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This is a Bill, not an Act. For current law, see the Acts databases.
2016
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Treasury Laws Amendment (Working
Holiday Maker Reform) Bill 2016
No. , 2016
(Treasury)
A Bill for an Act to amend the law relating to
taxation and migration, and for related purposes
No. , 2016
Treasury Laws Amendment (Working Holiday Maker Reform) Bill
2016
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Visa application charges
3
Migration Regulations 1994
3
Schedule 2--Registration of employers of working holiday
makers
4
A New Tax System (Australian Business Number) Act 1999
4
Income Tax Assessment Act 1997
4
Taxation Administration Act 1953
4
Schedule 3--Reporting on working holiday makers
10
Taxation Administration Act 1953
10
Schedule 4--Protected information
12
Taxation Administration Act 1953
12
No. , 2016
Treasury Laws Amendment (Working Holiday Maker Reform) Bill
2016
1
A Bill for an Act to amend the law relating to
1
taxation and migration, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act is the Treasury Laws Amendment (Working Holiday
5
Maker Reform) Act 2016.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2
Treasury Laws Amendment (Working Holiday Maker Reform) Bill
2016
No. , 2016
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedule 1
The later of:
(a) 1 July 2017; and
(b) the day Part 1 of Schedule 1 to the
Income Tax Rates Amendment (Working
Holiday Maker Reform) Act 2016
commences.
However, the provisions do not commence
at all if the event mentioned in paragraph (b)
does not occur.
3. Schedules 2 to
4
At the same time as Part 1 of Schedule 1 to
the Income Tax Rates Amendment (Working
Holiday Maker Reform) Act 2016
commences.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedules
7
Legislation that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Visa application charges Schedule 1
No. , 2016
Treasury Laws Amendment (Working Holiday Maker Reform) Bill
2016
3
Schedule 1--Visa application charges
1
2
Migration Regulations 1994
3
1 Paragraphs 1224A(2)(a) and 1225(2)(a) of Schedule 1
4
Omit "$440", substitute "$390".
5
2 In the appropriate position in Schedule 13
6
Insert:
7
Part 59--Amendments made by the Treasury Laws
8
Amendment (Working Holiday Maker
9
Reform) Act 2016
10
11
5901 Operation of Schedule 1
12
The amendments of these Regulations made by Schedule 1 to the
13
Treasury Laws Amendment (Working Holiday Maker Reform) Act
14
2016 apply in relation to an application for a visa made on or after
15
the commencement of that Schedule.
16
Schedule 2 Registration of employers of working holiday makers
4
Treasury Laws Amendment (Working Holiday Maker Reform) Bill
2016
No. , 2016
Schedule 2--Registration of employers of
1
working holiday makers
2
3
A New Tax System (Australian Business Number) Act 1999
4
1 After paragraph 26(3)(jb)
5
Insert:
6
(jc) whether the entity is registered under section 16-147 in
7
Schedule 1 to the Taxation Administration Act 1953, and (if it
8
is so registered) the day the registration took effect;
9
(jd) whether the entity's registration under that section has been
10
cancelled under section 16-148 in that Schedule, and (if it has
11
been cancelled) the day the cancellation took effect;
12
Income Tax Assessment Act 1997
13
2 Subsection 995-1(1)
14
Insert:
15
working holiday maker has the meaning given by
16
subsection 3A(1) of the Income Tax Rates Act 1986.
17
working holiday taxable income has the meaning given by
18
subsections 3A(2) and (3) of the Income Tax Rates Act 1986.
19
Taxation Administration Act 1953
20
3 After paragraph 15-30(f) in Schedule 1
21
Insert:
22
(fa) in relation to withholding payments that are
*
working holiday
23
taxable income--whether an entity is registered under
24
section 16-147;
25
4 At the end of Subdivision 16-BA in Schedule 1
26
Add:
27
Registration of employers of working holiday makers Schedule 2
No. , 2016
Treasury Laws Amendment (Working Holiday Maker Reform) Bill
2016
5
Registration of employers of working holiday makers
1
16-146 Employers of working holiday makers must be registered
2
(1) An entity must apply to the Commissioner to register under
3
section 16-147 if:
4
(a) the entity must pay an amount to the Commissioner under
5
subsection 16-70(1) from salary, wages, commission,
6
bonuses or allowances it pays to an individual as the
7
individual's
*
working holiday taxable income; and
8
(b) in a case where a period has been determined under
9
subsection 16-148(5) during which the entity cannot apply
10
under this section--the period has ended.
