This bill became law on Dec 5th, 2022.
Budget, tax & economy
Foreign investors face tougher penalties for breaking Australia’s residential land rules, with maximum financial penalties doubled to better protect housing supply and affordability.
Weak penalties for foreign breaches of residential land rules, delays in getting disaster help out, expiring COVID document flexibilities, and a tax gap for PALMThe worker program that gives Pacific and Timor-Leste workers jobs in Australia, and whose tax treatment is adjusted by this bill. workers exposed several implementation problems. The bill doubles penalties, lets agencies share protected tax data for disaster programs, extends temporary document-rule powers, and aligns PALMThe worker program that gives Pacific and Timor-Leste workers jobs in Australia, and whose tax treatment is adjusted by this bill. workers’ tax treatment.
Australia already had foreign investment rules for residential property, disaster relief programs tied to protected tax information, temporary COVID-era document signing powers and concessional tax settings for seasonal workers, but gaps remained as housing affordability stayed under pressure, agencies needed faster data-sharing after disasters, the document powers were due to expire and PALMThe worker program that gives Pacific and Timor-Leste workers jobs in Australia, and whose tax treatment is adjusted by this bill. workers were not aligned with the earlier labour scheme. The bill packaged those fixes together in late 2022 by lifting penalties, extending the temporary document regime, widening tax-data sharing and aligning PALMThe worker program that gives Pacific and Timor-Leste workers jobs in Australia, and whose tax treatment is adjusted by this bill. withholding from 1 July 2022, before becoming law in December 2022.
The clearest criticism was about the bill's faith-based superannuation schedule, with concern that it could weaken consumer protections by letting those products avoid the same performance scrutiny and disclosure expectations as other super funds. That concern appears to have been limited to a specific part of the bill rather than broad opposition to the whole package, and it was reflected in Senate amendment activity before Schedule 5 was ultimately removed.
Stephen Jones MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 05 Dec 2022
Final passage
Passed without a counted vote
3 recorded amendment or procedural votes were found, but no counted vote on the bill itself was recorded.
Passage speed
88 days
From introduction to the latest recorded parliamentary step
Meaning
Foreign investors face tougher penalties for breaking Australia’s residential land rules, with maximum financial penalties doubled to better protect housing supply and affordability.
Australian government agencies can receive protected tax information to run disaster support programs, helping them target help faster to people and businesses hit hard by major disasters.
The temporary COVID-19 power to change signing, witnessing and document rules stays in place until 31 December 2023, and any ministerial determinationsFormal decisions made by a minister that can set or change details of the temporary document-signing rules on this page. end after that date.
Workers in the Pacific Australia Labour Mobility schemeThe worker program that gives Pacific and Timor-Leste workers jobs in Australia, and whose tax treatment is adjusted by this bill. get the same 15 per cent final withholding taxTax taken out before payment is made, here used to describe the 15 per cent treatment for PALM workers. treatment from 1 July 2022 that already applied under the earlier seasonal labour program.
The government can later extend this special labour mobility tax treatment to other worker programs and visa types by regulation, without passing another Act.
The FATA contains specific penalties for contraventions of residential land provisions. The amendments double the maximum financial penalties in the FATA for contraventions of residential land provisions. The purpose of this increase to financial penalties is to ensure that these penalties effectively deter foreign persons from contravening the residential land provisions in the FATA. Non-compliance with the residential land provisions in the FATA may have a significant impact on Australia’s housing stock and housing affordability, and foreign persons can make a significant financial gain by obtaining an interest in Australian residential land.Treasury Laws Amendment (2022 Measures No. 3) explanatory memorandum
These amendments will allow a taxation officer to disclose protected information to an Australian government agency where the information is disclosed for the purposes of administering programs declared by the Minister as major disaster support programs. This will assist Australian government agencies to address the needs of individuals and businesses significantly disrupted by a major disaster event more efficiently and effectively and reduces the risk of those individuals and businesses receiving inadequate or inappropriate support.Treasury Laws Amendment (2022 Measures No. 3) explanatory memorandum
This item also extends the time in which determinations made under Schedule 5 to the Coronavirus (Measures No. 2) Act operate so that they have no operation after 31 December 2023 rather than 31 December 2022.[Schedule 3, item 1, subitems 1(7) and (8) of Schedule 5 to the Coronavirus (Measures No. 2) Act]Treasury Laws Amendment (2022 Measures No. 3) explanatory memorandum
The final 15 per cent withholding tax applies to ‘covered labour mobility programs’. From 1 July 2022, ‘covered labour mobility programs’ includes:Treasury Laws Amendment (2022 Measures No. 3) explanatory memorandum
