Sue Lines (President) | Link to this | Hansard source

I will now deal with the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024 and the Capital Works (Build to Rent Misuse Tax) Bill 2024.

Anne Ruston (SA, Liberal Party, Shadow Minister for Health and Aged Care) | Link to this | Hansard source

President, I ask for the bills to be voted on separately.

Sue Lines (President) | Link to this | Hansard source

I'm advised that, because of the order we agreed to earlier, the minister needs to move the second reading.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I move:

That these bills be now read a second time.

Sue Lines (President) | Link to this | Hansard source

The question is that the opposition amendment on sheet 2756 be agreed to.

Opposition's circulated amendment

At the end of the motion, add ", but the Senate calls on the Government to:

(a) align Australia's non-aggregated country by country reporting jurisdictions list with the European Union list of non-cooperative jurisdictions; and

(b) provide further detail on:

(i) how jurisdictions will be listed or delisted from the non-aggregated country by country reporting jurisdictions list, and

(ii) how the Commissioner of Taxation's discretionary power to exempt entities from the country by country reporting regime will operate".

Sue Lines (President) | Link to this | Hansard source

I will now deal with the second reading amendment circulated by the Australian Greens.

Nick McKim (Tasmania, Australian Greens) | Link to this | Hansard source

I can confirm that the Greens will be proceeding with the amendment on sheet 3223, which is the Greens second reading amendment.

Sue Lines (President) | Link to this | Hansard source

The question is that the second reading amendment in the name of Senator McKim, circulated by the Australian Greens, be agreed to.

Australian Greens ' circulated amendment—

At the end of the motion, add ", but the Senate:

(a) notes that:

(i) rents have skyrocketed by 53% since 2020,

(ii) housing prices have increased by 46% since 2020,

(iii) the shortage of social and affordable housing is projected to increase under this Government from an already unacceptable high of 750,000 homes,

(iv) over the next 10 years the Federal Government will give $176 billion in tax handouts to property investors through negative gearing and the capital gains tax discount, and

(v) by comparison, this Labor Government has committed to zero dollars of new ongoing direct spending on public housing, and just $500 million a year for social housing through the Housing Australia Future Fund; and

(b) calls on the Government to

(i) implement a phase-out of negative gearing and the capital gains tax discount,

(ii) coordinate through National Cabinet the introduction of a 2-year freeze on rent increases, followed by an ongoing cap on rent increases,

(iii) establish a government developer to directly build hundreds of thousands of good quality homes over the next 5 years to be rented and sold for low cost,

(iv) invest in a mass build of public housing to clear the waitlists, and

(v) ensure that no new tax concessions go to property developers unless 100% of the homes they build are genuinely affordable, based on tenant income".

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I table two supplementary explanatory memoranda relating to the government amendments to be moved to the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024.

Sue Lines (President) | Link to this | Hansard source

The question is that schedule 1 and schedule 7 of the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024 stand as printed.

The government opposed schedule 1 and schedule 7 of the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024 in the following terms—

SHEET UD108

(2) Schedule 7, items 1 to 4, page 83 (lines 1 to 13), to be opposed.

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SHEET PC122

(15) Schedule 1, items 14 and 15, page 21 (line 15) to page 22 (line 17), to be opposed.

Sue Lines (President) | Link to this | Hansard source

The question is that the remaining government amendment on sheet UD108 and the amendments on sheet PC122 be agreed to.

Government's circulated amendments to the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024

SHEET UD108

(1) Clause 2, page 3 (table item 10), omit the table item.

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SHEET PC122

(1) Schedule 1, item 9, page 9 (line 18), omit "3 years", substitute "5 years".

(2) Schedule 1, item 9, page 9 (line 18), after "or more", insert "in accordance with any requirements determined under subsection (1A)".

(3) Schedule 1, item 9, page 9 (line 21), omit "3 years", substitute "5 years".

(4) Schedule 1, item 9, page 9 (line 21), after "or more", insert "in accordance with any requirements determined under subsection (1A)".

(5) Schedule 1, item 9, page 10 (line 2), omit "3 years", substitute "5 years".

(6) Schedule 1, item 9, page 10 (after line 3), after subsection 43-153(1), insert:

(1A) For the purposes of subparagraphs (1)(a)(i) and (ii), the Minister may, by legislative instrument, determine requirements relating to the terms of the lease.

