The SPEAKER ( Hon. Peter Slipper) took the chair at 09:00, made an acknowledgement of country and read prayers.
Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012
The Senate acquaints the House of Representatives of the following resolution agreed to by the Senate this day:
That the provisions of the Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012 be referred to the Parliamentary Joint Committee on Corporations and Financial Services for inquiry and report by 13 March 2012.
Tax and Superannuation Laws Amendment (2012 Measures No. 1) Bill 2012
That this bill be now read a second time.
Equal Opportunity for Women in the Workplace Amendment Bill 2012
That this bill be now read a second time.
Public Service Amendment Bill 2012
That this bill be now read a second time.
That, in accordance with the provisions of the Public Works Committee Act 1969, it is expedient to carry out the following proposed work which was referred to the Parliamentary Standing Committee on Public Works and on which the committee has duly reported to Parliament: Construction of a new Australian Embassy complex including Chancery and Head of Mission Residence in Bangkok, Thailand.
That, in accordance with the provisions of the Public Works Committee Act 1969, it is expedient to carry out the following proposed work which was referred to the Parliamentary Standing Committee on Public Works and on which the committee has duly reported to Parliament: HMAS Albatross redevelopment, Nowra, NSW.
That, in accordance with the provisions of the Public Works Committee Act 1969 , it is expedient to carry out the following proposed work which was referred to the Parliamentary Standing Committee on Public Works and on which the committee has duly reported to Parliament: LAND 17 Phase 1A infrastructure project.
That, in accordance with the provisions of the Public Works Committee Act 1969, it is expedient to carry out the following proposed work which was referred to the Parliamentary Standing Committee on Public Works and on which the committee has duly reported to Parliament: RAAF Base East Sale redevelopment, Sale, Victoria.
That:
(1) in accordance with section 6 of the Human Rights (Parliamentary Scrutiny) Act 2011 , matters relating to the powers and proceedings of the Parliamentary Joint Committee on Human Rights shall be as follows, that:
(a) the committee consist of 10 members, 3 Members of the House of Representatives to be nominated by the Government Whip, 2 Members of the House of Representatives to be nominated by the Opposition Whip or by any non-aligned Member, 2 Senators to be nominated by the Leader of the Government in the Senate, 2 Senators to be nominated by the Leader of the Opposition in the Senate and 1 Senator to be nominated by any minority group or independent Senator;
(b) every nomination of a member of the committee be notified in writing to the President of the Senate and the Speaker of the House of Representatives;
(c) the committee elect a Government member as its chair;
(d) the committee elect a non-Government member as its deputy chair who shall act as chair of the committee at any time when the chair is not present at a meeting of the committee;
(e) at any time when the chair and deputy chair are not present at a meeting of the committee the members present shall elect another member to act as chair at that meeting;
(f) in the event of an equally divided vote, the chair, or the deputy chair when acting as chair, have a casting vote;
(g) 3 members of the committee constitute a quorum of the committee, provided that in a deliberative meeting the quorum shall include 1 Government member of either House and 1 non-Government member of either House;
(h) the committee have power to appoint subcommittees consisting of 3 or more of its members and to refer to any subcommittee any matter which the committee is empowered to examine;
(i) the committee appoint the chair of each subcommittee and at any time when the chair of a subcommittee is not present at a meeting of the subcommittee the members of the subcommittee present shall elect another member of that subcommittee to act as chair at that meeting and in the event of an equally divided vote, the chair will have a casting vote;
(j) 2 members of a subcommittee constitute a quorum of that subcommittee, provided that in a deliberative meeting the quorum shall include 1 Government member of either House and 1 non-Government member of either House;
(k) members of the committee who are not members of a subcommittee may participate in the proceedings of that subcommittee but shall not vote, move any motion or be counted for the purpose of a quorum;
(l) the committee or any subcommittee have power to call for witnesses to attend and for documents to be produced, to move from place to place, to meet and transact business in public or private session and to conduct proceedings at any place it sees fit;
(m) a subcommittee have power to adjourn from time to time and to sit during any adjournment of the Senate or the House of Representatives;
(n) the committee may report from time to time; and
(o) the committee may appoint counsel to advise the committee with the approval of the President of the Senate and the Speaker of the House of Representatives; and
(2) a message be sent to the Senate acquainting it of this resolution and requesting that it concur and take action accordingly.
That the House take note of the report.