11
(2) The entity must apply in the
*
approved form by the day on which
12
the entity is first required to withhold an amount under Division 12
13
from salary, wages, commission, bonuses or allowances it pays to
14
an individual as the individual's
*
working holiday taxable income.
15
(3) However, the Commissioner may allow a longer period for
16
applying.
17
(4) An entity that contravenes this section is liable to an administrative
18
penalty of 20 penalty units.
19
Note 1:
See section 4AA of the Crimes Act 1914 for the current value of a
20
penalty unit.
21
Note 2:
Division 298 contains machinery provisions for administrative and
22
civil penalties.
23
(5) This section does not affect an obligation that an entity has under
24
section 16-140.
25
16-147 Registering employers of working holiday makers
26
(1) The Commissioner must register an entity under this section if, and
27
only if, the entity:
28
(a) has applied under section 16-146 for registration; and
29
(b) has made a declaration to the Commissioner, in the
30
*
approved form, that states that the entity:
31
(i) has a genuine business requirement to employ one or
32
more
*
working holiday makers; and
33
Schedule 2 Registration of employers of working holiday makers
6
Treasury Laws Amendment (Working Holiday Maker Reform) Bill
2016
No. , 2016
(ii) agrees to comply with the Fair Work Act 2009 in
1
relation to its employment of any individual who is a
2
working holiday maker; and
3
(iii) agrees to check that any individual it employs as a
4
working holiday maker holds a visa that causes that
5
person to be a working holiday maker; and
6
(c) has given to the Commissioner, in the approved form,
7
information relating to its employment, or proposed
8
employment, of working holiday makers.
9
(2) Subparagraph (1)(b)(i) does not apply if the entity is not carrying
10
on a
*
business.
11
(3) The registration takes effect on the day determined by the
12
Commissioner.
13
Notification of the Commissioner's decision
14
(4) The Commissioner must notify the entity of:
15
(a) the Commissioner's decision on the application; and
16
(b) if the Commissioner decides to register the entity--the day
17
on which the registration takes effect;
18
within 30 days after the making of the application.
19
Note:
The decision on the application is reviewable (see section 20-80).
20
(5) If the Commissioner decides to register the entity, the
*
Australian
21
Business Registrar must enter in the
*
Australian Business Register
22
a statement that the entity is registered under this section. The
23
statement must specify the day on which the registration takes
24
effect.
25
(6) Entry of the statement in the
*
Australian Business Register under
26
subsection (5) is taken to be a notification of the entity for the
27
purposes of subsection (4).
28
(7) A failure to comply with subsection (4) or (5) does not affect the
29
validity of the Commissioner's decision.
30
Basis of registration
31
(8) A registration under this section is granted on the basis that:
32
Registration of employers of working holiday makers Schedule 2
No. , 2016
Treasury Laws Amendment (Working Holiday Maker Reform) Bill
2016
7
(a) the registration may be cancelled under section 16-148; and
1
(b) the registration may be cancelled, suspended, varied or made
2
subject to conditions by or under later legislation; and
3
(c) no compensation is payable if the registration is cancelled,
4
suspended, varied or made subject to conditions as mentioned
5
in any of the above paragraphs.
6
16-148 Cancelling the registration of employers of working holiday
7
makers
8
(1) The Commissioner may cancel an entity's registration under
9
section 16-147 if:
10
(a) the entity advises the Commissioner, in the
*
approved form,
11
that the entity does not employ, and does not intend to
12
employ, any individual who is a
*
working holiday maker; or
13
(b) the Commissioner is satisfied that:
14
(i) the entity; or
15
(ii) if the entity is a partnership--any of the partners; or
16
(iii) if the entity is a company--any director, shareholder or
17
employee of the company who participates in the
18
management or control of the company; or
19
(iv) if the entity is a trustee of a trust--any appointer of
20
trustees of the trust, or any person who participates in
21
the control of the trust;
22
is not a fit and proper person.
23
(2) The cancellation takes effect on the day determined by the
24
Commissioner. The day must not be earlier than the day on which
25
notice of the cancellation is given under subsection (6).
26
(3) If the Commissioner is considering whether the entity, or another
27
person mentioned in subparagraph (1)(b)(ii), (iii) or (iv), is a fit
28
and proper person, the Commissioner must give the entity a notice
29
that:
30
(a) informs the entity accordingly; and
31
(b) invites the entity to make submissions to the Commissioner
32
on the matter within 28 days after the Commissioner gives
33
the notice.
