COMMITTEES

Senator WALSH (Victoria—Minister for Early Childhood Education and Minister for Youth) (17:17): I present four government responses to committee reports as listed on today's Order of Business. In accordance with the usual practice, I seek leave to incorporate the documents in Hansard. Leave granted.

The documents read as follows— Australian Government response to the Senate Economics References Committee final report: Not-for-profit entities—Tax assessments July 2025 Introduction This is the Australian Government's response to the Senate Economics References Committee's final report Not-for-profit entities—Tax assessments published on 1 November 2024. The government notes the concern expressed by not-for-profit entities in submissions to the committee inquiry.

Many of these concerns relate to a perceived new requirement for entities with only charitable purposes to register with the Australian Charities and Not-for-profits Commission (ACNC) in order to be exempt from income tax. Other concerns were raised about eligibility for the income tax exemption. The requirement for not-for-profits to lodge a self-review return does not alter which not-for-profits are exempt from income tax.

Nor does it impose a new requirement for entities with only charitable purposes to register with the ACNC as a condition of being exempt from income tax. This requirement has existed since the establishment of the ACNC in 2012. The government's response to the committee's recommendations is provided below.

Response to the recommendations Recommendation 1 The Committee recommends that the Australian Government introduce thresholds that exempt smaller, low-risk not-for-profit entities from completing the self-review assessment, capturing only those with a turnover above a certain amount. Australian Government response The Government notes this recommendation. The requirement for not-for-profits to lodge a self-review return was put in place by the Morrison government through the 2021-22 Budget.

The Australian Taxation Office (ATO) has been administering the reporting change in line with the Morrison government's policy decision. The Albanese government has recognised that many affected organisations will be small and have limited resources, so we have ensured the ATO will take a practical compliance approach to help organisations meet the new reporting requirement.

The requirement to provide a self-review return already incorporates a risk-based approach by excluding entities that do not have an Australian Business Number. The ATO will pre-populate information in future self-review returns based on information provided by not-for-profits in earlier returns. The administrative burden of submitting a return is therefore expected to be minimised over time.

Recommendation 2 The Committee recommends that the Australian Taxation Office extend the deadline for the return of the not-for-profit self-review assessment beyond 31 March 2025. Australian Government response The Government notes this recommendation. The deadline for returning the self-review return is decided by the ATO.

The Taxation Administration Act 1953 allows the Commissioner of Taxation to defer a deadline for a return. Recommendation 3 The Committee recommends that the Australian Government explores the appropriateness and/or practicality of the Australian Charities and Not-for-profits Commission managing the self-review assessment regime in place of the Australian Taxation Office.

Australian Government response The Government notes this recommendation. The Commissioner of Taxation has general administration of income tax law. The ATO is therefore the right body to assess the taxable status of not-for-profit entities against the requirements of income tax law.

This is consistent with the role the ATO has in assessing the taxable status of charities. While registration with the ACNC is a necessary condition for a charity to be exempt from income tax, it is not a sufficient condition. A charity must also satisfy one of four conditionsto be exempt from income tax.

The ATO assesses whether a charity meets one of those conditions. The ACNC may collect information from an entity that is necessary for the ATO to assess compliance of the entity with the tax law. However, it may only do so from entities that it has registered.

Having the ACNC collect information from non-charitable NFPs would require the ACNC to be able to register those NFPs. These entities would then need to follow all requirements of ACNC-registered bodies, such as annual financial reporting. This would impose a comparable or greater administrative burden on NFPs than completing the self-review.

Recommendation 4 The Committee recommends that the Australian Taxation Office and Australian Charities and Not-for-profits Commission work to harmonise their guidance on tax obligations for not-for-profit entities, and that the Australian Charities and Not-for-profits Commission updates its online information on factors affecting the registration of not-for-profit entities as charities.

Australian Government response The Government notes this recommendation. The Government supports the ATO and ACNC continuing to provide guidance to charities and NFPs on their obligations. As independent bodies, the ATO and ACNC decide the best ways of providing such guidance.

Australian Government response to the Joint Standing Committee on Foreign Affairs, Defence and Trade report: Inquiry into the Department of Defence Annual Report 2021-22 January 2025 The Government thanks the Joint Standing Committee on Foreign Affairs, Defence and Trade (the Committee) for its work on the inquiry into the Department of Defence Annual Report 2021-22.

The Committee's report made 12 recommendations and was tabled on 14 September 2023. The Government notes the 12 recommendations of the Committee in its Inquiry report. In the time since the tabling of the report the Government has finalised a number of processes related to the Committee's recommendations, including: releasing the 2024 National Defence Strategy and undertaking a complete rebuild and reprioritisation of the Integrated Investment Program; releasing the Defence Industry Development Strategy; releasing the 2024 Defence Workforce Plan; closing out the implementation of the Afghanistan Inquiry Report; and releasing the Government's Response to the final report of the Royal Commission into Defence and Veteran Suicide.

