INCOME TAX COLLECTION.
No. 36 of 1924.
An Act to amend the Income Tax Collection Act 1923.
[Assented to 8th October, 1924.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.) This Act may be cited as the Income Tax Collection Act 1924.
(2.) The Income Tax Collection Act 1923 is, in this Act, referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Income Tax Collection Act 1923-1924.
2. Section twelve of the Principal Act is repealed and the following sections are inserted in its stead:—
Application of Act to temporary employees who have passed examination.
“12.—(1.) The provisions of this Act in relation to the payment of compensation to officers shall, in the same manner as they apply to officers, apply to—
(a) temporary employees who are returned soldiers, as defined in the Commonwealth Public Service Act 1922, and who have passed the examination prescribed under that Act, but whose appointments to the Commonwealth Service have not been made or confirmed; and
(b) temporary employees who—
(i) are returned soldiers as defined in that Act;
(ii) were in the employ of the Taxation Branch on the first day of July One thousand nine hundred and twenty-three and have been or are retired after that date; and
(iii) are certified by the Board of Commissioners appointed under that Act to have passed a special examination which the Board shall hold for the sole purpose of conferring eligibility for compensation under this Act.
“(2.) For the purpose of ascertaining the amount of compensation payable—
(a) to a temporary employee to whom paragraph (a) of the last preceding sub-section applies—his period of service shall be deemed to have commenced on a date certified by the Board of Commissioners as that upon which his service would have commenced if his appointment had been made and confirmed prior to the commencement of this Act; and
(b) to a temporary employee to whom paragraph (b) of the last preceding sub-section applies—his period of service shall be deemed to have commenced on the date of the commencement of his temporary employment in the Taxation Branch, followed by continuous employment in that Branch up to the date of his retirement in accordance with this Act.
Retirements on account of increase in exemptions.
“12a.—(1.) If, in consequence of any alteration effected by any Act passed during the year One thousand nine hundred and twenty-four in the law relating to income tax payable under Commonwealth law, there is a decrease in the work involved in the collection of that income tax so that, at any time prior to the thirty-first day of December One thousand nine hundred and twenty-five, the services of any officer of the Taxation Branch, or of any officer transferred to the service of a State under an arrangement made in pursuance of section four of this. Act, are no longer required, that officer may, subject to this section, be paid compensation in accordance with this Act upon his retirement from the Branch or Service (as the case may be) as a direct consequence of the decrease in work.
“(2.) Compensation shall not be paid to any officer retiring from the Taxation Branch or from the service of a State unless the Public Service Board certifies that there is no office in the Service of the Commonwealth to which the officer could be suitably transferred.
“(3.) Compensation shall not be paid to any officer retiring from the service of a State unless the Commissioner or other authority controlling the service of that State certifies that the retirement of the officer is necessary as the direct consequence of the decrease in the work of collecting income tax payable under Commonwealth law caused by the alteration in the law relating to income tax.”.
Overview
The Income Tax Collection Act 1924, enacted by the Commonwealth Parliament, was designed to amend the Income Tax Collection Act 1923, addressing specific gaps and needs related to the administration of income tax collection within the Commonwealth. This legislation particularly sought to clarify and extend the application of compensation provisions to certain categories of temporary employees, including returned soldiers who had passed relevant examinations but had not yet been confirmed in their appointments, as well as those who were already employed in the Taxation Branch before a specific date and subsequently retired. It also aimed to provide compensation to officers whose positions became redundant due to legislative changes reducing the workload associated with income tax collection.
The policy objective underpinning this Act is to ensure that those who contributed to the collection of income tax, particularly in the context of post-war transitions and changes in tax law, receive appropriate compensation when their services are no longer required, thereby maintaining fairness and stability within the public service.
Scope and Application
The Income Tax Collection Act 1924 amends the Income Tax Collection Act 1923, and it applies to temporary employees who are returned soldiers and have passed specific examinations, as well as those who were employed by the Taxation Branch and have retired. The Act is relevant to those whose appointments have not been made or confirmed, as well as those who have been retired after the first day of July 1923. It also applies to officers of the Taxation Branch or any officers transferred to the service of a State under an arrangement made in pursuance of section four of this Act. The Act’s geographic reach is national, applying across the Commonwealth of Australia. The Act provides for compensation payments to be made to affected employees upon retirement as a consequence of a decrease in work due to alterations in the law relating to income tax. However, the Act stipulates that compensation shall not be paid unless certain conditions are met, such as the Public Service Board certifying that there is no office in the Service of the Commonwealth to which the officer could be suitably transferred, or the Commissioner or other authority controlling the service of a State certifying that the retirement of the officer is necessary as a direct consequence of the decrease in work. The Act does not specify any exclusions, exemptions, or thresholds, and its application may be extended or restricted through subordinate instruments.
Key Provisions
The key operative sections of the Income Tax Collection Act 1924 (C1924A00036) include the application of the Act's provisions to temporary employees who meet specific criteria. For instance, section 12 states that the compensation provisions, which apply to officers, also apply to temporary employees who are returned soldiers and have passed the relevant examination, even if their appointments have not been confirmed (section 12(1)(a)). Additionally, section 12 applies to temporary employees who are returned soldiers, were employed by the Taxation Branch before 1 July 1923, and have retired after that date, provided they have passed a special examination conducted by the Board of Commissioners (section 12(1)(b)). The act also addresses the calculation of compensation for these employees, specifying that the period of service for those in category (a) is deemed to start from the date certified by the Board of Commissioners (section 12(2)(a)), while for those in category (b), the service period is deemed to start from the date of their temporary employment in the Taxation Branch (section 12(2)(b)).
The Act imposes several obligations and requirements on the parties it governs. Firstly, the Board of Commissioners is tasked with certifying the dates of service for temporary employees and holding examinations to determine eligibility for compensation. The Public Service Board must certify that there are no suitable positions available for officers retiring from the Taxation Branch within the Commonwealth Service (section 12a(2)). Similarly, the Commissioner or relevant authority of a State must certify that the decrease in work caused by changes in income tax laws necessitates the officer's retirement (section 12a(3)).
The Act also sets out consequences and penalties for non-compliance. While the Act does not explicitly detail penalties for breach, the failure to meet the specified requirements for compensation, such as not holding the required examinations or not certifying retirements appropriately, could lead to civil or administrative consequences. For instance, officers who are not properly certified for retirement might not receive their entitled compensation, potentially leading to disputes or legal actions. Furthermore, the act's provisions are designed to ensure that only eligible employees receive compensation, which means that improper certification or failure to follow the outlined procedures could result in financial penalties or other administrative sanctions.