Corporations Amendment (Phoenixing and Other Measures) Bill 2012
There is too much legislation introduced on the basis of, 'It's a good idea; let's do something and we will see where it takes us.' … For the phoenix company and the phoenix director, there are processes in place which suggest that the regulator has the power to deal with them. Why should all of us be subject to those rather burdensome laws just because there are one or two who may have escaped the safety net?
According to the Australian Taxation Office, there are about 6000 phoenix companies in Australia …
… left the industry reeling and sparked warnings that up to 7200 jobs were in jeopardy.
The Parliamentary Secretary for Climate Change, Mark Dreyfus, angered the solar hot-water industry by giving five minutes' notice on Tuesday night that no more applications for solar hot-water rebates would be accepted under the Renewable Energy Bonus Scheme.
The latest solar row follows turmoil in the insulation industry after the pink batts scheme was scrapped in the wake of poor installations, training and accountability, and the blowout in the Green Loans scheme, where the assessors were swamped with demand.
The government was also forced to act to end a glut in renewable energy certificates sparked by generous subsidies for rooftop solar panels. The glut forced down the price of renewable energy certificates and sparked an investment strike in big clean energy projects.
Clean Energy Council acting chief executive Kane Thornton said the "unexpected" winding up of the solar hot-water program would immediately hit sales and "put more than 1200 manufacturing jobs and 6000 installation jobs at risk … Cutting this program without warning in the middle of a financial year is yet another example of stop-start policymaking that continues to plague the entire clean energy sector".
… … …
Rheem Australia government relations manager Gareth Jennings said his company, which makes the Solarhart range, was left holding millions of dollars in stock for which there may no longer be a market.
… … …
Solar hot-water system manufacturer Dux said it had been expecting the scheme to end on June 30 and many dealers and plumbers around Australia had expressed "disbelief" at the decision. "This was completely out of the blue," general manager Simon Terry said.
I will go back to some of the comments that the shadow Treasurer made. His comments were about phoenixing more generally. Of course this piece of legislation does not deal with the entire phoenixing behaviour. Of course this legislation does not involve all of the changes that need to be made in order to reduce phoenix activity and protect consumers and creditors from that activity. Of course there is other work to be done.
Crimes Legislation Amendment (Powers and Offences) Bill 2011
That the Crimes Legislation Amendment (Powers and Offences) Bill 2011 be referred to the Federation Chamber for further consideration.
Corporations Amendment (Phoenixing and Other Measures) Bill 2012
Insolvent financial advisers and companies are reopening their businesses under a different name, just like the notorious building industry practice of using so-called 'phoenix' companies.
Dishonest financial advisers are shutting down one business and opening up a new one in an attempt to avoid defending or paying out compensation to clients who were given bad advice.
We are aware of this problem with some advisers, particularly when they have given poor advice and their business is going into liquidation.
They can have all these people claiming because they've received very poor advice and lost money and unfortunately they are not able to get their money back because the company shuts down.
It's a problem, like it's been a problem in other areas, but we certainly think that proposed government reforms will help.
In prosperous times, people sometimes wander from the financial walkway, blinded by the glitter of gold. The temptation lurks to prolong the euphoria by the easiest means possible.
In uncertain times, people may see dishonesty as the only way to pursue their careers, as the fastest cure to rebuilding wealth, or the only way to keep their heads above water. They may falsely believe they have nothing to lose but it is a slippery slope to be sure.
… the committee notes concerns from the business community and its representatives that the bills potentially apply to the broad range of directors whether engaged in phoenix activity or not. The committee recommends that the government should investigate whether it is possible to tighten the provisions of the bills to better target phoenix activity.
The House divided. [12:30]
(The Speaker—Hon. Peter Slipper)
That this bill be now read a third time.
Financial Framework Legislation Amendment Bill (No. 1) 2012
That this bill be now read a third time.
Education Services for Overseas Students (TPS Levies) Bill 2011
Education Services for Overseas Students Legislation Amendment (Tuition Protection Service and Other Measures) Bill 2011
That the amendments be agreed to.
Road Safety Remuneration Bill 2011
Road Safety Remuneration (Consequential Amendments and Related Provisions) Bill 2011
Every 10% more that drivers earn in pay rate is associated with an 18.7% lower probability of crash, and for every 10% more paid days off the probability of driver crashes declines 6.3%.
Higher pay produces superior safety performance for firms and drivers.
