Josh Wilson (Fremantle, Australian Labor Party) Share this | Hansard source

On behalf of the Joint Standing Committee on Treaties, I present the committee's report entitled Report 207: Australia-Iceland Double Taxation and Underwater Cultural Heritage.

Ordered that the report be made a parliamentary paper.

by leave—I am glad to make a short statement on the Joint Standing Committee on Treaties's report into the convention between Australia and Iceland for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance and its protocol, and the convention on the protection of underwater cultural heritage—so two separate agreements.

First, the tax convention treaty is a double-taxation agreement that would establish a framework for governing cross-border transactions between Australia and Iceland. This will be the 46th double-taxation agreement to which Australia is party.

Based as it is on the OECD's Model Tax Convention on Income and on Capital, the tax convention draws on best-practice principles to avoid double taxation—that is, the potential for entities or activities to be taxed in each jurisdiction, rather in the most appropriate jurisdiction—whilst also preventing base erosion and profit shifting and treaty shopping, all of which are bad things.

The tax convention identifies the persons and taxes to which the convention would apply and establishes where various types of income would be taxed, and it specifies how relief from double taxation will be provided. It contains special provisions dealing with the principle of non-discrimination, provides for arbitration in certain circumstances, facilitates the exchange of information, requires parties to assist each other in the collection of taxes under certain circumstances, and establishes the grounds on which the benefits of the tax convention might be refused.

During the course of the committee's inquiry, evidence was presented in relation to the constitutionality of the legislation, specifically with regard to the powers to be used in meeting the obligation under the convention to collect tax due to another country. The committee noted, however, the Treasury's substantially different views on this matter and, ultimately, such constitutional questions can only be resolved by the High Court, should that be required.

Though Australia's two-way trade with Iceland is of modest scope, the committee is of the view the tax convention will provide a foundation for such activities to expand. The committee notes, in particular, the provisions that would exempt Australian superannuation funds from the application of withholding taxes on investments they make in Iceland. On that basis, the committee supports the tax convention and recommended binding treaty action be taken.

The second convention is the underwater cultural heritage convention. It's the first comprehensive treaty on this important matter that clearly transcends national borders, including with respect to our significant military heritage. Australia was actively engaged in the drafting of this convention for more than 20 years, and it's no surprise that there's broad support from those with relevant expertise and experience in the field in relation to this convention.

The committee heard from a range of stakeholders during the inquiry, including from government, non-government organisations, academics and other specialists. All supported ratification, many with considerable enthusiasm.

The ratification of the convention is a positive development in the protection of traces of underwater human existence, including those that have national and international significance, such as Aboriginal and Torres Strait Islander underwater cultural heritage.

Ratification will also serve to ensure that Australia is able to continue its leadership on underwater cultural heritage issues in the Asia-Pacific and more widely.

Key elements of the convention include the protection and preservation of underwater cultural heritage that has been underwater continuously or periodically for at least 100 years, preferably in its original place.

The convention obviously encourages states parties to sign up to bilateral, regional, or multilateral agreements on underwater cultural heritage and adopt rules and regulations to ensure its protection.

The convention provides for other protections of underwater cultural heritage, including raising public awareness, education, research, training in underwater archaeology and the exchange of technology.

Some of the key issues that the inquiry considered were the value of the convention for the protection and preservation of Aboriginal and Torres Strait Islander underwater cultural heritage, and the importance of the convention in terms of supporting its ratification and related work by nations in the Pacific. It's not a convention that's been ratified by many of our Pacific island neighbours. There's no doubt that, with respect to First Nations heritage, Australia does have an opportunity, as in lots of other areas of life, to do more. It's an area that's been identified for some time as being rich in underrecognised and underprotected cultural value.

As always, I thank the secretariat for all their work; all those who made submissions and appeared before the committee; the deputy chair; and my fellow committee members. We support both of these conventions, but latterly the underwater cultural heritage convention.

On that basis, I commend this report to the House.

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