Supplementary Explanatory Memorandum
(Circulated by authority of the Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP)Chapter 1: Parliamentary amendments to Schedule 3 - Government response to the Review of the Tax Practitioners Board
Outline of chapter
1.1 The parliamentary amendments to Schedule 3 to the Bill amend the commencement date in Part 3 of Schedule 3 to the Bill from 1 July 2023, to 1 July 2024. This is as a result of the Bill remaining in the Senate for consideration beyond 1 July 2023.
Context of amendments
1.2 The Bill was introduced to parliament on 16 February 2023, passed the House of Representatives on 9 March 2023 and is currently in the Senate.
1.3 The Special Account originally had a commencement date of 1 July 2023, however as this date has now passed, the parliamentary amendments to Schedule 3 to the Bill amend this commencement date to 1 July 2024.
Detailed explanation of amendments
1.4 Part 3 of Schedule 3 to the Bill establishes a Special Account for the TPB, in accordance with Recommendation 3.1 of the TPB Review. This Part was originally intended to commence on 1 July 2023, if the Bill was passed by both houses prior to this date.
1.5 The Bill passed through the House of Representatives on 9 March 2023 however, is currently under consideration in the Senate. As the original commencement date of the Special Account has now passed, the parliamentary amendments to Schedule 3 to the Bill amend the commencement date from 1 July 2023, to 1 July 2024.
1.6 The amendment to 1 July 2024 provides a smooth transition into full financial independence for the TPB from the next financial year and prevents the need for complex funding arrangements if the Special Account commenced during the course of a financial year. Additionally, the commencement of the Special Account will now align with the commencement of the annual registration period for tax practitioners, bringing further cohesion between the implementation of the first tranche of recommendations from the TPB review.
Commencement, application, and transitional provisions
1.7 The amendments in Part 3 of Schedule 3 to the Bill apply from 1 July 2024. The amendments in Part 1 and Part 2 of Schedule 3 to the Bill remain unchanged.