Will it improve safety? Yes, because it will ensure that those customers (of transport companies and operators) are held accountable for their conduct before an independent tribunal. Yes, because it would give small and medium sized enterprises and mum and dad businesses a vehicle to be heard, particularly through their associations. Yes, because contract allocation and payment terms will not be used as a penalty or incentive.
What cannot be disputed is that in many cases freight users have been getting a free ride, and have been big enough and ugly enough to keep it that way. They have no price signal for reform or increased efficiency at the interface between the truck hire and their warehouse, and that cost has been borne by those with least power.
Speed and fatigue are often identified as the primary cause for a crash but it is a much harder task to prove that drivers were speeding because of the manner of the quantum of their remuneration.
If a casual connection between remuneration and unsafe practices is presumed to exist, it does not follow that the established higher minimum rates, or prohibiting certain methods of payment will result in drivers changing their unsafe practices.
Additionally, the link between road safety remuneration rates and conditions for truck drivers assumes that the overwhelming majority of the road accidents are the fault of the heavy vehicle driver.
One mistake by a motorist should not end up as a fatality, but on too many sections of the Princess Highway east of Sale we are faced with that situation. We must spend more money on the safety of the road environment.
According to research by Professor Drew Dawson, head of the University of South Australia's Centre for Sleep Research, staying awake for 17 hours has the same effect on performance as having a blood alcohol level of 0.05 per cent and after 21 hours awake, people demonstrate the same deterioration as having a blood alcohol content of 0.1 per cent. Many people begin to show signs of mental fatigue later in the working day and tasks seem much more complicated, concentration wavers and mistakes can be made.
Late nights spent working can cause mental fatigue, making it harder to recollect information and affecting the ability to think clearly.
No matter how rational and high minded you try to be, you can't make decision after decision without paying a biological price. It's different from ordinary physical fatigue—you're not consciously aware of being tired—but you're on low mental energy. One shortcut is to become reckless: to act impulsively instead of expending energy to think first through the consequences.
Crimes Legislation Amendment (Powers and Offences) Bill 2011
That this bill be now read a third time.
Road Safety Remuneration Bill 2011
Road Safety Remuneration (Consequential Amendments and Related Provisions) Bill 2011
To the Honourable The Speaker and Members of the House of Representatives
This petition of concerned citizens draws to the attention of the House:
The Australian government is negotiating a Trans-Pacific Partnership free trade agreement (TPPA) with the US, New Zealand, Chile, Peru, Brunei, Singapore, Malaysia and Vietnam. But the agenda is being set by giant US corporations. They see many Australian health, social, cultural and environmental policies are barriers to trade which should be removed. They want to use the negotiations to undermine the Pharmaceutical Benefits Scheme and charge higher prices for medicines, to give special rights for corporations to sue governments, to remove labelling of genetically modified food, to undermine local jobs and fair employment conditions for government contracts, and to weaken policies for Australian content in film, television and digital media. They also oppose including enforceable labour rights and environmental protections in the agreement.
We therefore ask the House not to support any agreement which undermines any of the above listed policies, to support the inclusion of enforceable labour rights and environmental protections in the agreement, and to support publication of the text of the agreement for public and parliamentary debate before it is ratified.
That further statements by indulgence in relation to the 70th Anniversary of the Bombing of Broome be permitted in the Federation Chamber.
… let me make this very clear: of course my door is open to talk to people as I work my way through the reshuffle, but the decisions are mine and I’ll make them.
That so much of standing and sessional orders be suspended as would prevent the Deputy Leader of the Opposition from moving—
That so much of the standing and sessional orders be suspended as would prevent the Member for Curtin moving immediately—That this House call on the Prime Minister to explain the circumstances surrounding the botched attempt to install Bob Carr as Foreign Minister, the role of the Defence Minister in vetoing it and how the Australian people can have any trust in a Prime Minister with a pattern of behaviour that calls into question her integrity and who lacks the authority to control the faceless men of the Labor Party.
I'm not going to leave undisturbed the impression that I made an announcement about a specific location.
I believe that it is appropriate for me as Prime Minister to have discussions with people about having the best possible team. I have got a great team, but when we are seeking to add to the team of course you have a range of conversations.
