Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Hansard source

Last night I took a while explaining to the Senate the government's amendments and our position on the opposition's amendments—and I am pleased to remind the Senate that we are supportive of the opposition's amendments. Unsurprisingly, we are also supportive of the government amendments. I seek leave to move government amendments (1) and (2) on sheet GB134 together.

Leave granted.

I move:

(1) Schedule 1, item 15, page 16 (after line 21), after subitem (2), insert:

  High Value Accounts

  (2A) For the purposes of subsections 396-105(1) and (2) in Schedule 1 to the Taxation Administration Act 1953, as amended by this Schedule, an account maintained by a Reporting Financial Institution on 1 July 2017 is treated as being a Reportable Account (within the meaning of the CRS) on that day if the account:

  (a) would be a Reportable Account (within the meaning of the CRS) on that day if the Reporting Financial Institution applied the due diligence procedures described in the CRS in relation to the account on or before that day; and

  (b) is a High Value Account (within the meaning of the CRS) on 30 June 2017.

(2) Schedule 1, item 15, page 17 (line 1), after "subitem", insert "(2A) or".

I remind the Senate, as I explained last night, that the government is introducing these amendments in order to ensure that the provisions operate as intended. These changes correct a technical anomaly in the original bill so that statements relating to pre-existing individual accounts that are high-value accounts as of 30 June 2017 must be reported to the tax commissioner by 31 July 2018. It ensures that this timing is required regardless of whether the reporting financial institution conducts its due diligence procedures of these accounts between 1 July 2017 and 31 December 2017 or between 1 January 2018 and 31 July 2018.

The timing provisions in the bill have been carefully crafted to ensure that we align with OECD guidance on collection, review and exchange of information, noting that some of that may be influenced by the opposition amendments that we are willing to accept. I commend the government's amendments to the Senate.