The PRESIDENT (Senator the Hon. Scott Ryan) took the chair at 10:00, read prayers and made an acknowledgement of country.
That the Senate meet on Monday 23 March 2020 only, the hours of meeting be 10 am to adjournment, divisions may take place between 6.30 pm and 7.30 pm and the routine of business be as follows:
(a) authorisation for committees to meet
(b) notices of motion;
(c) placing of business;
(d) committee membership;
(e) a motion relating to the extension of reporting dates for committee inquiries;
(f) government business notice of motion no. 1—Approval of the Health Insurance (Extended Medical Safety Net) Amendment Determination 2020;
(g) government business order of the day—Consideration of the Advances to the Finance Minister under the annual Appropriation Acts;
(h) consideration of the following bills:
(i) Appropriation Bill (No. 3) 2019-2020
Appropriation Bill (No. 4) 2019-2020,
(ii) Farm Household Support Amendment (Relief Measures) Bill (No. 1) 2020,
(iii) Australian Education Amendment (Direct Measure of Income) Bill 2020,
(iv) Coronavirus Economic Response Package Omnibus Bill 2020
Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Bill 2020
Assistance for Severely Affected Regions (Special Appropriation) (Coronavirus Economic Response Package) Bill 2020
Appropriation (Coronavirus Economic Response Package) Bill (No. 1) 2019-20
Appropriation (Coronavirus Economic Response Package) Bill (No. 2) 2019-20
Structured Finance Support (Coronavirus Economic Response Package) Bill 2020
Australian Business Growth Fund (Coronavirus Economic Response Package) Bill 2020
Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Bill 2020, and
(v) Supply Bill (No. 1) 2020-2021
Supply Bill (No. 2) 2020-2021
Supply (Parliamentary Departments) Bill (No. 1) 2020-2021
(i) at 2 pm, Question Time;
(j) further consideration of the items listed in paragraphs (e) to (h);
(k) a motion relating to the next meeting of the Senate and leave of absence for all senators, and
(l) adjournment without debate.
That leave of absence be granted to the following senators for today for personal, health and other reasons:
(a) Senator Abetz;
(b) Senator Askew;
(c) Senator Bragg;
(d) Senator Brockman
(e) Senator Canavan;
(f) Senator Chandler;
(g) Senator Fawcett;
(h) Senator Hanson;
(i) Senator Hughes;
(j) Senator Hume;
(k) Senator Lambie;
(l) Senator McDonald;
(m) Senator McMahon;
(n) Senator McLachlan
(o) Senator Paterson;
(p) Senator Patrick;
(q) Senator Payne;
(r) Senator Rennick;
(s) Senator Stoker; and
(t) Senator Van.
That leave of absence be granted to the following senators for today for personal reasons:
(a) Senator Bilyk;
(b) Senator Brown;
(c) Senator Carr;
(d) Senator Dodson;
(e) Senator Farrell;
(f) Senator Gallacher;
(g) Senator McAllister;
(h) Senator McCarthy;
(i) Senator Polley;
(j) Senator Pratt;
(k) Senator Sheldon;
(l) Senator Marielle Smith;
(m) Senator Sterle; and
(n) Senator Wong.
That leave of absence be granted to the following senators for today for personal reasons:
(a) Senator Di Natale;
(b) Senator Rice;
(c) Senator Steele-John;
(d) Senator Waters; and
(e) Senator Whish-Wilson.
That senators be discharged from and appointed to committees as follows:
Effectiveness of the Australian Government's Northern Australian Agenda—Select Committee—
Appointed—Participating members: Senators Canavan and McKenzie
Autism—Select Committee—
Appointed—Participating members: Senators Canavan and McKenzie
Financial Technology and Regulatory Technology—Select Committee—
Appointed—Participating members: Senators Canavan and McKenzie
Foreign Interference through Social Media—Select Committee—
Appointed—Participating members: Senators Canavan and McKenzie
Multi-Jurisdictional Management and Execution of the Murray Darling Basin Plan—Select Committee—
Appointed—Participating members: Senators Canavan and McKenzie
Temporary Migration—Select Committee—
Appointed—Participating members: Senators Canavan and McKenzie.
That, if required, the time for the presentation of reports on matters referred by the Senate to standing committees, select committees and joint committees may be extended by agreement of the committee, duly notified to the President.
That, in accordance with subsection 10B(2) of the Health Insurance Act 1973 , the Senate approves the Health Insurance (Extended Medicare Safety Net) Amendment Determination 2020, made under subsection 10B(1) of the Act on 24 February 2020.
That the Senate approves the advances provided under the annual Appropriations Act as a final charge for the year ended 30 June 2019.
Appropriation Bill (No. 3) 2019-2020
Appropriation Bill (No. 4) 2019-2020
That these bills may proceed without formalities, may be taken together and be now read a first time.
That these bills be now read a second time.
Appropriation Bill (No. 3) 2019-2020 seeks approval for appropriations from the Consolidated Revenue Fund of just over $3.310 billion. These bills ensure that there is sufficient appropriation to cover estimates variations related to existing programs—for instance, changes in costs for demand-driven programs. These bills also pay for the first-year costs for measures announced in the Mid-Year Economic and Fiscal Outlook and subsequently announced new measures. This year these bills feature several bushfire-related initiatives that were announced after MYEFO.
I now outline the more significant amounts provided for in this bill.
Firstly, the bill will provide the Department of Home Affairs with $948.4 million to continue implementing the government's border protection policies and support people impacted by the recent bushfires.
Secondly, the bill will provide the Department of Social Services a further $592.6 million for higher-than-expected participation in the Disability Employment Services program and additional emergency relief and financial counselling for communities affected by the recent bushfire emergency.
Thirdly, the bill will provide the Department of Defence with additional funding of $488.8 million, including $87.9 million for the Australian Defence Force's contribution to the bushfire response through Operation Bushfire Assist. Additional funding is also being provided foreign exchange supplementation due to movement in exchange rates, under 'no win/no loss' funding arrangements.
The bill also provides $287.5 million to Services Australia to support individuals, families and communities achieve greater self-sufficiency.
Further, the bill proposes an additional $170.6 million for the Department of Health, including $53.2 million to support access to medicines and medical treatments, $68.2 million in departmental funding to support the delivery of government programs and $30.2 million towards mental, Indigenous and preventative health activities.
The bill also provides $287.5 million to Services Australia to support individuals, families and communities achieve greater self-sufficiency.
Further, the bill also proposes an additional $170.6 million for the Department of Health including $53.2 million to support access to medicines and medical treatments, $68.2 million in departmental funding to support the delivery of government programs and $30.2 million towards mental, Indigenous and preventative health activities.
The bill provides an additional $66.2 million for the Department of Agriculture, Water and the Environment, including for wildlife and habitat recovery in response to the recent bushfire emergency, busting congestion in the environmental assessment process, responding to African swine fever and strengthening the Australian Antarctic program.
Details of the proposed expenditure are set out in the schedule to the bill and the Portfolio Additional Estimates Statements tabled in the parliament.
I commend this bill to the chamber.
Appropriation Bill (No. 4) 2019-2020, along with Appropriation Bill (No. 3) 2019-2020, which was introduced earlier, are the additional estimates appropriation bills for this financial year.
This bill seeks approval for appropriations from the Consolidated Revenue Fund of approximately $2.171 billion. These bills also ensure there is sufficient appropriation to cover estimates variations related to existing programs.
I now outline the most significant items provided for in this bill.
Importantly, the bill provides $1.567 billion to the Department of Infrastructure, Transport, Regional Development and Communications primarily for drawdowns for the Commonwealth's loan to NBN Co Limited of $1.2 billion; equity injections of $176.9 million for the Australian Rail Track Corporation and the Western Sydney Airport and $166.9 million for the Drought Response, Resilience and Preparedness Plan.
The bill also provides $247.9 million to the Department of Agriculture, Water and the Environment, including $235.0 million for loans through the Regional Investment Corporation to farmers and small businesses affected by drought conditions.
Details of the proposed expenditure are set out in the Schedule 1 to the bill and the Portfolio Additional Estimate Statements tabled in the parliament.
I commend this bill.
That these bills be now read a third time.
Farm Household Support Amendment (Relief Measures) Bill (No. 1) 2020
The days, weeks and months ahead will be a test of our resolve, a test of our trust in science, and a test of solidarity.
Crises like this tend to bring out the best and worst in humanity.
That this bill be now read a third time.
Australian Education Amendment (Direct Measure of Income) Bill 2020
That this bill may proceed without formalities and be now read a first time.