These are the agreed facts … Carr was offered the Senate vacancy and the position of foreign minister; Gillard spoke personally to him at least twice on Monday night; after the conversation Carr believed he was going to be foreign minister; Carr was prepared to come to Canberra on Tuesday for an announcement; Stephen Smith and Simon Crean objected; and finally the offer of foreign minister was withdrawn on Tuesday morning and the alternative of defence (Smith’s portfolio) or trade (Craig Emerson’s) was offered.
…on far too many questions we have found our role to be simply that of the man who says 'No.' … There is no room in Australia for a party of reaction. There is no useful place for a policy of negation.
The House divided. [15:19]
(The Speaker—Hon. Peter Slipper)
That the House take note of the following documents:
Australian Law Reform Commission—Report No. 118—Classification—Content regulation and convergent media—Final report, February 2012.
National Broadband Network—Joint Standing Committee—Review of the rollout of the National Broadband Network (First report)—Government response
Report relating to private Members’ business and the consideration of bills introduced 27 February 2012 to 1 March 2012
1. The committee met in private session on 29 February 2012 and 1 March 2012.
2. The committee determined that the Tax and Superannuation Laws Amendment (2012 Measures No. 1) Bill 2012 be referred to the Standing Committee on Economics for inquiry and report.
3. The committee recommends that the following items of private Members’ business listed on the Notice Paper be voted on:
Orders of the Day—
Fair Work Australia investigation (Mr Abbott)
Orange juice concentrate imports (Mr Secker)
Most Venerable Thich Phuoc Hue OAM (Mr Ruddock)
Apology to the Stolen Generations (Ms Saffin)
Australian Year of the Farmer (Mr Scott).
The urgent need for the Government to abandon the carbon tax.
The clean energy industry says the unexpected cut of a key government solar hot water program late yesterday will put jobs under threat …
… decision will immediately affect sales and will put more than 1200 manufacturing jobs and 6000 installation, sales and back office jobs in jeopardy.
… … …
Cutting this program without warning in the middle of a financial year is yet another example of stop-start policy making that continues to plague the entire clean energy sector.
The head of Australia’s largest power generator has warned that electricity prices will rise more than the federal government predicts under an option to ration output in order to stay profitable under the carbon tax.
The carbon tax was the result of political expediency. I am concerned that we have a badly designed, hurriedly implemented tax that imposes significant costs on the economy but that may not achieve its core aim.
I think there's a lot of concern in industry at the moment about the price we've locked in given where Europe is at the moment in terms of price of carbon—whether we've locked in a price that's to our disadvantage as a nation.
Funding of $252.2 million over five years will also be provided for up to 225,000 solar hot water rebates of $1,000 for households which install eligible solar and heat pump water heaters in their homes.
The Australian Government will commence work on a world-leading greenhouse gas emissions trading scheme with careful analysis on a long-term goal for emissions reduction, the Minister for the Environment and Water Resources, Malcolm Turnbull, said today.
'Australia's emissions trading scheme will be the most comprehensive in the world,' said Mr Turnbull.
For Julia Gillard to say that food companies who aren’t in the top 1000 emitters won’t be affected by carbon tax is simply wrong.
Manufacturers will be impacted right across the supply chain from higher costs in transport, power, refrigeration and food and grocery manufacturing.
Although my disability has never fazed me or my loved ones, the main frustration that has increased for me and many others throughout the years is the lack of, or restrictions on, much-needed funds.
This issue has affected every aspect of my life, including accessing equipment such as electric wheelchairs and speech devices, which are crucial to both my independence and my ability to access the community. This year when I finished my Higher School Certificate, I have realised how serious this issue really is. Although there were many reasons for this, the main one which has affected both my emotional and intellectual health is the lack of support there is for people with disabilities wanting to go on to tertiary education. This includes the lack of care available while attending TAFE or university.
The local health board will not be making any final decisions regarding the provision of clinical services to the Coraki and surrounds population until it receives and discusses the clinical services plan that will be developed.
Dear Janelle
Re: Campbell Hospital, Coraki
I write in regard to the possible closure of this vital facility. The Bogal Local Aboriginal Land Council has over 100 members from the local area who rely heavily on this facility for regular and emergency medical treatment. The nearest facility is at Casino or Lismore—some 30 minutes away by road and this could be the difference between life and death for a seriously ill or injured person. The Campbell hospital services have declined dramatically in the past 20 years—At one stage it had a rehabilitation unit, 30 beds and a mental health service that was recognised around the world for the work it did. The further demise of the hospital is seen as detrimental to the well-being of the local people and places them in a compromising situation with regard to their seeking health services. We strongly request the hospital remain as a vital health facility offering essential services in the Coraki area.
