Treasury Laws Amendment (2017 Measures No 1) Bill 2017 [2017] AUSStaCSBSD 75 (22 March 2017)

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Purpose	This bill seeks to various Acts in relation to taxation to: • make minor technical changes to the income tax law in relation to the National Innovation and Science Agenda measures; and • allow the Australian Securities and Investments Commission (ASIC) to more readily share confidential information with the Commissioner of Taxation
Portfolio	Treasury
Introduced	House of Representatives on 16 February 2017

Privacy^[56]

1.76 Item 1 of Schedule 2 proposes adding to subsection 127(2A) of the Australian Securities and Investment Commission Act 2001, the power for ASIC to share confidential information with the Commissioner of Taxation. Currently, section 127 requires ASIC to take all reasonable measures to protect from unauthorised use or disclosure, information given to it in confidence or that is protected information. The explanatory memorandum states that currently the confidential information cannot be shared unless the Chairperson, or their delegate, is satisfied that the information will enable or assist the Commissioner of Taxation to perform or exercise their functions or powers.^[57] The proposed amendments would mean that ASIC would be authorised to share the confidential information with the Commissioner of Taxation, without the need to consider whether the sharing of such information is necessary.

1.77 The explanatory memorandum states that these changes provide a simpler process for ASIC to share information with the Commissioner of Taxation (mirroring other existing information sharing provisions) and will enable 'more timely collaboration during investigations into illegal or high risk activities' and enable both ASIC and the Commissioner of Taxation to 'ensure compliance with laws and identify patterns of non-compliance'.^[58] Likewise the statement of compatibility states that the amendment will streamline the process and is a 'more efficient mechanism' for sharing confidential information and that the information shared will 'remain subject to strict confidential protections'.^[59]

1.78 The committee notes that the current law merely requires consideration be given before confidential information is shared that the information will enable or assist the Commissioner of Taxation to perform or exercise their functions or powers. The current approach would appear to allow for the sharing of confidential information in fairly broad terms. It is unclear, based on the explanatory material, how the current law is inefficient and not sufficiently simple.

1.79 The committee considers that enabling all confidential information held by ASIC to be shared with the Commissioner of Taxation, without any need to consider the purpose for the sharing of that information, raises privacy scrutiny concerns.

1.80 The committee requests the Minister's advice as to the steps that must currently be undertaken by ASIC before confidential information is shared with the Commissioner of Taxation (and the specific subsection of the Australian Securities and Investment Commission Act 2001 which currently provides for this).

Pending the Minister's reply, the committee draws Senators' attention to the provision, as it may be considered to trespass unduly on personal rights and liberties, in breach of principle 1(a)(i) of the committee's terms of reference.

Australian Senate Standing Committee for the Scrutiny of Bills - Scrutiny Digests