The PRESIDENT (Senator the Hon. John Hogg) took the chair at 9:30, read prayers and made an acknowledgement of country.
Health Insurance (Dental Services) Bill 2012 [No. 2]
Medicare Locals in rural/regional Australia to date has been implemented hastily and has excluded dentistry which will affect dental care delivery for Australians in these areas.
The coalition strongly supports a transparent and appropriate audit process to detect cases of fraud, the misuse of taxpayers' funds or the provision of inappropriate services. But we do not support Labor's tactic of using innocent and inadvertent administrative errors as a means to claw back funds from dentists, presumably to assist the government in their unattainable quest to achieve a budget surplus—something they have not done for over 20 years!
Upon commencing the audit process, officers from Medicare identified that many dentists had failed to comply with section 10 requirements of the scheme. Under section 10, dental practitioners were required to provide the patient's referring general practitioner with a dental treatment plan prior to undertaking any work on the patient. However, primarily due to a lack of education on those requirements many dentists were unaware of their administrative obligations and commenced treatment on the first appointment with a new patient prior to providing the necessary paperwork to the GP. Treating the oral health needs of a patient prior to fulfilling the administrative requirements of the scheme does not constitute fraud.
As I understand the current stories in the media around dentistry—and I am simply going on what I read in the media—I understand they are more to do with strict auditing processes, auditing of paperwork et cetera. That is not the sort of matter that comes to PSR—
We have had no formal notification from Medicare, although there has been some suggestion that there may be cases later this year. But we have had no formal indication from Medicare that they are referring a dentist to us for inappropriate practice which goes beyond, as I understand it, the sorts issues that have been in the media lately. As I said, they are more to do with auditing. Inappropriate practice in terms of the actual professional decisions being made by a dentist, which would be the type of matter that would be referred to PSR—we have not had any referrals and no formal notification.
We have had no formal indication from Medicare that they are referring a dentist to us for inappropriate practice which goes beyond those, as I understand the sorts of issues that have been in the media lately.
This retrospective change to the Determination would bring the compliance arrangements more closely into line with other parts of Medicare, and would allow for a more educative approach to be used by the Department.
As I understand the current stories in the media around dentistry, and I am simply going on what I read in the media, I understand they are more to do with strict auditing processes, auditing of paperwork et cetera. That is not the sort of matter that comes to PSR. But we have found no formal notification from Medicare, although there have been some suggestions in the future there may be cases later this year—
But we have had no formal indication from Medicare that they are referring a dentist to us for inappropriate practice which goes beyond, as I understand it, the sort of issues that have been in the media lately. As I said, they are more to do with auditing. Inappropriate practice in terms of the actual professional decisions made by a dentist, which would be the type of matter that would be referred to PSR—we have not had any referrals and no formal notification.
It is our view that we need a retrospective change to the dental services determination within the near future that creates greater flexibility about the compliance arrangements, while still protecting important principles of public policy. This retrospective change to the determination would bring the compliance arrangements more closely into line with other parts of Medicare and would allow for a more educative approach to be used by the department.
If we could free up the money for this flawed scheme, we could provide investment in dental services where it is really needed, because we all know that it is difficult for Australians in rural and remote areas to access dental services.
The Senate divided. [11:51]
(The President—Senator Hogg)
SELECTION OF BILLS COMMITTEE
REPORT NO. 10 OF 2012
1. The committee met in private session on Wednesday, 22 August 2012 at 7.01 pm.
2. The committee resolved to recommend—That—
(a) contingent upon their introduction in the House of Representatives, the provisions of the Australian Charities and Not-for-profits Commission Bill 2012, the Australian Charities and Not-for-profits Commission (Consequential and Transitional) Bill 2012 and the Tax Laws Amendment (Special Conditions for Not-for-profit Concessions) Bill 2012 bereferred immediately to the Community Affairs Legislation Committee for inquiry and report by 12 September 2012 (see appendices 1 and 2 for statements of reasons for referral);
(b) the Fair Work Amendment (Small Business—Penalty Rates Exemption) Bill 2012 be referred immediately to the Education, Employment and Workplace Relations Legislation Committee for inquiry and report by 29 November 2012 (see appendix 3 for a statement of reasons for referral); and
(c) the provisions of the Protecting Local Jobs (Regulating Enterprise Migration Agreements) Bill 2012 bereferred immediately to the Education, Employment and Workplace Relations Legislation Committee for inquiry and report by 29 October 2012 (see appendix 4 for a statement of reasons for referral).
3. The committee resolved to recommend—That the following bills not be referred to committees:
The committee recommends accordingly.
4. The committee deferred consideration of the following bills to its next meeting:
That leave of absence be granted to the following senators for today:
(a) Senator Boswell, for personal reasons; and
(b) Senator Williams, on account of parliamentary business.
That government business orders of the day be considered from 12:45 pm today under the temporary order relating to non-controversial government business:
No. 2 Tax Laws Amendment (Investment Manager Regime) Bill 2012
That the order of general business for consideration today be as follows:
(a) general business order of the day no. 14––Marriage Equality Amendment Bill 2010; and
(b) orders of the day relating to government documents.
That the time for the presentation of the report of the Community Affairs References Committee on palliative care in Australia be extended to 19 September 2012.
That the Community Affairs References Committee be authorised to hold a private meeting otherwise than in accordance with standing order 33(1) during the sitting of the Senate on Tuesday, 11 September 2012, from 12.30 pm.
That the time for the presentation of the report of the Foreign Affairs, Defence and Trade References Committee on the procurement procedures for defence capital projects be extended to 30 August 2012.
That the Rural and Regional Affairs and Transport References Committee be authorised to hold a public meeting during the sitting of the Senate on Thursday, 23 August 2012, from 4.30 pm, to take evidence for the committee’s inquiry into the management of the Murray-Darling Basin.
That the time for the presentation of the report of the Rural and Regional Affairs and Transport References Committee on the management of the Murray-Darling Basin be extended to 1 November 2012.