Yours sincerely,
Lance Manton
Chief Executive Officer
The DEPUTY SPEAKER ( Ms AE Burke ) took the chair at 9:30.
The fact that I have been unable to obtain the full list of retail outlets affected by Australia Post's review highlights the unsatisfactory level of consultation and disregard for the dramatic effect closing a local Australia Post outlet can have on the community.
To the Honourable The Speaker and Members of the House of Representatives
This petition of Residents and Citizens of Gladstone and District, Queensland draws to the attention of the House the unsatisfactory closure of the over-the-counter facilities at Chapple Street Post Office and Business Centre which is an indispensable regional service provided to Gladstone residents and businesses and the rapidly growing Gladstone region.
We therefore ask the House to ensure that the over-the-counter facilities at the Chapple Street Post Office and Business Centre remain open and accessible to Gladstone residents.
Well it's jobs, jobs and jobs. It's a bigger and better-trained workforce
We will see the creation of an additional 500,000 jobs in the next couple of years.
In terms of the positives though, the Government positively forecast half a million new jobs over the next few years to be created. Given the zero jobs growth last year, are you still confident that that figure holds …
Well, certainly we will do less than that …
Financial Framework Legislation Amendment Bill (No. 1) 2012
Your letter also sought advice on whether further reform of procurement could provide savings of 5 to 10 per cent over the forward estimates without compromising the standard of property and services purchased by the Commonwealth.
Because our audit was only focused on direct sourcing and whether agencies were adhering to the CPGs, we did not seek to quantify the potential saving that could be achieved.
Nevertheless, our audit work indicates that better value for money outcomes could be achieved through improvements to the procurement practices.
That business intervening before order of the day No. 4, committee and delegation reports, be postponed until a later hour this day.
Crimes Legislation Amendment (Powers and Offences) Bill 2011
Well, for a start—
12,000 public servants in Canberra will be made redundant over a two year period immediately upon us being elected.
(1) Clause 2, page 3 (at the end of the table), add:
(2) Schedule 4, item 1, page 38 (line 10), at the end of paragraph (b) of the definition of constable , add "or Territory".
(3) Page 73 (after line 18), at the end of the Bill, add:
Schedule 9—Re-appointment of Integrity Commissioner
Law Enforcement Integrity Commissioner Act 2006
1 Subsection 175(3)
Omit "5 years" (second occurring), substitute "7 years".
2 Application
The amendment made by item 1 of this Schedule applies in relation to a person appointed or re-appointed as the Law Enforcement Integrity Commissioner before, on or after the commencement of this item.
(1) Schedule 2, item 27, page 27 (lines 3 to 5), omit paragraph 59AB(1)(e), substitute:
(e) disclosing the ACC information:
(i) would not prejudice the safety of a person, or prejudice the fair trial of a person who has been charged with an offence; and
(ii) would not be contrary to a law of the Commonwealth, a State or a Territory that would otherwise apply.
(2) Schedule 2, item 27, page 28 (line 3), at the end of subsection 59AB(4), add:
; and (c) one or more conditions that the body corporate must meet in order to ensure that the information is not used or disclosed in a way that might prejudice the reputation of a person.
It would have been inconceivable to them that their child, and a daughter at that, could be offered the opportunity to obtain two degrees from a university and to serve in the nation's parliament.
To the Honourable The Speaker and Members of the House of Representatives
The petition of the undersigned certain citizens of Australia:
Draws to the attention of the House that in 2011 4,300 Australians will suffer a lower limb amputation due to diabetes related causes adding to the over $612 million in Australian healthcare costs due to diabetes foot complications. We believe Australian and overseas evidence shows that properly funded podiatry-led foot health care for Australians suffering diabetes-related lower limb problems could avoid over 3,000 of these amputations saving the health system over $300 million per annum.
We therefore ask the House to support any new legislation, or proposed amendments to existing legislation, or administrative arrangements, that would have the effect of ensuring access to at least 12 Medicare funded allied health visits per annum for Australians with diabetes-related lower limb problems.
Of the just over 600 franchise-related complaints received by the ACCC in 2010-11, and the (a) 168 of these cases involving allegations of misleading and deceptive conduct by the franchisor, and (b) 84 of these cases involving allegations of unconscionable conduct by the franchisor:
(i) how many did the ACCC investigate;
(ii) in how many cases did the ACCC initiate proceedings against a franchisor; and
(iii) in how many cases were the complainants advised by the ACCC that no action would be taken.
