Government Business Enterprises Amendment Act 2001 (TAS)

Government Business Enterprises Amendment Act 2001

An Act to amend the Government Business Enterprises Act 1995

[Royal Assent 30 October 2001]

Be it enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows:

1Short titleThis Act may be cited as the Government Business Enterprises Amendment Act 2001 . 2CommencementThis Act is taken to have commenced on 1 July 2001. 3Principal ActIn this Act, the Government Business Enterprises Act 1995 is referred to as the Principal Act. 4Section 3 amended (Interpretation) Section 3(1) of the Principal Act is amended as follows: (a) by inserting "the Income Tax Assessment Act 1997 of the Commonwealth and" after "with" in the definition of Commonwealth Tax Act ; (b) by omitting " section 67 " from the definition of income tax equivalent and substituting " section 68 ". 5Section 67 insertedAfter section 66 of the Principal Act , the following section is inserted in Division 1: 67Interpretation of Part 10 (1)  In this Part – non-prescribed Government Business Enterprise means a Government Business Enterprise that is not a prescribed Government Business Enterprise; non-prescribed subsidiary means a subsidiary of a Government Business Enterprise that is not a prescribed subsidiary; NTER Agreement means the National Tax Equivalent Regime Memorandum of Understanding entered into by the Treasurer on behalf of the State on 16 July 2001, as amended from time to time; prescribed Government Business Enterprise means a Government Business Enterprise that is declared under subsection (2) to be a prescribed Government Business Enterprise; prescribed subsidiary means a subsidiary of a Government Business Enterprise that is declared under subsection (3) to be a prescribed subsidiary. (2)  The Treasurer may declare a Government Business Enterprise to be a prescribed Government Business Enterprise and the declaration is to be issued as a Treasurer’s Instruction. (3)  The Treasurer may declare a subsidiary of a Government Business Enterprise to be a prescribed subsidiary and the declaration is to be issued as a Treasurer’s Instruction. (4)  The Treasurer may amend or revoke a declaration made under subsection (2) or (3) and the amendment or revocation is to be issued as a Treasurer’s Instruction. (5)  Despite section 114(4) , a declaration under subsection (2) or (3) for the purposes of the NTER Agreement may take effect on 1 July 2001 or a later day specified in the declaration. 6Part 10, Division 2 substituted Division 2 of Part 10 of the Principal Act is repealed and the following Divisions are substituted: Division 2Liability to pay income tax equivalent 68Liability to pay income tax equivalent (1)  Each Government Business Enterprise and each subsidiary of a Government Business Enterprise is liable to pay into the Consolidated Fund an income tax equivalent in respect of each financial year. (2)  Despite subsection (1) , a Government Business Enterprise or subsidiary is not liable to pay an income tax equivalent to the extent to which it is liable to pay income tax under the Commonwealth Tax Act. Division 3Payment, &c., of income tax equivalents by prescribed Government Business Enterprises and prescribed subsidiaries 69Agreements in respect of payment of income tax equivalent by prescribed Government Business Enterprise and prescribed subsidiary (1)  The Treasurer, on behalf of the State, may enter into an agreement in respect of the calculation, determination and payment of, and all other matters relevant to, the income tax equivalents which prescribed Government Business Enterprises and prescribed subsidiaries are liable to pay under section 68 . (2)  The Treasurer, on behalf of the State, may enter into an agreement amending or revoking an agreement entered into under subsection (1) . (3)  An agreement entered into under subsection (1) or (2) may take effect on the first day of the financial year in which it is made or a later day. (4)  The NTER Agreement is taken to be an agreement entered into under subsection (1) and is taken to have taken effect on 1 July 2001. (5)  Any act or omission done under, or for the purposes of giving effect to, the NTER Agreement before the Government Business Enterprises Amendment Act 2001 receives the Royal Assent is not invalid or ineffective merely because it was done before that Act receives the Royal Assent. 70Application of agreement (1)  The Treasurer may issue Treasurer’s Instructions relating to the implementation of an agreement entered into under section 69(1) or (2) . (2)  Despite section 114(4) , Treasurer’s Instructions issued under subsection (1) may take effect on the first day of the financial year in which the agreement is made or a later day. (3)  Treasurer’s Instructions issued in respect of the implementation of the NTER Agreement before the Government Business Enterprises Amendment Act 2001 receives the Royal Assent are taken to have been validly issued under subsection (1) . Division 3APayment, &c., of income tax equivalents by non-prescribed Government Business Enterprises and non-prescribed subsidiaries 71Payment of income tax equivalent (1)  Subject to this Act and the Treasurer’s Instructions, the Commonwealth Tax Act applies in respect of the calculation, determination and payment of, and all other matters relevant to, an income tax equivalent which a non-prescribed Government Business Enterprise or a non-prescribed subsidiary is liable to pay as if – (a) the Treasurer or his or her delegate were the Commonwealth Commissioner of Taxation; and (b) the Government Business Enterprise or subsidiary were a corporation incorporated under the Corporations Act that is required to comply with the Commonwealth Tax Act; and (c) the income tax equivalent were the amount of income tax that would be payable by such a corporation under the Commonwealth Tax Act. (2)  The Treasurer, in addition to any other rulings that he or she could make by virtue of the application of subsection (1) , may, in respect of an income tax equivalent or for the purpose of determining whether an income tax equivalent is payable, specify whether an aspect of the Commonwealth Tax Act can be applied in relation to the calculation, determination and payment of an income tax equivalent payable by a particular non-prescribed Government Business Enterprise, a particular non-prescribed subsidiary or non-prescribed Government Business Enterprises and non-prescribed subsidiaries generally and, if it can be applied, how it is to be applied. 