That the Senate—
(a) notes that September 2012 marks the 20th anniversary of the Fred Hollows Foundation;
(b) recognises the work of the late Professor Fred Hollows, AC, and the clinicians, administrators and volunteers who have followed in his footsteps over the past 2 decades;
(c) commends the Fred Hollows Foundation for its achievements, including:
(i) producing millions of intraocular lenses at factories in Eritrea and Nepal and exporting those lenses to more than 75 countries,
(ii) training tens of thousands of clinical and support staff, including ophthalmologists, nurses and community workers,
(iii) building or renovating more than 100 health facilities, and
(iv) reducing the cost of cataract operations to just $25 in many developing countries; and
(d) endorses the ongoing mission of the Fred Hollows Foundation to give local communities the skills and tools to eradicate avoidable blindness and improve lives in Australia and around the world.
That the Senate—
(a) notes that 23 August is the European Day of Remembrance for Victims of Stalinism and Nazism (also known as International Black Ribbon Day), which:
(i) commemorates the tens of millions of those who were murdered by fascist and communist totalitarianism in the 20th century, as well as those imprisoned, deported and persecuted by fascist and communist regimes,
(ii) is the anniversary of the Ribbentrop-Molotov Pact, the non-aggression treaty signed on 23 August 1939 by Nazi Germany and the Soviet Union, which partitioned Eastern Europe between them and gave a green light to the commencement of World War II,
(iii) was first held in 1986 as a day of protest and remembrance around the world, including in Australia, before spreading to the Baltic states where, in 1989, two million Latvians, Lithuanians and Estonians formed a human chain to protest the continuing Soviet occupation of their countries, and
(iv) was adopted by the European Parliament in 2009 and is commemorated in many European Union countries, including Great Britain, as well as in Canada and Georgia; and
(b) joins in remembering all the victims of Nazism and Stalinism.
That the Senate—
(a) notes the success of the Kimberley Girl Program in improving the lives of Aboriginal and Torres Strait Islander women, their families and communities;
(b) notes that:
(i) since Kimberley Girl commenced in 2004, the program has provided 219 young women with personal development training, including public speaking,
(ii) one-third of these participants have experienced five of the seven socio-economic disadvantage factors, 45 per cent have experienced four or more and 65 per cent have experienced three or more disadvantage factors,
(iii) 90 per cent of these women said that they benefitted from the skills acquired during the program and half said that their life is better now than it was before they did Kimberley Girl, and
(iv) due to the success of Kimberley Girl, there have been a number of requests to roll the program out to other regions of Australia;
(c) recognises the importance of long-term funding to support this and other programs for Aboriginal and Torres Strait Islander women, families and communities;
(d) welcomes the Government’s support of $479 000 for the Kimberley Girl Program since 2008; and
(e) calls on the Government to commit to funding the program over the next 3 to 5 years.
That the Senate—
(a) notes that:
(i) 28 July was World Hepatitis Day,
(ii) the event is one of only 4 official world disease awareness days endorsed by the World Health Organization,
(iii) chronic hepatitis C is a large and growing health problem in Australia with more than 200 000 people living with the disease,
(iv) left untreated, hepatitis C can possibly lead to liver damage, cancer and death,
(v) hepatitis C has now eclipsed HIV/AIDS as the number one viral killer in Australia,
(vi) hepatitis C can be cured with the appropriate treatment,
(vii) needle and syringe programs have proven effective in relation to preventing transmission of hepatitis B and hepatitis C as well as HIV, and
(viii) hepatitis C disproportionately impacts on the Indigenous community with Indigenous people representing less than 3 per cent of the total Australian population but more than 8 per cent of the Australian population infected with hepatitis C; and
(b) welcomes scientific and treatment advances that greatly increase the chance of curing patients with the most common and hardest to treat strain of hepatitis C.
(a) notes that:
(i) the impact of the lack of affordable housing is felt disproportionately by women due to the high number of women in low-paid jobs, women heading single parent families and higher rates of poverty among older women living alone,
(ii) research indicates that, in coming years, there will be a significant increase in older women facing homelessness, and
(iii) a key priority of the Australian Social Inclusion Board for 2012-13 is to provide advice to government on the best responses to the growing issue of older women and homelessness; and
(b) calls on the Government to:
(i) support continued efforts to include a gendered perspective in the development of affordable housing measures, and
(ii) publish information on how women are impacted by the affordable housing shortage, such as gender disaggregated data on the outcomes of the National Affordable Housing Agreement, National Partnership Agreements, National Rental Affordability Scheme and Social Housing Initiative.
That there be laid on the table by the Minister representing the Minister for Climate Change and Energy Efficiency, no later than noon on 10 September 2012, detail of how many Australian export businesses:
(a) have received free carbon permits since 1 July 2012; and
(b) are expected to receive free carbon permits in 2012-13, 2013-14, 2014-15 and 2015-16.
That the Senate—
(a) recognises that discrimination and inequality are alive and well in Australia, for example, in August 2010, women earned 16.9 per cent less than men on average per week, with the total earnings gap increasing to 34.8 per cent per week when taking into account part time and casual work; and
(b) calls on the Government to:
(i) seize the opportunity to introduce a stand-alone Federal Equality Act that adopts global best-practice standards and brings Australian law into line with our international human rights obligations, and
(ii) ensure that new equality legislation includes, among other things, a specific duty to promote equality and eliminate discrimination, prohibits discrimination in all areas of public life and removes arbitrary and blanket exemptions.
The Senate divided. [12:08]
(The President—Senator Hogg)
That there be laid on the table, no later than 17 September 2012:
(a) any documents or information from Securency International Ltd and Note Printing Australia to the Reserve Bank of Australia (RBA) pertaining to allegations of corruption and bribery at these subsidiaries, prior to the exposure of the allegations in the media in May 2009;
(b) any internal RBA documents discussing the receipt of any documents or information pertaining to such allegations;
(c) any written advice or information provided to the Government by the RBA pertaining to these allegations;
(d) the Freehills report into Note Printing Australia’s agency arrangements, including the terms of reference for this report and any information provided to Freehills; and
(e) the Note Printing Australia audit report into these allegations.
