EXPLANATORY STATEMENT
STATUTORY RULES 1983 NO. 79
ISSUED BY THE AUTHORITY OF THE MINISTER FOR FINANCE
INCOME TAX REGULATIONS (AMENDMENT)
These regulations repeal regulation 22 of the Income Tax Regulations which requires Defence Force members to furnish their income tax returns at the office of the Deputy Commissioner of Taxation in the State or Territory in which they enlisted.
Regulation 22 was inserted in 1942 to facilitate the allowance of income tax credit on group certificates issued to Defence Force members but, due to changes in procedures in the Taxation Office, it is no longer needed. The repeal of the regulation means that Defence Force members will be required to furnish their income tax returns, like other taxpayers, in the State or Territory in which they derive their income unless they derive it from more than one State or Territory in which case they will be required to furnish in the State or Territory in which they live.
Regulation 1 makes drafting amendments to regulation 21 of the Income Tax Regulations as a consequence of the repeal of regulation 22.
Regulation 2 repeals regulation 22 of the Income Tax Regulations.
Overview
The Income Tax Regulations (Amendment) Statutory Rules 1997, issued by the authority of the Minister for Finance, aim to modernise and streamline the process for Defence Force members filing their income tax returns. Enacted to address an outdated requirement that Defence Force members submit their tax returns at specific offices due to historical practices, these regulations repeal regulation 22 of the Income Tax Regulations, which was originally established in 1942. The policy objective is to align the tax filing requirements of Defence Force members with those of other taxpayers, ensuring a more consistent and efficient process. This amendment removes a procedural burden on Defence Force members and reflects changes in the administrative practices of the Taxation Office.
Scope and Application
The Income Tax Regulations (Amendment) Statutory Rules 1997 primarily apply to Defence Force members in Australia, addressing the procedures for lodging income tax returns. This amendment, issued under the authority of the Minister for Finance, repeals the requirement for these members to submit their returns at the office of the Deputy Commissioner of Taxation in the state or territory where they enlisted. This repeal aligns their tax filing procedures with those of other taxpayers, who are required to file in the state or territory where they derive their income, or where they reside if their income spans multiple states or territories. The regulations, therefore, affect Defence Force members across the nation, as they are subject to the same rules as other taxpayers for the purposes of lodging income tax returns. The amendment ensures that these members are not subject to any special requirements that are no longer necessary due to changes in taxation office procedures. The repeal of regulation 22 and the consequential drafting amendments to regulation 21 of the Income Tax Regulations, as detailed in these statutory rules, streamline the process and remove a historical exception that is now redundant.
Key Provisions
The main operative sections of these regulations (Statutory Rules 1997 No. 335) pertain primarily to the repeal of regulation 22 and the consequential amendments to regulation 21 of the Income Tax Regulations (section 2). Regulation 22, which previously required Defence Force members to lodge their income tax returns at the Deputy Commissioner of Taxation office in the state or territory where they enlisted, is repealed. This change aligns Defence Force members with other taxpayers, requiring them to file their returns in the state or territory where their income is derived. If their income is derived from multiple states or territories, they must file in the state or territory where they reside (section 2). Regulation 1 incorporates drafting amendments to regulation 21 to reflect these changes.
These regulations impose specific obligations and requirements on Defence Force members, aligning their tax filing processes with those of other taxpayers. Defence Force members are now required to file their income tax returns in the state or territory where their income is derived, unless their income spans multiple states or territories, in which case they must file in the state or territory where they reside (section 2). This change ensures consistency in tax filing procedures and simplifies the process for Defence Force members by removing the previous requirement to file in the state or territory of enlistment.
Breach of the requirements set out in these regulations may lead to various consequences. While the regulations themselves do not explicitly outline offences or penalties, failure to comply with the tax filing requirements may result in civil or criminal consequences under the broader tax laws. Penalties for non-compliance can include fines, interest on unpaid taxes, and in severe cases, criminal charges. The specific penalties are governed by the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997, which may impose maximum penalties for various offences related to non-compliance with tax laws. It is important for Defence Force members to adhere to these filing requirements to avoid potential legal repercussions.