorandum
(Circulated by authority of the Minister for Housing and Assistant Treasurer, the Hon Michael Sukkar MP)General outline and financial impact
Testamentary trusts
Schedule 1 to the Bill amends the ITAA 1936 to ensure the tax concessions available to minors in relation to income from a testamentary trust only apply in respect of income generated from assets of the deceased estate that are transferred to the testamentary trust (or the proceeds of the disposal or investment of those assets).
Date of effect: The amendments apply in relation to assets acquired by or transferred to the trustee of a testamentary trust estate on or after 1 July 2019.
Proposal announced: Schedule 1 to the Bill fully implements the measure 'Tax Integrity - Improving the taxation of testamentary trusts' from the 2018-19 Budget.
Financial impact: As at the 2018-19 Budget, the measure was estimated to have a small unquantifiable gain to revenue over the forward estimates period.
Human rights implications: This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 4, paragraphs 4.1 to 4.4.
Compliance cost impact: This Schedule is estimated to have a minimal ongoing regulatory impact.
Deferring education and training standards for existing financial advisers
Schedule 2 to the Bill amends the Corporations Act to defer the transitional timeframes for existing providers to comply with the education and training standard requiring completion of an approved degree or equivalent qualification and the standard requiring the passing of an approved exam.
The transitional timeframe for the approved degree or equivalent qualification will be deferred by two years to 1 January 2026. The transitional timeframe for the approved exam will be deferred by one year to 1 January 2022.
Date of effect: Day after the Bill receives the Royal Assent.
Proposal announced: Schedule 2 to the Bill implements the measure announced by the Assistant Minister for Superannuation, Financial Services and Financial Technology on 30 August 2019.
Financial impact: The amendments are estimated to have no revenue impact over the forward estimates period.
Human rights implications: This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 4, paragraphs 4.5 to 4.9.
Compliance cost impact: The amendments are minor in nature and therefore the potential compliance cost impact is expected to be minimal.
Miscellaneous amendments
Schedule 3 to the Bill makes a number of minor and technical amendments to laws relating to taxation, superannuation, corporations and credit. These amendments are part of the Government's ongoing commitment to the care and maintenance of Treasury portfolio legislation.
These amendments make minor and technical changes to correct typographical and numbering errors, bring provisions in line with modern drafting conventions, repeal inoperative provisions, remove administrative inefficiencies, address unintended outcomes and update references, ensuring Treasury laws improve to operate as intended.
Date of effect: Part 1 of Schedule 3 commences the day after this Act receives Royal Assent. Part 2 of Schedule 3 commences on the first 1 January, 1 April, 1 July or 1 October after the day this Act receives Royal Assent. Part 3 of Schedule 3 commences on the first 1 January, 1 April, 1 July or 1 October to occur after the end of the period of 60 days beginning on the day this Act receives Royal Assent. Part 4 of Schedule 3 commences on 1 July 2017. Most of the amendments apply from the date of commencement.
Proposal announced: These amendments were announced on 6 September 2019.
Financial impact: These amendments are estimated to have a small but unquantifiable financial impact over the forward estimates period.
Human rights implications: This Schedule is compatible with human rights issues. See Statement of Compatibility with Human Rights - Chapter 4, paragraphs 4.10 to 4.29.
Compliance cost impact: The amendments have a negligible impact on compliance costs.