The Senate divided. [12:12]
(The President—Senator Hogg)
That the Senate—
(a) recognises the significance of goods and services tax (GST) receipts to state governments;
(b) acknowledges the commitment given by the Federal Labor Government to Horizontal Fiscal Equalisation (HFE);
(c) notes that:
(i) HFE is the distribution method that underpins the concept of federalism in this country and spreads Australia’s wealth fairly across all states and territories,
(ii) HFE is vitally important to the Federation and this long-standing principle of equalisation has served Australia well, and that this has long been a bipartisan position of successive Labor and Liberal Commonwealth Governments, and
(iii) a move to per capita distribution of the GST would have disastrous consequences for the budgets of smaller states and territories in the Commonwealth, whose residents would consequently receive a significantly inferior level of key services such as health and education; and
(d) endorses HFE and calls on all sides of politics to support the principle that HFE be maintained into the future.
That the Senate—
(a) notes that:
(i) development of the Bald Hills wind farm in South Gippsland has been approved and will include construction of 52 wind turbines of up to 135 metres in height in the middle of a significant wetlands and flora conservation area on the South Gippsland coast,
(ii) some 296 recorded bird species reportedly live around the area of the wind farm, of which:
(A) 21 are threatened species in the Cape Liptrap area;
(B) 31 are listed species under the Victorian Flora and Fauna Guarantee Act 1988 ,
(C) 97 are listed as migratory under the Environment Protection and Biodiversity Conservation Act 1999 of which 2 are listed as endangered including one critically endangered;
(D) 40 are listed under the Chinese-Australian Migratory Bird Agreement (CAMBA),
(E) 45 are listed under the Japanese-Australian Migratory Bird Agreement (JAMBA),
(F) 3 are listed under the Bonn Convention on Migratory Species,
(iii) government approval of the Bald Hills wind farm is potentially causing Australia to breach the international obligations to protect migratory species listed under JAMBA, CAMBA and the Bonn Convention;
(iv) objectors to the development of the Bald Hills wind farm have included hundreds of individuals, as well as over a dozen organisations, including the National Trust of Australia, Victorian National Parks Association, Parks Victoria West Gippsland District, South Gippsland Conservation Society and the South Gippsland Shire Council; and
(b) calls on the Minister for Sustainability, Environment, Water, Population and Communities to remove Commonwealth approval for the construction of the Bald Hills wind farm and bring Australia into compliance with our international obligations.
(1) That a select committee, to be known as the Select Committee on Electricity Prices be established to inquire into and report on:
(a) identification of the key causes of electricity price increases over recent years and those likely in the future;
(b) legislative and regulatory arrangements and drivers in relation to network transmission and distribution investment decision making and the consequent impacts on electricity bills, and on the long term interests of consumers;
(c) options to reduce peak demand and improve the productivity of the national electricity system;
(d) investigation of mechanisms that could assist households and business to reduce their energy costs, including:
(i) the identification of practical low cost energy efficiency opportunities to assist low income earners reduce their electricity costs,
(ii) the opportunities for improved customer advocacy and representation arrangements bringing together current diffuse consumer representation around the country,
(iii) the opportunities and possible mechanisms for the wider adoption of technologies to provide consumers with greater information to assist in managing their energy use,
(iv) the adequacy of current consumer information, choice, and protection measures, including the benefits to consumers and industry of uniform adoption of the National Energy Customer Framework,
(v) the arrangements to support and assist low income and vulnerable consumers with electricity pricing, in particular relating to the role and extent of dividend redistribution from electricity infrastructure,
(vi) the arrangements for network businesses to assist their customers to save energy and reduce peak demand as a more cost effective alternative to network infrastructure spending, and
(vii) the improved reporting by electricity businesses of their performance in assisting customers to save energy and reduce bills; and
(e) investigation of opportunities and barriers to the wider deployment of new and innovative technologies, including:
(i) direct load control and pricing incentives,
(ii) storage technology,
(iii) energy efficiency, and
(iv) distributed clean and renewable energy generation.
(2) That the committee present its final report on or before 1 November 2012.
(3) That the committee consist of 8 senators as follows:
(a) 4 to be nominated by the Leader of the Government in the Senate;
(b) 3 to be nominated by the Leader of the Opposition in the Senate;
(c) 1 to be nominated by the Leader of the Australian Greens in the Senate.
(4) That the committee may proceed to the dispatch of business notwithstanding that all members have not been duly nominated and appointed and notwithstanding any vacancy.
(5) That the committee elect as chair one of the members nominated by the Leader of the Government in the Senate.
(6) That, in the event of an equality of voting, the chair has a casting vote.
(7) That the committee has the power to send for and examine persons and documents, to move from place to place, to sit in public or in private, notwithstanding any prorogation of the Parliament or dissolution of the House of Representatives, and have leave to report from time to time its proceedings and the evidence taken and such interim recommendations as it may deem fit.
(8) That the committee be provided with all necessary staff, facilities and resources and be empowered to appoint persons with specialist knowledge for the purposes of the committee with the approval of the President.
(9) That the committee be empowered to print from day to day such papers and evidence as may be ordered by it, and a daily Hansard be published of such proceedings as take place in public.
After paragraph (3), insert:
(3A) That:
(a) participating members may be appointed to the committee on the nomination of the Leader of the Government in the Senate, the Leader of the Opposition in the Senate or any minority party or independent senator;
(b) participating members may participate in hearings of evidence and deliberations of the committee, and have all the rights of members of the committee, but may not vote on any questions before the committee; and
(c) a participating member shall be taken to be a member of the committee for the purpose of forming a quorum of the committee if a majority of members of the committee is not present.
After paragraph (1)(e), insert:
(f) any related matter.