That this bill be now read a second time.
Today I'm introducing the Australian Education Amendment (Direct Measure of Income) Bill 2020. It supports the broader Australian government commitment to provide every child with a quality education, regardless of where they live and what school they attend, by providing funding that is fairly and transparently distributed, and allocated according to need.
The funding of non-government schools in Australia is a shared responsibility between the parents and guardians of the students attending those schools, the Australian government and the state and territory governments.
Through this bill, the Australian government is introducing a more accurate methodology to calculate the capacity of a non-government school community to contribute to the cost of schooling.
This more targeted and accurate direct measure of income will support the Australian government needs based funding model for Australian schools.
Under the government's Quality Schools Package, there will be more Commonwealth government money for disadvantaged students through loading payments, including those from remote and regional areas, those with a disability and Indigenous students.
For the first time, real needs based funding will be provided and will grow from $17.5 billion dollars in 2017 to $32.5 billion dollars in 2029.
Through this bill, the new methodology will use the best available data to estimate the capacity of parents and guardians to contribute to the cost of schooling, which will ensure more funding flows to the schools that need it the most.
The bill proposes changes to the capacity to contribute methodology and schools' transition to the uniform Commonwealth share of the schooling resource standard. The financial impact of these changes is an estimated additional $1.3 billion in Commonwealth recurrent funding over the budget and forward estimates from 2019-20 and 2022-23, and an estimated $3.4 billion increase in recurrent funding over ten years from 2019-20 to 2028-29. This will see the Commonwealth's investment in education increase to a total of over $314 billion dollars from 2018 to 2029.
The bill also includes measures to support financial certainty by allowing schools time to plan as the new arrangements are implemented.
Separate to this bill, but as part of our broader reforms to education funding, the government has also established a $1.2 billion Choice and Affordability Fund that will assist schools during the transition to the new direct measure of income contained in this bill as well as support parental choice and affordability of schools, assist schools in regional and remote areas and in drought affected areas, enhance student wellbeing and support initiatives and lift outcomes in underperforming schools.
The Australian government contributes funding to government and non-government schools through the Australian Education Act 2013.
As the Australian Education Act currently stands, recurrent school funding is calculated by reference to a base amount of funding for every primary and secondary student, along with six loadings that provide extra funding for disadvantaged students and schools. This is commonly referred to as the 'schooling resource standard'. For most non-government schools the base component of the schooling resource standard is discounted by a 'capacity to contribute percentage'.
The current capacity to contribute discount is calculated using an area based measure. Under this methodology, a school community's capacity to contribute is calculated by averaging certain indicators of the socioeconomic status (SES) for each Australian Bureau of Statistic (ABS) Statistical Area Level 1 (SA1) in which the students at the school reside—that is, the SES score for a school is based on an averaging of characteristics of all people residing in a certain geographical area (SA1), not just families of students attending the school. This methodology uses data from the ABS 2011 Census of Population and Housing.
The new methodology included in this bill was the result of recommendations made by the National School Resourcing Board in its Review of the socio-economic status score methodology: final report June 2018 .
As part of the review, the board consulted widely, it received 34 substantive responses to the issues paper, including a number of detailed proposals which informed the board's consideration and analysis. The board also received 261 submissions which were largely part of a coordinated standard response from individuals or school communities.
Board members undertook 38 face-to-face consultations in all states and territories with non-government education authorities, school leaders and communities, state and territory government agencies, researchers, policy analysts and other interested parties.
The Australian government agreed to all six recommendations made by the board and this bill gives effect to the relevant recommendations to implement the capacity to contribute function.
The review found that recent innovations mean that a better measure is now available to calculate a school community's capacity to contribute, based on a more robust and reliable set of data.
The new direct measure of income is a targeted, more accurate approach, ensuring funding flows to the schools that need it most. The bill gives effect to the changes required to the calculation of financial assistance for non-government schools and rates of transition to the nationally consistent Commonwealth share under the act. Over 2020 to 2022, schools will move to the new direct measure of income when it is most financially beneficial for them to do so. During 2020 and 2021, the capacity to contribute percentage of schools will be based on the best of one of three options including the current SES methodology, the SES methodology using more recent data and the new direct measure of income. This will allow schools time to plan and adjust to the new measure.
As a result of the changes proposed in the bill there is also the need for future amendments to the Australian Education Regulation to give effect to the new direct measure of income. The Australian Education Regulation outlines the financial accountability and other conditions that are required to enable funding to be provided under the Australian Education Act.
I will provide a summary of our proposed changes to the Australian Education Regulation to state and territory governments and the non-government school sector as part of our consultation on the implementation of the new measure. It will also assist with the consideration of this bill.
The amendments to the regulation will cover how the direct measure of income capacity to contribute scores are calculated. The amendments will also include how non-government schools transition to the nationally consistent Australian government share of the Schooling Resource Standard.
The Australian government will continue to consult with schools on the new direct measure of income and how it affects them. We will continue to provide information as soon as possible to help schools plan financially for their future.
In addition, the bill will amend the Australian Education Act to clarify the authority and appropriation to continue to support the making of GST inclusive payments of non-government schools funding. This will preserve the longstanding arrangements for the payment of GST-inclusive amounts.
In summary, the bill will:
amend terminology from 'SES score' to capacity to contribute or 'CTC score';
enable the regulation to prescribe a new method for calculating a non-government school's CTC score by reference to a direct measure of income of a school community;
enable the regulation to alter the way in which the Commonwealth share for a non-government school is calculated, and alter the period over which that transition occurs, in order to manage any adverse financial impacts arising from the change in capacity to contribute score methodology;
broaden the definition of a 'majority Aboriginal and Torres Strait Islander' school and enable the minister to make a determination that a school is likely to be a majority Aboriginal and Torres Strait Islander school for the year to avoid any unintended application of the capacity to contribute methodology; and
amend the act to provide clear authority and appropriation to continue to make GST-inclusive payments, where necessary.
Government schools will continue to receive record levels of total Australian government funding, with an estimated $127.8 billion dollars of recurrent funding expected to flow to government schools from 2018 to 2029 providing strong growth in funding.
In fact, the government's spending is growing fastest for state schools at around 6.4 percent per student each year from 2018 to 2023, compared to per student growth of five percent for the non-government sector.
As a result of this bill, the school funding model will remain sector blind and Australian government funding for non-government schools will continue to transition to 80 per cent of the Schooling Resource Standard. The government will continue to refine the model over time.
The Australian government is delivering needs based funding arrangements that ensure students with the same need in the same sector attract the same level of support so that every Australian child, no matter where they live, can have access to a world-class education.
I commend the bill.
The government's 20% cap on commonwealth funding of public schools will ensure that a tiny minority will reach 100% of SRS by 2023, whereas … the Commonwealth Government's promise to deliver 80% of SRS to private schools by 2023 will mean that the vast majority of private schools in Australia will exceed 100% of SRS …
Recent years have seen the coalition government continually prioritise the appeasement of the independent and Catholic school lobbies over the maintenance of the provisions of the Australian Education Act 2013.
The additional $3.4 billion in funding for the switch to the direct income measure has all the hallmarks of another special deal for private schools ...
That this bill be now read a third time.
Social Services and Other Legislation Amendment (Simplifying Income Reporting and Other Measures) Bill 2020
Australian Research Council Amendment Bill 2019
Treasury Laws Amendment (2018 Measures No. 2) Bill 2019
Intellectual Property Laws Amendment (Productivity Commission Response Part 2 and Other Measures) Bill 2019
National Vocational Education and Training Regulator Amendment Bill 2019
Australian Sports Anti-Doping Authority Amendment (Sport Integrity Australia) Bill 2019
Export Control Bill 2019
Export Control (Consequential Amendments and Transitional Provisions) Bill 2019
Export Charges (Imposition—Customs) Amendment Bill 2019
Export Charges (Imposition—Excise) Amendment Bill 2019
Export Charges (Imposition—General) Amendment Bill 2019
Social Services and Other Legislation Amendment (Simplifying Income Reporting and Other Measures) Bill 2020
Statute Update (Regulations References) Bill 2020
Student Identifiers Amendment (Higher Education) Bill 2019
Trade Support Loans Amendment (Improving Administration) Bill 2019
Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019
That the sitting of the Senate be suspended until the ringing of the bells.
… I've asked my officers, when they're boarding a ship that's coming from international waters, to ask the master a simple question—has anyone on this vessel got flu-like symptoms? If the answer is yes, nobody will be getting off that vessel …
That the sitting of the Senate be suspended until the ringing of the bells.
