Treasury Laws Amendment (Divesting from Illegal Israeli Settlements) Bill 2024

High-Level Summary
The bill proposes to amend various Australian laws to ensure that investments from the Future Fund and Australian charities are not directed towards companies operating in illegal Israeli settlements on Palestinian land. This aims to align Australia's financial activities with international law and its commitment to a rule-based global order.

Summary
The Treasury Laws Amendment (Divesting from Illegal Israeli Settlements) Bill 2024 amends the Future Fund Act 2006, the Income Tax Assessment Act 1997, the Australian Charities and Not-for-profits Commission Act 2012, and related regulations. The bill mandates the Australian Government Future Fund and registered Australian charities to divest from and cease any financial involvement with companies listed on the UN Database of companies operating in illegal Israeli settlements. Specifically, Schedule 1 requires immediate divestment from these companies by the Future Fund once identified, with compliance to be reported annually. Schedule 2 imposes similar obligations on Australian registered charities, requiring them to ensure their funds do not support such entities. These measures aim to ensure compliance with international law and Australia's obligations to the international community.

Argument For
Normative Bases
  1. Non-Discrimination
  2. Pro-Democracy
  3. Environmentalism

The bill should be supported because it seeks to uphold principles of international law and human rights by ensuring that Australian investments do not support activities deemed illegal by the international community. By divesting from companies involved in illegal Israeli settlements, Australia reaffirms its commitment to non-discrimination and the right to self-determination for the Palestinian people, aligning with international resolutions and legal judgments [Judgment].

The measures are also in line with promoting a global rules-based order, which is crucial for maintaining international peace and security. This approach not only reinforces Australia's stance on human rights but also ensures that its financial practices do not contribute to environmental degradation or social injustice in the occupied Palestinian territories [Judgment].


Argument Against
Normative Bases
  1. Propertarianism
  2. National Prestige/Patriotism

The bill should be opposed because it potentially limits the investment opportunities of the Future Fund and Australian charities, which could have implications for their financial performance and returns. Prohibiting investments based on political criteria rather than financial viability could undermine the fiduciary responsibility to maximize returns, which may not be in the best interest of Australian taxpayers and beneficiaries of these funds [Judgment].

Additionally, taking a unilateral stance on such a complex international issue might strain Australia's diplomatic relations with Israel and its allies, possibly impacting trade and cooperation in other areas. These diplomatic and economic considerations should be carefully weighed against the perceived benefits of the bill [Judgment].


Date:

2024-11-28

Status:

Before Senate

Sponsor:

THORPE, Sen Lidia; PAYMAN, Sen Fatima

Portfolio:

Unspecified

Categories:

Discrimination / Human Rights, Foreign Policy, Financial Regulation

Timeline:
28/11/2024

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