David Coleman (Banks, Liberal Party, Assistant Minister to the Prime Minister for Mental Health and Suicide Prevention) Share this | Hansard source

I'd like to thank all members who have contributed to this debate. Schedule 1 of the bill will provide a fringe benefits tax exemption to encourage employers to provide retraining and reskilling benefits to redundant or soon-to-be-redundant employees. The amendments will benefit any employer who provides retraining fringe benefits to their redundant or soon-to-be-redundant employees. The measure supports the government's skills reform agenda and current programs and assistance for education and training.

Schedule 2 to the bill amends the Income Tax Assessment Act 1997 to extend the junior minerals exploration incentive for a further four years, from 2021-22 to 2024-25, with a minor amendment to allow unused exploration credits to be redistributed a year earlier than under current settings. In conjunction with Australia's broader support for resources development, the junior minerals exploration incentive will help to open up new opportunities for the sector into the future.

Schedule 3 to the bill delivers on the government's plan to support older Australians and people with a disability in their families by providing a targeted capital gains tax exemption for granny flat arrangements where there is a formal written agreement in place.

Schedule 4 to the bill makes technical amendments to the Australian Securities and Investment Commission product intervention power so that it can continue to proactively address consumer harm caused by financial and credit products, as originally intended.

Schedule 5 to the bill ensures New Zealand maintains its primary taxing right under the convention between Australia and New Zealand for the avoidance of double taxation with respect to taxes on income and fringe benefits and the prevention of fiscal evasion, otherwise known as the convention. This is in respect of members of New Zealand sporting teams and support staff that spend an extended period of time in Australia to participate in league sporting competitions because of the COVID-19 pandemic. The measure ensures that the treatment of New Zealand sporting teams is consistent with the unique intent of the convention by relinquishing Australia's taxing right. This applies to income in the 2020-21 and 2021-22 income years only.

Schedule 6 to the bill retains the low- and middle-income tax offset in 2021-22. The tax offset is worth up to $1,080 for individuals and $2,160 for dual income households and is paid on assessment when taxpayers lodge their tax return. The government is delivering tax cuts to low- and middle-income earners to support household incomes and create jobs as the economy recovers. It is estimated that around 10.2 million taxpayers will benefit from retaining the LMITO in 2021-22, with the majority of the benefits delivered to those earning less than $90,000. This is on top of the $25.1 billion in tax relief flowing to households in 2021-22 that has been announced in previous budgets.

Retaining the LMITO will put more money in taxpayers' pockets, allowing them to spend more and, in so doing, strengthen the economic recovery. Further details of each of these measures are contained in the explanatory memorandum. I commend this bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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