Exemption of Eligible Community Housing Providers from Providing Third Party Reports for the 2018/19 and 2019/20 Years Determination 2019

Overview

The Exemption of Eligible Community Housing Providers from Providing Third Party Reports for the 2018/19 and 2019/20 Years Determination 2019, introduced under paragraph 396-70(4)(b) of Schedule 1 to the Taxation Administration Act 1953, was enacted to address the burden of reporting on eligible community housing providers. This legislative instrument, subject to disallowance under section 42 of the Legislation Act 2003, exempts eligible community housing providers from the requirement to provide information to the Commissioner of Taxation regarding affordable housing certificates issued prior to 1 July 2020. The exemption is intended to alleviate administrative strain without affecting the broader policy objective of maintaining oversight and compliance within the housing sector. Appropriate consultation was undertaken before the drafting of this instrument, although no submissions were received. The instrument is compatible with human rights as it does not engage any of the applicable rights or freedoms.

Scope and Application

The "Exemption of Eligible Community Housing Providers from Providing Third Party Reports for the 2018/19 and 2019/20 Years Determination 2019" applies specifically to eligible community housing providers as defined under section 980-10 of the Income Tax Assessment Act 1997. This determination exempts these providers from the obligation to provide third-party reports to the Commissioner of Taxation for affordable housing certificates issued prior to 1 July 2020. The scope of this instrument is limited to the reporting requirements outlined in Subdivision 396-B of Schedule 1 to the Taxation Administration Act 1953. Jurisdictionally, the instrument falls under the Commonwealth, as it is made under the authority conferred by the TAA 1953. The instrument is subject to disallowance and can be repealed, rescinded, revoked, amended, or varied in accordance with the Acts Interpretation Act 1901. It commences on the day after its registration on the Federal Register of Legislation.

Key Provisions

The main operative sections of this legislation, the "Exemption of Eligible Community Housing Providers from Providing Third Party Reports for the 2018/19 and 2019/20 Years Determination 2019," establish the conditions under which eligible community housing providers are exempt from certain reporting requirements to the Commissioner of Taxation. Specifically, section 396-70(4)(b) of Schedule 1 to the Taxation Administration Act 1953 (TAA 1953) allows for the exemption of these providers from preparing and lodging annual reports for affordable housing certificates issued before 1 July 2020 (sections 6-9). The exemption applies to the 2018/19 and 2019/20 financial years, providing relief to eligible community housing providers from the administrative burden of these reports. The obligations imposed by the Act include the exemption from the reporting requirement for eligible community housing providers as defined under section 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997). Eligible community housing providers, who must prepare and lodge an annual report about the eligible community housing they manage on behalf of investors, are now exempt from this requirement for the specified financial years (section 7). The instrument clearly outlines that these providers are not required to provide information to the Commissioner of Taxation concerning affordable housing certificates issued before 1 July 2020 (section 10). There are no explicit offences, penalties, or civil/criminal consequences outlined in this instrument for non-compliance with the exemption provisions. However, the broader legislative framework under which this instrument operates, particularly the TAA 1953 and ITAA 1997, includes general provisions for penalties and enforcement mechanisms in cases of non-compliance with taxation reporting requirements. It is important for eligible community housing providers to ensure they adhere to the exemption to avoid potential penalties or repercussions under the existing tax laws.