EXPLANATORY STATEMENT
STATUTORY RULES 1982 NO 110
ISSUED BY THE AUTHORITY OF THE MINISTER FOR DEFENCE
DEFENCE ACT 1903 – ARMY AND AIR FORCE CANTEEN
SERVICE REGULATIONS (AMENDMENT)
Paragraph 124(1)(o) of the Defence Act 1903 authorizes regulations to prescribe matters providing for and in relation to the establishment, management, operation, control and taxation of canteens.
The Army and Air Force Canteen Service Regulations, made under the Defence Act, provide for the establishment and operation of the Army and Air Force Canteen Service (AAFCANS).
In July 1981, the Regulations to establish AAFCANS replaced the Australian Services Canteens Organization Regulations.
When AAFCANS was established, paragraph 124(1)(o) of the Defence Act did not authorise the making of regulations relating to taxation and it was recognised that such provision needed to be inserted.
Section 11 of the Defence Acts Amendment Act 1981 (No 178 of 1981) accordingly amended paragraph 124(1)(o) of the Defence Act. The amendment enabled regulations to be made subjecting to taxation (other than income tax) canteens or organisations established under the regulations to establish, manage, operate or control canteens.
This Statutory Rule amends the Army and Air Force Canteen Service Regulations by inserting a new regulation 26A.
Sub-regulation 26A(1) subjects the AAFCANS Board to taxation, other than income tax, under the laws of the Commonwealth, the States and the Territories.
Sub-regulation 26A(2) ensures that the new provision does not render the Board liable to liquor licensing fees.
The Statutory Rule has effect from the date of gazettal.
Overview
The Army and Air Force Canteen Service Regulations, made under the Defence Act 1903, were amended in 1982 to address a legislative gap in the taxation of the Army and Air Force Canteen Service (AAFCANS). Initially, the Defence Act did not authorise regulations that would subject AAFCANS to taxation, other than income tax. This oversight was addressed by the Defence Acts Amendment Act 1981, which amended the Defence Act to enable such regulations. Consequently, the Statutory Rules 1982 No. 110, issued under the authority of the Minister for Defence, introduced a new regulation, 26A, to subject the AAFCANS Board to taxation under Commonwealth, State, and Territory laws, while ensuring that the Board remains exempt from liquor licensing fees. This amendment aimed to ensure that AAFCANS operates within a legally compliant framework regarding taxation.
Scope and Application
The Army and Air Force Canteen Service Regulations, as amended by these Statutory Rules, apply to the Army and Air Force Canteen Service (AAFCANS) Board and its operations within Australia. The Regulations govern the establishment, management, operation, control, and taxation of canteens operated under the authority of the Defence Act 1903. These Regulations specifically address the taxation of the AAFCANS Board, excluding income tax, and clarify that the Board is not subject to liquor licensing fees. The scope of these regulations extends to all activities and transactions conducted by the AAFCANS Board across the Commonwealth, the states, and the territories of Australia. The application of the Regulations is not limited by any specified thresholds and is comprehensive in its coverage of the Board’s operations, with any further details or exceptions being potentially outlined in subordinate instruments.
Key Provisions
The key operative sections of the Statutory Rule are section 1, which authorises the amendment of the Army and Air Force Canteen Service Regulations, and regulation 26A, which introduces new provisions concerning taxation. Section 1(1) states that the Statutory Rule amends the Army and Air Force Canteen Service Regulations (the "Regulations") as indicated in the Schedule. Regulation 26A(1) provides that the AAFCANS Board is subject to taxation, other than income tax, under the laws of the Commonwealth, the States and the Territories. Regulation 26A(2) ensures that the Board is not liable to liquor licensing fees under this new taxation provision.
The Statutory Rule imposes obligations on the AAFCANS Board to comply with taxation laws, other than income tax, as set out in regulation 26A(1). This means that the Board must adhere to the tax laws applicable across the Commonwealth, States, and Territories. Furthermore, regulation 26A(2) requires that the Board's liability for liquor licensing fees remains unaffected by this new taxation provision, ensuring that the Board's operational costs are not unduly increased.
Any breach of the provisions in regulation 26A could potentially lead to civil or criminal consequences, depending on the nature and severity of the breach. For instance, failure to comply with taxation laws could result in penalties or legal action from relevant tax authorities. While the Statutory Rule itself does not specify maximum penalties, the penalties for non-compliance with taxation laws are determined by the relevant tax legislation. It is important for the AAFCANS Board to ensure strict adherence to all applicable taxation laws to avoid any adverse consequences.