Second Reading Speech
Mr Sukkar (Assistant Treasurer, Minister for Housing and Minister for Homelessness, Social and Community Housing)I move:
That this bill be now read a second time.
As the government has done throughout this crisis, it is committed to assisting businesses and individuals through the COVID-19 pandemic. This bill will enable the government to support individuals and businesses that are impacted by significant lockdowns caused by COVID-19.
In particular, schedule 1 to the bill amends the Coronavirus Economic Response Package (Payments and Benefits) Bill 2020 to allow the Treasurer to make rules for economic response payments to provide support to an entity where they are adversely affected by restrictions imposed by a state or territory to control COVID-19.
Schedule 2 to the bill amends the Taxation Administration Act to allow the ATO to share data with Australian government agencies, both federal and state, for the purpose of administering only relevant COVID-19 business support program payments.
Schedule 3 to the bill amends the Income Tax Assessment Act 1997 to introduce a new power to make eligible Commonwealth COVID-19 business grants free from income tax.
States and territories are already able to apply to the Commonwealth for the same tax treatment where they have grant programs focused on supporting small and medium-sized businesses facing exceptional circumstances.
Schedule 4 to the bill will reinstate the operation of a temporary mechanism put in place during the COVID-19 pandemic that has now lapsed, which allows information and documentary requirements between government and businesses to be altered. This includes requirements to give information to government in writing and produce, witness and sign documents.
Given the ongoing impacts and physical limitations imposed by COVID-19, there is still a clear need for these provisions.
This measure provides that a responsible minister may determine that provisions in Commonwealth legislation containing particular information or documentary requirements can be varied; do not apply; or prescribe that another provision specified in the determination applies, for a specified time period. A responsible minister must not exercise the power unless they are satisfied that such a determination is in response to circumstances relating to COVID-19.
The mechanism is temporary and will be repealed at the end of 31 December 2022. Any determination made under the mechanism will also cease to operate when the temporary mechanism is repealed.
Schedule 5 to the bill amends the income tax law to make Commonwealth COVID-19 disaster payments received by individuals from the 2020-21 income year onwards non-assessable non-exempt income.
This change will provide additional support to individuals receiving COVID-19 disaster payments by, importantly, making these payments free from any tax.
Full details of the measures are contained in the explanatory memorandum.
Leave granted for second reading debate to continue immediately.