Income Tax Regulations (Amendment)

Administered by Department of the Treasury

Legislation au F1997B00361 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

STATUTORY RULES 1989 NO. 123

ISSUED BY THE AUTHORITY OF THE TREASURER

INCOME TAX REGULATIONS (AMENDMENT)

These regulations amended the Income Tax Regulations to repeal a number of redundant regulations, and made changes of a minor nature to update the drafting style of others.

Notes on each of the amending regulations are set out below:

By Regulation 1 the repeal of regulation 61 of the Income Tax Regulations, takes effect on 1 July 1989. Amendments consequential to the repeal also take effect on this date.

Regulation 2 facilitates references to the Income Tax Regulations which, in the amending regulations, are referred to as the “Principal Regulations”.

Regulation 3 amended subregulation 3(1) of the Principal Regulations by omitting the definition of “prescribed delegate of the Commissioner”. This amendment was consequential upon the repeal of regulation 61 of the Principal Regulations by regulation 6.

Regulation 4 amended regulation 4AC of the Principal Regulations. Regulation 4AC prescribed “special Commonwealth Police Officers” appointed in pursuance of section 10 of the Commonwealth Police Act 1957, who were members of the peace keeping force in Cyprus, to be a class of persons to which section 23AB of the Income Tax Assessment Act 1936 (the Act) applied. Section 23AB facilitates a concessional tax treatment of the income of certain persons serving with an armed force under the control of the United Nations.

The amendment is of a formal nature, and reflects the fact that those sent to Cyprus are no longer appointed as “special” members of the Commonwealth Police. Further, the body once known as the Commonwealth Police no longer exists, as the Commonwealth Police Act 1957 has been replaced by the Australian Federal Police Act 1979. Those sent to Cyprus are ordinary, as opposed to “special” members of the Australian Federal Police.

The regulation was not otherwise altered.


Regulation 5 repealed regulation 4AD of the Principal Regulations. Regulation 4AD specified, by reason of a state of disturbance in or affecting Vietnam (Southern Zone), the territory of Vietnam (Southern Zone), to be a “special area” for the purposes of section 23AC of the Act. This allowed Defence Force Personnel serving in that “special area” to have their pay and allowances exempt from tax during the period of “special service”. Generally, the “special service” of a member of the Defence Force was taken to be the period during which they were allotted for duty in a “special area”.

As the purpose for which Vietnam (Southern Zone) was originally prescribed as a “special area” no longer exists - and ceased to exist some years ago - it was appropriate that regulation 4AD be repealed.

A location or area to which the term “special area” applied was specified in the Sixth Schedule to the Principal Regulations. The area corresponded exactly with the area of Vietnam (Southern Zone) described in Column 1 of Schedule 2 of the Veterans’ Entitlements Act 1986, which was an “operational area” for the purposes of that Act. Under that Act, Vietnam (Southern Zone) ceased to be an operational area on 11 January 1973.

The repeal of regulation 4AD therefore deprived no-one of the tax concession formerly available.

Regulation 6 repealed regulation 61 of the Principal Regulations. That regulation allowed the Commissioner, by notice published in the Gazette, to appoint any person to be a “prescribed delegate of the Commissioner” for the purposes of the Income Tax Regulations.

The Commissioner had not recently used the regulation, as his powers are delegated other than by notice in the Gazette. Therefore, for practical purposes, the regulation did not operate, and was repealed with effect after 30 June 1989.

Regulation 7 repealed regulation 66 of the Principal Regulations. The regulation provided for the payment of a fee to the Department of Health. Payment was made on application for a certificate of invalidity for the purposes of section 159J of the the Act. Among other things, section 159J provides a rebate to taxpayers who maintain invalid relatives over the age of 16 years.

The regulation was no longer appropriate because the reference to the Department of Health was technically obsolete due to the regrouping of Departments in 1987, and it was out of date; the fee - $2.10 or $2.50 depending on where the relevant medical examination was carried out - had not been raised since at least 1975, nor charged since the introduction of Medicare in 1983.


Regulation 8 repealed the Sixth Schedule to the Principal Regulations. The Sixth Schedule described the area of Vietnam (Southern Zone) and its contiguous waters that were a “special area” for the purposes of section 23AC of the Act. Its repeal was consequential upon the repeal of regulation 4AD.

By subregulations 9(1) and (2), the regulations specified in Schedules 1 and 2, respectively, to the amending regulations, were amended as set out in those Schedules. Notes on amendments made by the Schedules appear at the end of this Statement.

Subregulation 10(1) is a savings provision that ensured that the validity of any exercises of delegations made under regulation 61 of the Principal Regulations is preserved, even though the enabling provision (regulation 61) had been repealed with effect after 30 June 1989. The savings provision will also clarify any uncertainty which may arise in this regard. This broad purpose will be achieved because subregulation 10(1) -

(a) ensured that, where an act done, step taken or decision made under the Principal Regulations by, or on behalf of, a prescribed delegate of the Commissioner was in effect immediately before 1 July 1989, it continued to have effect after that date; and

(b) provided for regulation 62 of the Principal Regulations, which concerns presumption as to signatures (for example, for judicial notice) to continue to apply as in force immediately before 1 July 1989.

