This bill became law on Jun 28th, 2023.
Budget, tax & economy
Australia brings in a tax treaty with Iceland to cut double taxation on the same income and support tax cooperation against evasion and avoidance.
Gaps and administrative burdens in tax law left double taxation risks with Iceland, uncertainty for Future Fund subsidiaries, split charity approval pathways, and frequent exciseA tax on certain goods such as alcohol and fuel, which this bill lets some smaller businesses report and pay less often. reporting for smaller businesses. The bill fixes those problems by updating tax and reporting rules, centralising some DGRAn organisation approved to receive tax-deductible donations, which matters here because some approval decisions move to the Australian Taxation Office. approvals with the ATOThe tax agency that will handle more of the charity approval process and administer the tax rules affected by this bill., and allowing eligible small exciseA tax on certain goods such as alcohol and fuel, which this bill lets some smaller businesses report and pay less often. payers to report quarterly.
After Australia and Iceland signed a tax treaty in October 2022, the government used this bill in March 2023 to give that treaty legal force and tidy several domestic tax rules that were creating extra administration, uncertainty or duplicated approval paths. Parliament passed the package in June 2023 and it became law on 28 June, centralising some deductible gift recipientAn organisation approved to receive tax-deductible donations, which matters here because some approval decisions move to the Australian Taxation Office. decisions with the ATOThe tax agency that will handle more of the charity approval process and administer the tax rules affected by this bill., clarifying tax treatment for Future Fund subsidiaries and letting eligible smaller exciseA tax on certain goods such as alcohol and fuel, which this bill lets some smaller businesses report and pay less often. payers shift to quarterly reporting.
The main criticism was that the bill did not go far enough on transparency because the Future Fund could still keep its investments out of public view unless reporting rules were later made. That concern was raised mainly by the Greens, who still supported the bill after securing an amendment, and no party represented in the debate opposed the bill overall.
Hon Dr Andrew Leigh MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 28 June 2023
Final passage
Passed without a counted vote
Members called out ‘aye’ or ‘no’ — no individual votes were recorded.
Passage speed
98 days
From introduction to the latest recorded parliamentary step
Meaning
Australia brings in a tax treaty with Iceland to cut double taxation on the same income and support tax cooperation against evasion and avoidance.
Wholly owned Australian subsidiaries of the Future Fund BoardThe body that runs the Future Fund and, under this bill, can have wholly owned Australian subsidiaries that get the same tax treatment in limited cases. can now be income-tax exempt and get refunds for franking creditsA credit attached to company tax paid on dividends, which can be refunded in some cases if the recipient owes no tax. if they only do investments the Future Fund BoardThe body that runs the Future Fund and, under this bill, can have wholly owned Australian subsidiaries that get the same tax treatment in limited cases. could do itself.
The Future Fund BoardThe body that runs the Future Fund and, under this bill, can have wholly owned Australian subsidiaries that get the same tax treatment in limited cases. can be required to publish online reports on its investments, but the public release cannot start until at least 90 days after the reporting day.
Environmental groups, harm-prevention charities, cultural organisations and overseas aid charities will deal with the Australian Taxation OfficeThe tax agency that will handle more of the charity approval process and administer the tax rules affected by this bill. for deductible gift recipientAn organisation approved to receive tax-deductible donations, which matters here because some approval decisions move to the Australian Taxation Office. status instead of separate departments and ministers.
Eligible smaller fuel and alcohol businesses can move to quarterly exciseA tax on certain goods such as alcohol and fuel, which this bill lets some smaller businesses report and pay less often. and exciseA tax on certain goods such as alcohol and fuel, which this bill lets some smaller businesses report and pay less often.-equivalent customs reporting and payment instead of more frequent schedules.
The Convention was signed in Reykjavik, Iceland, on 12 October 2022. It improves bilateral tax arrangements between Australia and Iceland by alleviating double taxation of income. It also enables greater administrative cooperation in tax matters, including through information exchange, to help reduce tax evasion and avoidance.Treasury Laws Amendment (Refining and Improving Our Tax System) explanatory memorandum
The Future Fund Board is exempt from income tax and is eligible for a refund of a tax offset relating to a franked distribution. A 100% subsidiary of the Future Fund Board incorporated in Australia is also exempt from income tax and eligible for a refund of a tax offset relating to a franked distribution, provided it only undertakes investment activities that the Future Fund Board is able to undertake.Treasury Laws Amendment (Refining and Improving Our Tax System) explanatory memorandum
(2) The publication period must not begin until at least 90 days have elapsed after the reporting day concerned.Treasury Laws Amendment (Refining and Improving Our Tax System) Act 2023 final Act text
This measure transfers administration of the three register DGR categories and the OAGDS to the Commissioner of Taxation. These unique DGR categories are currently administered by other government agencies. This change is intended to make all DGR categories consistent in administration, reduce red tape imposed on endorsed organisations, and simplify the application process for organisations seeking DGR status.Treasury Laws Amendment (Refining and Improving Our Tax System) explanatory memorandum
The proposed amendment will commence on 1 July 2023. Eligible businesses with an aggregated turnover of less than $50 million in an income year, who pay fuel and alcohol excise or customs duty on excise-equivalent goods, will then be able to apply for permission to the Commissioner of Taxation or Comptroller-General of Customs to move to the new reporting schedule.Minister's second reading speech
Context
After Australia and Iceland signed a tax treaty in October 2022, the government used this bill in March 2023 to give that treaty legal force and tidy several domestic tax rules that were creating extra administration, uncertainty or duplicated approval paths. Parliament passed the package in June 2023 and it became law on 28 June, centralising some deductible gift recipientAn organisation approved to receive tax-deductible donations, which matters here because some approval decisions move to the Australian Taxation Office. decisions with the ATOThe tax agency that will handle more of the charity approval process and administer the tax rules affected by this bill., clarifying tax treatment for Future Fund subsidiaries and letting eligible smaller exciseA tax on certain goods such as alcohol and fuel, which this bill lets some smaller businesses report and pay less often. payers shift to quarterly reporting.