(1B) For the purposes of subparagraphs (1)(a)(i) and (ii), disregard a requirement determined under subsection (1A) if complying with that requirement would contravene a law of a State or Territory.

(7) Schedule 1, item 9, page 10 (lines 5 to 12), omit subsections 43-153(2) and (3), substitute:

(2) A *dwelling is an affordable dwelling if the requirements determined under subsection (3) in relation to the dwelling are met.

(3) For the purposes of subsection (2), the Minister must, by legislative instrument, determine requirements relating to a dwelling. Without limiting this subsection, the requirements may include requirements relating to:

(a) the rent payable under the lease for the dwelling; or

(b) the income of the tenant or prospective tenant.

(8) Schedule 1, item 9, page 12 (line 25), at the end of subsection 43-154(3), add:

; (c) if the event is the event mentioned in paragraph (1)(c) of this section—the entity that acquires the *ownership interest in the development.

(9) Schedule 1, item 11, page 14 (line 13), after "if a build to rent development", insert "you own".

(10) Schedule 1, item 11, page 14 (line 15), omit "your".

(11) Schedule 1, item 11, page 14 (line 16), after "withholding amounts", insert "(if any)".

(12) Schedule 1, item 11, page 15 (lines 13 to 21), omit subsection 44-20(2), substitute:

(2) For the purposes of subsection (1), the amount is the sum of:

(a) the amount that is the sum of your *build to rent capital works deduction amounts, worked out under section 44-25, for each *build to rent development to which subsection (3) of this section applies for the income year (if any); and

(b) the amount that is 10 times the sum of your *build to rent withholding amounts, worked out under section 44-30, for each build to rent development to which subsection (3) of this section applies for the income year (if any).

(3) For the purposes of paragraphs (2)(a) and (b), this subsection applies to a *build to rent development for an income year if:

(a) the build to rent development *ceases to be an *active build to rent development during the income year; and

(b) you owned the *dwellings of the build to rent development immediately before that cessation.

(13) Schedule 1, item 11, page 15 (line 26) to page 17 (line 27) (method statement), omit the method statement, substitute:

Method statement

Step 1. Identify each income year in which, at any time during the year, the *build to rent development was an *active build to rent development.

Step 2. For each of those years:

(a) identify each *construction expenditure area of capital works that are or include the *active build to rent development area of the *build to rent development at any time during the year; and

(b) calculate the amount worked out by the following formula for each construction expenditure area:

where:

active build to rent part, of the *construction expenditure area, is the part of the area that was the *active build to rent development area, or part of the active build to rent development area at any time during the year.

days used is the number of days in the income year that:

(a) any entity owned or was the lessee of the *active build to rent part and used it in the *4% build to rent manner; or

(b) any entity was the holder of the active build to rent part under a *quasi ownership right over land granted by an *exempt Australian government agency or an *exempt foreign government agency, and used it in the 4% build to rent manner.

portion of construction expenditure is the portion of *construction expenditure that is attributable to the *active build to rent part.

Step 3. Reduce the Step 2 amount for each *construction expenditure area, for each year, by the extent to which the *active build to rent part was used only partly for the *purpose of producing assessable income in the year.

Note: This step applies if:

(a) part of the income from the active build to rent part is exempt income; or

(b) part of the active build to rent part was not used for the purpose of producing assessable income or was not available for that use; or

(c) the active build to rent part was not used for such a purpose during a part of the days used period.

Step 4. For each year, add up the amounts worked out under Step 3 for each *construction expenditure area.

Step 5. Add up the Step 4 amounts for each year.

Step 6. Multiply the Step 5 amount by:

(a) if *you are a company (other than a company in the capacity of a trustee)—the *corporate tax rate for the income year in which the *build to rent development *ceases to be an *active build to rent development (the cessation year); or

(b) in any other case—the maximum rate specified in the table in Part I of Schedule 7 to the Income Tax Rates Act 1986 for the cessation year.

Step 7. Your build to rent capital works deduction amount is the Step 6 amount multiplied by 1.08.

Note: You can have more than one build to rent capital works deduction amount because there can be more than one build to rent development for which you have a build to rent capital works deduction amount.

(14) Schedule 1, item 11, page 18 (lines 1 to 24) (method statement), omit the method statement, substitute:

Method statement

Step 1. Identify each income year in which, at any time during the year, the *build to rent development was an *active build to rent development.

