Explanatory Memorandum
(Circulated by authority of the Minister for Housing and Assistant Treasurer, the Hon Michael Sukkar MP.)Chapter 4 - Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Schedule 1 - Making tax free certain small business grants relating to the Coronavirus recovery
4.1 Schedule 1 to the Bill is compatible with human rights and freedoms recognised or declared in the international instruments listed in sections 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
4.2 Schedule 1 to the Bill amends the income tax law to make payments received by eligible businesses under certain grant programs administered by a State or Territory (or a State or Territory authority) non-assessable non-exempt income so that these payments are not subject to income tax by the Commonwealth.
4.3 To obtain this concessional treatment, among other things, the payment must be made under a grant program that is declared by the Minister to be eligible and is, in effect, responding to the economic impacts of the Coronavirus. Accordingly, Schedule 1 to the Bill gives the Minister power to declare certain grant programs as eligible for non-assessable non-exempt income tax treatment under an instrument-making power.
Human rights implications
4.4 Schedule 1 to the Bill does not engage any of the applicable rights or freedoms.
Conclusion
4.5 Schedule 1 to the Bill is compatible with human rights as it does not raise any human rights issues.
Schedule 2 - Payment of amounts to KiwiSaver scheme provider
4.6 Schedule 2 to the Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
4.7 Schedule 2 to the Bill amends the SUMLM Act to allow individuals to direct the Commissioner to pay amounts the Commissioner holds in respect of the person under the SUMLM Act to the person's KiwiSaver scheme provider.
4.8 Further, where the Commissioner makes a payment to a KiwiSaver scheme provider, the Commissioner may also be required to pay an amount of interest.
Human rights implications
4.9 Schedule 2 to the Bill does not engage any of the applicable rights or freedoms.
Conclusion
4.10 Schedule 2 to the Bill is compatible with human rights as it does not raise any human rights issues.
Schedule 3 - Deductible gift recipients
4.11 Schedule 3 to the Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
4.12 Schedule 3 to the Bill amends the ITAA 1997 to make Neighbourhood Watch Australasia a deductible gift recipient under the income tax law
Human rights implications
4.13 Schedule 3 to the Bill does not engage any of the applicable rights or freedoms.
Conclusion
4.14 Schedule 3 to the Bill is compatible with human rights as it does not raise any human rights issues.