Statutory Rules
1976 No. 144
REGULATION UNDER THE COMMONWEALTH INSCRIBED STOCK ACT 1911.*
I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulation under the Commonwealth Inscribed Stock Act 1911.
Dated this eighth day of July, 1976.
JOHN R. KERR
Governor-General.
By His Excellency’s Command,
PHILLIP LYNCH
Treasurer.
––––––
Amendment of the Commonwealth Inscribed Stock Regulations†
Regulation 66b of the Commonwealth Inscribed Stock Regulations is repealed and the following regulation substituted:—
Securities that may be accepted in payment of estate duty.
“ 66b. Australian Savings Bonds—Series 1, 2 and 3, and any securities that are issued on terms and conditions that include a term or condition that the security is acceptable in payment of estate duty under the Estate Duty Act 1914 at a value to be determined in the manner set out in the term or condition, are prescribed securities that may be accepted under section 52c of the Act in payment of estate duty payable under the Estate Duty Act 1914—
(a) in the case of Australian Savings Bonds—Series 1, 2 and 3—
(i) where securities are presented in payment of estate duty before the first interest payment date—at face value; or
(ii) where securities are presented in payment of estate duty on or after the first interest payment date—at a value being the total of the face value and the accrued interest; and
(b) in the case of the other securities referred to in this regulation—at a value determined in the manner referred to in this regulation.”.
* Notified in the Australian Government Gazette on 13 July 1976.
† Statutory Rules 1944, No. 186, as amended by Statutory Rules 1946, No. 75; 1947, No. 96; 1952, No. 26; 1959, Nos. 8, 39 and 96; 1961, No. 86; 1962, No. 57; 1963, No. 84; 1964, No. 19; 1966, No. 61; 1971, No. 144; 1974, No. 69; and 1976, No. 64.
Overview
Statutory Rules 1976 No. 144, issued under the Commonwealth Inscribed Stock Act 1911, was enacted to address the need for clarity and regulation around the use of prescribed securities in the payment of estate duty. This legislative instrument was introduced to ensure that the payment of estate duty using prescribed securities, such as Australian Savings Bonds, is conducted in a consistent and transparent manner. The regulation was made by the Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, with the objective of maintaining the integrity and fairness of the estate duty payment process. The policy objective of these regulations is to standardise the valuation of securities presented in payment of estate duty, thereby ensuring that the process is equitable and free from ambiguity.
Scope and Application
The Commonwealth Inscribed Stock Regulations 1976, made under the Commonwealth Inscribed Stock Act 1911, pertain to the regulation of securities that may be accepted in payment of estate duty. These regulations apply to Australian Savings Bonds—Series 1, 2, and 3, as well as any other securities issued under terms that include a provision for acceptance in payment of estate duty under the Estate Duty Act 1914. The value at which these securities are accepted for estate duty purposes is specified, with Australian Savings Bonds being accepted at face value if presented before the first interest payment date, or at the total value of face and accrued interest if presented on or after the first interest payment date. For other securities, the value is determined according to the terms specified in the regulation. This regulatory framework sets out the conditions for the valuation and acceptance of certain financial instruments in relation to the payment of estate duty, thereby establishing a standardised approach to such transactions within the Commonwealth.
Key Provisions
The regulation, made under the Commonwealth Inscribed Stock Act 1911, specifically addresses the acceptance of certain securities as payment for estate duty. Section 66b of the Commonwealth Inscribed Stock Regulations is amended to clarify the types of securities that can be used to settle estate duty. Under this amendment, Australian Savings Bonds—Series 1, 2 and 3—and any other securities issued with a term or condition stating their acceptance in payment of estate duty under the Estate Duty Act 1914, are recognised as prescribed securities. These prescribed securities can be presented to satisfy estate duty obligations, with the value of the bonds determined based on whether they are presented before or after the first interest payment date. For Australian Savings Bonds, the value before the first interest payment date is the face value, while the value on or after this date includes the accrued interest. For other securities, the value is determined as specified in the terms and conditions of the security.
The regulation imposes specific obligations on the entities involved in the settlement of estate duty. Trustees, administrators, or executors of an estate must ensure that the securities presented as payment for estate duty are prescribed securities as per the amended Section 66b. For Australian Savings Bonds, they must also be aware of the timing of the presentation relative to the first interest payment date to correctly determine the value of the bonds for duty payment purposes. The regulation mandates that the value of these securities must align with the stipulated conditions to be valid for duty payment, thereby ensuring a clear and compliant process for settling estate duties.
Failure to comply with the provisions of the amended Section 66b can lead to legal consequences. The regulation does not explicitly state offences or penalties within its text, but any breach of the conditions set out for the acceptance of securities in payment of estate duty could result in the securities being deemed unacceptable. This could lead to additional legal requirements for the estate to settle its duty obligations, potentially involving civil or administrative actions. The exact consequences would depend on the interpretation of the relevant Acts and the decisions of the courts or administrative bodies overseeing estate duty compliance.