Step 2. For each of those years, identify each *fund payment made by the owner of the *active build to rent development, or each part of such a fund payment, (if any) that is referable to any of the following:

(a) a payment of rental income under a lease of a *dwelling of the active build to rent development;

(b) a *capital gain from a *CGT event in relation to a dwelling of the active build to rent development.

Note: For the purposes of this step, it does not matter whether an amount must be withheld from a fund payment under Part 2-5 in Schedule 1 to the Taxation Administration Act 1953.

Step 3. For each year add up the amounts of payments, or parts of payments, identified under Step 2.

Step 4. Add up the Step 3 amounts for each year.

Step 5. Your build to rent withholding amount is the Step 4 amount multiplied by 1.08.

(16) Schedule 1, item 25, page 25 (line 8), omit "Subject to subitem (2), the amendments", substitute "The amendments of section 43-145 of the Income Tax Assessment Act 1997".

_____

PARLIAMENTARY COUNSEL

Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024

PC122

Statement of reasons: why certain amendments should be moved as requests

Section 53 of the Constitution is as follows:

Powers of the Houses in respect of legislation

53. Proposed laws appropriating revenue or moneys, or imposing taxation, shall not originate in the Senate. But a proposed law shall not be taken to appropriate revenue or moneys, or to impose taxation, by reason only of its containing provisions for the imposition or appropriation of fines or other pecuniary penalties, or for the demand or payment or appropriation of fees for licences, or fees for services under the proposed law.

The Senate may not amend proposed laws imposing taxation, or proposed laws appropriating revenue or moneys for the ordinary annual services of the Government.

The Senate may not amend any proposed law so as to increase any proposed charge or burden on the people.

The Senate may at any stage return to the House of Representatives any proposed law which the Senate may not amend, requesting, by message, the omission or amendment of any items or provisions therein. And the House of Representatives may, if it thinks fit, make any of such omissions or amendments, with or without modifications.

Except as provided in this section, the Senate shall have equal power with the House of Representatives in respect of all proposed laws.

Amendment (13)

The effect of this amendment is to expand the definition of build to rent capital works deduction amount to include additional amounts. It is covered by section 53 because it will increase some entities' liability to build to rent development misuse tax.

Amendment (14)

The effect of this amendment is to expand the definition of build to rent withholding amount to include additional amounts. It is covered by section 53 because it will increase some entities' liability to build to rent development misuse tax.

Consequential amendments

The following amendment(s) are consequential on the amendments mentioned above: amendments (9), (10), (11), (12) and (15).

Statement by the Clerk of the Senate pursuant to the order of the Senate of 26 June 2000

Amendments (13) and (14), and further consequential amendments

The bill deals with a number of taxes, including a 'misuse tax', which 'claws back' tax benefits where a 'build to rent operator' does not comply with eligibility requirements. The calculation of an entity's liability for the misuse tax is affected by the amounts deducted and consequently withheld under concessional arrangements provided for in the bill.

Amendment (13) would increase deductions available under the program, so that an operator that does not comply with eligibility requirements may be liable to repay an additional amount through the mechanism of the misuse tax. Amendment (14) has a similar effect in relation to withholding tax arrangements. In each case, additional benefits are made available that would have to be repaid by a non-compliant operator.

Although it appears that some entities may be liable for additional amounts of tax, this is not because the bill imposes tax, but because of changes to concessional arrangements.

The effect of section 53 of the Constitution is that any change proposed to a bill that imposes tax must be framed as a request. This requirement does not automatically extend to other bills dealing with taxation. In this regard, Odgers' Australian Senate Practice notes:

In relation to amendments which might increase tax payable, the constitutional provision refers to an amendment which would increase any proposed charge or burden, and the view taken in the Senate since 1903 is that a bill dealing with taxation does not contain a proposed charge or burden unless it is a bill imposing taxation. Amendments of this kind are therefore directed by the chair to be moved as amendments. [14th edition, p. 419]

The misuse tax, which may be affected by these amendments, is imposed by a separate bill, the Capital Works (Build to Rent Misuse Tax) Bill 2024.

It is therefore not in accordance with the precedents of the Senate for amendments (13) and (14), and their consequential amendments, to be framed as requests.

Sue Lines (President) | Link to this | Hansard source

Senators, with the concurrence of the Senate I shall incorporate in the Hansard a statement from the Chair of Committees, Senator McLachlan, on the framing of government amendments to the bill. If there is no objection, it is so ordered. The Chair of Committees has ruled the government amendments be dealt with as amendments rather than requests.