These amendments also allow this tax treatment to be extended to foreign resident workers under any programs prescribed by regulations and for regulations to prescribe visa names for these purposes. [Schedule 4, items 11, 13 and 27, paragraphs 840-905(b) and 840‑906(c) of the ITAA 1997 and subparagraph 12-319A(b)(iii) in Schedule 1 to the TAA 1953]Treasury Laws Amendment (2022 Measures No. 3) explanatory memorandum
Context
Australia already had foreign investment rules for residential property, disaster relief programs tied to protected tax information, temporary COVID-era document signing powers and concessional tax settings for seasonal workers, but gaps remained as housing affordability stayed under pressure, agencies needed faster data-sharing after disasters, the document powers were due to expire and PALMThe worker program that gives Pacific and Timor-Leste workers jobs in Australia, and whose tax treatment is adjusted by this bill. workers were not aligned with the earlier labour scheme. The bill packaged those fixes together in late 2022 by lifting penalties, extending the temporary document regime, widening tax-data sharing and aligning PALMThe worker program that gives Pacific and Timor-Leste workers jobs in Australia, and whose tax treatment is adjusted by this bill. withholding from 1 July 2022, before becoming law in December 2022.
Labor commits to double penalties for foreign breaches of residential land rules
The government framed tougher penalties as an election commitment aimed at protecting housing stock and affordability from non-compliance by foreign investors.
Hansard ↗PALMThe worker program that gives Pacific and Timor-Leste workers jobs in Australia, and whose tax treatment is adjusted by this bill. workers become eligible for the concessional 15 per cent withholding rate
The bill set Pacific Australia Labour Mobility workers on the same final withholding taxTax taken out before payment is made, here used to describe the 15 per cent treatment for PALM workers. treatment that already applied under the earlier seasonal labour program from this date.
Explanatory memorandum ↗Government introduces an omnibus bill to fix four implementation gaps
Ministers presented one bill to tighten foreign investment penalties, allow tax-data sharing for disaster support, extend COVID document powers and align PALMThe worker program that gives Pacific and Timor-Leste workers jobs in Australia, and whose tax treatment is adjusted by this bill. worker tax treatment.
Hansard ↗Parliament passes the bill
Both houses agreed on the final text, clearing the way for the package of housing, disaster administration, document-signing and labour mobility tax changes to become law.
Parliamentary timeline ↗Royal AssentThe final formal step that turns a bill into an Act of Parliament. turns the package into law
Royal AssentThe final formal step that turns a bill into an Act of Parliament. completed the bill's passage and activated the legislative changes needed for the four separate policy fixes to operate.
Parliamentary timeline ↗Extended COVID document-signing powers are set to end
The Act kept the temporary power to vary signing, witnessing and document rules alive until the end of 2023, with any ministerial determinationsFormal decisions made by a minister that can set or change details of the temporary document-signing rules on this page. ending after that date.
Explanatory memorandum ↗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.
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
Referred to Committee (28/09/2022): Senate Economics Legislation Committee; Committee report (17/11/2022)
Referred to committee
APH bill page notesThe bill reached this recorded parliamentary step.
Reported from Federation Chamber
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 considered the bill in detail and dealt with amendments before the next stage.
Consideration in detail debate
The chamber agreed to the bill at third reading, which completed passage through that chamber. Later message exchanges with the other chamber were still recorded afterwards.
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 considered amendments before the bill moved to the next stage.
Committee of the Whole debate
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill reached this recorded parliamentary step.
The House dealt with Senate amendments or requests so both chambers could settle the bill in the same form.
Consideration of Senate message
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe final formal step that turns a bill into an Act of Parliament., turning the bill into an Act.
Key criticism
The clearest criticism was about the bill's faith-based superannuation schedule, with concern that it could weaken consumer protections by letting those products avoid the same performance scrutiny and disclosure expectations as other super funds. That concern appears to have been limited to a specific part of the bill rather than broad opposition to the whole package, and it was reflected in Senate amendment activity before Schedule 5 was ultimately removed.
No party represented in the debate opposed the bill overall; the recorded concern was narrow and drafting-focused.
Faith-based super exemption could weaken scrutiny
The main recorded reservation was that the faith-based superannuation provisions risked creating a carve-out from normal performance and disclosure scrutiny, potentially leaving members with less protection if those products underperformed. The Senate dealt with amendments framed around ensuring faith-based products would still face the same scrutiny as other products, and Schedule 5 was later removed from the bill.
