Departure Tax Collection Regulations (Amendment)

Overview

The Departure Tax Collection Regulations (Amendment) 1994 No. 436 was issued under the authority of the Minister for Small Business, Customs and Construction to align the Departure Tax Collection Regulations 1978 with the recently amended Departure Tax Collection Act 1978. The amendments were made in response to the Government's decision announced in the 1994 Budget to replace the existing departure tax with a $27 passenger movement charge to cover the costs of customs, immigration and quarantine processing at Australia's borders and the cost of issuing short-term visitor visas. This cost recovery initiative was to be achieved by utilising the existing legislative mechanism for departure tax to levy and collect the passenger movement charge, with the amendments primarily substituting the term "tax" with "charge" throughout the relevant Acts. The Regulations commenced on 1 January 1995, the same date as the Departure Tax Collection Amendment Act 1994. The Regulations also included minor amendments to remove gender-specific references and a transitional provision to ensure that the proposed amendments did not affect existing rights and obligations under the Departure Tax Collection Regulations.

Scope and Application

The Departure Tax Collection Regulations (Amendment) 1994 No. 436, issued under the authority of the Minister for Small Business, Customs and Construction, amends the Departure Tax Collection Regulations 1978 to align with the recent changes made by the Departure Tax Collection Amendment Act 1994. This amendment was necessitated by the Government's decision, announced in the 1994 Budget, to replace the existing departure tax with a $27 passenger movement charge. This new charge is intended to fully offset the costs associated with customs, immigration, and quarantine processing at Australia's borders, as well as the cost of issuing short-term visitor visas. The Regulations effectively replace all references to "departure tax" with "passenger movement charge" throughout the Departure Tax Collection Regulations, ensuring consistency with the Principal Act. Additionally, the Regulations introduce minor amendments to remove gender-specific language and include a transitional provision to safeguard existing rights and obligations under the old regulations. These amendments apply to departures from Australia occurring on or after 1 January 1995, the commencement date of the Departure Tax Collection Amendment Act 1994.

Key Provisions

The main operative sections of the Departure Tax Collection Regulations (Amendment) 1994 No. 436 involve replacing all references to "departure tax" with "passenger movement charge" throughout the Departure Tax Collection Regulations, to align with the recent amendments made by the Departure Tax Collection Amendment Act 1994. These amendments are detailed in regulations 3 to 15 inclusive and regulation 17. Additionally, regulation 16 makes a minor change to paragraphs 11(1)(b) and (c) to remove gender-specific language, and regulation 18 serves as a transitional provision ensuring that existing rights and obligations under the Departure Tax Collection Regulations are not adversely affected. The Regulations impose specific obligations on the parties involved, primarily the necessity to adjust their compliance practices to reflect the change from a "departure tax" to a "passenger movement charge." This involves updating internal systems, documentation, and communications to ensure that all references and processes are consistent with the new terminology. Furthermore, entities responsible for collecting the charge must adhere to the revised regulatory framework, which now encompasses the new passenger movement charge rather than the departure tax. Should there be a breach of the new Regulations, certain offences and penalties may apply, though the specific details are not outlined in the provided explanatory statement. Generally, breaches of regulations under the Departure Tax Collection Act 1978 could lead to enforcement actions, fines, or other civil or criminal penalties as prescribed by the Act. It is essential for entities to comply with the updated regulations to avoid any potential legal repercussions and ensure smooth operations regarding the collection of the passenger movement charge.