Craig Emerson (Rankin, Australian Labor Party, Minister Assisting the Finance Minister on Deregulation) Share this | Hansard source

I would like to thank those members who contributed to this debate on the Tax Laws Amendment (Resale Royalty Right for Visual Artists) Bill 2009. In this debate we have heard from the member for Moncrieff, the member for Blair and the member for Makin. Also we have most recently heard from the member for Moreton, my friend, colleague, neighbour and touch footballing comrade. The bill amends the tax law to apply a streamlined tax treatment, to payments made in relation to the resale royalty right for visual artists, instead of the more complex trust taxation rules which would otherwise apply. This streamlined treatment replicates the way the tax law currently treats copyright payments handled by copyright-collecting societies. This bill ensures that a resale royalty collecting society is not taxed on amounts it collects on behalf of visual artists and holds pending distribution to them. When the artist or another resale royalty right holder, such as the artist’s heir, receives a payment from the collecting society, this amount is then included in the individual’s assessable income. Without these amendments the default tax treatment would be the application of the more complex trust taxation rules. Generally, this would mean that the artist would become liable for tax on his or her royalty amounts in the income year when they became presently entitled to them, rather than when they actually receive the payment. The bill also makes several minor technical amendments to the tax law. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Ordered that this bill be reported to the House without amendment.

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