NATIONAL TAX REFORM (STATE PROVISIONS) (ADMINISTRATIVE PENALTIES) AMENDMENT BILL

Second Reading

Adjourned debate on second reading.

(Continued from 10 April 2013.)

The Hon. I.F. EVANS (Davenport) (16:59): This is the National Tax Reform (State Provisions) (Administrative Penalties) Amendment Bill—one of the minister's favourites, I know. This is just a very technical and administrative bill. The minister's second reading speech sets out the reasons for the bill. Essentially it amends the National Tax Reform (State Provisions) Act. The amendment gives effect to South Australia's commitment under a national agreement to extend the commonwealth's interest and penalties regime to some notional GST liabilities of government entities—something I know, Mr Speaker, that you have been following with great interest over the years. There has been uncertainty about whether the state and local governments were liable to pay penalty and interest charges in relation to their notional GST liabilities where necessary. This amendment makes it clear that the interest and penalty charges will apply to state and local government GST obligations where necessary.

While this amendment will allow the Australian Tax Office to charge South Australian government entities interest and penalties on outstanding notional GST payments, this measure is not expected to have a material impact on the state's finances as South Australian government entities are already compliant with the GST law.

A uniform interest and penalty regime will provide competitive neutrality and provide clarity and certainty to government, taxpayers, the Australian Tax Office, and indeed you, Mr Deputy Speaker. These amendments are consistent with those passed by the Parliament of Victoria and for those reasons Her Majesty's loyal opposition intends to support the bill without amendment and without question.

The DEPUTY SPEAKER: Splendid. Are there any other speakers?

Bill read a second time.

Third Reading

The Hon. M.F. O'BRIEN (Napier—Minister for Finance, Minister for Police, Minister for Correctional Services, Minister for Emergency Services, Minister for Road Safety) (17:05): I move:

That this bill be now read a third time.

Bill read a third time and passed.