Accordingly, in response to the report's recommendations the Government draws the Committee's attention to the associated documents, and the Deputy Prime Minister's Ministerial Statement in the House of Representatives on 12 September 2024 concerning the closure of the Afghanistan Inquiry Report. The Committee's recommendations were taken into account throughout these processes.

The Government has also received the Defence Estate Audit and is currently considering its findings. Recommendation 10 will be considered in the context of this process. The Government has directed Defence to provide briefings to the Committee on the progress of works at the Harold E Holt Naval Communications Station in relation to Recommendation 11.

Australian Government response to the Joint Standing Committee on Foreign Affairs, Defence and Trade report: Inquiry into the Department of Defence Annual Report 2022-23 January 2025 The Government acknowledges the observations of the Joint Standing Committee on Foreign Affairs, Defence and Trade (the Committee) in the report of its inquiry into the Department of Defence Annual Report 2022-23.

The Committee made seven recommendations in its report, tabled on 19 November 2024. The Government agrees with four recommendations relating to: Australia's military support to Ukraine and encouraging Australian industry to further contribute to support efforts; the reopening of the Australian Embassy in Ukraine, with a permanent military attaché; Defence reporting on progress to remediate the Defence Force Recruiting contractor shortages; and Defence examining Australian supply chain resilience and vulnerabilities, with a focus of increasing sovereign capability.

The Government notes one recommendation relating to the Government reviewing arrangements that govern decisions on the placement of diplomatic personnel in high-risk locations. The Government notes one recommendation relating to Defence publishing a statement on its approach to Ukraine and how support is prioritised. The Government also notes that it has considered and responded to the recommendation relating to establishing a 'one-stop-shop' to coordinate Australia's support to Ukraine.

The Government Response is outlined below. Recommendation 1 The Subcommittee recommends the Australian Government continue providing military assistance to Ukraine while exploring additional opportunities to encourage and support Australian industry and institutions to further contribute to the support effort. Response to recommendation: The Government agrees to this recommendation.

The Government remains committed to supporting Ukraine's self-defence and providing military assistance to Ukraine that is relevant, practical, aligned with Ukraine's needs, and with no adverse impact on Australian Defence Force preparedness. The Government, through Defence, will continue to assess future options of support, including through provision of materiel from disposal processes, procurement from Australian defence industry, and through provision of grants to credible funds supporting Ukraine.

The Government will also, through Defence and Austrade, continue to support industry engagement with Ukraine. Recommendation 2 The Subcommittee recommends Defence (inclusive of the Department of Defence and the Australian Defence Force) publish a statement on its internal policy approach to Ukraine, that is, whether it prioritises support to Ukraine, and if so, how it prioritises that support.

Response to recommendation: The Government notes this recommendation. The Government remains steadfast in its support to Ukraine. A sizeable portion of Australian military assistance for Ukraine to date has been sourced through Defence disposal processes.

Through 2024, Defence refined its decision-making processes on Ukraine assistance to enable a more proactive approach to identifying options to support Ukraine. This has included: Elevating to the senior executive level an internal consultation process to coordinate current and future Defence support for Ukraine; establishing a dedicated coordination unit within International Policy Division in Strategy, Policy, and Industry Group to provide a focal point for Defence on Ukraine, including on the provision of credible, practical military assistance; and issuing internal guidance that reaffirms the intent to actively consider assistance to the Armed Forces of Ukraine when making decisions on disposals.

Recommendation 3 The Subcommittee recommends the Australian Government establish a whole of government mechanism, a 'one-stop-shop', potentially within the Department of Prime Minister and Cabinet, for the coordination and liaison around Australia's support to Ukraine. Response to recommendation: The Government notes this recommendation. The Government has addressed the matters dealt with in this recommendation through the Government Response to the Foreign Affairs, Defence and Trade References Committee inquiry into Australian support for Ukraine.

Recommendation 4 The Subcommittee recommends the Australian Government review any legislation, regulations or policies that govern decisions around the placement of diplomatic personnel in high-risk locations, to enable Australia to more flexibly assert a diplomatic presence when needed, without sacrificing personnel safety. Response to recommendation: The Government notes this recommendation.

The existing legislation provides an appropriate framework to enable safe diplomatic operations, including in high-risk locations, through application of risk management processes which includes regular review. The risk-focused approach has been effective, including in extreme and high-threat locations. Recommendation 5 The Subcommittee recommends that the Australian Government reopen the Australian Embassy in Ukraine, with a permanent military attaché alongside it, as soon as possible.