34
Schedule 2 Registration of employers of working holiday makers
8
Treasury Laws Amendment (Working Holiday Maker Reform) Bill
2016
No. , 2016
(4) Without limiting the matters to which the Commissioner may have
1
regard in considering whether the entity, or another person
2
mentioned in subparagraph (1)(b)(ii), (iii) or (iv), is a fit and proper
3
person, the Commissioner must have regard to:
4
(a) whether a court has made a finding, in proceedings
5
commenced by the Fair Work Ombudsman, that the entity
6
has contravened the Fair Work Act 2009; and
7
(b) whether the entity has failed to withhold amounts as required
8
by Division 12; and
9
(c) any relevant information the entity has provided in
10
submissions to the Commissioner within the period specified
11
in paragraph (3)(b).
12
(5) The Commissioner must, having regard to the reasons for the
13
cancellation, determine a period, starting when the cancellation
14
takes effect, during which the entity cannot apply under
15
section 16-146 for registration.
16
Notification of the cancellation
17
(6) The Commissioner must notify the entity of:
18
(a) the cancellation; and
19
(b) the day on which the cancellation takes effect; and
20
(c) the period determined under subsection (5) for the
21
cancellation.
22
Note:
A decision to cancel, including a determination under subsection (5),
23
is reviewable (see section 20-80).
24
(7) The
*
Australian Business Registrar must enter in the
*
Australian
25
Business Register a statement that the entity's registration under
26
section 16-147 has been cancelled. The statement must specify the
27
day on which the cancellation takes effect.
28
(8) A failure to comply with subsection (6) or (7) does not affect the
29
validity of the Commissioner's decision.
30
5 Section 20-80 in Schedule 1 (after table item 60)
31
Insert:
32
62
Decision under section 16-147 not to register an entity that has applied to
be registered
Registration of employers of working holiday makers Schedule 2
No. , 2016
Treasury Laws Amendment (Working Holiday Maker Reform) Bill
2016
9
63
Decision under section 16-148 to cancel a registration (including making a
determination under subsection 16-148(5))
6 Application of amendments
1
The amendments made by this Schedule apply in relation to amounts
2
required to be paid to the Commissioner under subsection 16-70(1) in
3
Schedule 1 to the Taxation Administration Act 1953 if those amounts
4
are required under Division 12 in that Schedule to be withheld on or
5
after 1 January 2017.
6
Schedule 3 Reporting on working holiday makers
10
Treasury Laws Amendment (Working Holiday Maker Reform) Bill
2016
No. , 2016
Schedule 3--Reporting on working holiday
1
makers
2
3
Taxation Administration Act 1953
4
1 Division 352 in Schedule 1 (heading)
5
Repeal the heading, substitute:
6
Division 352--Commissioner's reporting obligations
7
2 Section 352-1 in Schedule 1
8
Omit "an annual report on the working of the indirect tax laws",
9
substitute "annual reports on the working of the indirect tax laws and on
10
working holiday makers".
11
3 At the end of Division 352 in Schedule 1
12
Add:
13
Subdivision 352-C--Reporting on working holiday makers
14
Table of sections
15
352-25
Commissioner must prepare annual report on working holiday makers
16
352-25 Commissioner must prepare annual report on working
17
holiday makers
18
(1) As soon as practicable after 30 June in each year, the
19
Commissioner must prepare and give to the Minister a report
20
relating to:
21
(a) the taxation of
*
working holiday makers; and
22
(b) the registration process referred to in sections 16-146 to
23
16-148.
24
(2) Without limiting subsection (1), the report must include statistics
25
and information derived by the Commissioner from that
26
registration process.
27
Reporting on working holiday makers Schedule 3
No. , 2016
Treasury Laws Amendment (Working Holiday Maker Reform) Bill
2016
11
(3) The Minister must cause a copy of the report to be laid before each
1
House of the Parliament within 15 sitting days of that House after
2
the day on which the Minister receives the report.
3
Schedule 4 Protected information
12
Treasury Laws Amendment (Working Holiday Maker Reform) Bill
2016
No. , 2016
Schedule 4--Protected information
1
2
Taxation Administration Act 1953
3
1 Subsection 355-65(8) in Schedule 1 (cell at table item 5,
4
column headed "and the record or disclosure ... ")
5
Repeal the cell, substitute:
6
is for the purpose of ensuring an entity's
compliance with the Fair Work Act
2009.
2 Application of amendments
7
The amendments made by this Schedule apply in relation to disclosures
8
of information on or after 1 January 2017 (whether the information was
9
acquired before, on or after that day).
10