Revenue and Other Legislation Amendment Bill 2018
Plain English Summary
Overview
This bill amends a wide range of Queensland legislation covering tax administration, electronic property conveyancing, fine enforcement, alcohol restrictions in Indigenous communities, cultural heritage protections, and the Cross River Rail project. It is administered by the Deputy Premier, Treasurer and Minister for Aboriginal and Torres Strait Islander Partnerships.
Who it affects
Property buyers and sellers benefit from expanded electronic conveyancing options, while primary producers and deceased estates receive backdated tax concessions. People with SPER debts get clearer rules on work and development orders, and nine Indigenous communities gain stronger tools to address homemade alcohol.
Electronic conveyancing and tax changes
Expands Queensland's electronic conveyancing framework to cover a wider range of property transactions beyond residential transfers. Also backdates several beneficial tax arrangements for primary production family transfers, deceased estate land tax, motor vehicle payroll tax allowances, and managed investment schemes.
- New 'ELN lodgement' category allows more property dealings to settle electronically, including surrenders, vestings and acquisitions of new rights
- Family primary production business transfer duty concession extended to all dutiable property types, backdated to October 2016
- Deceased estate land continues to be assessed at individual land tax rates until administration is complete, backdated to June 2010
- Motor vehicle allowance payroll tax rate updated to match current Commonwealth rate, backdated to July 2016
Charitable institution registration
Requires charities to expressly include restrictions on income and property use in their governing documents to maintain tax-exempt registration. Existing charities have 6 to 18 months to update their constitutions.
- Charitable institutions must expressly state in their constitutions that income is used solely for promoting their objects
- Existing registered charities have 6 months to comply, or 18 months if governed by legislation
SPER debt management
Improves the State Penalties Enforcement Registry's debt management system by clarifying work and development order eligibility and establishing a single payment priority order across all debt types.
- Work and development orders available for debts within the 28-day payment period, not just after default
- Single payment priority order established: compensation and restitution to victims comes first, then court fines, then infringement notice fines
- Victims of Crime debts registered with SPER are treated as defaulted court debts, triggering enforcement orders
Homemade alcohol in Indigenous communities
Creates a new offence for possessing substances like turbo yeast with the intention of making homemade alcohol in nine discrete Indigenous communities, closing a gap identified by a 2013 court decision.
- New offence for possessing any substance or combination of substances with the intention of making homemade alcohol
- Applies in Aurukun, Doomadgee, Kowanyama, Lockhart River, Mornington Island, Napranum, Pormpuraaw, Woorabinda and Wujal Wujal
- Substances used for their ordinary purpose (e.g. yeast for baking) are not captured unless there is intent to make alcohol
Cultural heritage and Cross River Rail
Reinstates the previous interpretation of the 'last claim standing' provision in cultural heritage legislation after a Supreme Court ruling, and makes administrative improvements to the Cross River Rail Delivery Authority.
- Clarifies that 'native title holder' in cultural heritage Acts refers only to registered native title holders determined by the Federal Court
- Validates decisions made under the previous interpretation before the Nuga Nuga court decision
- Cross River Rail Board can now appoint an interim CEO for up to 6 months
- Minister confirmed as relevant minister for Cross River Rail compulsory land acquisitions
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee22 Aug 2018View Hansard
Referred to Economics and Governance Committee
The Economics and Governance Committee examined this omnibus bill over six weeks, receiving 14 submissions and holding public hearings in Brisbane and on Mornington Island. The committee recommended the bill be passed without amendment. The most contentious issue was the reinstatement of the 'last claim standing' provision for Indigenous cultural heritage management, with strong views both for and against from native title stakeholders, land users, and legal bodies. The committee also heard significant community evidence about the impact of turbo yeast on homemade alcohol production in discrete Indigenous communities.
