This bill became law on Dec 12th, 2022.
Budget, tax & economy
Small businesses can be told to complete an approved tax record-keeping course instead of being fined straight away when the Australian Taxation OfficeThe tax office that administers the rules in this bill, including reporting, penalties and tax debt recovery. believes they have broken tax record rules.
Gaps in tax reporting for sharing-economy transactions and unnecessary hurdles in the tax and super rules left compliance, disputes and record-keeping harder than they needed to be. This bill expands ATOThe tax office that administers the rules in this bill, including reporting, penalties and tax debt recovery. reporting and education powers, pauses some debt recovery during reviews, removes the $250 self-education deductionA tax deduction for work-related study costs, which this bill simplifies by removing the $250 reduction rule. reduction, and lowers the downsizer super age to 55.
Before this bill, tax and super rules still left gaps in sharing-economy reporting, forced people claiming self-education deductions to navigate a $250 reduction rule, limited downsizer super contributions to age 60 and gave small businesses fewer ways to resolve ATOThe tax office that administers the rules in this bill, including reporting, penalties and tax debt recovery. compliance problems without immediate penalties or debt recovery. Measures that had been developed earlier were also delayed during the COVID-19 pandemic, so the government brought them together in 2022 and Parliament passed a package that widened ATOThe tax office that administers the rules in this bill, including reporting, penalties and tax debt recovery. reporting and education powers, eased disputes and compliance, and lowered the downsizer age to 55 before the Act received Royal AssentThe step that turns a bill into an Act and starts the clock for some of its changes..
The main criticism was that the bill’s expanded downsizer super concession would give another tax break to wealthier property owners while public money was needed more urgently for housing, health and cost-of-living support. That case was raised mainly by the Greens, especially against schedule 5, while Labor and the Coalition still supported the broader bill.
Stephen Jones MPThe title used after Stephen Jones's name in the explanatory memorandum, showing his parliamentary office. introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 12 Dec 2022
Final passage
Passed without a counted vote
1 recorded amendment or procedural vote was found, but no counted vote on the bill itself was recorded.
Passage speed
131 days
From introduction to the latest recorded parliamentary step
Meaning
Small businesses can be told to complete an approved tax record-keeping course instead of being fined straight away when the Australian Taxation OfficeThe tax office that administers the rules in this bill, including reporting, penalties and tax debt recovery. believes they have broken tax record rules.
Online platforms like apps and websites must report seller payment details to the Australian Taxation OfficeThe tax office that administers the rules in this bill, including reporting, penalties and tax debt recovery. for many Australian sharing economyShort-term, platform-based work such as ride-share and accommodation bookings, where the platform must now report payment details. transactions, including ride-share and short-term accommodation bookings.
People claiming work-related self-education deductions no longer have to reduce their claim by $250, which makes tax returns simpler and cuts record-keeping for non-deductible study costs.
Small businesses challenging a tax assessment can ask the Administrative Appeals TribunalThe review body small businesses can ask to pause or limit tax debt recovery while a dispute is being heard. to temporarily stop or limit debt recovery action while the review is underway.
Australians aged 55 and over can now put money from selling their main home into super as a downsizer contributionA super contribution you can make from the proceeds of selling your home if you meet the age and other rules., instead of waiting until age 60.
The Commissioner may issue a tax-records education direction to an entity if the Commissioner reasonably believes that the entity has failed to comply with one or more of its record-keeping obligations under a taxation law as an alternative to an administrative penalty. The tax-records education direction requires the recipient to undertake (or arrange for an appropriate person within the entity to undertake) an approved course of education specified by the Commissioner and provide the Commissioner with evidence of completion of the course. [Schedule 1, items 9 and 16, section 384-12 in Schedule 1 to the TAA 1953, and definition of ‘tax-records education direction’ in section 995-1(1) of the ITAA 1997]Treasury Laws Amendment (2022 Measures No. 2) explanatory memorandum
Generally, if an electronic platform facilitates a supply that is connected to Australia for consideration between two entities, then the operator of the platform is required to report information about the transaction to the ATO. The requirement will not apply if the transaction only relates to a supply of goods where ownership of the goods is permanently changed, where title to real property is transferred, or the supply is a financial supply. The requirement will also not apply if the transaction occurs between entities that are members within the same consolidated or MEC group. Platforms will also not be required to report transactions subject to a withholding obligation under Division 12.Treasury Laws Amendment (2022 Measures No. 2) explanatory memorandum
The amendments reduce compliance costs for individuals because they no longer need to reduce their self-education expenses by $250 before claiming a deduction under section 8-1 of the ITAA 1997. In practice, this means individuals must continue to maintain records of their deductible self-education expenses. However, they no longer need to keep records of any non‑deductible self-education expenses for tax purposes that, prior to the amendments, were first offset against the $250 non‑deductible self-education threshold.Treasury Laws Amendment (2022 Measures No. 2) explanatory memorandum
These amendments will enable the Small Business Taxation Division of the AAT to make an order (including varying or revoking an order that is already in force) under section 41 of the AAT Act in relation to a reviewable objection decision that relates to a small business taxation assessment decision.Treasury Laws Amendment (2022 Measures No. 2) explanatory memorandum
Omit “60”, substitute “55”.Treasury Laws Amendment (2022 Measures No. 2) as-passed bill text
Context
Before this bill, tax and super rules still left gaps in sharing-economy reporting, forced people claiming self-education deductions to navigate a $250 reduction rule, limited downsizer super contributions to age 60 and gave small businesses fewer ways to resolve ATOThe tax office that administers the rules in this bill, including reporting, penalties and tax debt recovery. compliance problems without immediate penalties or debt recovery. Measures that had been developed earlier were also delayed during the COVID-19 pandemic, so the government brought them together in 2022 and Parliament passed a package that widened ATOThe tax office that administers the rules in this bill, including reporting, penalties and tax debt recovery. reporting and education powers, eased disputes and compliance, and lowered the downsizer age to 55 before the Act received Royal AssentThe step that turns a bill into an Act and starts the clock for some of its changes..