Economics Legislation Committee
Environment and Communications Legislation Committee
Finance and Public Administration Legislation Committee
Foreign Affairs, Defence and Trade Legislation Committee
Cybercrime Legislation Amendment Bill 2011
Customs Amendment (Smuggled Tobacco) Bill 2012
Tax Laws Amendment (2012 Measures No. 4) Bill 2012
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.
The Gillard government is proud of its world-leading action to combat smoking.
And as part of the government's package of measures to reduce smoking rates in Australia, I am pleased to introduce the Customs Amendment (Smuggled Tobacco) Bill. This bill amends the Customs Act 1901 to create new offences for smuggling tobacco products and for conveying or possessing smuggled tobacco products.
The bill also strengthens the penalties applicable to the illegal importation of tobacco by adding a maximum penalty of ten years imprisonment to the existing financial penalties.
I announced the government's intention to create these new offences on World No Tobacco Day last month. They are yet another step by this government towards combatting smoking on all fronts.
Tobacco is not like any other legal product. When used as intended, it kills people.
Australia recognised the malign influence of cigarettes early and has made significant progress in reducing the smoking rate. Over the years Australia has prohibited advertising, removed sponsorships, restricted point of sale displays, and outlawed smoking in restaurants and many public places.
Despite Australia's success in reducing smoking rates over recent decades, tobacco remains one of the leading causes of preventable death and disease among Australians, killing over 15,000 Australians and costing the community over $ 30 billion each and every year.
Packets are the best, and in Australia, now the only way tobacco brands can differentiate themselves and attract users.
That is why the Gillard g overnment has taken the world-first step to mandate that all cigarettes and other tobacco products be sold in plain, drab packs from 1 December this year.
This g overnment believes that all children have the right to grow up healthy and free from addiction, without becoming the victims of a very calculated marketing campaign to hook a new generation of smokers.
Our g overnment also increased taxation on tobacco by 25 per cent, which saw an immediate fall in the amount of tobacco sold.
We have introduced legislation to ban tobacco marketing on the internet; and
We have put nicotine replacement therapies on our Pharmaceutical Benefits Scheme—meaning these are cheaper for Australians to buy, particularly seniors and low income earners.
We have massively reduced duty free allowance—down to just 50 cigarettes (from 250).
But there is more we can do to continue that fight, such as taking action to ensure all tobacco consumed in this country is subject to mandated health pricing and packaging.
Illegal tobacco importations typically occur when an importer attempts to evade the duty payable on these imports. Given the high duty payable on tobacco, this generally occurs by misdeclaring the goods to the Australian Customs and Border Protection Service as non-tobacco products with a lower duty liability.
To date tobacco smuggling has not represented a major threat in Australia and Customs have been successful in intercepting hauls of illicit tobacco heading for Australia.
During 2010-11, Customs made 55 seizures of smuggled tobacco products in sea cargo, consisting of 82 million cigarettes and representing a potential revenue evasion of $135 million plus GST. This is a large number, but should be seen in context: Australians smoke around 22 billion cigarettes a year.
However, we must ensure that when Customs do intercept illicit tobacco, there are significant penalties in place to deal with those responsible.
The penalties must provide a strong deterrent to criminals involved in this activity – as well as demonstrate the seriousness with which the Government views such frauds against the Commonwealth, a nd harm against the community.
Currently smuggled tobacco is usually prosecuted under a general smuggling provision, with penalties ranging from two to five times the amount of duty evaded.
However, these pecuniary penalties for tobacco smuggling are not necessarily an effective deterrent, as many penalties currently imposed for tobacco smuggling are simply not paid.
The new offences in this bill clarify the law by creating specific offences in relation to tobacco smuggling. The bill creates an offence where a person imports tobacco with the intention of defrauding the revenue. It also creates an offence where a person conveys or possesses tobacco products which the person knows were imported with the intent to defraud the revenue.
A pecuniary penalty of up to five times the duty evaded will apply for both these offences.
In addition, the new offences attract a substantial maximum term of 10 years' imprisonment. A term of imprisonment is not currently available as a penalty for tobacco smuggling under the Customs Act. The new penalties will send a clear message to smugglers that they risk spending significant time in jail by bringing illegal tobacco into this country.
The introduction of this bill and the offences it creates reinforces my commitment, this g overnment's commitment, to fight smoking on all fronts.
I commend the bill to the Senate.
This bill amends various taxation laws to implement a range of improvements to Australia’s tax laws.
Schedule 1 amends the tax laws to better target the tax concession for living-away-from-home allowances and benefits.
These reforms will better target the tax concession at people who are legitimately maintaining a home away from their actual home in Australia for an initial period.
The amendments implement the reforms that were announced as part of last year’s Mid-Year Economic and Fiscal Outlook, and also the reforms in this year’s budget.
Use of the tax concession for living-away-from-home allowances has dramatically increased over the past decade.
One of the issues raised at last year’s successful Tax Forum was the increasing exploitation and misuse of this tax concession.
The current tax rules have a number of deficiencies.
Firstly, people are able to access the tax concession even if they are not maintaining another home in Australia. This means that people who have sold their old home, or are renting it out, can still access the tax concession.
Secondly, people are able to receive the tax concession in relation to cash payments in excess of the actual amount they spend on accommodation and food.
In November last year, the government announced two reforms to the tax concession as part of the Mid-Year Economic and Fiscal Outlook.
Temporary residents will need to be maintaining a home for their own use in Australia that they are living away from for work to be able to access the tax concession.
And all individuals will need to substantiate their actual expenditure on accommodation and food.
We announced that these reforms would apply from 1 July this year.
We announced two new reforms to the tax concession in this year’s budget.
Permanent residents will need to be maintaining a home in Australia for their immediate use and enjoyment at all times that they are required to live away from for work, to be able to access the tax concession.
And there will be a 12-month time limit on how long all people (other than fly-in fly-out and drive-in drive-out workers) can access the tax concession.
We announced that the reforms in the budget would apply from 1 July this year for arrangements entered into after Budget night, and from 1 July 2014 for arrangements entered into prior to that time.