Key findings (5)
- Stakeholders broadly supported expanding the e-conveyancing framework for land transactions, with the Queensland Law Society and Property Council of Australia endorsing the reforms
- The Australian Charities and Not-for-profits Commission and Queensland Law Society raised concerns that requiring charities to include express constitutional wording could create inconsistencies with federal charity registration requirements
- Community members on Mornington Island held differing views on prohibiting homemade alcohol substances, with some supporting the ban on turbo yeast and others arguing it was a 'bandaid' solution that could drive people to harder drugs
- The reinstatement of the 'last claim standing' cultural heritage provision drew the most debate, with land users and resource companies supporting certainty while native title bodies argued it could give cultural heritage responsibility to groups found by courts to have no connection to the land
- The committee accepted the government's position that the cultural heritage amendments were an interim measure pending a broader review of the Aboriginal Cultural Heritage Act 2003 and Torres Strait Islander Cultural Heritage Act 2003
Recommendations (1)
- The committee recommends the Revenue and Other Legislation Amendment Bill 2018 be passed.
Committee report tabled
▸Second Reading30 Oct 2018View Hansard
Vote on a motion
Procedural vote on the government's motion to treat the Revenue and Other Legislation Amendment Bill, the Appropriation (Parliament) Bill (No. 2), and the Appropriation Bill (No. 2) as cognate bills for their remaining stages, with separate questions for second readings, consideration in detail together, and separate questions for third readings and long titles.
The motion was agreed to.
A formal vote on whether to accept a proposal — this could be the bill itself, an amendment, or another motion.
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Ayes (48)
Noes (42)
▸20 members spoke9 support11 mixed
As Treasurer, moved the second reading and replied to the debate. Defended the bills as containing no new taxes, emphasised that most unforeseen expenditure was due to Commonwealth funding timing, and outlined the benefits of e-conveyancing, turbo yeast restrictions, and cultural heritage amendments.
“I set out at the beginning of the debate by way of clarity that the Revenue and Other Legislation Amendment Bill does not contain any new revenue measures or tax increases. Rather, it contains various administrative amendments to improve governance.”— 2018-10-30View Hansard
As Deputy Opposition Leader, criticised the government's fiscal management, unforeseen expenditure and record debt trajectory, but confirmed the LNP would guarantee supply and support the bills.
“We recognise and support the fact that more money is required. We recognise that there is unintended expenditure. Of course we will always guarantee supply so we will support this bill.”— 2018-10-30View Hansard
As chair of the Economics and Governance Committee, commended the bills and outlined the committee's examination, including the trip to Mornington Island to hear about homemade alcohol issues and the committee's consideration of e-conveyancing, cultural heritage amendments and appropriation matters.
“The committee recommended that all of these bills be passed.”— 2018-10-30View Hansard
As a committee member, supported the e-conveyancing provisions and was satisfied with data security measures, but raised concerns about the charitable institution registration changes potentially affecting charities unaware of the new requirements, and reservations about the overall bill.
“May I first say in terms of electronic conveyancing for land transactions that we support the movement in these bills as being a wise and appropriate transition into e-conveyancing in Queensland.”— 2018-10-30View Hansard
As a committee member, supported all three bills and highlighted the benefits of e-conveyancing, charitable institution amendments, SPER improvements and the turbo yeast provisions.
“I am pleased to note the committee supports these bills and recommends that they be passed.”— 2018-10-30View Hansard
As a committee member who visited Mornington Island, supported the turbo yeast restrictions and e-conveyancing but raised concerns about the Nuga Nuga cultural heritage amendments and the effectiveness of alcohol bans in remote communities.
“I support our committee's recommendation that turbo yeast be referred to separately as a substance and carry an offence to possess it. Turbo yeast is not something that is used for cooking.”— 2018-10-30View Hansard
As a committee member who visited Mornington Island, supported all bills and provided detailed account of the devastating effects of homemade alcohol on Indigenous communities, including children as young as six knowing the recipe.
“What is disturbing is that children as young as six know the recipe to brew.”— 2018-10-30View Hansard
Supported the turbo yeast amendments but raised concerns about the practical difficulty for police proving intent. Accepted the retrospective 'last claim standing' provisions on balance. Criticised the government's fiscal management in relation to the appropriation bills.
