Commonwealth Entities (Payment Surcharges) (Consequential Provisions and Other Matters) Act 2024 (103 of 2024)

Schedule 2   Payment surcharges charged before commencement

Part 3   Commonwealth entities (payment surcharges) tax

5   Commonwealth entities (payment surcharges) tax

(1) A person is liable to pay Commonwealth entities (payment surcharges) tax if:

(a) at a time occurring on or after 1 January 2003 and before the commencement of this Act:

(i) a Commonwealth entity had, under a law of the Commonwealth, a State or a Territory, the power, function or duty of collecting a payment (the base payment ); and

(ii) the base payment was not a surchargeable payment; and

(iii) the Commonwealth entity charged, or purported to charge, a payment surcharge in relation to the base payment; and

(iv) the payment surcharge was paid, or purportedly paid; and

(b) the Commonwealth, or the Commonwealth entity, is liable to pay to the person an amount because of the matters mentioned in subparagraphs (a)(ii) to (iv).

Note 1: The base payment was a surchargeable payment if Part 2 applies to it. Item 4 limits the application of Part 2.

Note 2: The amount of the tax is set out in the Commonwealth Entities (Payment Surcharges) Tax (Imposition) Act 2024.

(2) The Commonwealth, or the Commonwealth entity, (whichever is relevant) must set off the amount of Commonwealth entities (payment surcharges) tax that the person is liable to pay against the liability mentioned in paragraph (1)(b).

Item does not limit Imposition Act

(3) Nothing in this item limits section 6 of the Commonwealth Entities (Payment Surcharges) Tax (Imposition) Act 2024.

Note: Section 6 of the Commonwealth Entities (Payment Surcharges) Tax (Imposition) Act 2024 provides that Commonwealth entities (payment surcharges) tax is not imposed in relation to a base payment if the imposition would exceed the legislative power of the Commonwealth.