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This is a Bill, not an Act. For current law, see the Acts databases.
2019
The Parliament of the
Commonwealth of Australia
THE SENATE
Presented and read a first time
Public Governance, Performance and
Accountability Amendment (Tax
Transparency in Procurement and
Grants) Bill 2019
No. , 2019
(Senator Patrick)
A Bill for an Act to amend the
Public Governance,
Performance and Accountability Act 2013
, and for
related purposes
No. , 2019
Public Governance, Performance and Accountability Amendment (Tax
Transparency in Procurement and Grants) Bill 2019
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Amendments
3
Part 1--Main amendments
3
Public Governance, Performance and Accountability Act 2013
3
Part 2--Other amendments
12
Taxation Administration Act 1953
12
No. , 2019
Public Governance, Performance and Accountability Amendment (Tax
Transparency in Procurement and Grants) Bill 2019
1
A Bill for an Act to amend the
Public Governance,
1
Performance and Accountability Act 2013
, and for
2
related purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act is the
Public Governance, Performance and
6
Accountability Amendment (Tax Transparency in Procurement and
7
Grants) Act 2019.
8
2 Commencement
9
(1) Each provision of this Act specified in column 1 of the table
10
commences, or is taken to have commenced, in accordance with
11
2
Public Governance, Performance and Accountability Amendment (Tax
Transparency in Procurement and Grants) Bill 2019
No. , 2019
column 2 of the table. Any other statement in column 2 has effect
1
according to its terms.
2
3
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. The whole of
this Act
The day after this Act receives the Royal
Assent.
Note:
This table relates only to the provisions of this Act as originally
4
enacted. It will not be amended to deal with any later amendments of
5
this Act.
6
(2) Any information in column 3 of the table is not part of this Act.
7
Information may be inserted in this column, or information in it
8
may be edited, in any published version of this Act.
9
3 Schedules
10
Legislation that is specified in a Schedule to this Act is amended or
11
repealed as set out in the applicable items in the Schedule
12
concerned, and any other item in a Schedule to this Act has effect
13
according to its terms.
14
Amendments
Schedule 1
Main amendments
Part 1
No. , 2019
Public Governance, Performance and Accountability Amendment (Tax
Transparency in Procurement and Grants) Bill 2019
3
Schedule 1--Amendments
1
Part 1--Main amendments
2
Public Governance, Performance and Accountability Act
3
2013
4
1 Section 6
5
After:
6
It also requires the Finance Minister to publish monthly financial
7
reports and table annual consolidated statements in the Parliament.
8
insert:
9
It also places requirements on the accountable authority of the
10
entity for relevant procurements (if the entity is a CPR entity) and
11
grants.
12
2 Section 8
13
Insert:
14
associate
, in relation to a non-Commonwealth entity, means any of
15
the following:
16
(a) if the entity is a body corporate--a related body corporate
17
(within the meaning of the
Corporations Act 2001
) of the
18
body corporate;
19
(b) if the entity is a partnership--a partner in the partnership;
20
(c) if the entity is an unincorporated association or body of
21
persons--a member of the committee of management of the
22
association or body;
23
(d) if the entity is a trust--a trustee of the trust.
24
Commonwealth Grants Rules and Guidelines
means the
25
Commonwealth Grants Rules and Guidelines in force under
26
section 105C.
27
Schedule 1
Amendments
Part 1
Main amendments
4
Public Governance, Performance and Accountability Amendment (Tax
Transparency in Procurement and Grants) Bill 2019
No. , 2019
Commonwealth Procurement Rules
means the Commonwealth
1
Procurement Rules in force under subsection 105B(1).
2
CPR entity
: see subsection 49B(2).
3
grant
:
4
(a) in Subdivision C of Division 8 of Part 3-2--see section 49F;
5
and
6
(b) otherwise--has its ordinary meaning.
7
grant applicant
, in relation to a grant, means a
8
non-Commonwealth entity applying for the grant.
9
grantee
means a non-Commonwealth entity who receives a grant.