The government held two extensive consultation processes in relation to these reforms.
In response to the submissions received, the government has taken the decision to defer the start date of the reforms from 1 July 2012 to 1 October 2012.
This deferral will give employers and employees more time to prepare for the new arrangements.
Some technical changes have also been made to the amendments in response to feedback on the exposure draft legislation.
The schedule moves the majority of a living-away-from-home allowance to the income tax system, so it is included in the assessable income of the employee.
Employees who satisfy the new requirements will be able to claim an income tax deduction for their accommodation and food expenses, so they pay no tax on the allowance.
Employees will be able to claim an income tax deduction for a maximum period of 12 months in respect of a particular work location.
The component of a living-away-from-home allowance that represents the ‘ordinary weekly food and drink expenses’ of an employee will remain in the fringe benefits tax system, in a similar way to the current treatment.
Employers who provide direct living-away-from-home benefits to their employees will be able to apply the otherwise deductible rule to reduce the taxable value of the benefits.
This will ensure the fringe benefits tax treatment mirrors the income tax treatment.
The government’s reforms to the tax concession for living-away-from-home allowances and benefits will provide savings of $1.9 billion over the forward estimates.
The tax concession will continue to support people who are bearing additional costs because they have to maintain a home away from their actual home in Australia for work purposes, for up to 12 months.
The reforms will not affect the tax concession for fly-in fly-out and drive-in drive-out arrangements, as these employees will not be subject to the 12-month time limit.
The reforms will not affect the tax concessions provided for ‘remote area fringe benefits’.
And they will not affect the tax treatment of travel and meal allowances.
Schedule 2 amends the GST law to ensure that in circumstances where a representative of an incapacitated entity is a creditor of that entity, the correct provision of the GST Act applies.
This will ensure certainty for entities involved in the mortgage lending sector, as well as reduced compliance costs for these entities.
The amendments restore the intended operation of the GST law following previous amendments to the GST Act. As a result of the previous amendments, there are circumstances where two conflicting provisions of the GST Act can apply to a mortgagee or other holder of a security interest in possession or control of a corporation's property.
These amendments will apply from the first quarterly tax period after Royal Assent.
Schedule 3 amends schedule 3 to the Tax Laws Amendment (2012 Measures No. 2) Act 2012 so that no interest or penalties are payable if an overpayment of income tax arises, or if additional tax becomes payable, under the recent amendments to the consolidation regime for consolidation events before 30 March 2011.
This will ensure that taxpayers who get deductions as a result of those changes to the consolidation regime do not receive interest in respect of tax they had previously overpaid. However, where interest has already been received by a taxpayer, the taxpayer will not need to pay back the amount received in most cases.
In addition, taxpayers will not have to pay interest and penalties if additional tax becomes payable because a deduction is disallowed as a result of the recent amendments.
These changes were announced as an important part of the recent amendments to the consolidation regime.
Full details of the measures in this bill are contained in the explanatory memorandum.
I commend this bill to the Senate.
That the bills be listed on the Notice Paper as separate orders for the day.
International Monetary Agreements Amendment (Loans) Bill 2012
Statute Law Revision Bill 2012
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.
This government is doing what we need to do to make the Commonwealth statute book, simpler, clearer and easier to understand. Most recently we introduced legislation to substantially reduce redundant regulations through the Legislative instruments Act (Sunsetting Measures) Bill, in close consultation with affected industries.
This Statute Law Revision Bill is another small step towards that goal.
Statute Law Revision bills have been used for the last thirty years to improve the quality of Commonwealth legislation. The bills do not make substantive changes to law but still perform the important function of repairing minor errors in the Commonwealth statute books which accumulated across successive government amendments, and improving the accuracy and useability of consolidated versions of Commonwealth acts.
This continual process of statutory review complements the government’s commitment to creating clearer Commonwealth laws. The review process undertaken in the preparation of this bill serves to ensure the statute book contains less clutter, in the form of outdated cross-references, and by repealing obsolete acts.
Schedules 1, 2, 6 and 7 of this bill achieve three main ends:
1. correcting minor and technical errors in acts, such as grammatical and numbering errors
2. correcting amendments or amending acts which are erroneous, misdescribed or redundant, and
3. repealing obsolete amending provisions and acts.
By removing or amending outdated or unclear legislative provisions this bill helps make the law clearer, more consistent and easier to access.
Schedule 3 removes specific references to the Civil Aviation Regulations, replacing them with references to ‘regulations made under the Civil Aviation Act 1988’. This replaces specific references to regulations with references to the principal act, which are more generic and robust.
Current drafting practice is to avoid referring to particular regulations by name. This reduces the risk of reader confusion and error in cases where the names of the regulations change or the contents of the regulations alter.
Schedule 4 makes amendments consequential on amendments to the Acts Interpretation Act 1901 and the enactment of the Legislative Instruments Act 2003.
The amendments repeal provisions relating to acting appointments that are redundant as they are now covered by section 33AB and 33A of the Acts Interpretation Act 1901. These items also add notes referring to the general acting appointment rules in the Acts Interpretation Act 1901.
The Schedule also includes an item which updates a reference from section 49A of the Acts Interpretation Act 1901 to section 14 of the Legislation Instruments Act 2003. This is necessary as the content of section 49A, which was repealed in 2003, is now replicated in section 14.
Schedule 5 of the bill amends a number of acts to ensure that
Currently, when the names of ministers or departments change, or when responsibility for particular legislation is transferred between ministers or departments, the Governor-General makes substituted reference orders under sections 19B and 19BA of the acts Interpretation Act 1901. The orders allow references to specific ministers or departments in legislation to be read as though they are references to the correct minister or department. This means that users of Commonwealth legislation have to read the legislation in conjunction with these orders.
The amendments contained in schedule 5 will greatly reduce reliance on section 19B and 19BA orders, and the need for such orders to be made in the future. This is because the amendments insert more generic references to ministers and departments in Commonwealth acts.
