House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

Chapter 6 - Disclosure of information

Overview

6.1 Items 5 to 7 of Schedule 1 to the Sales Tax Assessment Amendment Bill 1997 will amend the Sales Tax Assessment Act 1992 (the Act) to allow for the disclosure of information to appropriate State and Territory officers to assist in the State and Territory rebate schemes.

Summary of the amendments

Purpose of the amendments

6.2 To provide for the limited disclosure of information to State and Territory officers to facilitate the State and Territory franchise fee rebate schemes.

Date of effect

6.3 The amendments will apply from 6 August 1997.

Background to the legislation

6.4 As explained in chapter 3 (see paragraph 3.4), in some cases, the States and Territories intend to implement arrangements to rebate the difference between the increase in the sales tax rate and the previous rate of liquor franchise fees.

6.5 The administration of the rebate schemes would be eased if some of the information collected by the Australian Taxation Office on the additional 15% sales tax on alcoholic beverages was made available to the States and Territories. Under section 110 of the Act, the Commissioner is currently prohibited from disclosing that information to the States and Territories.

Explanation of the amendments

6.6 It is proposed that section 110 of the Act be amended to allow the Commissioner to disclose limited information to the States and Territories. The information may only be disclosed by a person authorised by the Commissioner of Taxation or by a Deputy Commissioner of Taxation. The information can only be disclosed to a State or Territory officer for the purpose of administering a scheme of rebates, refunds or other payments or credits made by a State or Territory in respect of alcoholic beverages subject to the additional 15% sales tax. [Item 5 of Schedule 1 - new paragraph 110(3)(e)] .

6.7 A State or Territory officer is a person holding an office as prescribed in the regulations. [Item 7 of Schedule 1 - new definition of 'State or Territory officer' in subsection 110(6)]

6.8 The information which can be disclosed is limited to:

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the identity of the parties dealing with the alcoholic beverages;

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the amount for which the goods are sold;

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the taxable value of the goods;

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the amount of sales tax paid, or payable, for the goods and the identity of the person liable for the tax;

•

details of any credits to which a person is entitled in respect of the goods and the identity of that person. [Item 6 of Schedule 1 - new subsection 110(5A)]