Bill
Treasury Laws Amendment (Cyclone and Flood Damage Reinsurance Pool) Bill 2022
passed, as at 2022-03-31. Treasury portfolio.
- Sponsor
- Not recorded
- Portfolio
- Treasury
Recorded stages
- introduced — 2022-02-09
- second reading — 2022-02-09
- second reading — 2022-02-17
- second reading — 2022-02-17
- third reading — 2022-02-17
- introduced — 2022-03-29
- second reading — 2022-03-29
- second reading — 2022-03-29
- second reading — 2022-03-30
- second reading — 2022-03-30
- committee — 2022-03-30
- third reading — 2022-03-30
- passed — 2022-03-30
- royal assent — 2022-03-31
Divisions
- The majority voted against an amendment to the usual second reading motion, which is "*that the bill be read a second time*." Reading a bill for a [second time](https://peo.gov.au/understand-our-parliament/how-parliament-works/bills-and-laws/making-a-law-in-the-australian-parliament/) is parliamentary jargon for agreeing with the main idea of the bill. Because this amendment failed, the usual second reading motion will remain unchanged. ### Amendment text > *At the end of the motion, add ", but the Senate is of the opinion that the funds required to establish and maintain the reinsurance pool should be derived from taxation on entities extracting and combusting fossil fuels".* — 2022-03-30, Senate: negative, ayes 8, noes 27
- Treasury Laws Amendment (Cyclone and Flood Damage Reinsurance Pool) Bill 2022 - Second Reading - Show modelling — 2022-03-30, Senate: negative, ayes 26, noes 27
- The majority voted against [amendments](https://www.openaustralia.org.au/senate/?gid=2022-03-30.35.2) introduced by Tasmanian Senator [Nick McKim](https://theyvoteforyou.org.au/people/senate/tasmania/nick_mckim) (Greens), which means they failed. ### What do these amendments do? Tasmanian Senator [Nick McKim](https://theyvoteforyou.org.au/people/senate/tasmania/nick_mckim) (Greens) [explained that](https://www.openaustralia.org.au/senate/?gid=2022-03-30.35.2): > *If passed, these amendments also mean it would be less administratively burdensome, because the amended bill wouldn't require insurers to distinguish between the risk of non-cyclone-related floods and the risk of cyclone related floods, and it wouldn't require them to seek private market insurance for non-cyclone-related floods. In other words, all reinsurance for all flood damage would be covered under this scheme.* — 2022-03-30, Senate: negative, ayes 8, noes 30
- The majority voted against an [amendment](https://www.openaustralia.org.au/senate/?gid=2022-03-30.42.1) introduced by Tasmanian Senator [Nick McKim](https://theyvoteforyou.org.au/people/senate/tasmania/nick_mckim) (Greens), which means it failed. ### Amendment text > *(1) Schedule 1, item 26, page 20 (lines 15 to 20), omit section 41, substitute:* > > *41 Review of Act* > > *(1) The Minister must prepare a report that reviews the need:* > >> *(a) to extend the cyclone reinsurance scheme to cover loss or damage caused by any and all natural disasters, including bushfires, storms and hail; and* >> >> *(b) for this Act to continue in operation.* > > *(2) The report must be prepared:* > >> *(a) as soon as practicable after 1 July 2025; and* >> >> *(b) at least once every 5 years after that day.* — 2022-03-30, Senate: negative, ayes 8, noes 31
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2022-02-09.
The bill would create a government-backed insurance arrangement for cyclone and flood damage.
The Australian Reinsurance Pool Corporation would run the arrangement, which starts on 1 July 2022.
The aim is to make insurance more available and affordable for people and small firms in areas at risk of cyclones.
- The bill amends the Act to set up the reinsurance pool.
- The pool would begin operating on 1 July 2022.
- The bill implements a measure from the 2021-22 Mid-Year Economic and Fiscal Outlook.
Households and small businesses located in cyclone-prone parts of Australia.
Sources
em
billhome
frl act