House of Representatives

Explanatory Memorandum

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

Chapter 5 - Record-keeping requirements

Outline of Chapter

5.1 This Chapter explains the requirements of the record-keeping provisions of Part 5 of the PGBA Bill. These provisions contain the rules about what records you need to keep and how long you need to retain them to be entitled to a grant or benefit. A failure to comply with the record-keeping requirements disqualifies you from an entitlement to a grant or benefit.

Detailed explanation of Part 5

Entitlement conditional on satisfying record-keeping requirements

5.2 To be eligible to claim a grant or benefit, records substantiating a claim for the grant or benefit must be kept and retained. [Paragraph 25(1)(a) and subclauses 25(2) and 26(2)]

5.3 If you make a statement in a claim undertaking to comply with the post-claim record keeping requirements the Commissioner can assume that you will comply with those requirements. However, if you fail to comply with those requirements the Commissioner may amend the assessment of your claim. [Subclause 25(2)]

Record-keeping requirements determined by the Commissioner

5.4 An applicant for a grant or benefit will be taken to have satisfied the requirement to keep records substantiating a claim if he or she keeps records of the kind and in a manner specified in a written determination made by the Commissioner [subclause 26(4)] .

Retention of records

5.5 Records kept to substantiate a claim must be retained until the time the claim is made [paragraph 26(2)(b)] and for a further 5 years after the claim [subclause 27(2)] . The records need not be retained for this time if the Commissioner tells the applicant for the grant or benefit that the records do not need to be retained, or if the applicant is a company, it is finally dissolved before the end of the 5 years [subclause 27(5)] .

Form of the records

5.6 The records kept and retained by the applicant for a grant or benefit must be in the English language, or be readily accessible and easily convertible into the English language. [Subclause 26(3)]

Commissioner may require records to be produced

5.7 The Commissioner may give written notice to a person, who has applied for or has been paid a grant or benefit, to produce the records they have kept to substantiate their claim for the grant or benefit. The notice must give 28 days or more to comply. The 28 day period starts from the day after the notice is given. The Commissioner can extend the time to comply with the notice. [Subclauses 27(3) and 27(4)]

5.8 Merely failing to comply with the notice will not result in an offence under section 8C of the TAA 1953. However, failing to comply with the notice will mean that the record-keeping requirements have not been satisfied and it will be taken that there is not, and has never been, an entitlement to claim the grant or benefit. [Subclauses 25(1) and 27(6)]

Records that are lost or destroyed

5.9 If you have a complete copy of the lost or destroyed record, that copy will be treated as the original from the time the original was lost or destroyed [subclause 28(2)] . If such a copy is not available, but the Commissioner is satisfied that you took reasonable precautions to prevent the loss or destruction, your entitlement to a grant or benefit is not affected by your failing to retain or produce the original record [subclause 28(3)] .