This bill became law on May 31st, 2024.
Budget, tax & economy
Tax promoters face tougher penalties, including much larger penalties for companies and global groups, if they market tax schemes using benefits from the scheme or falsely claim an ATOThe tax office that enforces Commonwealth tax law and can investigate promoters, schemes and misconduct on this page. ruling backs it.
Weak penalties, limited whistleblower coverage, hidden tax practitioner misconduct and delayed petroleum rent tax from LNGNatural gas that has been chilled into a liquid so it can be shipped overseas; the bill focuses on offshore LNG projects. projects left major gaps in tax accountability. This bill raises promoter penalties, protects more whistleblowers, lets misconduct be published and shared between agencies, and requires some LNGNatural gas that has been chilled into a liquid so it can be shipped overseas; the bill focuses on offshore LNG projects. projects to pay petroleum rent tax sooner.
Before this bill, tax promoter penalties were relatively weak, whistleblower protections and public misconduct reporting were patchy, agencies had tighter limits on sharing tax-practitioner information, and some offshore LNGNatural gas that has been chilled into a liquid so it can be shipped overseas; the bill focuses on offshore LNG projects. projects could keep delaying petroleum resource rent taxA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. with large deductions. After the government announced a PRRTA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. deductions cap in May 2023 and then tied a wider integrity crackdown to the PwC tax scandal when it introduced the bill in November 2023, Parliament passed it in May 2024 and turned both the adviser misconduct and LNGNatural gas that has been chilled into a liquid so it can be shipped overseas; the bill focuses on offshore LNG projects. tax changes into law.
The main criticism was that the bill was a poorly structured omnibus package that bundled PwC-related tax integrity reforms with separate petroleum tax changes, making scrutiny and support for the package harder. That concern was raised by Coalition and several crossbench MPs, while criticism of the PRRTA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. part itself split in opposite directions between those saying it went too far and those saying it did not go far enough.
Stephen Jones MP introduced this bill. It passed with support from Labor, Greens, some crossbench members; opposed by Liberal Party, Nationals, One Nation, UAP, some crossbench members.
Did it become law?
Yes
Became law 31 May 2024
Final passage
Recorded final vote
1 counted final-passage vote was recorded.
Passage speed
197 days
From introduction to the latest recorded parliamentary step
Meaning
Tax promoters face tougher penalties, including much larger penalties for companies and global groups, if they market tax schemes using benefits from the scheme or falsely claim an ATOThe tax office that enforces Commonwealth tax law and can investigate promoters, schemes and misconduct on this page. ruling backs it.
Whistleblowers now get tax-law protection if they report possible misconduct to the Tax Practitioners BoardThe regulator for registered tax agents and BAS agents, which can investigate misconduct and now publish some findings publicly. or the Australian Taxation OfficeThe tax office that enforces Commonwealth tax law and can investigate promoters, schemes and misconduct on this page. to help police tax practitioners.
The Tax Practitioners BoardThe regulator for registered tax agents and BAS agents, which can investigate misconduct and now publish some findings publicly. can now publish misconduct findings on its public registerA public list the Tax Practitioners Board can use to show misconduct findings so employers and clients can check practitioners., including for some former tax practitioners, so people and employers can better check who they deal with.
Treasury, the Australian Taxation OfficeThe tax office that enforces Commonwealth tax law and can investigate promoters, schemes and misconduct on this page. and the Tax Practitioners BoardThe regulator for registered tax agents and BAS agents, which can investigate misconduct and now publish some findings publicly. can share protected information more easily when advisers or firms may have misused confidential Commonwealth information.
Offshore LNGNatural gas that has been chilled into a liquid so it can be shipped overseas; the bill focuses on offshore LNG projects. projects can be forced to pay petroleum resource rent taxA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. sooner by limiting how much deductible spending they can use in a year, while carrying the denied amount forward with uplift.
