House of Representatives

Supplementary Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon. P.J. Keating, M.P.)

GENERAL OUTLINE

The amendments will amend the Bill to -

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enable the commencement day for the first phase of the tax file number system to be set by Proclamation;

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make it clear that taxpayers have the option not to quote their TFN;

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ensure that pensioners in receipt of any part of a qualifying pension or benefit will be exempt from the need to quote a TFN to financial institutions and other investment bodies;

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ensure that pensioners in receipt of any part of a qualifying pension or benefit are, correspondingly, exempt from the need to quote a TFN in connection with any non-pension employment income;

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ensure that the TFN reporting requirements do not extend to loans (e.g., mortgages) made to their customers by financial institutions;

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ensure that existing dividend and interest reports will continue to be required until the commencement of the new reporting requirements;

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make it clear that annual investment income reports under the new tax file number arrangements will be first required in respect of investment income derived in the financial year ending 30 June 1992; and

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bring the sanctions for failing to meet reporting requirements into line with those generally applicable under taxation law for equivalent offences.