Coronavirus Economic Response Package Omnibus Bill 2020
Guarantee of Lending to Small and Medium Enterprises (Coronavirus Economic Response Package) Bill 2020
Assistance for Severely Affected Regions (Special Appropriation) (Coronavirus Economic Response Package) Bill 2020
Structured Finance Support (Coronavirus Economic Response Package) Bill 2020
Appropriation (Coronavirus Economic Response Package) Bill (No. 1) 2019-2020
Appropriation (Coronavirus Economic Response Package) Bill (No. 2) 2019-2020
Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Bill 2020
That these bills may proceed without formalities, may be taken together and be now read a first time.
That these bills be now read a second time.
CORONAVIRUS ECONOMIC RESPONSE PACKAGE OMNIBUS BILL 2020
The Bills I introduce today implement the Government's package of measures responding to the economic impacts of the Coronavirus which combined, total $189 billion across the forward estimates, representing 9.7 per cent of annual GDP.
The Coronavirus Economic Response Package Omnibus Bill 2020, along with the other the Bills I am introducing today, provides critical support for the Australian economy and those in our community most affected by the global spread of the Coronavirus.
The measures contained in this package of Bills are designed to bolster domestic confidence and household consumption, reduce cash flow pressures for businesses and support investment to lift productivity and keep people in jobs.
The Package targets four key areas:
The measures in this package are temporary, targeted and proportionate to the challenge we face.
This is a decisive response to the economic challenges posed by the Coronavirus.
It will put Australia in the strongest possible position to secure our economy and return to strong and inclusive growth once the health challenge of the Coronavirus has been overcome.
Enhancing the Instant Asset Write Off
The Government will provide immediate additional support for business investment by enhancing the Instant Asset Write Off for small and medium-sized businesses.
The threshold for eligible assets will increase from $30,000 to $150,000, allowing businesses to immediately deduct purchases of eligible assets each costing less than $150,000. To be eligible, assets need to be first used or installed ready for use in the period between 12 March and 30 June 2020.
Access to the instant asset write-off will also be expanded during this period to include all businesses with an aggregated annual turnover of less than $500 million, up from $50 million. As a result, an additional 5,300 businesses which employ around 1.9 million Australians will be able to benefit from the instant asset write-off.
Backing business investment
We will provide support for business investment by allowing businesses with an annual aggregated turnover of less $500 million to access accelerated depreciation deductions.
Eligible businesses will be able to bring forward depreciation deductions of 50 per cent of the cost of certain assets that they have committed to purchase after 12 March 2020, if they are first used or installed by 30 June 2021. Around 3.5 million businesses which employ 9.7 million people are eligible to benefit from this measure.
Boosting cash flow for employers
The Government will support employers to manage cash flow challenges and help businesses and not-for-profits, including charities, retain their employees and keep operating by providing a cash flow boost payment. This measure will provide at least $20,000 and up to $100,000 back to eligible businesses and not-for-profits (including charities).
This will benefit around 690,000 businesses employing around 7.8 million people. Around 30,000 not-for-profits will also benefit.
Stimulus payments to households to support growth
We will provide two rounds of Economic Support Payments. In each round, the payment will be $750 for each eligible individual.
The first Economic Support Payment will be made to certain recipients of social security and veterans' payments, Farm Household Allowance and holders of certain concession cards eligible in respect of a day in the test period 12 March 2020 to 13 April 2020, to assist them in a time of economic uncertainty during the Coronavirus outbreak.
The second round of Economic Support Payments will be delivered to a sub-cohort of those payment groups who received the first Economic Support Payment. This second payment will not be paid to recipients of the Coronavirus Supplement on the test date. All other payment groups who were eligible for the first payment will be eligible for the second Economic Support Payment providing they would ordinarily be residing in Australia in respect of the test date of 10 July 2020.
Improving our capacity to respond to biosecurity emergencies
We are amending the Biosecurity Act 2015 to allow for the Director of Human Biosecurity to delegate any or all of their functions or powers concerning human biosecurity control orders to senior executive officers of the Department of Health who are also human biosecurity officers.
This will ensure some of the Commonwealth's key powers for responding to biosecurity threats, including the human biosecurity control order, can be implemented in an efficient manner should it become necessary to use them. It is vitally important that we have a range of qualified medical personnel able to conduct administrative processes such as reviewing control orders, to ensure they are being used in a way that is proportionate to the public health risk.
Waiving environment management charge and national park entry fees
The Great Barrier Reef Marine Park Regulations 2019 will be amended to temporarily waive the Environmental Management Charge for the next nine months. This charge mainly applies to tourism activities and this waiver is intended to relieve cost pressures on tourist program operators in the Great Barrier Reef Marine Park.
A number of national park entry fees will also be waived administratively by the Director of National Parks.
Supporting apprentices and trainees
The Government will support jobs for apprentices and trainees through this period of economic challenge by providing $1.3 billion for up to 70,000 small business, including those using a group training organisation to support the retention of around 117,000 apprentices and trainees. This support, which will be in the form of a wage subsidy of 50 per cent for apprentices and trainees, will help ensure the continuing development of the skilled workforce that Australia's employers need.
Supporting the aviation industry
Australia's aviation industry has been among the first sectors affected by the Coronavirus outbreak. The sector is facing an unprecedented and sustained period of falling international and domestic aviation demand.
The Government will provide $715 million to support the aviation industry as it grapples with these challenges.
The Bill will refund aviation fuel excise and refund or waive charges levied by Airservices Australia on domestic airline operations.
The Bill also includes funding to reimburse domestic and regional aviation security charges. The provisions will apply to charges paid by domestic airlines since 1 February 2020 – providing an upfront benefit of $159 million to our airlines to provide immediate relief.
Supporting child care
The Government will amend the A New Tax System (Family Assistance) Act 1999 and A New Tax System (Family Assistance) (Administration) Act 1999 to allocate extra allowable absence days for child care in addition to the current 42 days. The Minister for Education will have the power to prescribe where a family does not need to provide evidence in relation to additional absences related Coronavirus.
The Government is also waiving the current obligation of child care services to enforce payment of gap fees for a particular event or circumstance and the period specified in a Minister's Rule. This will enable services to provide fee relief to families where exceptional circumstances require it for limited periods.
Giving retirees more control over their superannuation
The Bill also adjusts the superannuation minimum drawdown rates, reducing them by 50 per cent for the 2019-20 and 2020-21 income years. These rates prescribe the amount that an individual in the retirement phase must withdraw from an account-based pension or similar product, depending on their age.
This measure will help alleviate concerns of retirees regarding selling assets in a loss position, giving them greater control over their capital during a time of increased market volatility and assist with retirees' confidence in the economy.
Temporary Jobseeker payment and Coronavirus supplement
Additional temporary financial support will be provided to working‑age income support recipients through a Coronavirus Supplement of $550 per fortnight. This measure will provide streamlined access to income support and extended eligibility to income support payments for people whose income is significantly reduced by the economic impact of the Coronavirus. The Minister for Families and Social Services will have the power extend the Coronavirus Supplement in whole or in part to other categories of recipients of social services payments.
This measure will also create a new category of Crisis Payment where a person will qualify for payment if there is a national health emergency, such as the Coronavirus, and delay commencement of the Simplifying Income Reporting Act for up to a year to ensure Services Australia can focus on assisting people who require income support as a result of the Coronavirus.
Providing flexibility in the Corporations Act
Treasury Ministers will be given a time-limited instrument-making power in the Corporations Act to grant time-limited relief from regulatory requirements where these would interfere with the ability of companies to manage their business through the impacts of the Coronavirus. Each instrument would be effective for up to six months from when the instrument is created.
Assisting businesses to trade through the crisis
The Government will also provide a safety net for businesses to allow them to get through a temporary period of insolvency and recover when economic growth picks up.
To do this, we are amending the Corporations Act to temporarily increase the threshold for a creditor to initiate bankruptcy proceedings, an increase in the time period for debtors to respond to a bankruptcy notice and extending the period of protection a debtor receives after making a declaration or intention to present a debtor's petition. There will also be temporary relief for directors from any personal liability for trading while insolvent.
For owners or directors of a business that are currently struggling due to the Coronavirus, the Australian Taxation Office will tailor solutions for their circumstances including temporary reduction of payments or deferrals, or withholding enforcement actions including Director Penalty Notices and wind-ups. This will provide directors with additional confidence to continue to trade through this difficult period.
