Departure Tax Collection Amendment Act 1981

Overview

The Departure Tax Collection Amendment Act 1981 was enacted to make changes to the Departure Tax Collection Act 1978, addressing the need to update the criteria for tax exemptions under the existing framework. This legislation was introduced to refine the application of departure tax by specifying that persons under the age of twelve are exempt from the tax, thereby narrowing the scope of individuals who are liable to pay the departure tax. Enacted by the Parliament of Australia and assented to on 30 September 1981, the Act aimed to bring clarity and precision to the tax exemption provisions, ensuring that the departure tax applies only to those who meet the specified age criteria. The policy objective is to provide a more targeted approach in collecting departure tax, thereby aligning the tax application with the intended demographic scope.

Scope and Application

The Departure Tax Collection Amendment Act 1981 is a piece of Australian legislation that amends the Departure Tax Collection Act 1978. The Act applies to persons departing from Australia on or after 1 October 1981, specifically targeting those who are 12 years of age or older. It modifies the exemption criteria by removing the previous exemption for individuals under 12 years of age and replacing it with a new criterion that exempts those who are not yet 12 years old. This Act, therefore, impacts the taxation on departure from Australia for those who meet the age requirement and are departing from the country on or after the specified date. The amendments extend to the application of the Principal Act as it pertains to departures occurring after the Act’s commencement date, effectively ensuring that the revised criteria for exemptions are uniformly applied across the relevant timeframe.

Key Provisions

The Departure Tax Collection Amendment Act 1981 (No. 132 of 1981) amends the Departure Tax Collection Act 1978 (referred to as the Principal Act) by altering the criteria for who is exempt from departure tax. Section 5 of the Principal Act, which specifies the persons exempt from departure tax, is amended to exclude those who are not 12 years of age, meaning the tax applies to persons who have reached their 12th birthday (section 3). This amendment applies to departures from Australia occurring on or after 1 October 1981 (section 4). The Act imposes obligations on the entities responsible for collecting departure tax, ensuring that they enforce the tax on individuals who meet the new age criteria. The amendments require these entities to identify and assess the age of departing individuals to determine their tax liability. This change in eligibility for exemption means that the tax is no longer waived for children under 12, thereby broadening the scope of individuals subject to the departure tax. Breach of the provisions set out in this Act may lead to various civil and criminal consequences. While the Act itself does not specify penalties for non-compliance, the Principal Act or other related legislation may outline the penalties for failure to comply with the tax collection requirements. Typically, such breaches might result in fines or legal action against the entities responsible for tax collection, or against individuals who fail to pay the tax when due. The specific penalties would depend on the broader legislative framework governing tax collection and enforcement in Australia.