10
non-Commonwealth entity
means any of the following:
11
(a) an individual;
12
(b) a body corporate;
13
(c) a partnership;
14
(d) any other unincorporated association or body of persons;
15
(e) a trust;
16
but does not include a Commonwealth company or a
17
Commonwealth entity.
18
relevant procurement
: see subsection 49B(1).
19
submission
has the same meaning as in the Commonwealth
20
Procurement Rules.
21
supplier
means a non-Commonwealth entity that makes a
22
submission as part of relevant procurement by a CPR entity.
23
tax haven
: see subsection 49A(1).
24
tax haven grantee
:
see subsection 49J(2).
25
tax haven supplier
: see subsection 49E(2).
26
tax-transparency information
:
27
(a) in relation to a supplier--see subsection 49C(1); and
28
(b) in relation to a grant applicant--see subsection 49G(1).
29
Amendments
Schedule 1
Main amendments
Part 1
No. , 2019
Public Governance, Performance and Accountability Amendment (Tax
Transparency in Procurement and Grants) Bill 2019
5
3 Section 33 (after the paragraph relating to Division 7)
1
Insert:
2
Division 8 is about relevant procurements by CPR entities and
3
grants.
4
4 Subsection 46(1) (note)
5
After "Note", insert "1".
6
5 At the end of subsection 46(1) (after the note)
7
Add:
8
Note 2:
A CPR entity must include information relating to arrangements
9
entered into with tax haven suppliers as part of relevant procurement
10
(see section 49E).
11
Note 3:
A Commonwealth entity must include information relating to grants
12
awarded to tax haven grantees (see section 49J).
13
6 At the end of Part 2-3
14
Add:
15
Schedule 1
Amendments
Part 1
Main amendments
6
Public Governance, Performance and Accountability Amendment (Tax
Transparency in Procurement and Grants) Bill 2019
No. , 2019
Division 8--Relevant procurements by CPR entities and
1
grants
2
Subdivision A--Preliminary
3
49A Tax havens
4
(1) A
tax haven
is a country, or a part of a country, which is
5
prescribed by the rules as a tax haven.
6
(2) Before prescribing a country, or a part of a country, as a tax haven,
7
the Minister must:
8
(a) consult with the Commissioner of Taxation; and
9
(b) publish a notice:
10
(i) setting out the country, or the part of the country, the
11
Minister proposes to prescribe; and
12
(ii) inviting any person to make, within a period specified in
13
the notice, written submissions about the proposed
14
prescription; and
15
(c) have regard to submissions received within the specified
16
period.
17
(3) If the Minister does not prescribe a country, or a part of a country,
18
as a tax haven within 6 months after this section's commencement,
19
the Minister must publish on the Department's website an
20
explanation as to why no such prescription has occurred.
21
Subdivision B--Relevant procurement by CPR entities
22
49B Relevant procurement by CPR entities
23
(1) Procurement (within the meaning of the Commonwealth
24
Procurement Rules) by a CPR entity is
relevant procurement
by
25
the entity
if:
26
(a) in the case of procurement for construction services--the
27
expected value of the construction services being procured is
28
$7.5 million or more; or
29
Amendments
Schedule 1
Main amendments
Part 1
No. , 2019
Public Governance, Performance and Accountability Amendment (Tax
Transparency in Procurement and Grants) Bill 2019
7
(b) in the case of procurement for any other goods or services--
1
the expected value of the goods or services being procured is
2
$4 million or more.
3
(2) A
CPR entity
is:
4
(a) a non-corporate Commonwealth entity; or
5
(b) a corporate Commonwealth entity prescribed by the rules.
6
49C Suppliers must provide tax-transparency information
7
(1) As part of relevant procurement by a CPR entity, the accountable
8
authority of the entity must require a supplier's submission made in
9
response to the procurement to be accompanied by the following
10
information (
tax-transparency information
):
11
(a) whether the supplier or the supplier's associates (if any) are
12
domiciled in a tax haven;
13
(b) if the supplier or the supplier's associates are so domiciled--
14
how the supplier or the supplier's associates (if any) have
15
complied, or are complying, with any applicable laws in
16
Australia or elsewhere that relate to tax;
17
(c) any other information prescribed by the rules.