Allowing early release of superannuation
We are establishing a new temporary compassionate ground of early release of superannuation for individuals and sole traders impacted by the economic consequences of the Coronavirus. This will allow impacted individuals to access up to $10,000 of their superannuation tax-free in 2019-20, and up to a further $10,000 in 2020-21. Applications must be made within six months of Royal Assent of this legislation and will be able to be made online via the myGov portal.
Medicare Levy
This Bill amends the Medicare Levy Act 1986 andA New Tax System (Medicare Levy Surcharge — Fringe Benefits) Act 1999 to increase the Medicare levy low-income thresholds increase for singles, families and seniors and pensioners to ensure these remain in line with changes to in the consumer price index.
Charter of Budget Honesty
During this time of uncertainty it is extremely difficult to formulate reliable economic and fiscal estimates over the next few months. In line with the Government's decision to postpone the Budget until later this year, the next Intergenerational Report will now be released in mid-2021 to ensure there is adequate time to produce long term projections that are based on robust budget estimates.
The Government remains committed to producing an intergenerational report that assesses the long term sustainability of the Government's finances. The Charter will continue to require 5 year updates of the IGR from 2021.
Deferral of sunsetting
Over the coming months this Parliament will, quite rightly, be focused on responding to the needs of the Australian community. During the next six months a number of Acts passed by this Parliament and a large number of legislative instruments are scheduled to sunset. Where an Act or legislative instrument is scheduled to sunset on or before 15 October 2020, the Bill will allow the minister responsible for that Act or instrument to defer the sunset day by up to 6 months. This will ensure no gaps occur in our laws during this critical period.
Guarantee to lend
The Government understands the need to move quickly to provide support and relief to small and medium-sized enterprises (SMEs) that are under incredible pressure and play such an integral role in the Australian economy. We are providing a guarantee for new short-term loans issued by Authorised Deposit-taking Institutions (ADIs) and non-ADI lenders to support SMEs to cover immediate cash flow needs in response to the economic crisis associated with the Coronavirus pandemic.
Importantly, the guarantee will apply to eligible loans made after the Government's announcement of this measure regardless of whether the loans were made before or after the commencement of the Bill. There is an overall cap of $20 billion on the appropriation for meeting liabilities under the guarantee. In the event of a loan default, under this measure, the Government will compensate the lender for an agreed proportion of the losses.
Supporting Australia's small and medium enterprises
The Commonwealth will be authorised to participate in forming, and acquiring shares in, or debentures of, the Australian Business Growth Fund, and appropriates $100 million for that purpose.
The Australian Business Growth Fund's purpose will be to offer growing, established companies patient equity capital and strategic support, to assist them to reach their growth potential. Business seeking support can be from across Australia and from a range of industries.
Established Australian businesses will be eligible for long-term equity capital investments between $5 million and $15 million, where they can demonstrate three years of revenue growth and profitability and a clear growth vision.
Supporting severely affected regions
This response package will appropriate a further $1 billion from the Consolidated Revenue Fund to support those sectors, regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus.
Further plans and measures to support recovery will be designed and delivered in partnership with the affected industries and communities through the funding allocated in this package.
Structured Finance Support
The Government is also establishing a $15 billion Structured Finance Support (Coronavirus Economic Response) Fund and the Structured Finance Support (Coronavirus Economic Response) Fund Special Account.
The Fund will ensure continued access to funding markets impacted by the economic effects of the Coronavirus pandemic and promote competition in consumer and business lending markets.
In particular, this will ensure that smaller lenders can maintain access to funding, by the Government making targeted investments in structured finance markets.
Appropriations
To fund this Package, the Government is appropriating the necessary funds from the Consolidated Revenue Fund.
Full details of the measures contained in the Package are set out in the Explanatory Memorandum to the Bills.
GUARANTEE OF LENDING TO SMALL AND MEDIUM ENTERPRISES (CORONAVIRUS ECONOMIC RESPONSE PACKAGE) BILL 2020
This Bill supports the Coronavirus Economic Response Package Omnibus Bill 2020 by providing a guarantee for new short-term loans issued by Authorised Deposit-taking Institutions (ADIs) and non-ADI lenders to support small and medium-sized enterprises to cover immediate cash flow needs in response to the national economic crisis associated with the Coronavirus pandemic.
Full details of the Bill are contained in the Explanatory Memorandum already tabled.
AUSTRALIAN BUSINESS GROWTH FUND (CORONAVIRUS ECONOMIC RESPONSE PACKAGE) BILL 2020
The Australian Business Growth Fund (Coronavirus Economic Response Package) Bill 2020 supports the Coronavirus Economic Response Package Omnibus Bill 2020 and introduces legislation that authorises the Commonwealth Government to participate in forming, and acquiring shares in or debentures of, the Australian Business Growth Fund and appropriates $100 million for that purpose.
Full details of the Bill are contained in the Explanatory Memorandum already tabled.
ASSISTANCE FOR SEVERELY AFFECTED REGIONS (SPECIAL APPROPRIATION) (CORONAVIRUS ECONOMIC RESPONSE PACKAGE) BILL 2020
The Assistance for Severely Affected Regions (Special Appropriation) (Coronavirus Economic Response Package) Bill 2020 supports the Coronavirus Economic Response Package Omnibus Bill 2020 and will appropriate $1 billion from the Consolidated Revenue Fund to support those sectors, regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus. This will include:
Further plans and measures to support recovery will be designed and delivered in partnership with the affected industries and communities through the funding allocated in this Bill.
Full details of the Bill are contained in the Explanatory Memorandum already tabled.
STRUCTURED FINANCE SUPPORT (CORONAVIRUS ECONOMIC RESPONSE PACKAGE) BILL 2020
This Bill supports the Coronavirus Economic Response Package Omnibus Bill 2020 by establishing the $15 billion Structured Finance Support (Coronavirus Economic Response) Fund and the Structured Finance Support (Coronavirus Economic Response) Fund Special Account.
Full details of the Bill are contained in the Explanatory Memorandum already tabled.
APPROPRIATION (CORONAVIRUS ECONOMIC RESPONSE PACKAGE) BILL (NO. 1) 2019-2020
Today, the Government introduces the Coronavirus Economic Response Appropriation Bills. These Bills are:
Together, these Bills underpin the Government's Coronavirus Response expenditure decisions. These Bills ensure there is sufficient appropriation to implement decisions in 2019‑2020 that support the Government's response to the Coronavirus.
Appropriation (Coronavirus Economic Response) Bill (No. 1) 2019‑2020 seeks approval for appropriations from the Consolidated Revenue Fund of just over $1.6 billion. The Bill will provide the Department of Health with an additional $571.6 million, including $113.5 million to establish and operate dedicated respiratory clinics to assist with diagnosing and managing respiratory cases, including Coronavirus, influenza, and pneumonia. A further $48 million will be provided to support aged care providers experiencing a Coronavirus outbreak, providing workforce, financial support and consumer education. A further $119.0 million will be provided to support a range of measures to support a national communications program and a Triage Hotline.
Further, the Bill will provide $188.6 million to the Department of Education, Skills and Employment, to provide support for small businesses to retain their apprentices and trainees by providing a wage subsidy of 50 per cent of the apprentice's or trainee's wage. This measure will support up to 70,000 businesses, employing around 117,000 apprentices and trainees.
The Bill also provides an additional Advance to the Finance Minister (AFM) provision of $800 million to provide the Government with the capacity to allocate additional appropriations for Coronavirus related responses that are not contemplated in the current package. While this new AFM provision is significant, it will be limited to Coronavirus response requirements only, including health and economic responses.
Details of the proposed expenditure are set out in Schedule 1 to the Bill. Further details of the Bill are contained in the Explanatory Memorandum already tabled.
APPROPRIATION (CORONAVIRUS ECONOMIC RESPONSE PACKAGE) BILL (NO. 2) 2019-2020
Appropriation (Coronavirus Economic Response) Bill (No. 2) 2019‑2020, along with Appropriation (Coronavirus Economic Response) Bill (No. 1) 2019‑2020, which was introduced earlier appropriate funds to support the Government's Coronavirus Economic Response.
This Bill seeks approval for appropriations from the Consolidated Revenue Fund of $744 million, primarily for the Department of Health.
This will provide $700 million for the purchase of additional personal protective equipment for the National Medical Stockpile, including surgical and P2 masks, surgical gowns, gloves and goggles. A further $40 million will be provided to purchase antibiotics and antivirals for the National Medical Stockpile.
The Bill also provides an additional Advance to the Finance Minister (AFM) provision of $1.2 billion to provide the Government with the capacity to allocate additional appropriations for Coronavirus related responses that are not contemplated in the current package. While this new AFM provision is significant, it will be limited to Coronavirus response requirements only, including health and economic responses.
