EXPLANATORY STATEMENT
Select Legislative Instrument 2007 No. 327
Issued by the authority of the Parliamentary Secretary to the Treasurer
Income Tax Assessment Act 1936
Income Tax Amendment Regulations 2007 (No. 3)
Subsection 266(1) of the Income Tax Assessment Act 1936 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act or the Income Tax Assessment Act 1997 (the 1997 Act), prescribing all matters which by the Act or the 1997 Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for giving effect to the Act or the 1997 Act.
The purpose of the amendments to the Regulations is to provide clarity to the law by updating the reference to the Stock Exchange of Newcastle Limited in the Income Tax Regulations 1936 to reflect its recent change of name.
In 2006 the Stock Exchange of Newcastle Limited changed its name to the National Stock Exchange Limited. On 18 December 2006 the Parliamentary Secretary to the Treasurer issued an Australian market licence variation notice to reflect this change.
These Regulations replaced the reference to the ‘Stock Exchange of Newcastle Limited’ with the ‘National Stock Exchange Limited’.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003. The Regulations commenced on the day after they were registered on the Federal Register of Legislative Instruments.
Overview
The Income Tax Amendment Regulations 2007 (No. 3) were enacted to address the need for updating references within the Income Tax Regulations 1936 in light of the Stock Exchange of Newcastle Limited changing its name to the National Stock Exchange Limited. These amendments aim to ensure that the law remains clear and accurate, reflecting current organisational names and maintaining consistency with other regulatory changes. The Regulations were issued by the Parliamentary Secretary to the Treasurer and commenced on the day after their registration on the Federal Register of Legislative Instruments, in accordance with the Legislative Instruments Act 2003. This legislative update is designed to streamline the administration of the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997, facilitating easier compliance and enforcement of tax regulations.
Scope and Application
The Income Tax Amendment Regulations 2007 (No. 3) apply to all entities and individuals governed under the Income Tax Assessment Act 1936, including companies, partnerships, trusts, and individuals, by updating references within the regulations to reflect the change of name of the Stock Exchange of Newcastle Limited to the National Stock Exchange Limited. The regulations ensure that references within the legislative framework remain consistent with current nomenclature, thereby avoiding any confusion or misapplication of the tax laws. These regulations have a national jurisdictional reach, impacting all entities and individuals subject to the Commonwealth's income tax laws. The amendments do not introduce new exclusions or exemptions but ensure that the existing legal framework continues to operate effectively by reflecting current organisational names. The application of these regulations extends to all relevant conduct and transactions occurring under the purview of the Income Tax Assessment Act 1936, ensuring the legislative intent is accurately implemented.
Key Provisions
The main operative sections of the Income Tax Amendment Regulations 2007 (No. 3) primarily involve updating the reference to the Stock Exchange of Newcastle Limited to the National Stock Exchange Limited. This change is reflected in Section 266(1) of the Income Tax Assessment Act 1936, which allows for the regulation to be made by the Governor-General to prescribe matters required or permitted by the Act. Specifically, Regulation 1 of the amended regulations replaces the name "Stock Exchange of Newcastle Limited" with "National Stock Exchange Limited" to reflect the entity's change of name as confirmed by the Australian market licence variation notice issued on 18 December 2006.
The amendments impose an obligation on the parties governed by the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997 to recognise the National Stock Exchange Limited as the entity in place of the previously known Stock Exchange of Newcastle Limited. This change is necessary for the accurate and consistent application of the tax laws, ensuring that all references and obligations under the legislation align with the current legal entity. Parties subject to these Acts must update their records and references accordingly to comply with the updated regulations.
Breach of the provisions within the Income Tax Assessment Act 1936 can result in significant civil or criminal consequences. While the specific Regulations themselves do not outline penalties, the broader tax legislation provides for various sanctions. For instance, under Section 284-10 of the Income Tax Assessment Act 1997, penalties can include fines and imprisonment for serious breaches such as fraud or willful disregard of tax laws. For less severe breaches, penalties may include fines based on the seriousness of the offence, calculated according to the penalty units prescribed by the Crimes (Administration of Penalties) Act 1995. Additionally, failure to comply with specific tax obligations can lead to additional interest and penalties imposed by the Commissioner of Taxation.