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In summing up, as I’ve outlined previously, the government’s committed to strengthening the integrity of our tax system and to improving the efficiency and effectiveness of our super system. The measures in this bill will build on those two commitments. Schedule 1 to the bill amends the definition of a ‘significant global entity’ to ensure that multinationals can’t structure to avoid our multinational tax integrity rules, which remain some of the strongest in the world. SGE, or significant global entity, is a concept to define, generally speaking, a group of entities interrelated by a control relationship that could enable non-arm’s-length dealings of special interest to tax authorities around the world, including, of course, the Australian tax office. Many of the significant actions undertaken by the government to tackle multinational tax avoidance in recent years rely on this definition. This measure will ensure members of large business groups, headed by propriety companies, trusts, partnerships, investment entities and individuals are subject to these stringent integrity rules.
In addition, schedule 2 to the bill will make permanent the current temporary CGT relief for merging superannuation funds from 1 July 2020. This will facilitate and encourage, or certainly remove one of the barriers to, superannuation fund managers merging, ultimately benefiting the members of those underperforming super funds. This tax relief is important in giving superannuation fund trustees certainty to undertake longer-term planning and merger negotiations. Of course, without this measure inefficient funds may be unable to merge or to exit the industry, likely resulting in members of those funds ultimately having lower incomes in their retirement.
Full details of the measures are contained in the explanatory memorandum. I commend the bill to the House.
The SPEAKER: The original question was that this bill be now read a second time. To this the honourable member for Whitlam has moved as an amendment that all words after ‘That’ be omitted, with a view to substituting other words. So, the immediate question is that the words proposed to be omitted stand part of the question.