“I do have some concerns around the legislation and the requirement for police to prove that the person found in possession of this yeast had it with the intent to produce alcohol.”— 2018-10-30View Hansard
As assistant Treasurer, supported all bills, highlighting e-conveyancing benefits, primary producer succession planning, and the turbo yeast crackdown.
“These are bills that are all about getting on with the job of governing in Queensland, focusing on growing jobs and also delivering infrastructure in this wonderful state.”— 2018-10-30View Hansard
As Minister for Transport, supported all bills and detailed the transport infrastructure projects that benefited from accelerated funding, defending the government's economic record on job creation and investment.
“We can see that works of $305 million in the area of Transport and Main Roads have been accelerated from the 2018-19 financial year to the 2017-18 financial year. We are getting a lot of infrastructure done.”— 2018-10-30View Hansard
Supported the ROLA bill amendments, particularly the e-conveyancing provisions, the transfer duty concession for family farm succession planning, and the turbo yeast prohibition for communities like Woorabinda. Expressed concerns about the appropriation bills' level of unforeseen expenditure.
“If we are to retain our family farm sector, we must have successful succession planning in family farm businesses. This process is always stressful and personal. These amendments remove some hurdles, making it easier for farming families to have a succession plan in place.”— 2018-10-30View Hansard
As ministerial champion for Mornington Island, strongly supported the turbo yeast ban, describing firsthand experience of the homemade alcohol problem in the community including the store going through one tonne of sugar every fortnight.
“I heard anecdotal reports that the store on Mornington Island goes through one tonne of sugar every fortnight, and this is in a community with about 1,000 people.”— 2018-10-30View Hansard
Raised specific SPER concerns about constituents waiting over eight years for court ordered restitution of debt. Criticised the government's fiscal management including the police budget cuts, rising crime and unemployment.
“After more than eight years and a court ordered debt and constituents who cannot get an answer from SPER and a substantial amount of the debt that is ballooning in SPER belonging to people just like my constituents, we need to see better answers.”— 2018-10-30View Hansard
Supported all bills, rebutted opposition claims about debt and unforeseen expenditure by noting debt increased under the LNP and that unforeseen expenditure was below the five-year average.
“It is very interesting to note that unforeseen expenditure is below the annual average of $637 million over the previous five years.”— 2018-10-30View Hansard
As shadow minister for Aboriginal and Torres Strait Islander partnerships, did not oppose the turbo yeast or cultural heritage amendments but argued the government was merely tinkering at the edges and called for a meeting between affected Indigenous representatives and the Deputy Premier regarding the 'last claim standing' provision.
“Whilst we on this side of the House do not oppose this amendment, it appears the Palaszczuk Labor government is merely tinkering at the edges as this bill offers nothing in the form of better enforcement to prevent sly grogging in Aboriginal and Torres Strait Islander communities.”— 2018-10-30View Hansard
Criticised the government's fiscal management and rising debt trajectory but explicitly stated the LNP supports the bills, albeit with keen reservations about how the money will be spent.
“Having said all of that, we support the bills, but with the keenest of reservations as to how the Labor Party might spend the money that is appropriated.”— 2018-10-30View Hansard
Criticised the government's debt management, noting that at $83 billion it would take 83 years of $1 billion surpluses to pay down the debt. Raised concerns about police budget cuts and the Toowoomba Second Range Crossing toll but did not explicitly oppose the bills.
“If we had a genuine surplus in this state of $1 billion each and every year it would take 83 years to pay down the debt Labor has racked up for Queensland.”— 2018-10-30View Hansard
Welcomed the turbo yeast restriction but argued it falls far short of what is needed, calling urgently for a full review of alcohol management plans on Mornington Island. Expressed serious concerns about the 'last claim standing' cultural heritage provisions.