(i) The ACCC received approximately 600 franchise-related complaints covering numerous aspects of the Competition and Consumer Act 2010 (Act), including industry code provisions, misleading and deceptive conduct and unconscionable conduct. Of these, 188 matters were escalated for further assessment. Of these, 44 progressed to initial investigation. Of these, 8 progressed to in-depth investigation. A number of these matters remain open.
(a) 37 complaints involving allegations of misleading and deceptive conduct were escalated for further assessment. Of these, 7 matters progressed to initial investigation. Of these, 1 matter progressed to in-depth investigation.
(b) 52 complaints involving allegations of unconscionable conduct were escalated for further assessment. Of these, 9 matters progressed to initial investigation. Of these, 2 matters progressed to in-depth investigation.
(ii) (a) One. On 15 July 2011 the ACCC instituted proceedings against Sensaslim and others in relation to allegations, amongst other things, of misleading and deceptive conduct and false representations to franchisees and consumers. ACCC v Sensaslim Australia Pty Ltd & Ors (NSD 1163/2011) is currently before the court.
(b) Nil
(iii) (a) and (b) Of the 44 franchise-related complaints that were progressed to initial investigation, complainants were advised in 32 matters that the ACCC was no longer pursuing the matter. In 4 matters, the matter was discontinued when the complainant failed to provide additional information requested by the ACCC.
As at 17 November 2011, what is the intrinsic value (based on the value of the metal) of current Australian 5, 10, 20 and 50 cent pieces and 1 and 2 dollar coins.
(1) Is it a fact that the Australian Taxation Office (ATO) has implemented a new regulatory policy under which it will be conducting 'real time' audits on Australia's top 200 companies, thereby moving away from the long-standing policy of self-assessment and post lodgement audit.
(2) Are all major changes in regulatory policy the subjects of regulatory impact statements and examination and consultation with the Office of Best Practice Regulation (OBPR); if not, under what circumstances are proposed changes exempt from such scrutiny.
(3) Did the ATO consult with the OBPR in relation to the 'real time' policy initiative; if so, what was the outcome; if not, why not.
(4) Did the ATO complete a regulatory impact statement in relation to this policy initiative under the Government's best practice regulation policies; if not, why not.
(5) Did the ATO discuss its 'real time' audit proposals with representatives of umbrella groups such as the Australian Institute of Company Directors, the Business Council of Australia and others who uphold principles of good corporate governance in Australia, and report its findings to the OBPR; if not, why not.
(6) Did the ATO conduct any trials or pilot studies to gauge the impact of its new regulation on corporate productivity and governance; if not, why not.
(7) What is the anticipated cost to the Government of this new policy over the forward estimates, including the details of additional human and capital resources; and has an estimate been made on any additional cost to business; if so, can he indicate this sum for the same period.
(8) Is the OBPR aware that in the United States the Internal Revenue Service developed a similar policy by seeking volunteers from the corporate sector, thereby avoiding unnecessary expense and lost productivity; and would he consider introducing a similar system here.
(1) No, the ATO has not implemented a new regulatory policy under which it will be conducting 'real time' audits on Australia's top 200 companies, thereby moving away from the long-standing policy of self-assessment and post lodgement audit.
The Commissioner's compliance program, which consists of a range of products, is implemented using the Commissioner's general powers of administration. The Commissioner's 'real time'' initiative, which does not change the policy of self assessment in the large business market, is one of these products.
In considering which businesses may need to be reviewed, and the frequency and intensity of that review, the ATO considers the relative likelihood of a large business taxpayer having a contentious position and the consequences of that potential non-compliance.
Using this intelligence the ATO categorises large businesses into one of four broad risk categories, each of which has a suggested compliance approach. The ATO calls this process risk differentiation.
For higher risk taxpayers in the large market, this 'real time' work is in the form of a 'risk review', not an 'audit'. The distinction is that a risk review only identifies whether there may be a contentious tax issue, while an audit seeks to gather the evidence necessary for an adjustment and possible litigation.
The majority of large businesses in the risk differentiation framework are categorised as relatively lower risk and will be receiving notification from the Commissioner that their affairs for that year will not be further reviewed unless evidence of a material misstatement comes to his attention. This provides certainty to the large businesses.
