EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO. 170
Issued by the Authority of the Minister for Immigration and Ethnic Affairs
DEPARTURE TAX COLLECTION REGULATIONS (AMENDMENT)
Section 4 of the Departure Tax Collection Amendment Act 1986 (“the Amendment Act”) amended section 11 of the Departure Tax Collection Act 1978 (“the Act”) to provide for the making of regulations dealing with the supply of tax stamps by the Commonwealth to international air operators and others, the terms and conditions of such supply, the sale to passengers of tax stamps by operators and others, and the terms and conditions of such sale. New section 11 also provides for regulations to be made dealing with refunds by the. Commonwealth, operators and others of amounts paid for tax stamps, and the reimbursement by the Commonwealth of operators and others for such refunds.
New section 11 of the Act further provides for the making of regulations to enable the Commonwealth to supply exemption stamps to operators and others, the terms and conditions of such supply, and the terms and conditions upon which operators and others may supply exemption stamps to passengers.
The regulations provide the administrative framework by which the airlines can discharge their responsibility to make tax stamps and exemption stamps available to passengers departing from Australian airports from 1 July 1986.
Regulation 4 deals with the sale of tax stamps to operators and to approved agents nominated by operators, and the manner in which payment for tax stamps shall be made to the Commonwealth. This facilitates the arrangements that have been agreed with the airline industry for the period 1 July to 30 September 1986, under which contractors will sell stamps to passengers at airports on behalf of the operators.
Regulation 5 deals with refunds by the Commonwealth of tax paid by passengers who are entitled to a refund, and also deals with refunds to passengers by the Commonwealth, operators or approved agents for unused or accidentally defaced tax stamps, as well as reimbursements to operators and approved agents who make such refunds to passengers.
Regulation 7 provides for the Commonwealth to issue exemption stamps to operators and approved agents upon request, and for operators and approved agents to be subject to a fine not exceeding $500 for issuing exemption stamps to passengers other than exempt persons. Regulation 7 also requires operators and approved agents to keep records of exemptions issued, and to make these available to Commonwealth. Penalties not exceeding $500 are prescribed for failure to provide the required records, or for supplying false or misleading particulars.
Overview
The Departure Tax Collection Amendment Act 1986, enacted by the Parliament of Australia, was introduced to address the need for a regulatory framework governing the supply and sale of departure tax stamps for international flights, as well as the handling of refunds and reimbursements. This Act amended the Departure Tax Collection Act 1978 to allow for the creation of detailed regulations that specify how the Commonwealth can supply tax stamps to international air operators and other relevant parties, as well as the terms and conditions governing these transactions. The policy objective of this legislative amendment is to ensure that the Commonwealth effectively manages the collection of departure tax from passengers, while providing clarity and structure to the operations of airlines and other stakeholders in the process.
Scope and Application
The Departure Tax Collection Regulations (Amendment) govern the supply, sale, and refund of departure tax stamps and exemption stamps in relation to international flights departing from Australian airports. These regulations apply to international air operators and approved agents, including those who are contracted to sell tax stamps to passengers at airports. The regulations also apply to the Commonwealth in its role of supplying tax and exemption stamps and administering refunds and reimbursements. The regulations extend to the entire Commonwealth of Australia, ensuring a uniform approach to the collection and management of departure tax stamps and exemption stamps across the country. Exemptions and specific terms and conditions for the supply of exemption stamps are detailed, along with the penalties for non-compliance by operators and approved agents. The scope of the regulations is further extended through subordinate instruments which may introduce additional specifications or modifications to the administrative processes involved.
Key Provisions
The Departure Tax Collection Regulations (Amendment) introduce several key provisions that govern the supply, sale, and refund of tax stamps, as well as the supply of exemption stamps, by international air operators and others. Section 11 of the Departure Tax Collection Act 1978, as amended, allows for these regulations to cover the Commonwealth's supply of tax stamps to operators (section 4), the terms and conditions of such supply, and the sale of tax stamps by operators to passengers (section 5). The regulations also address the supply of exemption stamps by the Commonwealth to operators and the terms under which these operators may supply exemption stamps to passengers (section 7). Regulation 4 specifies the process for operators and their approved agents to purchase tax stamps from the Commonwealth and outlines the payment procedures to be followed. Regulation 5 details the conditions under which the Commonwealth, operators, or approved agents will provide refunds to passengers for unused or defaced tax stamps and specifies reimbursement processes for operators and agents who issue such refunds. Regulation 7 mandates the Commonwealth to issue exemption stamps to operators and agents upon request and sets forth the penalties for the improper issuance of exemption stamps to non-exempt persons, as well as the penalties for record-keeping failures.
These regulations impose specific obligations on international air operators and approved agents. Operators and agents must comply with the payment procedures outlined in Regulation 4 for the acquisition of tax stamps from the Commonwealth. They are also required to adhere to the refund and reimbursement processes specified in Regulation 5 for unused or damaged tax stamps. Furthermore, Regulation 7 requires operators and agents to maintain accurate records of exemption stamp issuance and to provide these records to the Commonwealth upon request. Non-compliance with these record-keeping requirements may result in penalties.
The regulations establish clear consequences for breaches of their provisions. For instance, Regulation 7 imposes a fine not exceeding $500 for the improper issuance of exemption stamps to non-exempt persons. Additionally, penalties not exceeding $500 are prescribed for failure to provide the required records or for supplying false or misleading particulars. These penalties serve to ensure compliance with the regulations and to maintain the integrity of the tax stamp and exemption stamp distribution processes.