Australia and Iceland sign a new tax treaty
The treaty created the need for Australian legislation to give it force of law and reduce double taxation barriers for investment and trade between the two countries.
Hansard ↗Government introduces a tax law clean-up bill
The minister said the bill would remove unnecessary administrative and compliance burdens by covering the Iceland treaty, Future Fund subsidiaries, charity DGRAn organisation approved to receive tax-deductible donations, which matters here because some approval decisions move to the Australian Taxation Office. approvals and exciseA tax on certain goods such as alcohol and fuel, which this bill lets some smaller businesses report and pay less often. reporting for smaller businesses.
Hansard ↗House passes the bill
The House completed its consideration of the package, sending the tax treaty and domestic administration changes to the Senate.
Parliamentary timeline ↗Senate passes the bill with amendments
The Senate agreed to the bill after considering amendment packages, allowing the final form to return to the House.
Parliamentary timeline ↗Royal AssentThe final step that turns a passed bill into an Act of Parliament. makes the changes law
Royal AssentThe final step that turns a passed bill into an Act of Parliament. completed the process and turned the package of treaty, charity, Future Fund and exciseA tax on certain goods such as alcohol and fuel, which this bill lets some smaller businesses report and pay less often. administration changes into an Act.
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.
Referred to Federation Chamber
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 bill reached this recorded parliamentary step.
Reported from Federation Chamber
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
Referred to Committee (30/03/2023): Senate Economics Legislation Committee; Committee report (12/05/2023)
Referred to committee
APH bill page notesThe 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 step that turns a passed bill into an Act of Parliament., turning the bill into an Act.
Key criticism
The main criticism was that the bill did not go far enough on transparency because the Future Fund could still keep its investments out of public view unless reporting rules were later made. That concern was raised mainly by the Greens, who still supported the bill after securing an amendment, and no party represented in the debate opposed the bill overall.
Criticism was narrow and focused on disclosure safeguards, not the bill’s broader tax or red-tape measures.
Future Fund transparency remained too weak
The clearest objection was that the bill did not itself guarantee regular public disclosure of Future Fund investments, leaving too much to later reporting rules and delaying public scrutiny of where public money is invested. Critics argued stronger transparency would help expose and discourage unethical investments.
Further sources
Votes
The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for 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
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
Senator McKim’s proposal was agreed on voices and would let reporting rules require the Future Fund BoardThe body that runs the Future Fund and, under this bill, can have wholly owned Australian subsidiaries that get the same tax treatment in limited cases. to prepare periodic investment reports and publish them online after a delay.
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 recorded the Government amendment as carried on voices. It changed the bill text so the public fund is treated as having the principal purpose listed in the tax law unless that purpose later changes.
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
Parliamentary debate
Start here — lead voices
Andrew Leigh supports the bill.
Read in Hansard ↗James Stevens says the coalition will support the bill because it includes a beer exciseA tax on certain goods such as alcohol and fuel, which this bill lets some smaller businesses report and pay less often. reduction and should help alcohol producers, but he argues the government should undertake a broader review of alcohol taxation so spirits and other categories are treated more fairly.
Read in Hansard ↗Anthony Chisholm supports the bill because he says it removes unnecessary administrative and compliance burdens in the tax system.
Read in Hansard ↗Michael McCormack says the coalition will support the bill because it streamlines the tax system, cuts red tape and carries measures the former coalition government had backed, but he attacks Labor for broken promises and says it is not doing enough on tax relief and small business.
