On 17 March 2021, the Government introduced a Bill into Parliament to reform Australia’s Offshore Banking Unit (OBU) regime to avoid Australia’s continued designation, by the OECD and European Union, as having a harmful tax regime.
The Prime Minister granted an exemption from the Regulation Impact Statement (RIS) requirements because the publication of sensitive impact analysis and information about consultations could cause unintended market effects or lead to speculative behaviour which would not be in the national interest, in particular as consultations are ongoing.
Consistent with the Australian Government’s RIS requirements, a post-implementation review must be completed by the Treasury within two years of implementation.
Advice about this exemption was not noted in the Explanatory Memorandum of the Bill.