The complexity of Australia’s tax laws, combined with the broad and constantly evolving real-life scenarios to which it must apply, sometimes results in unforeseen or unintended outcomes for taxpayers.
As administrators of Australia’s tax and superannuation systems, we can’t change the law. But where it isn’t working as intended, there is a discretionary power that allows us to modify how the law operates to ensure it can be administered to achieve what it was designed to do, without having to wait for the law to be changed.
The Commissioner’s remedial power (CRP) may be able to be used where:
- a tax law isn’t operating as intended for all (or a group) of taxpayers
- there are no other administrative or interpretive approaches available to resolve the issue
- resolving the issue would provide a beneficial outcome for affected taxpayers
- it would have a negligible impact on the Commonwealth budget.
Since the CRP was introduced in 2017, we’ve used it to resolve a range of individual, business, superannuation and tax administration issues.
You can help us identity more issues, but first, you will need to consider whether your issue meets the statutory criteria which govern our use of the CRP.
When the CRP can and can’t be used
The vast majority of the issues we have considered for the CRP were unsuitable because the proposed modifications were inconsistent with the intended purpose or object of the provisions they would have been modifying. In other words, the proposed solutions were at odds with what the law intended to achieve.
To consider if your issue aligns with the intent of the law, you should review the:
- explanatory memorandum, second reading speech, relevant committee reports and other documents that accompanied the original provisions and subsequent amendments by Parliament
- text of the legislative provisions, along with other relevant material such as Government announcements and Budget Papers.
Other reasons CRP applications have been found unsuitable include where the proposed modification would:
- have more than a negligible impact on the Commonwealth budget
- assist just one particular entity (rather than all or a group of taxpayers).
The process for considering CRP applications
Anyone can submit potential issues for resolution via the CRP by completing a form on our website. Once submitted, your CRP application goes through a process to assess its suitability via the CRP Secretariat and CRP Advisory Panel.
If found suitable, a CRP legislative instrument that would give effect to the modification would be released for public consultation prior to being finalised. CRP legislative instruments are also subject to parliamentary oversight and can only take effect after a 15 sitting day disallowance period has elapsed.
To find out more, or to submit an issue you would like us to investigate, go to ato.gov.au/crp