Ursula Stephens (NSW, Australian Labor Party, Parliamentary Secretary Assisting the Prime Minister for Social Inclusion) Share this | Hansard source

I table a supplementary explanatory memorandum relating to the government’s amendments to be moved to National Rental Affordability Scheme (Consequential Amendments) Bill 2008. The memorandum was circulated in the chamber on 13 November 2008. I seek leave to move government amendments (1) and (2) together.

Leave granted.

I move:

(1)    Title, page 1 (line 1), after “amend”, insert “the Extension of Charitable Purpose Act 2004 and”.

(2)    Page 15 (after line 13), at the end of the Bill, add:

Schedule 2—Amendment of the Extension of Charitable Purpose Act 2004

1  Section 3

Insert:

allocation has the same meaning as in the National Rental Affordability Scheme Act 2008.

2  Section 3

Insert:

entity has the same meaning as in the Income Tax Assessment Act 1997.

3  Section 3

Insert:

first 2 NRAS years means:

             (a)    the period referred to in paragraph (a) of the definition of NRAS year in the National Rental Affordability Scheme Act 2008; and

             (b)    the year beginning on 1 May 2009.

4  Section 3

Insert:

incentive period has the same meaning as in the National Rental Affordability Scheme Act 2008.

5  Section 3

Insert:

National Rental Affordability Scheme has the same meaning as in the National Rental Affordability Scheme Act 2008.

6  Section 3

Insert:

rental dwelling has the same meaning as in the National Rental Affordability Scheme Act 2008.

7  Section 3

Insert:

taxation law has the same meaning as in the Income Tax Assessment Act 1997.

8  After section 4

Insert:

4A  Provision of a rental dwelling under National Rental Affordability Scheme is a charitable purpose

        (1)    Without limiting what constitutes a charitable purpose, charitable purpose includes the provision of a rental dwelling if:

             (a)    the rental dwelling is provided by an entity that is:

                   (i)    endorsed as exempt from income tax by the Commissioner of Taxation under section 50-105 of the Income Tax Assessment Act 1997; and

                  (ii)    an approved participant in the National Rental Affordability Scheme; and

             (b)    either:

                   (i)    an allocation in relation to the rental dwelling has been made to the approved participant by the Secretary that specifies a date in the first 2 NRAS years from which the allocation will operate or is taken to have operated; or

                  (ii)    an allocation in relation to the rental dwelling has been reserved and it is genuinely intended by the approved participant that the conditions on which the allocation has been reserved will be fulfilled in the first 2 NRAS years.

        (2)    To avoid doubt, the provision of the rental dwelling by the entity has effect as a charitable purpose only during the incentive period for the allocation.

        (3)    This section applies:

             (a)    for the purposes of a provision of a taxation law or any instrument made, granted or issued under a taxation law; and

             (b)    for the purpose of determining whether an entity that has been endorsed as exempt from income tax by the Commissioner of Taxation under section 50-105 of the Income Tax Assessment Act 1997, remains, for the purposes of a provision of a taxation law or any instrument made, granted or issued under a taxation law, entitled to be so endorsed.

I just wanted to speak very briefly about the government’s amendments to this bill. The scheme is a new opportunity for all levels of government to work together with business and not-for-profit organisations to increase the supply of affordable rental housing for Australian families. We acknowledge that the community housing sector is vital to the success of the National Rental Affordability Scheme, which is why the Australian government is amending the Extension of Charitable Purpose Act 2004 so that participation by charities in the National Rental Affordability Scheme during its establishment phase will not put tax concessions for existing charities at risk. These amendments give effect to a transition safety net to cover not-for-profit community housing providers looking to participate in the scheme. The Rudd government is taking decisive action on the issue of rental affordability, which is why it is acting to make participation in the scheme as broad as possible.

The amendments to the National Rental Affordability Scheme (Consequential Amendments) Bill 2008 extend the definition of ‘charitable purpose’ to include the provision of rental dwellings under the scheme. The amendments will apply to charities endorsed by the Commissioner of Taxation which are approved participants of the National Rental Affordability Scheme in the establishment phase of the scheme for years 2008-09 and 2009-10. The safety net will cover these not-for-profit providers for the 10 years that they receive incentives under the scheme. The government will monitor the scheme and conduct a post-implementation review following the completion of the first two rounds in the establishment phase to ensure that the scheme is meeting its objectives. The scheme and the safety net the government has introduced for community housing providers will bring substantial growth to the community housing sector, whether it is as tenancy managers or as owners and developers in a consortium.