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 83 to 56. Support came from Labor. Opposition came from Liberal Party, Nationals, and Centre Alliance. Minor-party and independent votes were split.
The vote blocked the proposed extra disclosure requirements for super fund annual members' meeting notices.
Passed 78 to 68. Support came from Labor and Greens. Opposition came from Liberal Party, Nationals, Centre Alliance, Katter's Australian Party, and minor parties and independents. Minor-party and independent votes were split.
The vote defeated the opposition's attempt to change how superannuation fund spending and disclosure would be reported.
The House agreed to the amendments made by the Senate, so the bill could pass both chambers in the same form.
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
Senate
Defeated 28 to 34. Support came from Liberal Party, Nationals, and minor parties and independents. Opposition came from Labor, Greens, and One Nation. Jacqui Lambie Network had split recorded votes.
The defeated package would have added a new schedule requiring more information with superannuation annual members' meeting notices; it did not affect the separate government amendments removing Schedule 5.
The Senate agreed to two Government amendments related to faith-based superannuation products without a counted division.
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
The Senate agreed on voices to an amendment about the information superannuation trustees must include with annual members' meeting notices, including a short-form summary and related details.
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.
The parliamentary record also shows 2 Government amendments agreed without a counted division.
Parliamentary debate
Start here — lead voices
Stephen Jones supports the bill, saying it delivers several election commitments and makes practical changes to foreign ownership penalties, disaster support information-sharing, COVID-era document rules, PALMThe worker program that gives Pacific and Timor-Leste workers jobs in Australia, and whose tax treatment is adjusted by this bill. tax arrangements and faith-based superannuation products.
Read in Hansard ↗Farrell supports the bill and says it delivers Labor commitments on foreign ownership penalties, disaster-support information sharing, temporary COVID-era documentary arrangements, PALMThe worker program that gives Pacific and Timor-Leste workers jobs in Australia, and whose tax treatment is adjusted by this bill. scheme tax settings, faith-based superannuation products, and foreign investment fee caps.
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 delivers several election commitments and makes practical changes to foreign ownership penalties, disaster support information-sharing, COVID-era document rules, PALMThe worker program that gives Pacific and Timor-Leste workers jobs in Australia, and whose tax treatment is adjusted by this bill. tax arrangements and faith-based superannuation products. He argues the measures are needed to improve compliance, disaster response and access to super while still keeping performance standards in place.
“These changes to the performance test will strike a balance. The amendments give members back the ability to invest in faith based products while continuing to hold trustees to account for the investment performance they deliver and the fees they charge to members.”Read this contribution in Hansard ↗
Second reading speech
Stephen Jones supports the bill and urges the House not to delay it, saying it contains practical measures for disaster relief, labour shortages, and faith-based superannuation choices. He argues it should pass quickly because it would help governments, regional businesses, and affected communities.
“So I thank once again all members of the House who have made a contribution to this debate. For the reasons that I have set out, whether it's the importance of securing disaster relief to families whose houses, livelihoods and families lie in the path of destruction because of seasonal weather events, or whether it's in favour of regional businesses attempting to get crops off their trees and out of the ground, or whether it's the importance of maintaining consistency of principle when adopting an approach to religious freedom, there is no reason for this House, or indeed this parliament, to delay the passage of these bills. I commend them to the House.”Read this contribution in Hansard ↗
“This is why this measure is so important. It will ensure that Australians of faith are able to participate fully in our superannuation system, without compromising on their values or on performance standards.”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 · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Reported from Federation Chamber
Reported from Federation Chamber
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 · Consideration in detail debate
Consideration in detail
The chamber considered the bill in detail and dealt with amendments before the next stage.
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 · Committee of the whole: amendments considered
Amendment packages agreed
The chamber considered amendments before the bill moved to the next stage.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
House · Message from Senate reported
Message from Senate reported
The bill reached this recorded parliamentary step.
House · Consideration of Senate message
House agreed to Senate amendments
The House dealt with Senate amendments or requests so both chambers could settle the bill in the same form.
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 final formal step that turns a bill into an Act of Parliament., turning the bill into an Act.
Senate Economics Legislation Committee; Committee report (17/11/2022)
Referred to committee
Referred to Committee (28 Sept 2022): Senate Economics Legislation Committee; Committee report (17 Nov 2022)
APH bill page notes
