EXPLANATORY STATEMENT
STATUTORY RULES 1988 NO. 196
ISSUED BY THE AUTHORITY OF THE TREASURER
INCOME TAX REGULATIONS (AMENDMENT)
This regulation repeals a redundant regulation, regulation 4AB of the Income Tax Regulations. Regulation 4AB prescribes those (international) organizations which are exempted from Australian income tax liability and the extent to which officials of such organizations are also exempt from Australian income tax on their official salaries and emoluments under paragraphs 23(x) and (y) of the Income Tax Assessment Act 1936
In 1985, the Government agreed to Australia’s accession, without reservation, to the Convention on the Privileges and Immunities of the Specialized Agencies and to Australia’s acceptance of the Agreement on the Privileges and Immunities of the International Atomic Energy Agency, also without reservation. Regulations were made in April 1986 under the International Organizations (Privileges and Immunities) Act 1963 to give full effect to Australia’s obligations under the two agreements. Those Regulations provide, amongst other things, for the exemption from Australian income tax of prescribed organizations and of the official salaries and emoluments of officials employed by such organizations. The exemptions they provide embrace those given by paragraphs 23(x) and (y) of the Income Tax Assessment Act 1936 and regulation 4AB.
The regulations made under the International Organizations (Privileges and Immunities) Act 1963 therefore render regulation 4AB redundant and it is therefore appropriate for regulation 4AB to be repealed.