Response to recommendation: The Government agrees to this recommendation. On 18 December 2024, the Minister for Foreign Affairs, Senator the Hon Penny Wong, announced Australia would be reopening the Australian Embassy in Kyiv. From January 2025, Australia's Ambassador, His Excellency Mr Paul Lehmann, as well as the Deputy Head of Mission will return to Kyiv.

Progress on work to enable the full return of Australia's diplomatic presence, including a Defence attaché, continues. Recommendation 6 The Subcommittee recommends Defence (inclusive of the Department of Defence and the Australian Defence Force) report back to the Subcommittee in six months and 12 months' time on its progress in remediating the Defence Force Recruiting contractor shortages and any ongoing impact to Defence Force Recruiting outcomes.

Response to recommendation: The Government agrees to this recommendation and Defence is available to update the Subcommittee in accordance with the recommended timeframes. Recommendation 7 The Subcommittee welcomes the increasingly concerted focus by Defence (inclusive of the Department of Defence and the Australian Defence Force) in its examination of Australian supply chain resilience and vulnerabilities, and recommends it continues with increasing sovereign capability by: Reviewing and replacing current components sourced internationally with components produced domestically, and increasing Australia's future domestic sourcing of components.

The Subcommittee recommends that Defence (inclusive of the Department of Defence and the Australian Defence Force), through the Guided Weapons Explosive Ordnance Enterprise, create a detailed reporting framework with identified goals and performance measures on critical vulnerabilities, for six monthly reviews by the Defence executive and Australian Government more broadly.

Response to recommendation: The Government agrees to this recommendation. A key objective in the Australian Guided Weapons and Explosive Ordnance (GWEO) Plan is to increase Australian Defence Force preparedness and national resilience by establishing domestic manufacturing of key components and weapons systems. The Government has already committed to: Manufacturing and maintaining GWEO components.

The Government has committed more than $500 million across GWEO domestic manufacturing projects to support Australian industry. Defence will support Australian companies to develop their industrial capability to manufacture and maintain critical components for specific weapons, so that they can compete to join global supply chains. Defence will continue working with industry partners and other Governments to increase domestic manufacturing across the spectrum of guided weapons sub-systems.

Developing GWEO technology. Defence will improve sovereign access to GWEO- relevant technology through targeted research and development. Defence will focus on technology that is less likely to be shared with Australia by allies and international partners (for example, seekers and guidance sections), and components that are difficult to transport (for example, warheads and rocket motors).

Defence will support Australian companies to mature their technology so that it is ready for production and can be integrated into current or future weapons and their supply chains. Defence is investing up to $60 million over the next five years to develop the next generation of guided weapon sub-systems and components. Accurate monitoring and reporting will be critical in the evaluation of performance.

This will allow for review of the effectiveness of the Australian GWEO Plan, and for appropriate corrective actions and risk mitigations to be considered and established. Defence will improve its existing performance framework to support more precise reporting on the metrics that reflect improved resilience and uplift of the domestic GWEO industrial base. This will include regular reporting against scope, schedule and cost, as well as risk related to the lines of effort selected to address capability investment priorities identified in the National Defence Strategy and the Australian GWEO Plan.

Australian Government response to the Senate Legal and Constitutional Affairs Committee report: Commonwealth Workplace Protection Orders Bill 2024 [Provisions] July 2025 Introduction The Australian Government thanks the Senate Legal and Constitutional Affairs Legislation Committee (the Committee) for its report, Commonwealth Workplace Protection Orders Bill 2024 [Provisions], tabled on 14 March 2025.

The Government would like to acknowledge the contributions that organisations made in preparing written submissions to the Committee's inquiry. The Commonwealth Workplace Protection Orders Bill 2024lapsed in the Senate on 28 March 2025. The Bill sought to enhance protections for Commonwealth workers who face increasing acts of aggression and violence from the public when performing their work delivering essential Government services.

The Bill would respond to Recommendation 17 of the Services Australia Security Risk Management Review conducted by Mr Graham Ashton APM. The Government will take into consideration the Committee's report and contributions from organisations in their written submissions to the Committee's inquiry should the Bill be re-introduced to the Parliament. The Government is pleased to provide the following response to the Committee's recommendations.

Committee's Recommendations Recommendation 1 The committee recommends that the Explanatory Memorandum be amended to clarify that a person's status as a Commonwealth worker does not depend on whether that person is easily identified as a Commonwealth worker. The Government agrees to this recommendation. Should the Bill be re-introduced to Parliament, the Committee's comments in relation to the content of the Explanatory Memorandum will be addressed.

Recommendation 2 Subject to the preceding recommendation, the committee recommends that the Senate pass the bill. The Government supports this recommendation.