Treasury Laws Amendment (2021 Measures No 3) Bill 2021 [2021] AUSStaCSBSD 118 (16 June 2021)

• Treasury Laws Amendment (2021 Measures No. 3) Bill 2021
• Significant matters in non-disallowable delegated legislation111

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Treasury Laws Amendment (2021 Measures No. 3) Bill 2021

Purpose	Schedule 1 to the bill seeks to increase the Medicare levy low-income thresholds for singles, families, and seniors and pensioners, consistent with increases in the consumer price index Schedule 2 to the bill seeks to amend the National Housing Finance and Investment Corporation Act 2018 to establish the Family Home Guarantee Schedule 3 to the bill seeks to exempt eligible payments made by the Australian government to thalidomide survivors from income tax and from the social security and veterans' entitlement income test Schedule 4 to the bill seeks to provide an income tax exemption for qualifying grants in relation to the February and March 2021 storms and floods Schedule 5 to the bill seeks to amend the Income Tax Assessment Act 1997 to include a number of organisations on the list of deductible gift recipients
Portfolio	Treasury
Introduced	House of Representative on 13 May 2021

Significant matters in non-disallowable delegated legislation^[111]

1.159 Schedule 2 to the bill seeks to amend section 3 of the National Housing Finance and Investment Corporation Act 2018 (the NHFIC Act) to add 'assisting earlier access to the housing market by single parents with dependants' to the objects of the NHFIC Act. This will allow the minister to issues directions to the NHFIC concerning the Family Home Guarantee through the NHFIC Investment Mandate.^[112]

1.160 The explanatory memorandum states that:

The Investment Mandate will enable the Family Home Guarantee to assist eligible single parents with dependants who are first home buyers or have previously owned a home but do not currently hold a freehold or leasehold interest in real property in Australia, a lease of land in Australia or a company title interest in land in Australia.^[113]

1.161 The committee notes that directions constituting the NHFIC Investment Mandate are not subject to disallowance, and that there is no detail on the face of the bill as to how the new Family Home Guarantee is to operate.

1.162 The committee's view is that significant matters, such as core details of a programs such as the proposed Family Home Guarantee, should be included in primary legislation unless a sound justification for the use of delegated legislation is provided. The committee is particularly concerned that all of the details of the proposed Family Home Guarantee are being left to non-disallowable delegated legislation and will therefore not be subject to effective parliamentary oversight. The committee has consistently raised concerns regarding the lack of parliamentary oversight of Investment Mandates.^[114] The committee concurs with the view of the Senate Standing Committee for the Scrutiny of Delegated Legislation that exemptions from disallowance are unlikely to be acceptable unless exceptional circumstances can be demonstrated.^[115]

1.163 The committee expects that any exemption of delegated legislation from the usual disallowance process should be fully justified in the explanatory memorandum. In this instance, the explanatory memorandum contains no explanation as to why the core details of the Family Home Guarantee will be left to non-disallowable delegated legislation.

1.164 The committee requests the minister's advice as to:

• why it is considered necessary and appropriate to leave nearly all of the elements of the proposed Family Home Guarantee to non-disallowable delegated legislation; and

• whether the bill can be amended to set out the core elements of the Family Home Guarantee on the face of the primary legislation, or to at least provide that directions given to the NHFIC regarding the scheme be subject to the usual parliamentary disallowance process.

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[111] Schedule 2, item 1. The committee draws senators’ attention to this provision pursuant to Senate Standing Order 24(1)(a)(iv).

[112] As set out in section 12 of the National Housing Finance and Investment Corporation Act 2018.

[113] Explanatory memorandum, p. 15.

[114] See for example, Senate Standing Committee for the Scrutiny of Bills, Scrutiny Digest 6 of 2019, pp. 14–16.

[115] Senate Standing Committee for the Scrutiny of Delegated Legislation, Exemption of Delegated Legislation from Parliamentary Oversight: Final Report, March 2021, p. 115.