The maximum penalty under the promoter penalty laws is the greatest of:Treasury Laws Amendment (Tax Accountability and Fairness) explanatory memorandum
A discloser is protected under Part IVD of the TAA 1953 if they make disclosures to the TPB or the Commissioner where the discloser considers the information may assist the TPB to perform its functions and duties under the TAS Act. [Schedule 2, item 3, subsection 14ZZT(1A) of the TAA 1953]Treasury Laws Amendment (Tax Accountability and Fairness) explanatory memorandum
In addition to the extension of the investigation timeframe, the amendments create a new option for the TPB following the conclusion of an investigation and a decision that there has been a breach of the TAS Act, by allowing the TPB to publish specified information about an entity, such as the findings of the investigation, on the Register. Publishing investigation findings can be the only action that the TPB takes, or it can be in addition to other actions such as administrative sanctions or civil penalties. When a TPB investigation finds that conduct has breached the TAS Act, the TPB must either decide to take no further action, or take one or more of the following actions:Treasury Laws Amendment (Tax Accountability and Fairness) explanatory memorandum
The ATO and TPB can share protected information with Treasury about misconduct arising out of breaches or suspected breaches of confidence by intermediaries engaging with the Commonwealth for the purpose of the Commonwealth appropriately responding to the breach or suspected breach.Treasury Laws Amendment (Tax Accountability and Fairness) explanatory memorandum
The deductions cap applies to a person if certain conditions are met, including that the person is not taken to have a taxable profit under subsection 22(1) or (2) of the PRRTA Act. A person to whom the deductions cap applies will be taken to have a taxable profit of 10 per cent of their assessable receipts derived in relation to the project in the year of tax, with PRRT being payable on this amount of deemed taxable profit. That person will be taken to incur augmented denied deductible expenditure on the first day of the next financial year.Treasury Laws Amendment (Tax Accountability and Fairness) explanatory memorandum
Context
Before this bill, tax promoter penalties were relatively weak, whistleblower protections and public misconduct reporting were patchy, agencies had tighter limits on sharing tax-practitioner information, and some offshore LNGNatural gas that has been chilled into a liquid so it can be shipped overseas; the bill focuses on offshore LNG projects. projects could keep delaying petroleum resource rent taxA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. with large deductions. After the government announced a PRRTA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. deductions cap in May 2023 and then tied a wider integrity crackdown to the PwC tax scandal when it introduced the bill in November 2023, Parliament passed it in May 2024 and turned both the adviser misconduct and LNGNatural gas that has been chilled into a liquid so it can be shipped overseas; the bill focuses on offshore LNG projects. tax changes into law.
Government announces PRRTA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. deductions cap for LNGNatural gas that has been chilled into a liquid so it can be shipped overseas; the bill focuses on offshore LNG projects. projects
Parliamentary debate records that the government had announced changes to the petroleum resource rent taxA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. in May, aiming to make some offshore LNGNatural gas that has been chilled into a liquid so it can be shipped overseas; the bill focuses on offshore LNG projects. projects pay tax sooner.
Hansard ↗Government links the bill to the PwC tax scandal
When introducing the bill, the Assistant Treasurer said it was the biggest crackdown on tax adviser misconduct in Australian history and cited PwC's behaviour and broader consultancy allegations as the trigger.
Hansard ↗Bill introduced to tighten tax integrity rules and bring forward LNGNatural gas that has been chilled into a liquid so it can be shipped overseas; the bill focuses on offshore LNG projects. tax
The bill packaged tougher promoter penalties, wider whistleblower protections, public disclosure powers for the Tax Practitioners BoardThe regulator for registered tax agents and BAS agents, which can investigate misconduct and now publish some findings publicly., easier information sharing, and the PRRTA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. deductions cap into one response.
Parliamentary timeline ↗Parliament passes the bill
Both houses passed the same text, clearing the way for the new misconduct, whistleblower, information-sharing and LNGNatural gas that has been chilled into a liquid so it can be shipped overseas; the bill focuses on offshore LNG projects. tax-payment rules to take effect.
Parliamentary timeline ↗Royal Assent makes the changes law
Royal Assent completed the process and converted the crackdown on tax adviser misconduct and the PRRTA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. changes for affected LNGNatural gas that has been chilled into a liquid so it can be shipped overseas; the bill focuses on offshore LNG projects. projects 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 bill reached this recorded parliamentary step.
Referred to Committee (30/11/2023): Senate Economics Legislation Committee; Committee report (10/05/2024)
Referred to committee
APH bill page notesThe bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Reported from 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 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.
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
Recorded vote: 31 to 26.
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
Recorded vote: 31 to 26.
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 Assent, turning the bill into an Act.
Key criticism
The main criticism was that the bill was a poorly structured omnibus package that bundled PwC-related tax integrity reforms with separate petroleum tax changes, making scrutiny and support for the package harder. That concern was raised by Coalition and several crossbench MPs, while criticism of the PRRTA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. part itself split in opposite directions between those saying it went too far and those saying it did not go far enough.
Criticism was real but divided, with no single alternative commanding broad agreement.
Unrelated measures bundled together
Several MPs argued the bill should have been split because it combined tax practitioner and whistleblower reforms with separate PRRTA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. changes for offshore gas. They said this was poor legislative practice and made members choose between backing reforms they supported and tax changes they opposed.
PRRT changes could hurt gas investment
Opponents from the Coalition said the petroleum tax changes would effectively impose a larger tax burden sooner, increase uncertainty and send a negative signal to an industry they saw as already facing heavy regulatory pressure. They argued the government was changing the rules in a way that could lift costs and deter investment.