The statement read as follows

According to the statement of reasons for the government amendments on sheet PC122, amendments (13) and (14) are covered by section 53 of the Constitution because the amendments "will increase some entities' liability to build to rent development misuse tax". A number of other amendments are noted to be consequential on amendments (13) and (14) and it is suggested that they too be framed as requests. The statement of reasons reflects the advice to the government from Parliamentary Counsel but the Clerk's view is that this does not accord with the precedents of the Senate.

The effect of section 53 of the Constitution is that any change proposed to a bill that imposes tax must be framed as a request. This requirement does not automatically extend to other bills dealing with taxation.

In this regard, Odgers' Australian Senate Practice notes:

In relation to amendments which might increase tax payable, the constitutional provision refers to an amendment which would increase any proposed charge or burden, and the view taken in the Senate since 1903 is that a bill dealing with taxation does not contain a proposed charge or burden unless it is a bill imposing taxation. Amendments of this kind are therefore directed by the chair to be moved as amendments. [14th edition, p. 419]

I have considered the views of Parliamentary Counsel and the Clerk and consider that the Clerk's view is consistent with the precedents of the Senate. I therefore rule that amendments (13) and (14), and their consequential amendments, should be framed as amendments, not requests.

I will now deal with Committee of the Whole amendments circulated by the opposition. As these amendments were not circulated within the required timeframe, they can only be considered by leave.

Anne Ruston (SA, Liberal Party, Shadow Minister for Health and Aged Care) | Link to this | Hansard source

I seek leave to have the amendments on sheets 2752 revised and 2753 considered.

Leave granted.

Sue Lines (President) | Link to this | Hansard source

The question is that the amendments on sheet 2752 revised and sheet 2753 revised, circulated by the opposition, be agreed to.

Opposition's circulated amendments to the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024

SHEET 2752 REVISED

(1) Schedule 4, item 1, page 66 (line 27), omit "Note", substitute "Note 1".

(2) Schedule 4, item 1, page 66 (after line 28), after the note, insert:

Note 2: Subsection (3) does not apply to commercially sensitive information (see subsection 3DB(9)). Section 3EB contains requirements for commercially sensitive information.

(3) Schedule 4, item 1, page 71 (line 1), omit "Note", substitute "Note 1".

(4) Schedule 4, item 1, page 71 (after line 3), after the note, insert:

Note 2: Paragraph (1)(a) and subsection (2) do not apply to commercially sensitive information (see subsection (10)). Section 3EB contains requirements for commercially sensitive information.

(5) Schedule 4, item 1, page 71 (line 7), at the end of the heading to subsection 3DB(4), add "general".

(6) Schedule 4, item 1, page 71 (after line 25), at the end of section 3DB, add:

Exemptions commercially sensitive information

(9) Subsection 3D(3) does not apply to information covered by subsection 3EA(1) (commercially sensitive information).

(10) Paragraph (1)(a) and subsection (2) of this section do not apply to information covered by subsection 3EA(1) (commercially sensitive information).

(11) Subsections (9) and (10) do not limit subsections (4) to (8).

(7) Schedule 4, page 71 (before line 26), before item 2, insert:

1A Before section 3E

Insert:

3EA Commercially sensitive information

(1) This subsection covers information if:

(a) either of the following apply:

(i) apart from the operation of subsection 3DB(9), an entity would be required to publish the information in compliance with subsection 3D(3);

(ii) apart from the operation of subsection 3DB(10), an entity would be required to publish the information in compliance with paragraph (1)(a) and subsection (2) of that section; and

(b) the entity reasonably believes that the publication of the information is likely to cause serious harm to the entity's commercial position.

(2) However, subsection (1) does not cover information that relates to a jurisdiction specified in a determination under subsection 3DA(4).

3EB Requirements for commercially sensitive information

(1) If an entity did not publish information because of the operation of subsection 3DB(9) or (10), the entity must:

(a) include a statement in the document mentioned in paragraph 3D(3)(b) or subsection 3DB(1) (as the case requires) to the effect that the entity has not published commercially sensitive information; and

(b) at the same time as the entity gives the Commissioner the document in paragraph (a), give the Commissioner a separate document that:

(i) contains a brief description of the information; and

(ii) sets out the reasons for the entity's belief that publishing the information is likely to cause serious harm to the entity's commercial position.