18
Note:
Sections 137.1 and 137.2 of the
Criminal Code
create offences for
19
providing false or misleading information or documents.
20
(2) If a supplier's submission in response to the procurement is not
21
accompanied by tax-transparency information, the accountable
22
authority must not accept the submission.
23
49D Matters to consider in accepting suppliers' submissions
24
(1) In deciding whether to accept a submission by a supplier made in
25
response to relevant procurement by a CPR entity, the accountable
26
authority of the entity must consider the following:
27
(a) whether the supplier or the supplier's associates (if any) are
28
domiciled in a tax haven;
29
(b) if the supplier or the supplier's associates are so domiciled--
30
how the supplier or the supplier's associates (if any) have
31
complied, or are complying, with any applicable laws in
32
Australia or elsewhere that relate to tax;
33
(c) any other matter prescribed by the rules.
34
Schedule 1
Amendments
Part 1
Main amendments
8
Public Governance, Performance and Accountability Amendment (Tax
Transparency in Procurement and Grants) Bill 2019
No. , 2019
(2) Subsection (1) does not limit the matters the accountable authority
1
may consider.
2
(3) In considering the matters mentioned in subsection (1), the
3
accountable authority must:
4
(a) have regard to the tax-transparency information that
5
accompanied the supplier's submission; and
6
(b) consult with the Commissioner of Taxation.
7
49E Annual reports for CPR entities must include certain
8
information about tax haven suppliers
9
(1) The accountable authority of a CPR entity must include in the
10
annual report for the entity for a reporting period:
11
(a) the number of arrangements entered into with tax haven
12
suppliers as part of relevant procurement by the entity during
13
the period; and
14
(b) the value of each such arrangement.
15
(2) A supplier is a
tax haven supplier
if the supplier, or an associate of
16
the supplier, is domiciled in a tax haven.
17
Subdivision C--Grants
18
49F Grant
19
(1) A
grant
is a provision of financial assistance by, or on behalf of,
20
the Commonwealth:
21
(a) under which relevant money or other CRF money is to be
22
paid to a grantee; and
23
(b) which is intended to help achieve the priorities and objectives
24
of the Australian Government.
25
(2) Subsection (1) does not apply to financial assistance that is
26
provided as part of an arrangement that is not taken to be a grant
27
(within the meaning of the Commonwealth Grants Rules and
28
Guidelines).
29
Amendments
Schedule 1
Main amendments
Part 1
No. , 2019
Public Governance, Performance and Accountability Amendment (Tax
Transparency in Procurement and Grants) Bill 2019
9
49G Grant applicant must provide tax-transparency information
1
(1) As part of the process by a Commonwealth entity to award a grant,
2
the accountable authority of the entity must require a grant
3
applicant to provide the following information (
tax-transparency
4
information
):
5
(a) whether the applicant or the applicant's associates (if any) are
6
domiciled in a tax haven;
7
(b) if the applicant or the applicant's associates are so
8
domiciled--how the applicant or the applicant's associates (if
9
any) have complied, or are complying, with any applicable
10
laws in Australia or elsewhere that relate to tax;
11
(c) any other information prescribed by the rules.
12
Note:
Sections 137.1 and 137.2 of the
Criminal Code
create offences for
13
providing false or misleading information or documents.
14
(2) If the grant applicant does not provide the tax-transparency
15
information, the accountable authority must not award the grant to
16
the applicant.
17
49H Matters to consider in awarding grants
18
(1) In deciding whether to award a grant to a grant applicant, the
19
accountable authority of a Commonwealth entity must consider the
20
following:
21
(a) whether the applicant or the applicant's associates (if any) are
22
domiciled in a tax haven;
23
(b) if the applicant or the applicant's associates are so
24
domiciled--how the applicant or the applicant's associates (if
25
any) have complied, or are complying, with any applicable
26
laws in Australia or elsewhere that relate to tax;
27
(c) any other matter prescribed by the rules.
