The progress of the bill that will impose the proposed Division 296 tax has taken a turn, with the Senate agreeing on a motion to split it into two parts, isolating the proposed impost from other non-related measures.
The motion was put forward by West Australian Liberal Party Senator Dean Smith on 27 November, the last sitting day of the Senate for 2024, and stated the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 should have all schedules unrelated to the tax moved into a separate bill.
As a result of the motion, the Senate has agreed to deal with two bills – the Treasury Laws Amendment (Better Targeted Superannuation Concessions) Bill 2023, which contains schedules 1 to 3 of the original bill, and the Treasury Laws Amendment (Miscellaneous Measures) Bill 2024, which contains schedules 4 to 8.
Schedules 1 to 3 will create the Division 296 tax and direct its operation, while schedules 4 to 8 will amend acts related to the Australian Charities and Not-for-profits Commission, Financial Regulator Assessment Authority, goods and services tax and the licensing of foreign financial services providers.
According to the federal parliament website, the motion was accepted by the Senate and the formal splitting of the bills took place on 28 November, with the revised Division 296 bill slated for further debate when the Senate sits on 4 February 2025.
At that time, the Treasury Laws Amendment (Better Targeted Superannuation Concessions) Bill 2023 will face a second reading debate in the upper house where the government only has 25 votes and requires the support of all 11 Greens senators and at least three of 10 crossbenchers to reach the 39 votes required to pass it.