COVID-19 pandemic delays previously developed tax measures
Parliamentary speeches said several of the bill's measures had been examined earlier but their implementation was delayed by the COVID-19 pandemic.
Hansard ↗Government introduces a package to cut tax friction and lower the downsizer age
The second reading speech said the bill would reduce regulatory burden, improve tax compliance and deliver the election commitment to let people aged 55 and over make downsizer super contributions.
Hansard ↗House passes the bill
After debate, the House approved measures including ATOThe tax office that administers the rules in this bill, including reporting, penalties and tax debt recovery. record-keeping courses for some small businesses instead of immediate penalties and expanded reporting for sharing-economy platform transactions.
Hansard ↗Parliament passes the bill
The Senate passed the package, completing Parliament's approval of changes to ATOThe tax office that administers the rules in this bill, including reporting, penalties and tax debt recovery. compliance tools, third-party reportingA rule that makes someone other than the taxpayer, such as an online platform, send transaction information to the tax office., self-education deductions, tax dispute recovery and downsizer super rules.
Parliamentary timeline ↗Royal AssentThe step that turns a bill into an Act and starts the clock for some of its changes. makes the changes law
Royal AssentThe step that turns a bill into an Act and starts the clock for some of its changes. turned the bill into an Act, allowing the combined tax administration and superannuation changes to take effect under the enacted legislation.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe step that turns a bill into an Act and starts the clock for some of its changes., turning the bill into an Act.
Key criticism
The main criticism was that the bill’s expanded downsizer super concession would give another tax break to wealthier property owners while public money was needed more urgently for housing, health and cost-of-living support. That case was raised mainly by the Greens, especially against schedule 5, while Labor and the Coalition still supported the broader bill.
Criticism was focused on the superannuation concession, not most of the bill’s tax administration measures.
Tax break for wealthier property owners
Greens speakers argued the biggest problem in the bill was schedule 5, which lowered the age for downsizer super contributions and would widen a concession they said mainly benefits wealthier landholders and homeowners rather than people under the most financial pressure.
Wrong budget priority during cost-of-living pressure
Opponents argued the bill protected or expanded tax settings that favour better-off Australians when the money should instead have been directed to housing, health, childcare, welfare and other essential services during a cost-of-living crunch.
Further sources
Votes
The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.
House
Passed 68 to 6. Support came from Labor, Liberal Party, and Nationals. Opposition came from Greens and Katter's Australian Party. Minor-party and independent votes were split.
The House rejected the Greens' second-reading amendment, so the bill proceeded without that call for an alternative spending priority.
Senate
The Senate record lists Australian Greens sheet 1632 as carried on voices, without a counted division. The enacted Act still includes Schedule 5, so this outcome should not be read as removing the downsizer-contributions schedule.
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.
Parliamentary debate
Start here — lead voices
Stephen Jones supports the bill, saying it reduces compliance costs, improves tax reporting and gives older Australians more flexibility to make downsizer contributions into superannuation.
Read in Hansard ↗McKim opposes the bill because schedule 5 would expand a superannuation tax concession he says is a public subsidy for wealthy landholders.
Read in Hansard ↗James Stevens supports the bill and says it will improve retirement planning by lowering the downsizer contributionA super contribution you can make from the proceeds of selling your home if you meet the age and other rules. age to 55 and giving self-funded retirees more certainty.
Read in Hansard ↗Marino says the coalition will support the bill because it delivers practical measures for small business, including help with ATOThe tax office that administers the rules in this bill, including reporting, penalties and tax debt recovery. disputes and tax compliance.
Read in Hansard ↗All speeches by bloc
2 speakers · 3 contributions · 2 support
Hansard records 2 separate contributions by Stephen Jones on this bill. They are grouped here so the speaker is listed once.
Minister's second reading speech
Stephen Jones supports the bill, saying it reduces compliance costs, improves tax reporting and gives older Australians more flexibility to make downsizer contributions into superannuation. He presents it as practical tax administration reform that helps small business, taxpayers and housing mobility.