72Estimate of income tax equivalent (1)  Not less than 30 days before the end of a financial year, a non-prescribed Government Business Enterprise and a non-prescribed subsidiary must provide to the Treasurer an estimate of the amount of income tax equivalent that is likely to be payable in respect of that financial year. (2)  The estimate is to be in the form and contain the information required by the Treasurer’s Instructions. (3)  The Treasurer may direct the non-prescribed Government Business Enterprise or the non-prescribed subsidiary to pay the whole or part of the amount estimated under subsection (1) into the Consolidated Fund at the times, and in the manner, specified in the direction. 73Penalty for late payment (1)  If a non-prescribed Government Business Enterprise or a non-prescribed subsidiary does not pay the whole or any part of the amount it is directed to pay under section 72(3) by the day on which it is due, the amount unpaid bears interest at 1·5 times the prescribed rate from that day to and including the day on which it is paid. (2)  A non-prescribed Government Business Enterprise or a non-prescribed subsidiary is not liable to pay interest under subsection (1) if the Treasurer determines otherwise. 74Objections (1)  A non-prescribed Government Business Enterprise or a non-prescribed subsidiary aggrieved by a determination or calculation made under this Part or a ruling may lodge an objection with the Treasurer within 60 days after the Government Business Enterprise or subsidiary receives notice of the determination, calculation or ruling giving rise to the objection. (2)  A non-prescribed Government Business Enterprise or a non-prescribed subsidiary which has lodged an objection may submit to the Treasurer written submissions and other information for his or her consideration in determining the objection. (3)  The Treasurer may inform himself or herself on any matter relevant to an objection in such manner as he or she considers appropriate. (4)  At the determination of an objection, the Treasurer may – (a) dismiss the objection; or (b) uphold the objection and amend or revoke the determination, calculation or ruling which is the subject of the objection. (5)  Subject to this section, an objection is to be instituted, considered and determined as specified in the Treasurer’s Instructions. (6)  The decision of the Treasurer under subsection (4) is final. (7)  Any appeal, objection or review process provided for in or under the Commonwealth Tax Act is not available to a non-prescribed Government Business Enterprise or a non-prescribed subsidiary. 74AAgreement to administer payment, &c., of income tax equivalent (1)  The Treasurer may enter into an agreement with a person in respect of the performance and exercise of the Treasurer’s functions and powers under this Division for and on behalf of the Treasurer. (2)  The Treasurer may enter into an agreement amending or revoking an agreement entered into under subsection (1) . 7Section 75 amended (Waiver of income tax equivalent) Section 75 of the Principal Act is amended by inserting after subsection (4) the following subsection: (5)  Where the Treasurer has waived the whole or any part of a payment, the Treasurer must notify the following person of that waiver: (a) in the case of a prescribed Government Business Enterprise or a prescribed subsidiary, the person administering the scheme relating to the payment of income tax equivalents established by an agreement under section 69 ; (b) in the case of a non-prescribed Government Business Enterprise or a non-prescribed subsidiary and where the Treasurer has entered into an agreement under section 74A , the person who under that agreement is performing and exercising the Treasurer’s functions and powers under Division 3A . 8Section 76 repealed Section 76 of the Principal Act is repealed. 9Section 114 amended (Treasurer's Instructions) Section 114 of the Principal Act is amended by inserting after subsection (1) the following subsection: (1A)  Treasurer’s Instructions may include a declaration of a prescribed Government Business Enterprise or prescribed subsidiary under section 67 . 10Section 118 amended (Delegation by Stakeholder Minister, Portfolio Minister or Treasurer) Section 118(2) of the Principal Act is amended by inserting after paragraph (g) the following paragraphs: (ga) the making, amendment or revocation of a declaration under section 67 ; (gb) the making, amendment or revocation of an agreement under section 69 or 74A ; 11Section 120 amended (Regulations) Section 120 of the Principal Act is amended by omitting subsections (6) and (7) and substituting the following subsections: (6)  The regulations may contain provisions of a savings or transitional nature consequent on the enactment of one or more of the following Acts: (a) this Act; (b) the Government Business Enterprises Amendment Act 2001 . (7)  The regulations may contain provisions of a savings or transitional nature consequent on the making, amendment or revocation of an agreement under section 69 or 74A . (8)  A provision referred to in subsection (6) or (7) may take effect on – (a) the day on which the Act giving rise to the provision commences, or a later day; or (b) the first day of the financial year in which the agreement giving rise to the provision is made, amended or revoked, or a later day. 12Schedules 1, 2, 3 and 4 amendedPart 2 of Schedule 1 and Schedules 2, 3 and 4 to the Principal Act are amended by omitting "North West Regional Water Authority".

[Second reading presentation speech made in:

House of Assembly on 3 OCTOBER 2001

Legislative Council on 10 OCTOBER 2001]