Revised Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 3 - Consequential amendments relating to collection and recovery rules
Overview
3.1 Schedule 3 to this Bill will make amendments to existing recovery provisions in the ITAA 1936 and other taxation laws. These amendments are consequential upon the introduction of the standardised collection and recovery rules to Part 4-15 in Schedule 1 to the TAA 1953.
3.2 Abbreviations used throughout this Chapter are summarised in the Glossary following the Table of contents for this Explanatory Memorandum.
Summary of the legislation
3.3 The purpose of the amendments is to complete the transition from the existing recovery provisions throughout the various taxation laws to the standardised collection and recovery rules of Part 4-15 in Schedule 1 to the TAA 1953.
3.4 The amendments contained in this Bill will generally apply from 1 July 2000.
Background to the legislation
3.5 Standardised collection and recovery rules were introduced into Part 4-15 in Schedule 1 to the TAA 1953 in the Tax Administration Bill. These standardised rules enable the Commissioner to collect and recover tax-related liabilities which arise under taxation laws and which remain unpaid after they become due and payable. They consolidate and replace the existing recovery provisions which were scattered throughout the taxation laws.
3.6 The Tax Administration Bill contained consequential amendments which either terminated or repealed some of the existing recovery provisions of the taxation law.
3.7 This Bill includes further consequential amendments to existing recovery provisions to complete the transition to the standardised collection and recovery rules.
Explanation of the amendments
3.8 The amendments contained in Schedule 3 :
- •
- amend or repeal references to the existing recovery provisions which will no longer operate on or after 1 July 2000; and
- •
- include references from various recovery provisions in different Acts to the standardised collection and recovery rules of Part 4-15 in Schedule 1 to the TAA 1953.
3.9 The amendments will apply to the ITAA 1936, the ITAA 1997, the TAA 1953 and to other taxation laws. Some of the amendments apply to Acts which are not taxation laws but which, by virtue of specific provisions, apply the existing income tax collection and recovery provisions. For example, the HEFA 1988 and the SAA 1973 apply the existing provisions of Division 1 of Part VI of the ITAA 1936, even though these Acts are not administered by the Commissioner.
3.10 In some instances, savings provisions are required to enable repealed provisions to continue to have effect as appropriate on or after 1July 2000.
3.11 The amendments fall into several groups and are summarised in Tables 3.1 to 3.3.
| Legislative reference | |
|---|---|
| Signpost from a due and payable provision to standardised collection and recovery rules of Part 4-15 in Schedule 1 to the TAA 1953. | Items 19, 65, 66, 68 |
| Terminates the operation of a provision on or after 1 July 2000. | Items 14 to 18, 32, 33 |
| Terminates the extended application of a provision to other Acts. | Items 20 to 28, 36, 37 |
| Replaces reference to a provision which will not operate on or after 1 July 2000 with the equivalent standardised collection and recovery rule of Part 4-15 in Schedule 1 to the TAA 1953. | Items 29, 30, 57, 59 to61 |
| Removes reference to a provision which will not operate on or after 1 July 2000. | Items 31, 38, 67 |
| Repeals a provision or part of a provision. | Items 56, 58, 63, 64 |
| Technical amendments to correct drafting errors. | Items 4, 34, 35, 55 |
| Savings provisions. | Item 62 |
| Amendment | HEFA 1988 | SSA 1991 | SSAA 1999 | SSAA 1973 | VEA 1986 |
|---|---|---|---|---|---|
| Includes reference to standardised collection and recovery rules of Part 4-15 in Schedule 1 to the TAA 1953. | Items 11 to 13 | Items 46 to 47 | Items 49 to 50 | ||
| Includes reference to Subdivision 260-A of standardised collection and recovery rules; replaces tax with an amount, to ensure that Subdivision 260-A operates as intended. | Item 48 | Items 75 to 77 |
| Amendment | FAAA 1999 | LCTA 1999 | WETA 1999 | FBTAA 1986 | PRRTAA 1987 | SCTAC 1997 | SCTM 1997 | TCAA 1955 | TPTAC 1997 | TRTAA 1985 | WTAA 1964 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Signpost from a due and payable provision to standardised collection and recovery rules of Part 4-15 in Schedule 1 to the TAA 1953. | Items 2 and 3 | Items 5 and 6 | Item 10 | Item 45 | Item 51 | Item 54 | Item 69 | ||||
| Includes reference to standardised collection and recovery rules, or to a specific provision of that Part. | Item 72 | ||||||||||
| Includes reference to Subdivision 260-A of standardised collection and recovery rules; and replaces tax with an amount, to ensure that Subdivision 260-A operates as intended. | Item 1 | ||||||||||
| Removes reference to a provision which has been repealed. | Items 7 and 8 | Items 41 and 43 | |||||||||
| Repeals a provision or part of a provision. | Item 39 | Item 52 | Items 70 and 71 | Item 73 | Items 78 and 79 | ||||||
| Savings provisions. | Item 9 | Items 40, 42 and 44 | Item 53 | Item 74 |