28
(2) Subsection (1) does not limit the matters the accountable authority
29
may consider.
30
(3) In considering the matters mentioned in subsection (1), the
31
accountable authority of the entity must:
32
(a) have regard to the tax-transparency information that
33
accompanied the grant applicant's application; and
34
Schedule 1
Amendments
Part 1
Main amendments
10
Public Governance, Performance and Accountability Amendment (Tax
Transparency in Procurement and Grants) Bill 2019
No. , 2019
(b) consult with the Commissioner of Taxation.
1
49J Annual reports for accountable authorities must include
2
information about tax haven grantees
3
(1) If grants have been awarded that relate to a Commonwealth entity
4
during a reporting period, the accountable authority of the entity
5
must include in the annual report for the entity:
6
(a) the number of those grants awarded to tax haven grantees
7
during the period; and
8
(b) the value of each grant.
9
(2) A grantee is a
tax haven grantee
if the grantee, or an associate of
10
the grantee, is domiciled in a tax haven.
11
Subdivision D--Miscellaneous
12
49K Inconsistency with this Division
13
(1) A law of the Commonwealth has no effect to the extent of any
14
inconsistency with this Division, but the law is taken to be
15
consistent with this Division to the extent that the law is capable of
16
operating concurrently with this Division.
17
(2) A law of the Commonwealth includes:
18
(a) the Commonwealth Grants Rules and Guidelines; and
19
(b) the Commonwealth Procurement Rules.
20
7 At the end of subsection 105B(1)
21
Add:
22
Note:
Subdivision B of Division 8 of Part 2-3 sets out requirements relating
23
to tax havens for CPR entities in relation to relevant procurement.
24
8 At the end of section 105C
25
Add:
26
Note:
Subdivision C of Division 8 of Part 2-3 sets out requirements relating
27
to tax havens in relation to grants.
28
Amendments
Schedule 1
Main amendments
Part 1
No. , 2019
Public Governance, Performance and Accountability Amendment (Tax
Transparency in Procurement and Grants) Bill 2019
11
9 Application provision
1
Procurements
2
(1)
Sections 49C and 49D of the
Public Governance, Performance and
3
Accountability Act 2013
(the
PGPA Act
), as inserted by this Part, apply
4
in relation to a procurement that begins on or after this item
5
commences.
6
Grants
7
(2)
Sections 49G and 49H of the PGPA Act, as inserted by this Part, apply
8
in relation to a process to award a grant that begins on or after this item
9
commences.
10
Annual reports
11
(3)
Sections 49E and 49J of the PGPA Act, as inserted by this Part, apply in
12
relation to an annual report for a reporting period beginning after this
13
item commences.
14
Schedule 1
Amendments
Part 2
Other amendments
12
Public Governance, Performance and Accountability Amendment (Tax
Transparency in Procurement and Grants) Bill 2019
No. , 2019
Part 2--Other amendments
1
Taxation Administration Act 1953
2
10 Subsection 355-65(8) in Schedule 1 (after table item 7)
3
Insert:
4
5
7A
the accountable authority of a
CPR entity
is for the purpose of the accountable
authority deciding, as part of relevant
procurement by the entity, whether to
accept a supplier's submission.
7B
the accountable authority of a
Commonwealth entity
is for the purpose of the accountable
authority deciding, as part of the
process of awarding a grant, whether to
award a grant to a grant applicant.
11 At the end of section 355-65 in Schedule 1
6
Add:
7
(10) An expression used in table items 7A and 7B in table 7 in
8
subsection (8) that is also used in the
Public Governance,
9
Performance and Accountability Act 2013
has the same meaning as
10
in that Act.
11
12 Application provision
--
Taxation Administration Act 1953
12
The amendments of section 355-65 in Schedule 1 to the
Taxation
13
Administration Act 1953
made by this Part apply in relation to records
14
and disclosures of information made on or after this item's
15
commencement (whether the information was obtained before, on or
16
after that commencement).
17
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