In early March, the Finance Minister approved two advances under Appropriation Act (No 2) 2019-20, at a total of $300 million, for initial Coronavirus related responses. This latest AFM provision is a proportionate expansion of the size of the AFM facility that will be available through to the end of this financial year, to assist in the management of this significant challenge to public health and the economy.
Details of the proposed expenditure are set out in the Schedule 1 to the Bill. Further details of the Bill are contained in the Explanatory Memorandum already tabled.
BOOSTING CASH FLOW FOR EMPLOYERS (CORONAVIRUS ECONOMIC RESPONSE PACKAGE) BILL 2020
This Bill provides legislative authority for the Tax Commissioner to make cash flow boost payments to eligible entities.
Full details of the Bill are contained in the Explanatory Memorandum already tabled.
At the end of the motion, add:
", but the Senate calls on the Government to more quickly implement the measures it is proposing, noting that, under the current proposal:
(a) the Coronavirus supplement will not begin until 27 April 2020;
(b) expanded access to the Jobseeker Payment and Youth Allowance will not begin until 27 April 2020;
(c) most people won't receive the first payment to households until April 2020 or the second payment until July 2020;
(d) pensioners won't see a boost in their income due to the change in deeming rates until 1 May 2020; and
(e) employers won't receive a cash flow boost until 28 April 2020".
At the end of the motion, add:
", but the Senate is of the opinion that the Government must develop and promptly present its plan to at least double the number of intensive care units, ventilators and the necessary medical equipment immediately, and then further increase these supplies in line with the advice of medical experts so the Australian people can be confident that no one will be left to die unnecessarily from this pandemic".
At the end of the motion, add:
", but the Senate is of the opinion that the Government should:
(a) seek to ensure that the economic impacts of COVID-19 do not result in homeowners losing their homes or the major banks taking a larger share of the market; and
(b) introduce a temporary ban on mortgage foreclosures for homeowners;
(c) provide government insurance of mortgage repayments for homeowners who have a loan with a non-major bank; and
(d) ensure that, where governments cover mortgage repayments for homeowners, the amount covered by the Government be held as a debt against the property, and that this debt have priority over all other debts held against the property".
At the end of the motion, add:
", but the Senate is of the opinion that the Government must develop and promptly present its plan to at least double the number of intensive care units, ventilators and the necessary medical equipment immediately, and then further increase these supplies in line with the advice of medical experts so the Australian people can be confident that no one will be left to die unnecessarily from this pandemic".
At the end of the motion, add:
", but the Senate:
(a) notes that there is no conditionality on assistance measures to business to keep workers employed; and
(b) calls on the Government to implement measures to provide sufficient incentive for employers to keep employees in work.".
At the end of the motion, add: ", but the Senate:
(a) is of the opinion that:
(i) every Australian deserves a dignified retirement,
(ii) Australians are proud of our world-class superannuation system,
(iii) drawing down on superannuation when the market is at historic lows will have negative implications for most Australians, and should only be an option of last resort, and
(iv) the administrative arrangements specified in Schedule 13 of the Coronavirus Economic Response Package Omnibus Bill 2020 will not ensure that Australians in genuine hardship receive prompt payment from their superannuation fund; and
(b) calls on the Government to:
(i) ensure that ordinary Australians have access to the right information and advice in times of hardship by increasing funding for financial counselling and the Centrelink Financial Information Service,
(ii) closely monitor the financial advice industry to ensure that early release claimants are not provided with inaccurate advice,
(iii) table a letter from the Chair of the Australian Prudential Regulation Authority, certifying that the implementation of Schedule 13 will have no systemic impacts on the superannuation system, and
(iv) consult with industry, unions, and representatives of other political parties before the implementation of the measures in Schedule 13, noting the potentially significant, negative impact on the retirement outcomes of ordinary Australians".
At the end of the motion, add:
", but the Senate is of the opinion that:
(a) this package does not adequately support large sections of the population who will be left behind and disproportionately affected by this health crisis and the ensuing social lockdown and economic shutdown, and the Senate calls on the government to immediately amend its package to ensure proper support is provided to at least the following groups:
(i) the 37 per cent of the Australian workforce, casual and gig economy employees with no paid leave,
(ii) students, carers, Disability Support Pension recipients, and age pensioners who receive Commonwealth Rent Assistance, none of whom will be eligible for the$550 a fortnight COVID-19 supplement and will be trapped beneath the poverty line and who face the very real threat of rental eviction,
(iii) First Nations peoples who are at severe risk of harm from COVID-19,
(iv) those facing domestic and family violence who are at serious risk during a period of prolonged isolation and who do not have adequately funded services to support them, and
(v) non-Australians who call Australia home, including asylum seekers on temporary protection visas, people who hold temporary work or skilled visas, international students, people who hold working holiday visas, New Zealand citizens on non-protected Special Category Visas, and new permanent residents, who do not all have access to income support and in many cases cannot return home;
(b) it is critical to protect people from homelessness by placing a moratorium on evictions and the Senate calls on the Government to urgently make this happen;
(c) to enable people to work from home and to maintain social connection the Government must ensure that no one is cut off from internet services including the NBN;
(d) the government must provide much needed extra financial support to those industries hardest hit, including tourism, hospitality, and the arts and entertainment sector;
(e) to provide for workers who have no paid leave at all, the Government must pass the Greens' Fair Work Amendment (COVID-19) Bill 2020;
(f) the Government must ensure that it reverses funding cuts and lifts the freeze on indexation imposed on the Australian Broadcasting Corporation so that it can deliver timely, accurate and reliable advice to the public during this period;
(g) the Government must immediately suspend mutual obligation requirements to protect the health and safety of all people on income support payments and employment service providers;
(h) the Government must permanently increase the Jobseeker Payment, Youth Allowance, AUSTUDY and ABSTUDY after the crisis is over to ensure people on income support payments are not dropped below the poverty line;
(i) the Government must immediately cancel all robodebts and look to repay debts to robodebt victims once the crisis is over; and
(j) the Government must consider what other forms of support should be provided to promote social cohesion and reduce the potential for discrimination against already vulnerable individuals and communities in these challenging times.
At the end of the motion, add:
", but the Senate:
(a) is of the opinion that the Government must ensure financial support provided to business under these bills come with conditions attached, including:
(i) a jobs guarantee, so that as many people as possible remain employed during the crisis,
(ii) a wages guarantee, so that money goes to workers who need it and to keep businesses running, not to executive pay, and
(iii) where appropriate, a Government stake in big, essential businesses such as Qantas; and
(b) calls on the Government to ensure that, if the Minister for Finance allocates additional amounts under the powers referred to as the Advance to the Finance Minister, the Auditor-General must complete a review into any expenditure no later than twelve months after the date of the final expenditure".
(1) Schedule 11, Part 1, page 66 (after line 9), at the end of the Part, add:
40A Modifications of qualifications and payments under the social security law
(1) For any provision of the social security law relating to the qualification of persons for a social security payment, or to the rate of a social security payment, the Minister may by, legislative instrument, determine:
(a) for a provision that relates to the qualification of persons for a social security payment:
(i) that the provision is varied as specified in the determination; or
(ii) that the provision does not apply; or
(iii) that the provision does not apply and that another provision specified in the determination applies instead; or
(b) for a provision that relates to the rate of a social security payment:
(i) that the provision is varied as specified in the determination; or
(ii) that the provision does not apply and that a rate of payment specified in the determination applies instead.
(2) The Minister must be satisfied that the determination is in response to circumstances relating to the coronavirus known as COVID-19.
(3) A determination under this item has effect accordingly.
(4) In this item:
social security law has the same meaning as in theSocial Security Act 1991 .
social security payment has the same meaning as in theSocial Security Act 1991 .
(1) Clause 5, page 3 (after line 19), after subclause (3), insert:
(3A) The legislative rules must require that the terms of any loan subject to a guarantee granted to a financial institution under subsection (1) include a requirement that a SME entity to which a loan is to be made not make any employee of the SME redundant for the duration of any guarantee granted to the financial institution under that subsection.
(1) Schedule 11, Part 1, page 66 (after line 9), at the end of the Part, add:
40A Modifications of qualifications and payments under the social security law
(1) For any provision of the social security law relating to the qualification of persons for a social security payment, or to the rate of a social security payment, the Minister may by, legislative instrument, determine:
(a) for a provision that relates to the qualification of persons for a social security payment:
(i) that the provision is varied as specified in the determination; or
(ii) that the provision does not apply; or
(iii) that the provision does not apply and that another provision specified in the determination applies instead; or
(b) for a provision that relates to the rate of a social security payment:
(i) that the provision is varied as specified in the determination; or
(ii) that the provision does not apply and that a rate of payment specified in the determination applies instead.
