Departure Tax Amendment Act 1991

Overview

The Departure Tax Amendment Act 1991 was enacted by the Parliament of Australia to address a perceived need to increase the revenue generated from the Departure Tax imposed on individuals leaving the country. This Act amends the Departure Tax Act 1978 by doubling the tax rate from $10 to $20, a change intended to better reflect the costs associated with processing departing passengers. The amendment came into effect on 1 August 1991, with the increased tax rate applying to departures on or after that date. The policy objective underlying this legislation is to enhance the financial yield from the Departure Tax, which is presumably used to support related administrative and operational costs.

Scope and Application

The Departure Tax Amendment Act 1991 amends the Departure Tax Act 1978, primarily by altering the rate of the tax imposed on the departure of individuals from Australia. This amendment applies to any person leaving Australia on or after the commencement date of the Act, which is 1 August 1991. The Act specifically modifies the Principal Act by increasing the departure tax from $10 to $20. This amendment does not specify any exclusions, exemptions, or thresholds, and it applies to all individuals who meet the criteria of leaving Australia as defined under the Principal Act. The jurisdictional reach of this amendment is confined to the Commonwealth of Australia, and there is no indication of any extension or restriction of its application through subordinate instruments.

Key Provisions

The Departure Tax Amendment Act 1991 (Act) primarily serves to amend the Departure Tax Act 1978 (Principal Act) by increasing the rate of departure tax from $10 to $20 for individuals leaving Australia on or after 1 August 1991 (sections 3 and 4). This amendment was designed to reflect the updated economic context and fiscal requirements of the time, thereby increasing the financial burden on those departing Australia. The Act imposes specific obligations on individuals responsible for paying the departure tax. It mandates that the departure tax must be paid before a person leaves Australia, and this payment requirement applies to any departure from Australia on or after the commencement date of the Act (section 2). The Principal Act, which this amendment modifies, already outlines the process and methods of payment, and these remain in effect with the increased tax rate. Failure to comply with the tax obligations set out in the Act can lead to serious consequences. While the Act does not specify particular offences, penalties, or civil or criminal consequences, it is reasonable to infer that non-payment or insufficient payment of the departure tax could result in the same repercussions as outlined in the Principal Act. Given that the Principal Act was likely to include provisions for enforcement and penalties, it is plausible that similar measures apply here, including fines or legal action against defaulters. However, the exact penalties are not specified within the text of the Departure Tax Amendment Act 1991 itself.