Daniel Mulino (Fraser, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

I move:

That this bill be now read a second time.

This bill amends the Treasury legislation to support philanthropic giving and strengthen the integrity of tax administration systems.

Schedule 1 to the bill removes the requirement that a donation to a deductible gift recipient be valued at $2 or more before the donor may claim an income tax deduction. Removing this threshold updates the tax treatment of gifts to reflect modern fundraising practices and supports philanthropic giving.

Schedule 2 to the bill amends the Income Tax Assessment Act 1936to require trustees of closely held trusts to report in the trust's income tax return the quoted tax file numbers of beneficiaries when they have an entitlement, from 1 July 2026.

These changes are part of modernising tax administration systems to reduce compliance costs for trustees, beneficiaries and their agents. They streamline how trustees report tax file numbers, removing reporting on a separate form.

The amendment will strengthen the integrity of the tax system, helping to ensure the right amount of tax is being paid by trustees and beneficiaries on trust income.

Schedule 3 to the bill makes minor and technical amendments to legislation within the Treasury portfolio. These amendments reflect the government's ongoing commitment to the care and maintenance of Treasury laws.

The amendments ensure that Treasury portfolio legislation remains current, fit for purpose and continues to work for relevant stakeholders and the broader public.

The Legislative and Governance Forum on Corporations was notified in relation to amendments in schedule 3 of the bill in accordance with clauses 506 and 507 of the Corporations Agreement 2002.

Schedule 4 to this bill amends the Income Tax Assessment Act 1997 to exclude activities related to gambling and tobacco from research and development tax incentive eligibility.

This will ensure the community is not subsidising this kind of research and development, which can exacerbate serious health risks, addiction and associated harms.

The exclusions will apply broadly, capturing research and development related to all types of gambling and any tobacco, from 1 July 2025.

The government recognises the importance of minimising the harms from gambling and tobacco. That's why a carve-out applies for research and development activities that are conducted for the sole purpose of harm minimisation, such as stopping addiction. The carve-out is designed to ensure that only truly harm-minimising research and development related to gambling and tobacco remains eligible to receive support.

Full details of the measure are contained in the explanatory memorandum.

Debate adjourned.

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