Alerting taxpayers to the ATO view of their relative risk allows large business to make better informed self-assessment choices about potentially contentious arrangements and how they engage with the ATO as the regulator of the system.
As set out in the ATO Large Business and Tax Compliance booklet, the ATO Risk Differentiation Framework (RDF) assists the ATO to prioritise and focus on those few taxpayers, less than 2 per cent - that is less than 20 businesses, that in its professional judgment present a higher level of relative risk to the integrity of the tax system. A further 8 per cent or so are categorised as key taxpayers – these are the largest businesses in the tax system and pay most of the tax.
(2) The Australian Government Best Practice Regulation Handbook (June 2010) states:
2.7 A RIS is mandatory for all decisions made by the Australian Government and its agencies that are likely to have a regulatory impact on business or the not-for-profit sector, unless that impact is of a minor or machinery nature and does not substantially alter existing arrangements. This includes amendments to existing regulation and the rolling over of sunsetting regulation.
However, the Prime Minister has discretion to grant exceptional circumstances to exempt a proposal from the RIS requirements.
The Handbook also states:
2.42 Where a proposal proceeds (either through the Cabinet or another decision maker) without an adequate RIS, the resulting regulation must be the subject of a post-implementation review (PIR). The review must commence within one to two years of the regulation being implemented, and will be required regardless of whether or not an exemption from the RIS requirements for exceptional circumstances was granted by the Prime Minister.
(3) The Commissioner's 'real time' initiative is administrative in nature with no new tax regulations being introduced. On that basis OBPR were not consulted.
(4) There has been no change to the tax regulations. Therefore a regulatory impact statement was not required.
(5) The Commissioner did not communicate with OBPR as the 'real time' initiative is administrative in nature.
The Commissioner communicates with the large business market using a range of channels, including the Large Business and Tax Compliance booklet which was co-designed with representatives of the Large Business Advisory Group. The booklet comprehensively outlines the Commissioner's approach to tax compliance issues, including risk differentiation and various compliance products.
(6) The Commissioner's initiative is administrative in nature with no new tax regulations being introduced. The approach was piloted with a number of higher risk taxpayers.
(7) There is no additional cost to Government anticipated. The Commissioner funds the majority of compliance activities from the general ATO budget. The ATO believes that early real time engagement can save both business and the ATO time and money. By working with the large business market to identify areas of possible contention as early as is practical, taxpayers can then make more informed self-assessment decisions in regard to those matters.
(8) The OBPR is not aware of the specific US Internal Revenue Service program. The OBPR does not determine what policies or approaches should be adopted by the Government. The OBPR's role is to administer the Government's regulatory impact assessment requirements (outlined in the Best Practice Regulation Handbook (June 2010) and Council of Australian Governments Guide to Best Practice Regulation (October 2007).
In respect of the Yearly Energy Outlook issued in November 2011 by the International Energy Agency, can he provide the advice he has received from his department or elsewhere concerning the report and its implications for peak oil; if so, what was it.
My Department has advised me that the International Energy Agency's (IEA's) World Energy Outlook (WEO) 2011 estimates that global conventional oil production will move from 70.4 million barrels/day (mb/d) in 2008 to plateau at around 69 mb/d for a number of years and move to 68 mb/d by 2035.
The IEA maintains that production of natural gas liquids and unconventional oil will continue to grow strongly and therefore total global oil production is not expected to peak before the end of the WEO forecast period, which goes out to 2035.
In respect of the law suit that was filed by the United States Federal Housing Finance Agency in September 2011 against five Societe Generale companies;
(a) what examination of this case has the Government undertaken, specifically into whether Mr Greg Medcraft, formerly a senior executive of Societe Generale and now Chairman of the Australian Securities and Investments Commission (ASIC), was involved in the alleged conduct against Societe Generale;
(b) has the Government sought any further information on this matter through inter-governmental processes or otherwise; and
(c) was this matter taken into consideration before appointing Mr Medcraft as a Commissioner of the ASIC, and subsequently Chairman.
(a) Mr Medcraft is not a party, nor named in the lawsuit, between the United States Federal Housing Finance Agency and Societe Generale which neither entitles nor requires the examination of this matter by the Australian Government.
(b) and (c) Neither the Australian Government nor Mr Medcraft is a party to this matter therefore it is not the subject of any intergovernmental processes or otherwise.