For example, instead of referring to the specific title of the “Minister for Finance”, after these amendments have been passed, they will refer to the generic title of “Finance Minister”. This will be defined as “the Minister administering the Financial Management and Accountability Act 1997”. The new reference will remain accurate even if the specific title of the minister with that responsibility may change over time. This will improve the clarity and useability of Commonwealth Acts.
I thank the Office of Parliamentary Counsel, and officers across many government departments, for the significant time and effort that went into preparing this bill. This is just one demonstration of the OPC’s drafting expertise, attention to detail, and commitment to ensuring that Commonwealth legislation is clear, accurate and effective.
I commend this bill to the Senate.
That the bills be listed on the Notice Paper as separate orders of the day.
(3) Recognises the need for a balanced approach between the needs of a sustainable commercial fishing industry, access for recreational fishers and appropriate marine conservation outcomes.
Tax Laws Amendment (Investment Manager Regime) Bill 2012
That this bill be now read a third time.
Corporations Legislation Amendment (Financial Reporting Panel) Bill 2012
That this bill be now read a third time.
Navigation Bill 2012
Navigation (Consequential Amendments) Bill 2012
Marine Safety (Domestic Commercial Vessel) National Law (Consequential Amendments) Bill 2012
Marine Safety (Domestic Commercial Vessel) National Law Bill 2012
Debate resumed on the motion:
That these bills be now read a second time.
That these bills be now read a third time.
Migration (Visa Evidence) Charge Bill 2012
Migration (Visa Evidence) Charge (Consequential Amendments) Bill 2012
That these bills be now read a third time.
Australian Citizenship Amendment (Defence Families) Bill 2012
That this bill be now read a third time.
Maritime Legislation Amendment Bill 2012
I cannot overstate how the level of certainty about Australia's tax system is generating negative investor reaction. People don't know where they are going.
… current market conditions, including subdued commodity prices and higher capital costs, has led to this decision.
You've got to understand, the resources boom is over.
No, I think the mining boom still has a long way to run.
… increased operating costs, the carbon tax and other imposts had 'conspired' to turn Australia from a low-cost environment—
into a higher-cost environment.
… all investment options are scrutinised as they move through our approvals process—
and our highest returning projects are prioritised.
… current market conditions, including subdued commodity prices and higher capital costs, had led to the decision …
That the Senate take note of answers given by the Minister for Finance and Deregulation, Senator Wong, to questions asked by Senators Brandis, Cormann, Birmingham and Bernardi in question time today relating to the Olympic Dam project.
LEIGH SALES: I'm going on the facts that Marius Kloppers said today when he was directly asked if the decision on Olympic Dam was affected by Australia's tax situation and I'm going on the facts that are outlined in their results statement that they've issued. Have you actually read BHP's statement?
… the federal government should understand that mining "super profits" are not guaranteed. Australia is in a competition with other resource-rich countries, and the BHP decision is a timely warning that we have allowed our cost base to increase too far and too fast thanks to our overregulated labour market and overbearing environmental regulations.
BHP Chairman Jac Nasser warned earlier this year that uncertainty surrounding our tax regime could deter investment.
I work up at Roxby on the expansion—
My crew was demobbed on 21 July. That's about a month now, and we were told that BHP are delaying the expansion. I tried to contact the local federal ALP member, Nick Champion, but his office fobbed me off and claimed that I didn't know what I was talking about; it was just speculation. I told the guy there, 'This was real. I was working there. I was happy there. I did nothing wrong and now I am unemployed.'
That the Senate take note of the answers given by the Minister for Foreign Affairs (Senator Bob Carr) to questions without notice I asked today relating to asylum seekers.
QUESTIONS
Question 1
In light of the fact that there is Commonwealth approval for the construction of the Bald Hills wind farm in the midst of a high conservation value bird sanctuary and wetlands area, home to 296 species of birds, 45 of which are listed in the Japan-Australia Migratory Bird Agreement, 40 of which are listed in the China-Australia Migratory Bird Agreement and three listed in the Bonn convention, this means that Australia is now in breach of our international obligations to protect those birds, their environment and habitats as per the relevant articles in those agreements. Will the minister advise what actions are being taken to call in this project, remove Commonwealth approval and bring Australia into compliance with our international obligations?
Question 2
As the conditions of approval agreed to by the Commonwealth in 2006 focus on locating and counting birds killed by the turbines and require the stopping of the turbines and taking mitigation measures to prevent future kills if just three of the listed bird species are killed, what mitigation measures does the minister believe could realistically be taken to stop bird mortality by turbines located in the midst of a bird sanctuary, flyway and migration route other than not building the wind farm?
Question 3
Mr President, I ask a further supplementary question. Considering that the research underpinning the Commonwealth's approval was so bad that the 2004 Victorian assessment panel found:
... at this stage insufficient information to allow proper assessment against the criteria of no impact on species listed under the Environment Protection and Biodiversity Conservation Act or the Flora and Fauna Guarantee Act.
On what basis does the Commonwealth continue to uphold its 2006 approval?
RESPONSE:
Question 1
Question 2
Question 3
Legislative Instruments Amendment (Sunsetting Measures) Bill 2012
That the Senate take note of the reports.
That the document be printed.
Corporations and Financial Services—Joint Statutory Committee—
Appointed—Senator Siewert
Electricity Prices—Select Committee—
Appointed—Senator Milne
.. taken together give confidence that food-web impacts of the SPF on predators and the SPF species themselves, including through localised depletion, are unlikely.
… there are considerable economies of scale in the fishery and the most efficient way to fish may include large scale factory freezer vessels.
Localised depletion is evaluated as unlikely with the proposed harvesting fractions applied in the SPF because most small pelagic species, and their predators, are highly mobile and local areas replenish quickly provided the overall stocks are not depleted. This has been the experience with small pelagic fisheries that have been similarly managed in Australia.
However given uncertainties about detailed movement patterns of several of the species targeted in the SPF, it would be prudent to distribute catches to minimise the chance of local depletion. This is consistent with global scientific advice on best practice for managing such species.