(2) The Minister must be satisfied that the determination is in response to circumstances relating to the coronavirus known as COVID-19.
(3) A determination under this item has effect accordingly.
(4) In this item:
social security law has the same meaning as in theSocial Security Act 1991 .
social security payment has the same meaning as in theSocial Security Act 1991 .
(5) An instrument made under this item has no operation after 31 December 2020.
(6) This item is repealed on 31 December 2020.
(1) Schedule 4, item 1, page 17 (before line 10), before the definition of first 2020 economic support payment , insert:
families 2020 economic support payment means a payment to which an individual is entitled under Division 2A of Part 9.
(2) Schedule 4, item 2, page 19 (after line 20), after Division 2, insert:
Division 2A — Families 2020 economic support payment
115A When is an individual entitled to a families 2020 economic support payment?
An individual is entitled to a families 2020 economic support payment if subsection 117(2) and subsection 117(3), (4) or (5) applies to the individual on a day in the period:
(a) starting on 12 March 2020; and
(b) ending on 13 April 2020.
115B What is the amount of the payment?
The amount of an individual's families 2020 economic support payment under this Division is $750 per FTB child.
(3) Schedule 4, item 2, page 19 (line 22) after " for ", insert " first and second ".
(4) Schedule 4, item 2, page 20 (after line 23), after section 116, insert:
117 Eligibility for families 2020 economic support payment
(1) This section applies for the purposes of section 115A.
(2) Subject to subsection (6) of this section, this subsection applies to an individual on a day if, in relation to that day, the person receives a social security benefit.
(3) Subject to subsection (6) of this section, this subsection applies to an individual on a day if:
(a) in relation to that day, a determination under section 16 of the Family Assistance Administration Act is in force in respect of the individual as a claimant; and
(b) the rate of family tax benefit payable under the determination in relation to that day consists of or includes a Part A rate greater than nil.
(4) Subject to subsection (6) of this section, this subsection applies to an individual on a day if:
(a) in relation to that day, a determination under section 17 of the Family Assistance Administration Act is in force in respect of the individual as a claimant; and
(b) the rate of family tax benefit payable under the determination in relation to that day consists of or includes a Part A rate greater than nil; and
(c) the determination is made as a result of a claim made in:
(i) the income year in which that day occurs; or
(ii) either of the next 2 income years.
(5) Subject to subsection (6) of this section, this subsection applies to an individual on a day if:
(a) in relation to that day, a determination under section 18 of the Family Assistance Administration Act is in force in respect of the individual as a claimant; and
(b) the rate of family tax benefit payable under the determination in relation to that day consists of or includes a Part A rate greater than nil; and
(c) the determination is made as a result of a claim made in:
(i) the income year in which that day occurs; or
(ii) a later income year.
Residence requirement
(6) Subsection (2), (3), (4) or (5) does not apply to an individual on a day if the individual does not reside in Australia on that day.
(5) Schedule 4, item 3, page 21 (after line 22), after section 65JB, insert:
65JC Payment of families 2020 economic support payment
(1) If an individual is entitled to a families 2020 economic support payment, the Secretary must, subject to subsection (2), pay the payment to the individual in a single lump sum:
(a) on the date that the Secretary considers the earliest date on which it is reasonably practicable for the payment to be paid; and
(b) in such manner as the Secretary considers appropriate.
Note: The individual does not have to make a claim for the payment.
(2) The Secretary must not pay the payment on or after 1 July 2022 if the individual is entitled to the payment because subsection 117(3) or (5) of the Family Assistance Act applies to the individual on a day.
[additional payment to FTB Part A families]
(6) Schedule 4, item 6, page 22 (lines 2 to 5), omit subsection 72(1), substitute:
(1) This section applies in relation to an individual who has been paid a 2020 economic support payment because the following subsections of the Family Assistance Act applied to the individual on a day:
(a) subsection 116(2), (3) or (4);
(b) subsection 117(2) and subsection 117(3), (4) or (5).
[additional payment to FTB Part A families]
(7) Schedule 4, item 12, page 23 (line 8), after "payment,", insert "families,".
[additional payment to FTB Part A families]
(8) Schedule 4, item 22, page 25 (lines 7 and 8), omit the item, substitute:
Omit "or ETR payment", substitute ", ETR payment, families 2020 economic support payment, first 2020 economic support payment or second 2020 economic support payment".
Statement pursuant to the order of the Senate of 26 June 2000
Amendments (2) and (4)
Amendments (2) and (4) are framed as requests because they would amend Schedule 4 of the bill in a way that would increase expenditure under the standing appropriation in section 233 of the A New Tax System (Family Assistance) (Administration) Act 1999.
The effect of the amendments would be to create an additional economic support payment for families who meet certain eligibility criteria. As such, the amendments would expand the 2020 economic support payment and would therefore increase the amount of expenditure under the standing appropriation in section 233 of the A New Tax System (Family Assistance) (Administration) Act 1999.
Amendments (1), (3), (5) to (7) and (8)
Amendments (1), (3), (5) to (7) and (8) are consequential on amendments (2) and (4).
Statement by the Clerk of the Senate pursuant to the order of the Senate of 26 June 2000
Amendments (2) and (4)
If the effect of the amendments is to increase expenditure under the standing appropriation in section 233 of the A New Tax System (Family Assistance) (Administration) Act 1999 then it is in accordance with the precedents of the Senate that the amendment be moved as a request.
Amendments (1), (3), (5) to (7) and (8)
These amendments are consequential on the request. It is the practice of the Senate that amendments that are consequential on an amendment framed as a request may also be framed as requests.
(1) Schedule 4, item 26, page 26 (line 6), omit "or (4)", substitute ", (4) or (4A)".
[extend eligibility to health care card holders]
(2) Schedule 4, item 26, page 27 (line 6), omit "or (4)", substitute ", (4) or (4A)".
[extend eligibility to health care card holders]
(3) Schedule 4, item 26, page 29 (after line 4), after subsection 308(4), insert:
Qualified for low income health care card
(4A) Subject to subsection (5) of this section, this subsection applies to a person on a day if the person is qualified for a health care card on that day under section 1061ZO.
[extend eligibility to health care card holders]
(4) Schedule 4, item 26, page 29 (line 6), omit "or (4)", substitute ", (4) or (4A)".
Statement pursuant to the order of the Senate of 26 June 2000
Amendment (3)
Amendment (3) is framed as a request because it would amend Schedule 4 of the bill in a way that would increase expenditure under the standing appropriation in section 242 of the Social Security (Administration) Act 1999 .
The effect of the amendment would be to extend the economic support payment to persons qualified for a health care card under section 1061ZO of the Social Security Act 1991 . As such, the amendments would expand eligibility for the economic support payment and would therefore increase the amount of expenditure under the standing appropriation in section 242 of theSocial Security (Administration) Act 1999 .
Amendments (1), (2) and (4)
Amendments (1), (2), and (4) are consequential on amendment (3).
Statement by the Clerk of the Senate pursuant to the order of the Senate of 26 June 2000
Amendment (3)
If the effect of the amendment is to increase expenditure under the standing appropriation in section 242 of the Social Security (Administration) Act 1999 then it is in accordance with the precedents of the Senate that the amendment be moved as a request.
Amendments (1), (2) and (4)
These amendments are consequential on the request. It is the practice of the Senate that amendments that are consequential on an amendment framed as a request may also be framed as requests.
(1) Schedule 7, page 48 (after line 9), at the end of the Schedule, add:
Part 3 — Conditions on assistance to aviation sector
Financial Framework (Supplementary Powers) Act 1997
3 At the end of section 2A
Add:
This Act also imposes conditions on the provision of financial assistance to Australian airlines to assist with the impact of the coronavirus known as COVID-19.
4 After Part 2
Insert:
Part 2A — Providing financial assistance to Australian airlines during the COVID-19 crisis
42 Application of this Part
This Part applies if:
(a) the Commonwealth proposes to make, vary or administer (whether under a power provided for by this Act or otherwise):
(i) an arrangement under which relevant money or other CRF money is, or may become, payable by the Commonwealth to an Australian airline; or
(ii) a grant of financial assistance to an Australian airline; and
(b) the arrangement or grant is for the purposes of assisting the Australian airline with the impact of the coronavirus known as COVID-19.