(2) The entity must publish the information by giving a document containing the information to the Commissioner in the approved form within 5 years after:

(a) if subsection 3DB(9) applies—the end of the reporting period mentioned in subsection 3D(3); or

(b) if subsection 3DB(10)—the entity becomes aware of the error mentioned in paragraph 3DB(1)(a).

(3) The Commissioner must, as soon as practicable after receiving the document given in accordance with subsection (2) of this section, make the information available on an Australian government website.

3EC Review of certain country by country reporting provisions

(1) After the end of the 2-year period beginning at the commencement of this section, the Minister must cause to be conducted a review of the operation of sections 3D, 3DA, 3DB, 3EA and 3EB.

Report

(2) A report of the review must be given to the Minister within 12 months after the end of the 2-year period mentioned in subsection (1).

(3) The Minister must cause copies of a report under subsection (2) to be tabled in each House of the Parliament within 15 sitting days of that House after the Minister receives the report.

_____

SHEET 2753 REVISED

(1) Schedule 7, page 83 (lines 1 to 13), omit the Schedule, substitute:

Schedule 7 — $30,000 instant asset write-off for small business entities

Income Tax Assessment Act 1997

1 Subsection 328-175(10) (note 3)

Omit "on or after 12 May 2015", substitute "between 12 May 2015 and 30 June 2024".

2 Section 328-180 (heading)

Omit "$1,000", substitute "$30,000".

3 Paragraph 328-180(1)(b)

Omit "$1,000", substitute "$30,000".

4 Paragraph 328-180(2)(a)

Omit "$1,000", substitute "$30,000".

5 Paragraph 328-180(3)(a)

Omit "$1,000", substitute "$30,000".

6 Subsection 328-205(4) (example)

Repeal the example, substitute:

Example: When Hannah's van was allocated to her general small business pool for the 2023-24 income year, she estimated that it would be used 50% for her florist business. Due to increasing business, Hannah estimates the van's use to be 70% for the 2024-25 year, and 90% for the 2025-26 year. She makes an adjustment under section 328-225 for both those years.

Hannah sells the van for $30,000 at the start of the 2027-28 income year. She must now average the business use estimates for the van for the year it was allocated to the pool and the next 3 years to work out the taxable purpose proportion of its termination value. The average is worked out as follows:

The taxable purpose proportion of the van's termination value is, therefore:

75% of $30,000 = $22,500

7 Subsection 328-210(1)

Omit "$1,000", substitute "$30,000".

8 Subsection 328-210(3) (example)

Repeal the example, substitute:

Example: Alice's Landscaping is a small business entity for the 2024-25 income year and chooses to use this Subdivision for that year. The business has an opening pool balance of $35,000 for its general small business pool for that year.

During that year, Alice acquired a new car for $50,000. The taxable purpose proportion of its adjustable value is:

$50,000 x 80% business use estimate = $40,000

Alice also sold her business truck for $46,600 during that year. The truck was used 100% in the business.

To work out whether she can deduct an amount under this section, Alice uses this calculation:

$35,000 + $40,000—$46,600 = $28,400

Because the result is less than $30,000, Alice can deduct the $28,400 for the income year. The pool's closing balance for the year is zero.

9 Subsection 328-215(4)

Omit "$1,000", substitute "$30,000".

10 Subsection 328-250(1)

Omit "$1,000", substitute "$30,000".

11 Subsection 328-250(4) (heading)

Omit "$1,000", substitute "$30,000".

12 Subsection 328-250(4) (note)

Before "or 328-181", insert "in relation to income years ending on or before 30 June 2024".

13 Subsection 328-253(4) (heading)

Omit "$1,000", substitute "$30,000".

14 Subsection 328-253(4) (note)

Before "or 328-181", insert "in relation to income years ending on or before 30 June 2024".

David Pocock (ACT, Independent) | Link to this | Hansard source

by leave—I'd like to note my support for the amendment on sheet 2753.

Matthew Canavan (Queensland, Liberal National Party) | Link to this | Hansard source

by leave—I move the opposition's amendment on sheet 3233:

(1) Schedule 4, item 2, page 71 (lines 26 to 29), omit the item.

Sue Lines (President) | Link to this | Hansard source

The question is that the amendment be agreed to..

Nick McKim (Tasmania, Australian Greens) | Link to this | Hansard source

by leave—I withdraw Australian Greens amendments on sheet 2727, 2730 revised and 2732 revised.

