Commonwealth Borrowing Levy Collection Act 1987

Overview

The Commonwealth Borrowing Levy Collection Act 1987 was enacted by the Commonwealth Parliament to address the need for a systematic method of collecting the borrowing levy imposed by the Commonwealth Borrowing Levy Act 1987. The Act provides the legal framework for the Treasurer to specify the manner and times for levy payments, as well as requiring specified officers of borrowing bodies to certify details of their borrowings relevant to the levy calculation. This Act ensures that the levy is collected in an organised and accountable manner, thereby supporting the Commonwealth's financial operations and policy objectives as outlined in the Commonwealth Borrowing Levy Act 1987. Additionally, the Act repealed the Commonwealth Guarantees (Charges) Act 1987 while preserving its application to borrowings undertaken before 1 July 1987. The Act's primary objective is to facilitate the collection of the borrowing levy, ensuring that the Commonwealth can effectively manage its financial obligations and maintain fiscal integrity. By enabling the Treasurer to issue legislative instruments detailing the payment requirements and certification processes, the Act provides clarity and enforcement mechanisms for levy collection. This legislative framework supports the broader policy objectives of financial regulation and oversight in the Australian context.

Scope and Application

The Commonwealth Borrowing Levy Collection Act 1987 (Cth) serves as a legislative instrument designed to facilitate the collection of a levy imposed by the Commonwealth Borrowing Levy Act 1987. This Act applies to bodies as defined in the Levy Act, which includes entities such as corporations, partnerships, and unincorporated associations that engage in borrowing activities. The borrowing activities covered under the Act include the raising of money through securities such as stocks, debentures, notes, bonds, promissory notes, bills of exchange, and similar instruments. The Act provides the Treasurer with the authority to specify the timing and methods for levy payments, as well as to mandate the submission of statements certifying the amounts due and particulars of the borrowings by specified officers of the affected bodies. The Act's provisions apply throughout the Commonwealth of Australia and are enforced by subordinate regulations that the Governor-General may enact. Notably, the Act repealed the Commonwealth Guarantees (Charges) Act 1987, though the latter continues to apply to borrowings undertaken before 1 July 1987 by entities listed in the Schedule to that Act.

Key Provisions

The Commonwealth Borrowing Levy Collection Act 1987 (Cth) provides the legislative framework for the collection of the borrowing levy imposed by the Commonwealth Borrowing Levy Act 1987. The Act specifically authorises the Treasurer to set the terms of levy payment through legislative instruments (section 4), including the timing and method of payment. Additionally, it mandates that specified officers of bodies liable for the levy must provide the Treasurer with statements certifying the levy amount due, the underlying borrowings, and any other relevant details specified in the Treasurer's determinations (section 4). The Act imposes several obligations on entities subject to the levy. These include ensuring compliance with the timing and manner of levy payments as specified by the Treasurer, as well as providing accurate and timely certification of borrowings and levy amounts to the Treasurer (section 4). Entities must maintain records and documentation that substantiate their borrowing activities and levy calculations, which may be subject to audit or review by the Treasurer (section 4). Failure to comply with the obligations imposed by the Act can result in civil and criminal consequences. While the Act itself does not explicitly detail specific penalties for non-compliance, breaches of the Act may be subject to penalties under the Commonwealth Borrowing Levy Act 1987 or other related legislation. The severity of penalties may depend on the nature and extent of the breach, with potential consequences including fines and other legal actions to enforce compliance or recover unpaid levies. The specific penalties and enforcement mechanisms are typically outlined in the regulations made under the Act or in associated legislation.