“The bill will make amendments to reduce the regulatory burden and the cost for taxpayers and improve compliance with tax laws. The bill also delivers on the government's election commitment to provide greater flexibility for downsizers aged 55 years and over to make contributions into their superannuation.”Read this contribution in Hansard ↗
Second reading speech
Stephen Jones supports the bill and says it will cut compliance costs, improve tax reporting, and give small businesses and individuals more practical options. He commends it because each schedule is framed as a sensible measure that helps businesses, taxpayers, and housing supply.
“With those comments, in summing up, I'd like to commend the bill to the House.”Read this contribution in Hansard ↗
“Schedule 5 of the bill expands eligibility for those aged 55 years and over to make downsizer contributions into superannuation. This will allow more Australians to consider downsizing to a home that better suits their needs, thereby increasing the availability of suitable housing for Australian families. I commend the bill to the Senate.”Read the full speech in Hansard ↗
6 speakers · 6 support
“I'm particularly pleased, as I've made clear, that we're here to give an opportunity for much greater security for people planning their retirement. I thank the millions of Australians, a growing cohort, who are provisioning for their own retirement. I've made the point as to how much of a significant economic contribution that is and how much of a significant budgetary contribution it is particularly to the Commonwealth budget. This is one thing we can do to help them feel more secure in their retirement. I think it'll also lead to more people being self-funded retirees and taking a further financial burden off the Commonwealth payments that are made. That is in no way any criticism of people who do need and should always have the support of us to have the aged pension and other government supports in retirement, but, clearly, where people can afford to support their own retirement that is of significant help to the Commonwealth. This is one very good opportunity we have to help those people who help us in that way. I commend the bill to the House.”Read the full speech in Hansard ↗
“As has been said here, the coalition will be supporting the Treasury Laws Amendment (2022 Measures No. 2) Bill 2022 because it implements a number of very sensible measures of the previous coalition government. It is all about small business, as we've heard previously—the small businesses that employ the majority of Australians and do so very well in all of our small communities in particular.”Read the full speech in Hansard ↗
“As we keep working towards supporting small and medium businesses across our economy, I'm happy to see the government take up some of those measures which we would have implemented if we'd had the privilege of being re-elected to government at the last election. I'm pleased to see that the government has decided to take these on and they are reflected in this bill.”Read the full speech in Hansard ↗
“The opposition will be supporting this bill because the bill implements a number of sensible measures that the coalition government examined—and pushed for—in its previous life. The bill provides effective changes to support small businesses in handling their affairs with the ATO, providing them with additional supports in the event of inadvertent breachers. That's very important.”Read the full speech in Hansard ↗
“The coalition will be supporting this bill, the Treasury Laws Amendment (2022 Measures No. 2) Bill 2022. This bill implements a number of sensible measures of the previous coalition government. For a number of these measures, their implementation was delayed due to the COVID-19 pandemic. The bill provides effective changes to support small businesses in handling their affairs with the Australian Taxation Office, providing them with additional supports in the event of inadvertent breaches, as opposed to financial penalties. It provides small businesses additional support in dealing with the ATO appeals process and removes tax barriers that support sole traders and individuals looking to upskill. It supports gig economy contractors and companies to manage their tax obligations and ensure that the ATO has the data it needs to ensure accurate reporting. And it puts in place important reforms to support the coalition's election commitment to support Australians over-55 to downsize their properties and contribute to their superannuation.”Read the full speech in Hansard ↗
“The coalition will be supporting this bill, the Treasury Laws Amendment (2022 Measures No. 2) Bill 2022.”Read the full speech in Hansard ↗
4 speakers · 4 oppose
“I give notice of my intention to move the amendment on sheet 1632, circulated in my name, which would strike out schedule 5 from this bill. I commend that amendment to the chamber but I hold out no hope it will succeed, because the duopoly in this place is going to once again work together, to collude, to ensure that the interests of the landed class in this country have primacy and that the interests of those who are less well-off are once again ignored.”Read the full speech in Hansard ↗
“The amendment I've moved today is about this place signalling to the government that the last thing we need is more of the same—the last thing we need is more Liberal Party election promises; the last thing we need is the status quo. It's time this government scrapped the stage 3 tax cuts and, instead, spent $244 billion funding the services everyday Australians need to live a good life.”Read the full speech in Hansard ↗
“My Greens colleague, Max Chandler-Mather, has just moved an amendment to this Treasury laws bill to call on this government to stop these unjustifiable stage 3 tax cuts. There's no reason to proceed with them. Let's use this opportunity to drop them now.”Read the full speech in Hansard ↗
“The government wants to pretend that it is powerless to stop terrible coalition policy, but it is not. It has the majority in this House, and it would have the support of the Greens both here and in the Senate to repeal these tax cuts.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThe step that turns a bill into an Act and starts the clock for some of its changes., turning the bill into an Act.