Sue Lines (President) | Link to this | Hansard source

I will now deal with Committee of the Whole amendments circulated by Pauline Hanson's One Nation. As these amendments were not circulated in the required timeframe, they can only be considered by leave.

Malcolm Roberts (Queensland, Pauline Hanson's One Nation Party) | Link to this | Hansard source

I seek leave to have the Pauline Hanson's One Nation amendments on sheet 2836 revised considered.

Leave granted.

Sue Lines (President) | Link to this | Hansard source

The question is that the amendments on sheet 2836 revised be agreed to.

Pauline Hanson's One Nation's circulated amendments to the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024

(1) Clause 2, page 3 (at the end of the table), add:

(2) Page 83 (after line 13), at the end of the Bill, add:

Schedule 8 — Small amount credit contracts and consumer leases for household goods

National Consumer Credit Protection Act 2009

1 Section 133CC (heading)

Omit "the prescribed requirements", substitute "certain requirements".

2 Subsection 133CC(1)

Repeal the subsection (including the note), substitute:

Requirement

(1) A licensee must not enter into, or offer to enter into, a small amount credit contract with a consumer who will be the debtor under the contract if the repayments that would be required under the contract would not meet the requirement in subsection (1A).

Civil penalty: 5,000 penalty units.

(1A) The requirement for a repayment that would be required during a contract repayment period under such a contract with a consumer is that the sum of:

(a) the amount of the repayment; and

(b) any other amounts the consumer is required to pay under:

(i) any other small amount credit contract during the contract repayment period; and

(ii) any consumer lease for household goods during the contract repayment period;

would be equal to or less than 20% of the available income the consumer is reasonably expected to receive during the contract repayment period.

3 At the end of section 133CC

Add:

Definitions

(4) In this section:

available income, for a consumer, means the consumer's income less any amount required to be withheld under Part 2-5 in Schedule 1 to the Taxation Administration Act 1953 (Pay as you go (PAYG) withholding).

contract repayment period: each of the following is a contract repayment period in relation to a small amount credit contract:

(a) the period:

(i) starting on the day the contract is entered into; and

(ii) ending on the first repayment date in relation to the contract;

(b) a period:

(i) starting on the day after a repayment date in relation to the contract; and

(ii) ending on the subsequent repayment date in relation to the contract.

income means income within the ordinary meaning of that expression.

4 Subsection 133CD(6)

Repeal the subsection.

5 Section 156B (heading)

Omit "the prescribed requirements", substitute "certain requirements".

6 Subsection 156B(1)

Repeal the subsection (including the note), substitute:

Requirement

(1) A licensee must not enter into, or offer to enter into, a consumer lease for household goods with a consumer who will be the lessee under the lease if the amount that would be required to be paid under the lease by the lessee would not meet the requirement in subsection (1A).

Civil penalty: 5,000 penalty units.

(1A) The requirement for the amount is that, for any part of the amount that would be required to be paid during a lease repayment period under such a lease with a consumer, the sum of:

(a) that partof the amount; and

(b) any other amounts the consumer is required to pay under:

(i) any other consumer lease during the lease repayment period; and

(ii) any small amount credit contract during the lease repayment period;

would be equal to or less than 20% of the available income the consumer is reasonably expected to receive during the lease repayment period.

7 At the end of section 156B

Add:

Definitions

(4) In this section:

available income, for a consumer, means the consumer's income less any amount required to be withheld under Part 2-5 in Schedule 1 to the Taxation Administration Act 1953 (Pay as you go (PAYG) withholding).

income means income within the ordinary meaning of that expression.

lease repayment day, in relation to a consumer lease for household goods, means the day on or by which a repayment is required to be made under the lease.

lease repayment period: each of the following is a lease repayment period in relation to a consumer lease for household goods:

(a) the period:

(i) starting on the day the lease is entered into; and

(ii) ending on the first lease repayment day in relation to the lease;

(b) a period:

(i) starting on the day after a lease repayment day in relation to the lease; and

(ii) ending on the subsequent lease repayment day in relation to the lease.

8 Application provisions

(1) The amendments of section 133CC of the National Consumer Credit Protection Act 2009 made by this Schedule apply in relation to a small amount credit contract entered into, or offered to be entered into, on or after the commencement of this Schedule.

(2) The amendments of section 156B of the National Consumer Credit Protection Act 2009 made by this Schedule apply in relation to a consumer lease for household goods entered into, or offered to be entered into, on or after the commencement of this Schedule.