PRRT changes were too weak
Some crossbench critics took the opposite view and said the petroleum rent tax measures did not go far enough, calling them a missed chance to secure a better public return from gas projects. They objected in particular to generous deductions and exemptions continuing for new projects.
Further sources
Votes
The chamber-passage votes come first. Expand a vote to see the party breakdown.
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.
Passed 31 to 26. Support came from Labor and Greens. Opposition came from Liberal Party, Nationals, One Nation, and UAP. Minor-party and independent votes were split.
Earlier bill-stage votes
Passed 31 to 26. Support came from Labor and Greens. Opposition came from Liberal Party, Nationals, One Nation, and UAP. Minor-party and independent votes were split.
Passed 31 to 25. Support came from Labor, Greens, and minor parties and independents. Opposition came from Liberal Party, Nationals, One Nation, and UAP. Minor-party and independent votes were split.
Recorded amendment and procedural votes grouped by chamber. Expand a vote to see the party breakdown.
House
Defeated 16 to 54. Support came from Greens, Centre Alliance, and minor parties and independents. Opposition came from Labor, Liberal Party, and Nationals. Minor-party and independent votes were split.
The House rejected the split-bill amendment, keeping the gas tax changes bundled with the rest of the bill.
Defeated 15 to 53. Support came from Greens, Centre Alliance, and minor parties and independents. Opposition came from Labor, Nationals, and Liberal Party. Minor-party and independent votes were split.
The House rejected the amendment, so the bill was not strengthened in that way at this stage.
Defeated 14 to 53. Support came from Greens and Centre Alliance. Opposition came from Labor, Nationals, and Liberal Party. Minor-party and independent votes were split.
The House rejected the amendment, so the bill did not gain that revenue-raising change.
Defeated 48 to 79. Support came from Liberal Party, Nationals, and Centre Alliance. Opposition came from Labor and Greens. Minor-party and independent votes were split.
The House rejected the amendment, so the gas deductions cap remained in the bill.
Defeated 54 to 65. Support came from Liberal Party and Nationals. Opposition came from Labor. Minor-party and independent votes were split.
The House rejected the amendments, so the gas deductions cap stayed in the bill.
Defeated 15 to 48. Support came from Greens and minor parties and independents. Opposition came from Labor and Nationals. Minor-party and independent votes were split.
The House rejected the amendments, so no review requirement was added to the bill.
Senate
Defeated 27 to 33. Support came from Liberal Party, Nationals, One Nation, and UAP. Opposition came from Labor, Greens, and minor parties and independents. Minor-party and independent votes were split.
The Senate rejected the amendment, so the bill did not carry that added statement.
Defeated 3 to 41. Support came from One Nation and UAP. Opposition came from Labor, Greens, Liberal Party, Nationals, and minor parties and independents. Minor-party and independent votes were split.
The Senate rejected the amendment, so the bill was not delayed by that procedural requirement.
This list includes amendment votes, procedural votes and votes on the bill itself.
Parliamentary debate
Start here — lead voices
Stephen Jones supports the bill and says it is a major crackdown on tax adviser misconduct, designed to punish promoters, protect whistleblowers, and rebuild confidence in the tax system.
Read in Hansard ↗Steggall opposes the bill because, although she welcomes the integrity and whistleblower reforms, she says the PRRTA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. changes are far too weak and should not be bundled into the same omnibus billA bill that bundles several different policy changes together, which is one of the main criticisms raised here..
Read in Hansard ↗Spender supports the bill in principle because she says the PRRTA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. changes are welcome and the PwC response is right, but she criticises the government for bundling unrelated measures and for failing to go far enough on resource-tax reform.
Read in Hansard ↗Haines says she will oppose the bill because it improperly bundles unrelated tax leak reforms and PRRTA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. changes together, and because she sees that as poor governance.
Read in Hansard ↗All speeches by bloc
3 speakers · 4 contributions · 3 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 and says it is a major crackdown on tax adviser misconduct, designed to punish promoters, protect whistleblowers, and rebuild confidence in the tax system. He also says it will improve information sharing and accountability after the PwC scandal.
“This bill will crack down on tax practitioner misconduct and rebuild public confidence in the systems and structures that keep our tax system and capital markets strong.”Read this contribution in Hansard ↗
Second reading speech
Stephen Jones supports the bill and says it will improve tax integrity by cracking down on promoters, strengthening whistleblower protections, increasing transparency, fixing secrecy barriers exposed by the PwC scandal, and ensuring the offshore LNGNatural gas that has been chilled into a liquid so it can be shipped overseas; the bill focuses on offshore LNG projects. industry pays a fairer share sooner.