43 Terms and conditions for financial assistance to Australian airlines
(1) The terms and conditions on which an arrangement or grant of financial assistance referred to in section 42 is made or granted must:
(a) be set out in a written agreement between the Commonwealth and the recipient; and
(b) include the terms and conditions in subsections (2), (3), (4) and (5) of this section.
Equity stake
(2) The provision of the financial assistance by the Commonwealth is subject to the Australian airline giving to the Commonwealth an equity stake in the Australian airline.
(3) The following apply in relation to the equity stake referred to in subsection (2):
(a) the equity stake must be proportional to the amount of financial assistance provided by the Commonwealth;
(b) the equity stake must be given by the issue to the Commonwealth of shares in the Australian airline;
(c) the shares must be priced at no higher than the most recent share price transacted on the Australian Stock Exchange or another relevant market (however the shares may be priced lower than that price by agreement between the Minister and the Australian airline).
Board representation
(4) The provision of the financial assistance by the Commonwealth is subject to the Australian airline providing for the following representation on the Board of the Australian airline:
(a) one member of the Board representing the workers of the Australian airline;
(b) at least one member of the Board representing the Commonwealth, with additional members of the Board as appropriate to reflect the proportion of the Commonwealth's equity stake in the Australian airline.
Retention of existing workers
(5) The provision of the financial assistance by the Commonwealth is subject to the Australian airline retaining until at least 30 June 2021 all workers employed by the Australian airline at the start of 2020.
44 Definitions
In this Part:
Australian airline means:
(a) an Australian international airline; or
(b) Qantas; or
(c) an air transport enterprise offering or operating an air service solely within Australian territory.
Australian international airline means an international airline (other than Qantas) that may be permitted to carry passengers or freight, or both passengers and freight, under a bilateral arrangement as an airline designated by Australia to operate a scheduled international air service.
international airline means an air transport enterprise offering or operating an international air service.
Qantas means Qantas Airways Limited, as the company exists from time to time (even if its name is later changed).
(1) Schedule 4, item 34, page 33 (line 29) to page 34 (line 16), to be opposed .
[exclude payment from income management]
(2) Schedule 4, item 35, page 34 (lines 17 to 31), to be opposed .
[exclude payment from cashless debit card]
(1) Schedule 11, page 55 (after line 23), after item 6, insert:
6A At the end of Division 4 of Part 2.2
Add:
56 COVID-19 supplement
(1) If a person is receiving:
(a) an age pension; and
(b) rent assistance;
the rate of the person's age pension is increased by the amount of the COVID-19 supplement. The increase begins on 27 April 2020.
(2) In this section:
rent assistance means an amount paid or payable under this Act to help cover the cost of rent.
Cessation of supplement
(3) This section ceases to apply at the end of:
(a) the period (the initial period ) of 6 months beginning on the day on which this section commences, unless paragraph (b) applies; or
(b) if a period is extended under subsection (4)—the extended period.
(4) The Minister may, by legislative instrument, extend the initial period (or that period as extended one or more times under this subsection) by a period not exceeding 3 months. The Minister must be satisfied that the extension is in response to circumstances relating to the coronavirus known as COVID-19.
Amount of supplement
(5) For the period beginning on 27 April 2020 and ending at the end of the initial period, the amount of the COVID-19 supplement per fortnight is:
(a) $550, unless paragraph (b) applies; or
(b) if an amount is determined under subsection (6)—that amount.
(6) The Minister may, by legislative instrument, determine an amount for the purposes of paragraph (5) (b).
(7) For any extension period, the amount of the COVID-19 supplement is to be worked out in accordance with a determination under subsection (8).
(8) The Minister may, by legislative instrument, make a determination for the purposes of subsection (7).
(9) Without limiting subsection (8), the determination may provide that the amount of COVID-19 supplement per fortnight is nil for specified persons.
6B At the end of Division 5 of Part 2.3
Add:
121 COVID-19 supplement
(1) If a person is receiving a disability support pension, the rate of the person's disability support pension is increased by the amount of the COVID-19 supplement. The increase begins on 27 April 2020.
Cessation of supplement
(2) This section ceases to apply at the end of:
(a) the period (the initial period ) of 6 months beginning on the day on which this section commences, unless paragraph (b) applies; or
(b) if a period is extended under subsection (3)—the extended period.
(3) The Minister may, by legislative instrument, extend the initial period (or that period as extended one or more times under this subsection) by a period not exceeding 3 months. The Minister must be satisfied that the extension is in response to circumstances relating to the coronavirus known as COVID-19.
Amount of supplement
(4) For the period beginning on 27 April 2020 and ending at the end of the initial period, the amount of the COVID-19 supplement per fortnight is:
(a) $550, unless paragraph (b) applies; or
(b) if an amount is determined under subsection (5)—that amount.
(5) The Minister may, by legislative instrument, determine an amount for the purposes of paragraph (4) (b).
(6) For any extension period, the amount of the COVID-19 supplement is to be worked out in accordance with a determination under subsection (7).
(7) The Minister may, by legislative instrument, make a determination for the purposes of subsection (6).
(8) Without limiting subsection (7), the determination may provide that the amount of COVID-19 supplement per fortnight is nil for specified persons.
6C At the end of Division 4 of Part 2.5
Add:
211 COVID-19 supplement
(1) If a person is receiving carer payment, the rate of the person's carer payment is increased by the amount of the COVID-19 supplement. The increase begins on 27 April 2020.
Cessation of supplement
(2) This section ceases to apply at the end of:
(a) the period (the initial period ) of 6 months beginning on the day on which this section commences, unless paragraph (b) applies; or
(b) if a period is extended under subsection (3)—the extended period.
(3) The Minister may, by legislative instrument, extend the initial period (or that period as extended one or more times under this subsection) by a period not exceeding 3 months. The Minister must be satisfied that the extension is in response to circumstances relating to the coronavirus known as COVID-19.
Amount of supplement
(4) For the period beginning on 27 April 2020 and ending at the end of the initial period, the amount of the COVID-19 supplement per fortnight is:
(a) $550, unless paragraph (b) applies; or
(b) if an amount is determined under subsection (5)—that amount.
(5) The Minister may, by legislative instrument, determine an amount for the purposes of paragraph (4) (b).
(6) For any extension period, the amount of the COVID-19 supplement is to be worked out in accordance with a determination under subsection (7).
(7) The Minister may, by legislative instrument, make a determination for the purposes of subsection (6).
(8) Without limiting subsection (7), the determination may provide that the amount of COVID-19 supplement per fortnight is nil for specified persons.
[extending eligibility for COVID-19 supplement]
Statement pursuant to the order of
the Senate of 26 June 2000
Amendment (1)
Amendment (1) is framed as a request because it amends Schedule 11 to the bill in a way that would increase expenditure under the standing appropriation in section 242 of the Social Security (Administration) Act 1999 .
The effect of the amendment would be to extend the COVID-19 supplement to persons receiving the disability support pension and carer payment, and persons who receive both the age pension and Commonwealth rent assistance.
The amendment would therefore increase the amount of expenditure under the standing appropriation in section 242 of the Social Security (Administration) Act 1999 .
Statement by the Clerk of the Senate pursuant
to the order of the Senate of 26 June 2000
Amendment (1)
If the effect of the amendment is to increase expenditure under the standing appropriation in section 242 of the Social Security (Administration) Act 1999 then it is in accordance with the precedents of the Senate that the amendment be moved as a request.
(1) Clause 4, page 3 (line 21), omit "State or Territory", substitute "State, Territory or local government authority".
[payments to local government]
(2) Heading to subclause 5(1), page 3 (line 24), omit " States and Territories ", substitute "States, Territories and local government authorities ".
[payments to local government]
(3) Clause 5, page 3 (lines 25 to 30), omit "State or Territory" (wherever occurring), substitute "State, Territory or local government authority".
[payments to local government]
(4) Clause 5, page 4 (line 10), after "State, Territory", insert ", local government authority".
[payments to local government]
(1) Page 4 (after line 20), after clause 5, insert:
5A Transparency of payments
(1) Within 14 days after an agreement is entered into for the purposes of section 5, the Minister must:
(a) publish on the internet the full text of the agreement; or
(b) if the Minister is of the opinion that it is not in the public interest for the agreement to be published, the Minister must write to the Joint Parliamentary Committee of Public Accounts and Audit outlining the reasons why he or she is of that opinion in relation to the specific agreement.
(2) Within 14 days after each 1 January, 1 April, 1 July and 1 October, the Minister must publish on the internet:
(a) a list of all agreements entered into for the purposes of section 5 in the preceding quarter; and
(b) a statement outlining the total amount of payments made under the appropriation in this Act in the preceding quarter.
