Departure Tax Collection Regulations (Amendment)

Overview

The Departure Tax Collection Regulations (Amendment) Statutory Rules 1988 No. 157, issued under the authority of the Minister for Defence Science and Personnel on behalf of the Minister for Transport and Communications, were enacted to refine and update the regulatory framework governing the collection of departure tax in Australia. This amendment to the Departure Tax Collection Act 1978 addresses the shift in responsibility for the collection of departure tax from international air operators to approved agents, thereby clarifying and updating the roles and obligations of the parties involved. The policy objective behind these amendments is to streamline the process of departure tax collection, ensuring it is efficiently managed while maintaining compliance with the statutory requirements set out in the Act. The changes include amendments to definitions and the introduction of specific regulations to accommodate the new role of approved agents in tax collection, along with adjustments to penalties and the terminology used in the regulations.

Scope and Application

The Departure Tax Collection Regulations (Amendment) Statutory Rules 1988, issued under the authority of the Minister for Defence Science and Personnel and the Minister for Transport and Communications, amend the Departure Tax Collection Act 1978. The Act applies to approved agents designated by the Commonwealth for the supply of departure tax stamps and encompasses the terms and conditions under which these stamps are provided. The Act's provisions extend to the regulation of the collection of departure tax by approved agents, replacing the previous responsibility held by international air operators. The amendments extend the Act's application to approved agents and include definitions updated to reflect current circumstances and introduce relevant terms. Notably, the Act imposes penalties on approved agents for failing to make tax and exemption stamps available at international airports or supplying exemption stamps to non-exempt persons, with penalties not exceeding $500 as stipulated by Section 15 of the Act. The amendment also modifies terminology from "sale price" to "face value" of the stamp for clarity. This regulation applies on a Commonwealth level and is effective from 1 July 1988.

Key Provisions

The Departure Tax Collection Regulations (Amendment) under the Departure Tax Collection Act 1978 primarily deal with the administration of departure tax stamps. Section 11 (1) of the Act permits the making of regulations concerning the supply of these stamps by the Commonwealth to approved agents, and it outlines the terms and conditions for such supply. The amendment clarifies the role of approved agents, replacing the previous role of international air operators who were previously responsible for collecting the tax. Regulation 3A introduces a new provision allowing the Minister to appoint approved agents for the purpose of collecting departure tax. The obligations imposed on the parties governed by these regulations are significant. Approved agents are now responsible for the collection of departure tax and must comply with the conditions set out in the amended regulations. This includes ensuring that tax and exemption stamps are made available at international airports, and that exemption stamps are not issued to non-exempt persons. The amendment to Regulation 6D, where the term "sale price" is replaced with "face value," aims to provide clarity regarding the financial aspect of the stamps. There are specific consequences for breaching the regulations. Regulation 4C, 8AA, and 8B impose penalties of up to $500 for approved agents who fail to make tax and exemption stamps available at an international airport or who supply an exemption stamp to a non-exempt person. These penalties are directly tied to the restrictions outlined in Section 15 of the Act, which limits the fines that can be imposed by the regulations. The aim of these penalties is to ensure compliance and maintain the integrity of the departure tax collection process. The Departure Tax Collection Regulations (Amendment) introduce a structured approach to the collection of departure tax by shifting the responsibility from international air operators to approved agents. These amendments not only redefine roles and responsibilities but also set clear guidelines and consequences for non-compliance. The use of precise terminology, such as replacing "sale price" with "face value," further ensures clarity and enforceability of the regulations.