However given uncertainties about detailed movement patterns of several of the species targeted in the SPF, it would be prudent to distribute catches to minimise the chance of local depletion. This is consistent with global scientific advice on best practice for managing such species.
I have no doubt that this fishery is an example of world's best practice and it meets or exceeds the most rigorous scientific requirements for an ecologically sustainable fishery on forage fish.
These requirements are designed to be ecologically safe, especially in relation to dependent predators in the food web, for all the known food webs in the world.
We are extremely confident our fishing operation will result in long-term employment and economic benefits for Devonport and the North-West Coast of Tasmania.
We've done it—
as a last-ditch attempt to have Parliament debate the issue and to get support for the members of the public who say the super trawler should not be allowed in Australian fisheries until key concerns have been addressed …
Lets make history: 3 days left to protect Coral Sea
… TARFish has come to the conclusion that there is a lack of detailed scientific knowledge surrounding;
1. the extent and rates of movement of each species of small pelagic fish
2. the amount of time it would take for local populations of small pelagic fish to recover from intensive localized fishing and
3. the size of the resident population of Jack Mackerel on the East Coast of Tasmania.
However, given uncertainties about detailed movement patterns of several of the species targeted in the small pelagic fisheries it would be prudent to distribute catches to minimise the chance of local depletion. This is consistent with global scientific advice on best practice for managing such species.
Marriage Equality Amendment Bill 2010
This Tasmanian state Labor conference believes that all couples who have mutual commitment to a shared life should have their relationships treated equally and without discrimination on the basis of their sexual orientation. The conference believes in equal access to marriage under Australian law, regardless of the sex of the parties. The government should reform the Marriage Act to allow same-sex couples the right to marry, therefore fully recognising their relationship and removing discrimination. The conference believes the government should recognise the change in the community attitudes regarding this issue and bring full equality to the law.
This state Labor conference believes that in the event the federal parliament fails to end discrimination in the Federal Marriage Act, the state of Tasmania should step in to do the right thing and pass a state based gender-neutral marriage act. The conference believes that this will provide fair and equitable access to marriage to all Tasmanians and urges the Tasmanian government to act immediately to draft legislation in the event a vote to change the Marriage Act fails in the federal parliament.
The conference believes the state of Tasmania should allow marriage licenses to be granted to couples outside of Tasmania and notes the economic boon this would provide to the state.
Community Affairs Legislation Committee—
Substituted—
Senator Polley to replace Senator Furner on Tuesday, 4 September 2012
Senator Bilyk to replace Senator Furner on Friday, 19 October 201
Electricity Prices—Select Committee
Appointed––
Senators Gallacher, McEwen, Thistlethwaite and Thorp
Participating members: Bilyk, Bishop, Brown, Cameron, Crossin, Faulkner, Furner, Marshall, Moore, Polley, Pratt, Stephens, Sterle and Urquhart
An ordinary person would probably think that if somebody is banned from financial services they ought to be banned from being a director of financial services company.
… do all things necessary to ensure that the financial services covered by the licence are provided efficiently, honestly and fairly …
… for us it is not just a discussion around food manufacturing; it is about the viability of our entire economy, because we are still very much underpinned by that layer of agriculture.
They both catch 500kg of Octopus working alongside each other as incidental by-catch from normal fishing operations, the operator returning to Eden is free to retain the 500kg yet the operator returning to Lakes Entrance—
is only permitted to retain 50kg and forced to discard perfectly good Octopus …
Our producers, manufacturers and community have dealt with, in the last 10 years, long-term drought and now floods.
We also have the Basin Plan and its uncertainty at the current time, and now carbon pricing will start on 1 July. They are very weary. They are uncertain of their future.
With the Australia dollar at a $1.05 or $1.07, it is difficult for us. While we have very good quality product, certainly value added, and we have a good market share, nevertheless, to export our prime duck meat is very difficult.
That the Senate take note of the document.
That the Senate take note of the document.
We find that it's a link with the community that participants make. It just works so well. People connect with each other and they make friends.
My name is Daron and I am a 43 year old father. Before starting my Certificate II in Community Services I was not sure what direction my life was going. I have been suffering several health problems in recent years and have been homeless for the past two years.
I was getting more and more depressed with life in general and had visited some very dark places in myself I didn't know existed. I had no home, my health was getting worse, I couldn't take my kids for access and had no qualifications. A future for me was not something I could see at this time...well not a good future anyway.
After talking with my job network, my case manager arranged for me to meet with Tricia at the Taperoo Community Centre. My transformation had begun and I enrolled in the Abilities for All course. I wasn't sure what to expect from it and was a little nervous about whether this was for me. Turns out my concerns were soon eradicated by the welcome I received from the TCC family.
I have renewed faith in my outlook towards the future for myself and my family and I'm hoping that I can do a Certificate III in Community Services next. I am still Daron, a 43 year old father but now I have faith, more confidence, a new sense of hope and know I will have a future my family and I can be proud of. I am now a volunteer mentor at Taperoo Community Centre. Without the Bedford Abilities for All Program I would be still standing on the station watching the train go past. Now I'm on the train and excited about the journey.
… our society must make it right and possible for old people not to fear the young or be deserted by them, for the test of a civilization is in the way that it cares for its helpless members.
"Imagine then our amazement and consternation when the Minister for Ageing, Mark Butler, announced in mid June that the Gillard Government was slashing $500 million from subsidies for residential aged care."
At around the same time, the Government found $400 million of unbudgeted funds to support the health system and rail yards in Tasmania, where the Government needs to shore up the vote of independent MP, Andrew Wilkie.
Enid (not her real name) is a 78-year-old lady in residential care, with a range of conditions, including lung disease and osteoporosis. She has difficulties attending to her personal care needs and requires assistance whenever she needs to move from one place to another, or attend to her personal care, including washing and dressing herself. …
Previously, Enid was entitled to $121.50 a day to subsidise the cost of her care—already at an unacceptably low level, only covering a fraction of the real cost of care. Now, if Enid goes to hospital and returns to her residential care home, she will be reassessed at the new level of funding, which means her entitlement can be slashed by more than 50% to $59.43 to provide the same care.