“In this instance, we're proceeding as we have moved the bill. Each of the measures in this bill relate to our taxation system and make a substantial improvement to it. With these comments, I commend the bill to the House.”Read this contribution in Hansard ↗
“This bill will crack down on tax practitioner misconduct and rebuild public confidence in the systems and structures that keep our tax system and capital markets strong.”Read the full speech in Hansard ↗
“Time and again over the last 18 months or so, the government has had to address matters largely the result of the previous government's neglect or inertia. This is another one. The bill before us today represents the biggest crackdown in tax adviser misconduct in Australia's history. More importantly, it's about restoring faith and trust in the tax system, and Australians deserve nothing less. I commend the minister and his staff in the department for the work on this bill. I commend the bill to the House.”Read the full speech in Hansard ↗
3 speakers · 2 oppose · 1 mixed
“I will be opposing Labor's proposal regardless of what discussions, negotiations or other things might happen, because it is fundamentally wrong. If we stand for lower taxes, we stand for lower taxes.”Read the full speech in Hansard ↗
“The coalition, Greens and Labor Party senators have approached these issues with a significant degree of bipartisanship over the last year. They are sensible measures that are worthy in principle, but they deserve to be dealt with in isolation. They deserve to be well dealt with in isolation, not packed together with a completely different issue, as this government is so often inclined to do. This is why the coalition will move amendments to separate the PRRT schedule from the bill. Our message to the government is simple: Deal with this like a mature government. Own the policies you have committed to. Do not come into this chamber and try to play games. We will not fall for it. That is why we will be bringing forward that amendment.”Read the full speech in Hansard ↗
“I think it's ludicrous that they should be expected to take a position on the bill because of one part which they hold a view on. That would mean they are torn on whether to support this bill because there other elements, which are completely separate and unrelated, that they do in fact support.”Read the full speech in Hansard ↗
7 speakers · 8 contributions · 1 support · 4 oppose · 1 mixed · 1 unclear
“This bill does not go far enough. It seeks to perpetuate disproportionate and grossly inappropriate support for the gas industry. It is a lost opportunity for greater reform that would deliver more to the Australian people for health care, transport, child care, education, NDIS and ageing.”Read the full speech in Hansard ↗
“I will be opposing this bill on its content, but I will also be opposing it on the principle of poor governance. I call on the government to separate this bill so that the parliament can scrutinise the two issues carefully on their individual merits.”Read the full speech in Hansard ↗
“For the reasons outlined in this speech, I will not be supporting this bill.”Read the full speech in Hansard ↗
“I cannot commend this bill to the House.”Read the full speech in Hansard ↗
“Against this backdrop, changes to the PRRT are welcome, and I'm pleased the government has heeded calls for reform from the crossbench.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Kate Chaney on this bill. They are grouped here so the speaker is listed once.
Second reading speech
Chaney says she will support the bill, because it improves tax adviser accountability and begins to lift the petroleum tax return to Australians. She argues the changes are still too limited, especially on whistleblowers, consultants and the PRRTA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner..
“Now to the PRRT: this Treasury bill also addresses amendments in relation to the petroleum resource rent tax, introducing a cap to the availability of deductible expenditure incurred per project per taxable year. The government says that this means the offshore LNG industry will pay more PRRT sooner than under the current PRRT regime. It's a start, but it's a very small change in the scheme of things. Clearly, the PRRT is currently failing to deliver a proper return to Australians. This is something I've talked about for some time. Australians should be entitled to get fair value for the resources that are extracted from our country.”Read this contribution in Hansard ↗
Second reading speech
Chaney says the bill’s PRRTA special tax on profits from petroleum projects, which this bill changes so some offshore gas projects pay sooner. changes are too weak and miss a chance to get better value from finite fossil fuel resources. She will support amendments to split the bill and strengthen the tax changes, but not the bill as it stands.
“In summary, this change to the PRRT is disappointingly meek. You can't change tax regimes too often because it does have an impact on business certainly. This is a missed opportunity to actually get value for the limited resources that are being extracted that damage the planet and ultimately should be staying in the ground. I'll be supporting the amendments to split the bill, to address these two significant issues separately and to strengthen the PRRT changes so Australians get more value for gas in the limited time that it continues to be extracted.”Read this contribution in Hansard ↗
“I second the amendment. I want to start by thanking the member for Warringah for these amendments, for continuing to fight to hold this government to account for what it is and isn't doing and, ultimately, for doing everything she can to ensure that we are focused on increasing integrity across our society whilst advocating we do all we can to address the very real and current impacts of climate change on our environment, our society and our economy.”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 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 · Reported from Federation Chamber
Reported from 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 · 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 agreed to
Recorded vote: 31 to 26.
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
Recorded vote: 31 to 26.
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 Assent, turning the bill into an Act.
Senate Economics Legislation Committee; Committee report (10/05/2024)
Referred to committee
Referred to Committee (30 Nov 2023): Senate Economics Legislation Committee; Committee report (10 May 2024)
APH bill page notes