Read in Hansard ↗All speeches by bloc
4 speakers · 4 support
“The Treasury Laws Amendment (Refining and Improving our Tax System) Bill 2023 contains a number of measures to remove unnecessary administrative and compliance burdens associated with our tax system.”Read the full speech in Hansard ↗
“The Treasury Laws Amendment (Refining and Improving our Tax System) Bill 2023 contains a number of measures to remove unnecessary administrative and compliance burdens associated with our tax system.”Read the full speech in Hansard ↗
“These five changes include building a better and stronger relationship with Iceland, further reducing red tape for small businesses, streamlining processes for entities doing work in our communities and internationally, and helping the Australian economy. I recommend the bill to the House.”Read the full speech in Hansard ↗
“Schedule 5 to the bill provides deregulatory benefits to retail and hospitality venues who repackage beer from bulk quantities into small containers for immediate retail sale. From 1 July 2023 this measure introduces a targeted exemption from alcohol excise licensing requirements for the repackaging of the first 10,000 litres of beer from kegs into non-pressurised containers of no more than two litres capacity for immediate retail sales at a particular premises in a financial year. Currently, businesses that package duty paid beer into these containers are required to hold a manufacturing licence for excise purposes and pay duty again, in effect paying double duty. These licences carry significant obligations which are more appropriate to entities fermenting, brewing and/or repackaging beer on a commercial basis in order to protect the lower alcohol excise rate of a keg beer; however, filling specified containers in retail settings does not pose this integrity risk. I commend the bill to the Senate.”Read the full speech in Hansard ↗
5 speakers · 6 contributions · 5 support
“In this bill, we have a particular reduction in the excise levied on a type of sale of beer. We welcome that. We're supporting the bill, including that reduction.”Read the full speech in Hansard ↗
“On the one hand, the coalition supports this bill, which implements a number of measures of the former coalition government to streamline our tax system, reduces tax—and we're all for that—and decreases red tape on small businesses and charities, which we're also very much in favour of. However, whilst they are worthy initiatives, we do not see enough from this government on reducing tax and easing the burden on small business. Sadly, this bill is just another stark reminder that, whether it is working with franking credits or superannuation, you cannot trust Labor when it comes to tax. Labor has never seen a tax it wouldn't want to impose or increase, and the public is aware of that.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Angus Taylor on this bill. They are grouped here so the speaker is listed once.
Second reading speech
Taylor says the coalition will support the bill because it largely carries forward former coalition tax measures that simplify the system and reduce red tape. He criticises Labor for delaying similar tax changes and says the government’s broader tax agenda breaks promises and raises taxes elsewhere.
“When it comes to this bill—and this has been brought forward by the government—the good news is that we do see some of these principles being followed. That should come as no surprise because not one, not two, but every measure of this bill is an initiative of the former coalition government, from double taxation treaties to equalising tax treatment across entities, streamlining charities and administration, and cutting red tape for small businesses and brewers. This is a bill that extends the coalition's proud record of cutting and lowering the cost of doing business and streamlining our tax system. This is something we haven't seen enough of yet from those opposite, but we're very pleased this has come forward. In fact, the last bill of this nature is currently stuck in the Senate. Small businesses are waiting for certainty around tax incentives which they were promised back in May last year. This is despite the government expediting all sorts of interventions in our economy or cultural priorities: DGR status for the voice was rushed through; unprecedented market intervention in our gas market was rushed through; reregulation of the labour market was rushed through. But tax incentives for small businesses—delay, delay, delay. So we see where the priorities of those opposite are. They're very clear. But at least this is something that we can get behind and support.”Read this contribution in Hansard ↗
Second reading speech
Taylor says the Coalition will support the bill, but argues Labor has broken its tax promises and should do more to reduce red tape, back small business and address labour shortages.
“While the coalition will support this bill, we call on the government to stop breaking its promises on tax and energy, and to support Australian small-business owners with more red tape reduction, more incentives to grow their businesses and more support to resolve labour market shortages before the cost-of-living crisis gets completely out of control.”Read this contribution in Hansard ↗
“While the coalition will support this bill, we call on the government to stop breaking its promises on taxes and energy and to support Australian small-business owners with more red tape reduction, more incentives to grow their businesses and more support to resolve labour market shortages before this cost-of-living crisis gets completely out of control.”Read the full speech in Hansard ↗
“So providing the certainty on the tax treatment is desirable. That's what this bill does.”Read the full speech in Hansard ↗
1 speaker · 1 support
“The reporting rules will be a legislative instrument that is subject to disallowance by the parliament. I refer the Senate to the supplementary explanatory memorandum issued by the then Minister for Finance, Senator Birmingham, to the Investment Funds Legislation Amendment Bill 2021 in respect of the proposed amendments to that bill on sheet ZC133 for a more detailed explanation of the clauses in this amendment. I look forward to the Senate's support.”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 · 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 · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
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 step that turns a passed bill into an Act of Parliament., turning the bill into an Act.
Senate Economics Legislation Committee; Committee report (12/05/2023)
Referred to committee
Referred to Committee (30 Mar 2023): Senate Economics Legislation Committee; Committee report (12 May 2023)
APH bill page notes
