TERRITORIES LEGISLATION AMENDMENT BILL

Since Federation we have worked to build a fairer Australia and a more unified commonwealth. The purpose of this bill is to extend selected Commonwealth laws to the  external territories to better align their legal frameworks with the rest of Australia. The scope of this bill encompasses the Norfolk and Christmas Islands to Jervis Bay and the Cocos Islands. Although we have communities spread out across one of the largest continents we are united by our values and shared aspirations. This legislation is about bringing communities together under one law with equal rights and access to opportunities. Our government recognizes it has a duty to serve hard working Australians wherever they may be.

For many of these isolated communities, encouraging investment is already a great challenge. Add to this the difficulty of different tax frameworks, legal structures and even limited access to mainland media and you are creating a highly adverse business environment.

Creating sustainable economic growth starts with a consistent legal framework. The goal of this amendment is to make these areas attractive places for small businesses to set up and easier for job seekers to find work. This is critical for a rapid COVID-19 recovery which has hit the external territories harder than many other Australian communities.

Many of the businesses operating in these areas are already significantly disadvantaged by the tyranny of distance. Add to that the outdated legal structures and the work of small businesses becomes unnecessarily difficult.

At a minimum, this bill will bring service delivery and regulatory frameworks in the external territories into line with the rest of Australia. Our long-term vision is to make these areas attractive places for small businesses to set up and for job seekers to find work. Much like regional Australia, all too often these communities feel left behind and forgotten. These changes begin to address these disadvantages and support small businesses operating in these territories. 

One of the first and most important roles of government is ensuring the integrity of our legal and tax system. How much tax you pay shouldn’t depend on where you register your company. What should matter is that Australian entrepreneurs are focused on running their business and not wasting time on red tape. This bill is about creating a homogenous legal and tax structure that frees up SMEs and makes growing your business and employing people easier.  

This legislation recognizes that the laws and privileges which are available to metropolitan Melbournians or Sydneysiders should be accessible to all Australians. Where you are born in this country should not determine your access to the age pension, Medicare or the pharmaceutical benefits scheme. These benefits are for all Australians.

The promise of our federation was equality of opportunity, not outcome. Providing access to these benefits for those in need until they can stand on their own feet is common sense. We are a compassionate country and ensuring that Australians are looked after in times of need is non-negotiable. This is simply a matter of fairness.

The casualties of the existing legislation to date are the countless small businesses that either can’t get going or fail because of the inefficient tax regimes governing these areas. The other problem has been certain individuals and companies attempting to use these areas as tax havens to avoid paying their fair share. There are few examples of bureaucratic inefficiency and counterproductive measures worse than those that we have seen in relation to these territories. It creates confusion, stifles businesses and undermines job-seeking Australians. It benefits the few at the expense of the many. Bureaucrats in Canberra should never stand in the way of innovative businesses. It is an ongoing tragedy of our nation that despite SMEs employing more people than anyone else, they often shoulder the highest regulatory burden. The reality is regulation reduces the employment opportunities, undermines entrepreneurs and often creates more problems than it solves. Smarter regulation is about efficiency and fairness for everyone. It is about putting into practice the values of our nation in supporting the aspirations of individual Australians. Tax reform is central to achieving this.

During times of natural disaster such as fires, floods and pandemics we cannot allow Australians to be left behind simply because they were born in a particular part of our country. It is unacceptable that in the 21st century people remain disadvantaged in our wealthy nation simply because of where they call “home”. This bill is about looking after our own and supporting healthy communities that often feel marginalised and isolated. Doing this is a fundamental responsibility that goes to the heart of ensuring that the health and wellbeing of Australians is looked after. Supporting the growth and development of territories such as Norfolk Island is more critical now than ever before.

If you are a business operating and registered on Norfolk Island you will be transferred to the ASIC companies register. This will give greater ease of access to mainland suppliers, financial markets and government support where relevant. Transitioning to the ASIC register will happen automatically. We believe that new legislation should not impose an additional burden on the lives of small business owners. All too frequently new regulation comes into force without examining the cumulative burden on businesses and the increasing cost of compliance. We will never forget that the engine of our economy is small businesses, often succeeding against the odds and at great personal sacrifice to the entrepreneurs. We need to encourage strategic risk taking by individuals who generate opportunities and employment by innovating and finding market gaps. This legislation and our budget is about providing more freedom and services for hard working Australians and businesses to employ people and get back to work following COVID-19.

Part of this bill incorporates improvements to health, education and transport infrastructure. On Norfolk Island this is particularly vital as we ensure that young families, children and the elderly are given the support they need to live long and prosper. Improving access to childcare is a step in the right direction to help parents pursue a healthy work-life balance. Like the rest of Australia, childcare frees up parents to work and is a highly valued. Investing in community infrastructure underpins much of our economic success. It is why Australia remains one of the most sought-after countries to live in.

Community broadcasting on Norfolk Island will also receive improved support from the government as their radio and tv stations fall under Commonwealth law. This will allow for additional media licenses to be issued and more broadcasting services available for residents in the future. It will also improve access to mainland media outlets building a more connected Australia.

Changes to the bankruptcy and insolvency legislation are part of improving the business ecosystem. Whilst no one likes to see companies fail it is critical to ensure that we have a robust framework for dealing with these situations. It creates investor confidence to know that there is a modern process which protects stakeholders. Access to the Australian Financial Security Authority is critical in creating a healthy business environment. As it stands if an individual became bankrupt on Norfolk Island they could remain bankrupt indefinitely if certain conditions are not met. Not only is this grossly unfair for people who may have fallen on hard times but also forces retail businesses to deal with an impossible problem. By extending bankruptcy legislation there will be additional protections for creditors and a pathway out of bankruptcy for individuals. This is a common sense measure that will go a long way to helping create a more vibrant economy and more competitive market.

 By integrating the legal system of Norfolk Island and other territories with the rest of Australia we are creating a more connected and dynamic economy. Combining this with better communication, education and infrastructure is nation building at its core. We cannot afford to be a reactive government but by creating strong communities have a nation well prepared for both opportunity and adversity. It is all too often the case that government by the people towards this vision is replaced with government by the bureaucrat. Australians like those in the more remote and disconnected parts of our country suffer most from unaccountable governance by bureaucrats. The red tape, dualistic tax system and restricted access to government services are all examples of this.

Additional amendments included in this legislation allow for the relevant enforcement powers to be delegated to the local government and police officials. This has the goal of creating a seamless and low-impact transition which will minimize any disruption and encourage the speedy delivery of benefits.

This is the kind of legislation that is about improving the lives of Australians, encouraging small businesses and unifying our nation under a single legal system. This government is continuing the task of nation building with this legislation recognizing that there is not a Norfolk Island Australia or a Jervis Bay Australia but a united Australia.

For these reasons I commend this bill to the house.