(3) Each list published pursuant to paragraph 5A(2) (a) must, for each listed agreement, include:
(a) the name of the recipient of the payment;
(b) the amount of the payment;
(c) the date or dates on which the payment was made or is to be made; and
(d) details of the nature of the agreement.
Note: Details of the nature of the agreement for the purposes of paragraph 5A(3) (d) may include whether the agreement relates to a grant, a loan, an investment, or some other arrangement.
(4) Each statement published pursuant to paragraph 5A(2) (b) must include:
(a) the total amount of payments made to recipients in each State and Territory; and
(b) the total amount of payments made to:
(i) State and Territory governments;
(ii) constitutional corporations; and
(iii) other persons.
(5) Before making an agreement for the purposes of section 5, the Minister must:
(a) conduct an open and transparent process in relation to the proposed payment; or
(b) if the Minister is of the opinion that it is not feasible to conduct an open and transparent process due to the urgent nature of the payment, the Minister must write to the Joint Parliamentary Committee of Public Accounts and Audit outlining the reasons why it was not in the public interest that an open and transparent process be used.
Note: An example of an open and transparent process for the purposes of paragraph 5A(5) (a) is an open tender assessed against published criteria.
(6) Where applicable, payments made under the appropriation in this Act must comply with the Commonwealth Grants Rules and Guidelines.
(7) In this section:
Commonwealth Grants Rules and Guidelines means the legislative instrument made by the Finance Minister under section 105C of thePublic Governance, Performance and Accountability Act 2013 .
That the bills be now read a third time.
Supply Bill (No. 1) 2020-2021
Supply Bill (No. 2) 2020-2021
Supply (Parliamentary Departments) Bill (No. 1) 2020-2021
That these bills may proceed without formalities, may be taken together and be now read a first time.
That these bills be now read a second time.
Supply Bill (No. 1) 2020-2021, together with Supply Bill (No. 2) 2020-2021 and Supply (Parliamentary Departments) Bill (No. 1) 2020-2021, seeks appropriations to facilitate the continuation of normal government business.
These bills are necessary to ensure the proper functioning of government services and the continuation of vital programs in an environment of global economic uncertainty resulting from the coronavirus pandemic. This economic uncertainty impacts the forecasts on which the federal budget depends. Consequently, the government has decided to reschedule this year's federal budget to 6 October 2020. This will also ensure that the 2020-21 budget can set out the path to economic recovery.
This delay of the budget does not, however, stand in the way of timely and comprehensive responses to the present health and economic challenges. This week the government has brought forward a wide-reaching package of legislation, including the expenditure, tax relief and streamlined regulatory measures, to support its coronavirus economic response.
Supply Bill (No. 1) 2020-2021 provides for appropriations for a proposed expenditure on the ordinary annual services of the government for the first seven months of 2021. This is slightly longer than the customary five-month contingency that has been provided in some recent supply bills. In the present uncertain circumstances, it is important that supply arrangements include enough contingency and ensure adequate time for parliamentary scrutiny of appropriation bills.
The bill seeks approval for appropriations from the consolidated revenue fund of just over $76.3 billion. The appropriations proposed in this bill are broadly based on seven-twelfths of the estimated 2020-21 annual appropriations. The 2020-21 estimates are largely the 2019-2020 base adjusted for economic and program specific parameters and the effect of decisions announced as part of MYEFO or included in the 2019-20 additional estimates appropriations bills, plus of course the COVID-19 related measures.
The bill must be passed in this session to ensure funding is available to all entities from 1 July 2020, thereby ensuring the continuity of program and service delivery. The seven-twelfths allocation are adjusted where necessary for programs or agencies that are expected to face additional pressures in the first seven months of the financial year.
I want to emphasise that this bill seeks provision only to fund government expenditure on an interim basis until the 2020-21 budget appropriation bills have passed. Therefore, no new measures for the 2020-21 budget are included in this bill. The bill also provides an advance to the finance minister, a provision of $16 billion, to provide the government with the capacity to allocate additional appropriations for urgent and unforeseen expenditure. This ensures sufficient appropriations are available to meet unforeseen costs, which may include responding to the need for increased medical services and to the need to provide capacity for further economic stimulus, should that be required, and supporting the ongoing business of government. In light of the size of this, it is proposed to institute additional transparency measures on its use. This will include a regular media release which reports and reconciles the use of the AFM provision. Details of the proposed expenditure are set out in the schedule to the bill, the EM and the various portfolio statements.
Supply Bill (No. 2), along with Supply Bill (No. 1) and the Supply (Parliamentary Departments) Bill (No. 1), seeks appropriations to facilitate the continuation of normal government business. Supply Bill (No. 2) 2020-2021 provides for appropriations that are not for the ordinary annual services of governments, such as for capital works and services, and for payments to states, territories and local governments for the first seven months of 2020-21. The bill seeks approval for appropriations from the Consolidated Revenue Fund of just under $6.7 billion. The appropriations proposed in this bill are broadly based on seven-twelfths of the estimated 2020-21 annual appropriations. The 2020-21 estimates are largely on the 2019-20 base adjusted for economic and program specific parameters and the effect of decisions in MYEFO or included in the additional estimates appropriation bills, plus the COVID-19 related measures. The seven-twelfths allocations are adjusted where necessary, where organisations are expected to face additional pressures in the first seven months of the year—for example, further capital funding for the national medical stockpile. The supply bills also take into account terminating programs.
The bill also establishes the debt limits for 2020-21 for general purpose financial assistance payments and national partnership payments. The debit limits in the bill reflect a full year of the estimated 2020-21 limits so that agreements with other governments can be established with certainty for the full year. Again, the bill must be passed in this session to ensure funding is available to all entities from 1 July 2020, ensuring the continuity of program and service delivery.
As with Supply Bill (No. 1), this bill seeks provision only to fund government expenditure on an interim basis until budget appropriation bills have been passed. Therefore, no new measures, I emphasise, for the 2020 budget are included in this bill either. The bill also provides an advance to the finance minister, a provision of $24 billion, to provide the government with the capacity to allocate additional appropriations for urgent and unforeseen expenditure. This ensures sufficient appropriations are available to meet unforeseen costs, which may include responding to the need for additional and more costly medical equipment driven by international competition and to the need to provide capacity for further economic stimulus, should that be required, and to support the ongoing business of government. In light of the size of the AFM, it is proposed to institute additional transparency measures on its use. This, again, will include a regular media release which reports and reconciles the use of the provision. Again, details of the proposed expenditure are set out in the schedule to the bill, the EM and the various portfolio statements.
Finally, the Supply (Parliamentary Departments) Bill (No. 1) 2020-2021 provides appropriations for the first seven months of 2020-21 for the operations of the Department of the Senate, the Department of the House of Representatives, the Department of Parliamentary Services and the Parliamentary Budget Office. This bill seeks approval for appropriations from the Consolidated Revenue Fund of just over $150 million. The appropriations proposed in this bill are broadly based on seven-twelfths of the estimated 2020-21 annual appropriations, which are largely the 2019-20 base adjusted for economic and program specific parameters. The bill must be passed in this session to ensure funding is available to these departments from 1 July 2020, thereby ensuring the continuity of our parliament's operations.
As with the other supply bills, I want to emphasise that this bill seeks provision only to appropriate money to fund government expenditure on an interim basis until budget appropriations bills have been passed. Again, no measures for the 2020 budget are included in this bill. This arrangement, importantly, allows for Appropriation (Parliamentary Departments) Bill No. 1 2020-21 or a similar bill to be passed when parliament resumes sitting, if necessary. Again, details of the proposed expenditure are set out in the schedule to the bill, the EM and the various 2019-20 statements. I therefore commend the bills to the House.
That these bills be now read a third time.
That:
(a) the orders of the Senate of 14 November 2019 relating to the days of meeting for 2020 and estimates hearings be suspended until 11 August 2020;
(b) the President shall alter the day and time of the next meeting of the Senate at the request of, or the agreement of, the Leader of the Government in the Senate and the Leader of the Opposition in the Senate, and the time of meeting shall be notified to each senator;
(c) the Senate may meet in a manner and form not otherwise provided in the standing orders with the agreement of the Leader of the Government in the Senate and the Leader of the Opposition in the Senate, and that the rules and orders necessary to constitute such a meeting may be determined by the Procedure Committee; and
(d) leave of absence be granted to every member of the Senate from the end of the sitting today, to the day on which the Senate next meets.
That the Senate do now adjourn.