House of Representatives

Explanatory Memorandum

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

Chapter 5 - Tax Administration Acts

Detailed explanation of new law

Technical corrections to remove references to registration for wine tax

5.1 Item 1 repeals item 66 in Schedule 1 of the A New Tax System (Indirect Tax Administration) Act 1999 to remove decisions about registration for wine tax from the list of reviewable wine tax decisions under the A New Tax System (Wine Equalisation Tax) Act 1999 (WETAct). These references are incorrect and refer to events that do not occur under the WET Act.

5.2 Item 4 inserts new subsection 62(2A) so that each decision under section 17-45 of the WET Act disallowing the whole or part of a claim for wine tax credit is a reviewable wine tax decision.

Reviewable goods and services tax (GST) decisions

5.3 Items 2 and 3 correct references to Divisions 48 (GST groups) and 51 (GST joint ventures) in the table of reviewable GST decisions.

Provision of wine tax information to States and Territories

5.4 Section 68 of the Taxation Administration Act 1953 (TAA 1953) relates to the protection of confidentiality of indirect tax information and provides that a person authorised by the Commissioner of Taxation (Commissioner) or a Deputy Commissioner of Taxation (Deputy Commissioner) may provide certain information in limited circumstances.

5.5 New paragraph 68(3)(e) will be added by items 5 to 8 to allow information relating to alcoholic beverages to be provided to a State or Territory officer for the purpose of any rebate, refund or other credit arrangement provided by a State or Territory in respect of alcoholic beverages. This provision will allow a person authorised by the Commissioner or a Deputy Commissioner to provide certain information relating to the wine tax to State and Territory officers. [Items 5 to 8]

Record keeping requirements

5.6 Section70 of the TAA 1953 is amended to extend the record keeping requirements of that section to entities that make GST-free or input taxed supplies. [Item 9]

Wine tax records

5.7 There is a minor amendment to paragraph 70(1)(b) of the TAA1953 to ensure that records are kept for all assessable dealings with wine and not just dealings that are taxable dealings. [Item 10]