“We welcome this, but we desperately need to move towards management plans, because that is what is needed to really make a difference there.”— 2018-10-30View Hansard
Supported the turbo yeast provisions but argued two elements were missing: enforcement against sly grogging and addressing the rise of ice in Indigenous communities. Criticised the government's fiscal record and rising debt.
“Unless we address the elephant in the room and the need for enforcement around sly grogging and ice in these communities, let me tell you that dealing with turbo yeast ain't going to turbocharge the effort to improve these Indigenous communities.”— 2018-10-30View Hansard
As shadow transport minister, applauded the turbo yeast provisions for Indigenous communities but criticised the government's broader fiscal management, including five new taxes and record capital works underspend.
“I applaud anything that can be done to combat and capture prohibited substances—in other words, the turbo yeast et cetera.”— 2018-10-30View Hansard
▸In Detail30 Oct 2018View Hansard
Extends the transitional period for charitable institutions to amend their constitutions to comply with the new express wording requirements from six months to two years, in response to concerns raised by the Queensland Law Society that the original transitional period was too short.
▸7 clause votes (all passed)
Vote on clause 17
Vote on whether to retain the clause imposing a two per cent land tax surcharge on foreign companies and trustees of foreign trusts. The LNP opposed the surcharge as damaging to foreign investment; the government argued it harmonised with other states.
The clause was kept in the bill.
A vote on whether a specific clause should remain in the bill as written.
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Ayes (46)
Noes (37)
Vote on clause 18
Vote on whether to retain the clause increasing land tax rates for companies and trustees with aggregated land holdings above $5 million by 0.25 percentage points. The LNP opposed it as a job-destroying tax; the government defended it as funding services.
The clause was kept in the bill.
A vote on whether a specific clause should remain in the bill as written.
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Ayes (46)
Noes (37)
Vote on clause 19
Vote on whether to retain the clause increasing the absentee land tax surcharge from 1.5 per cent to two per cent, which the Treasurer described as harmonising with Victoria and New South Wales. The LNP argued it removed Queensland's competitive advantage.
The clause was kept in the bill.
A vote on whether a specific clause should remain in the bill as written.
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Ayes (46)
Noes (37)
Vote on clause 47
Vote on the transitional mechanism for petroleum royalty changes. The LNP argued the royalty increase blindsided the gas industry without consultation, citing QRC criticism. The Treasurer said this clause facilitated changes but was not the rate increase itself.
The clause was kept in the bill.
A vote on whether a specific clause should remain in the bill as written.
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Ayes (46)
Noes (37)
Vote on clause 52
Vote on the transitional petroleum royalty rate of 11.25 per cent for annual return periods ending 31 December 2019. The LNP argued this was retrospective; the Treasurer denied retrospectivity, saying it smoothed out collection for companies that had already paid.
The clause was kept in the bill.
A vote on whether a specific clause should remain in the bill as written.
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Ayes (46)
Noes (37)
Vote on clause 56
Vote on increasing the petroleum royalty rate to 12.5 per cent from 1 July 2019, a 25 per cent increase. The LNP argued the rate was uncompetitive; the Treasurer cited Queensland's competitiveness relative to Western Australia and Canadian provinces.
The clause was kept in the bill.
A vote on whether a specific clause should remain in the bill as written.
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Ayes (46)
Noes (37)
That clauses 48 to 51, as read, stand part of the bill
Vote on clauses relating to petroleum royalty return processes. The shadow Treasurer argued the complexities should have gone through the committee process rather than being squeezed through late on a Friday night during budget week.
The motion passed.
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Ayes (46)
Noes (37)
▸2 procedural votes
That the House do now adjourn
Procedural motion to adjourn the House after the completion of the budget sitting.
The motion passed.
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Ayes (43)
Noes (35)
Vote to end debate
Government closure motion to end debate on the remaining clauses of the Revenue and Other Legislation Amendment Bill and force an immediate vote, moved by the Treasurer late on Friday night.
Debate was ended and a vote was forced.
A procedural vote to end debate and force an immediate decision. Sometimes called a “gag motion”.
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Ayes (45)
Noes (37)
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Sectors Affected
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