Jane Hume (Victoria, Liberal Party, Assistant Minister for Superannuation, Financial Services and Financial Technology) Share this | Hansard source

First I would like to thank those senators who have contributed to this debate. This bill contains a number of measures which improve the integrity of the tax system, provide flexibility in completing new financial adviser requirements and ensure existing legislation operates as intended.

Schedule 1 amends the Income Tax Assessment Act 1936 to limit the tax concessions available to minors in relation to income from a testamentary trust in respect of income derived from assets transferred from the deceased estate or subsequently accumulated from those assets. This is an integrity measure to improve the taxation of testamentary trusts. It was announced in the 2018-19 budget and applies from 1 July 2019.

Schedule 2 extends transitional deadlines for existing advisers to ensure that they have enough time to meet new professional requirements. Existing advisers will be required to complete the exam set by the Financial Adviser Standards and Ethics Authority by 1 January 2022; this is one additional year. In addition, advisers will be required to meet the qualification requirements by 1 January 2026; this is two additional years. The government is committed to raising education and training standards of financial advisers. This includes new entrants and existing advisers.

Schedule 3 makes minor technical and machinery amendments to the Treasury portfolio legislation. This includes amendments to address technical deficiencies, to ensure the law operates as intended in the Treasury portfolio legislation and to remove administrative inefficiencies. I commend this bill to the Senate.

Question agreed to.

Bill read a second time.