… most rural providers have no spare money, so there's nothing in the coffers to back up when things happen, as they have this year, with the cuts from the Commonwealth directly affecting them.
So right now, right today, we've got small facilities that have cut hours which means you're cutting the ability to care for the people that we provide services to.
… things they'll—
start to look at; WA providers are deeply concerned about their ability to operate, or in fact their desire to do so. They want to look after older people but they've got to have the tools.
The concrete towered over my head. I just wept. It represents the biggest failure of humanity.
Israelis stand at checkpoints and decide if Palestinians get to go to school or work that day, whether or not they will get to cross through to go to the shop or see their family.
I underline this point: you will not have a secure peace in the Middle East, you will not have security for the state of Israel and you will not have an end to the accumulated decades of suffering while keeping the people of Palestine trapped in poverty and without schools and without medical aid. We all want a two-state solution, and this is part of that.
With reference to the Australian Securities and Investments Commission (ASIC) and Goldsmith and Associates Pty Ltd (Goldsmiths), on what date did ASIC first:
(a) become aware that Goldsmiths were operating in Australia and seeking investments from the general public;
(b) receive a complaint from any individual or organisation in relation to Goldsmiths’ operations in Australia, and what was the nature of this complaint and how was it communicated to ASIC;
(c) become aware that Goldsmiths was not a holder of an Australian Financial Services licence;
(d) commence action to restrict or stop Goldsmiths from operating in Australia, and what was the nature of this action; and
(e) communicate to the Australian public that it was concerned about Goldsmiths’ operations in Australia, and what was the nature of this communication.
(a) and (b) ASIC first became aware that Goldsmiths might be cold calling the public on 3 October 2011. As a result of specific actions within the subsequent investigation, further complainants contacted ASIC in mid-December. The complaints were received via telephone and email.
(c) ASIC became aware that Goldsmiths did not have a financial services licence soon after the first complaint was raised.
(d) ASIC commenced ex-parte action against Goldsmith in the Federal Court to preserve investor funds and prevent further funds being obtained. These orders were obtained on 13 December 2011 and restrained the company from carrying on a financial services business via its website, and from transferring or disposing of any funds in connection to the advertised financial services or products. ASIC also obtained orders that the website, and any related websites of Goldsmiths, be deactivated until a court determination.
(e) ASIC issued a media release highlighting its actions and reminding consumers about scams and the importance of remaining vigilant when investing money on 21 December 2011, following further Court orders. ASIC also wrote to the complainants on this day, enclosing a copy of the media release. Further contact has been made with the complainants as part of ASIC’s investigation.
What is the amount of contingent liabilities for tax in dispute with the Australian Taxation Office for each of the following financial years: (a) 2005-06; (b) 2006-07; (c) 2007-08; (d) 2008-09; and (e) 2009-10.
Please refer to the response to BET 15 from the June 2012 Budget Estimates hearing which was submitted to the Senate Standing Committee on Economics on 1 August 2012.
With reference to the evening of 3 April 2012, and the assertion that the Prime Minister was not able to be contacted:
(1) Where was the Prime Minister.
(2) Why was the Prime Minister unreachable.
(3) Was an Acting Prime Minister appointed.
(4) Did the Prime Minister have contact with her office from 5 pm on this date.
The Prime Minister undertook a range of official duties on 3 April 2012. No Acting Prime Minister was appointed.
With reference to question on notice no. 1518, which asked: What have been the precise dates of the Prime Ministers: (a) weekly; and (b) ad hoc, meetings with the [former] Leader of the Australian Greens, Senator Brown, since the signing of the Labor Greens agreement, and given that Senate procedure requires answers to be directly relevant to the question, can the requested information be provided.
Please refer to the answer to question on notice no. 1518.
(1) Why did the Minister decide to intervene in the Health Services Union.
(2) When was advice first sought to do so.
(3) Which stakeholders did the Minister liaise with prior to making the decision.
1. The Government intervened in the Federal Court proceeding concerning the Health Services Union (HSU) because it was concerned that the interests of HSU members across Victoria, New South Wales and the ACT were not being properly served due to the evident dysfunction within the HSU East Branch, and to ensure the broader public interest in working Australians having effective and accountable union representation is not undermined.
2. Advice was first sought on 27 March 2012.
3. The Government liaised with, and the Government’s intervention was supported by, the National Office of the HSU, the ACTU, UnionsNSW and other branches and individual members of the HSU.
(1) Is the Minister aware of newspaper reports, and a report from the Australian Capital Territory Auditor-General that records that up to 11 700 emergency department presentations in the Australian Capital Territory may have been manipulated between 2009 and 2012, so that the length of time patients spent in hospital and the timeliness of their treatment were altered.
(2) Has the Minister received any information that suggests false data may have been provided by the Australian Capital Territory Government; if so, what action has been taken.
(3) Have any reward payments from any Council of Australian Governments agreements, or any other reward payments been made to the Australian Capital Territory based on data found to be false; if so: (a) how much and when were the payments made; and (b) what action has been taken.
(4) Will the Minister ask her department to conduct a review of funding provided to the Australian Capital Territory's hospital system as a result of data found to be false; if not, why not.
(5) Has the Minister had any discussions with the Australian Capital Territory's Minister for Health in relation to this matter; if so, can details of those discussions be provided.
(1) Yes, the Minister is aware of these reports.
(2) The Australian Capital Territory provided false data to the Australian Institute of Health and Welfare (AIHW). The AIHW is working with the ACT to rectify and resubmit affected data.
(3) No.
(4) No. No funding has been provided to the ACT as a result of data found to be false.
(5) The Minister and the ACT Chief Minister have met to discuss this matter. Discussions focussed on the changes the ACT Government has initiated to ensure ongoing data integrity and the significant efforts it has undertaken to meet the National Emergency Access Target.