Lucy Wicks (Robertson, Liberal Party) Share this | Hansard source

I rise to speak briefly in support of the Treasury Laws Amendment (2021 Measures No. 7) Bill. This bill has three schedules, which, among other things, implement changes to enhance compliance with tax obligations, further clarify the role of the Australian Financial Complaints Authority and simplify the tax return experience for hardworking Australians. Schedule 1 of the bill relates to the reporting regime for the sharing economy and extends existing third-party reporting requirements to operators of electronic platforms. The sharing economy includes ridesharing applications, like Uber; food delivery services, such as Menulog, DoorDash, Uber Eats and Deliveroo; and accommodation services, like Airbnb and Stayz. Living in a tourist hotspot, many Central Coast residents take advantage of the ability to rent out their home, a spare room or a secondary dwelling at their place through these providers, which offers greater choice to visitors and generates additional income for the local economy. I know it's certainly become very popular over the last couple of weeks in my region.

Of course, food delivery services have also become extremely popular across the Central Coast, particularly during the pandemic. These services helped many small businesses over the last year and a half. They offered a convenient and COVID-safe way for local residents to have food delivered, and, at the same time, they supported Central Coast residents and helped others to supplement their income. At the same time, the sharing economy offers a range of benefits, by reducing waste and helping to distribute and use resources more efficiently, which of course impacts our economy and the environment in a positive way.

But, with these significant benefits to our local and national economy and the rapid growth that the sector has seen, it's also important to ensure that tax requirements are being met on the income that is earnt. Under this bill, sharing economy operators will be required to report information regarding certain transactions to the ATO, which will help to ensure those earning an income are meeting their tax obligations. These platforms are used in the sharing economy where two parties agree to provide services or loan personal assets for payment. Tax reporting systems haven't been able to keep up with recent developments, and there's some confusion in the community as to whether payments from these platforms are taxable, creating a risk of noncompliance. These amendments are expected to result in increased voluntary compliance and more targeted work by the ATO, and they'll apply to all platforms that do business here in Australia, regardless of whether they're based locally or overseas.

Nations around the world are implementing similar reporting requirements for the sharing economy, and cooperation is really building to ensure that all participants are meeting their tax obligations. Australia must join with other countries to play our part in limiting poor tax compliance, which only disadvantages the businesses and individuals who work hard and report their income correctly. I know there are many residents in my electorate of Robertson who are actively involved in the sharing economy, and I certainly hope that this amendment provides some greater clarity and gives them the confidence to continue to be able to earn income from these platforms.

Schedule 2 of the bill relates to transitional provisions on the repeal of the Superannuation (Resolution of Complaints) Act 1993. In 2017 the government established the Australian Financial Complaints Authority, AFCA, to replace the Superannuation Complaints Tribunal. AFCA provides consumers and small businesses with fair, free and independent dispute resolution of financial complaints when they're unable to resolve an issue with a member organisation. These amendments ensure that the transition to AFCA is smooth and that any outstanding cases can be dealt with appropriately. Parties to a dispute will not be adversely affected by these changes and can be assured that AFCA has the resources needed to be able to resolve outstanding issues. The AFCA Act will also be amended to allow for the transfer of records and documents from the Superannuation Complaints Tribunal to ASIC for ongoing records management. These are important administrative changes which ensure financial complaints are handled efficiently and effectively.

Schedule 3 of the bill relates to the of the removal of the self-education expenses threshold. This measure is part of the Morrison government's plan to simplify the tax-return experience for hardworking people right across Australia. Currently, the first $250 of a prescribed course of education expense can't be deducted, but certain expenses that are compulsory but not otherwise deductible—such as childcare costs incurred while attending self-education activities, for example—can be used to offset the $250 reduction. These amendments simply remove this exclusion and the related compliance burden for individuals who are claiming this deduction, and will apply to assessments from the 2022-23 income year. This is just another measure that will benefit taxpayers right across the Central Coast and is in addition to tax relief of up to $2,745 that around 61,600 people in my electorate of Robertson will benefit from this year.

These are some important amendments that will improve tax compliance, clarify the role of the Australian Financial Complaints Authority and simplify tax returns for workers around Australia. This bill forms part of the Morrison government's plan to cut red tape, to simplify taxes and to promote economic growth, which is so important at a time when Australians are beginning to come out of the COVID-19 induced lockdowns. I commend this bill to the House.

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