Senate

Supplementary Explanatory Memorandum

(Circulated by the authority of the Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP)

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Amendment to the Treasury Laws Amendment (2017 Enterprise Incentives No. 2) Bill 2017

1.20 The Senate amendments to the Treasury Laws Amendment (2017 Enterprise Incentives No 2) Bill 2017 are 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

1.21 The Senate amendments to the Bill:

•

strengthen the anti-avoidance mechanisms to ensure that parties cannot contract out of the stay on the enforcement of rights under applicable ipso facto clauses;

•

extend the right to consent in writing to the enforcement of rights under an applicable ipso facto clause so that it is also available to a liquidator who is appointed to a company subsequent to a compromise / arrangement or an administration; and

•

clarifies that the stay also applies to self-executing ipso facto clauses.

Human rights implications

1.22 The Senate amendments to this Bill do not engage any of the applicable rights or freedoms.

Conclusion

1.23 The Senate amendments to this Bill are compatible with human rights as they do not raise any human rights issues.