Subregulation 10(2) confined the meaning of the expression “prescribed delegate of the Commissioner” (used in subregulation (1)) to a person appointed to be a prescribed delegate of the Commissioner for the purposes of the Income Tax Regulations as in force before 1 July 1989. The expression could not apply to other delegates because the repeal of regulation 61 ensured that there will be none.

Schedule 1

The amendments in Schedule 1 reflected changes of a minor nature, to ensure that the drafting of the regulations which are specified in the Schedule was expressed in modern style. The specified regulations were not otherwise altered.

Schedule 2

The amendments in Schedule 2 were formal amendments consequential upon the repeal of regulation 61 of the Principal Regulations.

Overview

The Income Tax Regulations (Amendment) Statutory Rules 1989 No. 123, issued by the authority of the Treasurer, aim to streamline and modernise the Income Tax Regulations by repealing redundant regulations and updating the drafting style of others. This legislative amendment was enacted to address the obsolescence and redundancy of certain regulations within the Income Tax Regulations, ensuring that the regulatory framework remains current and effective. The regulations were introduced by the Parliament of Australia with the policy objective of maintaining the integrity and efficiency of the tax system, ensuring that regulations are both relevant and functional in contemporary contexts. The changes made include the repeal of regulations related to outdated appointments, areas, and fees, as well as minor adjustments to align the language of the regulations with modern drafting standards.

Scope and Application

The Income Tax Regulations (Amendment) Statutory Rules 1989 No. 123, issued by the authority of the Treasurer, primarily focus on the repeal of redundant regulations and minor drafting updates to the Income Tax Regulations. These regulations apply to the Income Tax Regulations themselves, with a specific focus on regulations concerning special tax concessions for certain categories of personnel, such as "special Commonwealth Police Officers" and Defence Force Personnel serving in specific "special areas." The repeal of regulations 4AD and 4AC, which previously designated Vietnam (Southern Zone) as a "special area" and defined "special Commonwealth Police Officers," reflects the cessation of the conditions that originally warranted these classifications. The regulations also remove outdated references and procedures, such as the appointment of "prescribed delegates of the Commissioner" and the fee for obtaining a certificate of invalidity, which have become obsolete due to changes in governmental structures and the introduction of Medicare. The amendments ensure that the Income Tax Regulations are streamlined and updated, with particular attention to maintaining the validity of past delegations and decisions. The scope of these regulations is confined to the Commonwealth, with no explicit geographic or jurisdictional limitations beyond the existing Income Tax Regulations.

Key Provisions

The Income Tax Regulations (Amendment) Statutory Rules 1989 No. 123, issued by the authority of the Treasurer, primarily focus on repealing redundant regulations and making minor drafting updates to existing ones. Regulation 1 repeals regulation 61 of the Income Tax Regulations, effective from 1 July 1989. Regulation 2 introduces references to the Income Tax Regulations as the “Principal Regulations” in the amending regulations. Regulation 3 removes the definition of “prescribed delegate of the Commissioner” from subregulation 3(1), consequential to the repeal of regulation 61. Regulation 4 modifies regulation 4AC, clarifying that “special Commonwealth Police Officers” are no longer recognised as such, reflecting the replacement of the Commonwealth Police Act 1957 with the Australian Federal Police Act 1979. Regulation 5 repeals regulation 4AD, removing Vietnam (Southern Zone) as a “special area” for tax purposes, as the conditions for such designation no longer exist. Regulation 6 repeals regulation 61, which allowed the Commissioner to appoint “prescribed delegates” via Gazette notice, as it was not in practical use. Regulation 7 repeals regulation 66, which required payment of a fee for a certificate of invalidity, due to outdated references and the introduction of Medicare. Regulation 8 repeals the Sixth Schedule, which described Vietnam (Southern Zone) as a “special area”, following the repeal of regulation 4AD. The obligations imposed by these regulations require taxpayers and other entities to adhere to the updated and clarified provisions, ensuring that they are aware of the repealed and amended regulations. For instance, entities must no longer consider Vietnam (Southern Zone) a “special area” for tax exemption purposes and must update their records to reflect the changes in definitions and classifications of personnel. The savings provision in subregulation 10(1) ensures that any delegations made under repealed regulation 61 remain valid, and subregulation 10(2) clarifies that the term “prescribed delegate of the Commissioner” refers only to those appointed before 1 July 1989. These regulations necessitate compliance with the updated drafting style to avoid any confusion or misinterpretation. The regulations do not explicitly state offences, penalties, or consequences for breach. However, failure to comply with the updated regulations could result in incorrect tax assessments or exemptions. For example, if Defence Force Personnel serving in Vietnam (Southern Zone) after the repeal of regulation 4AD were still claiming tax exemptions, they could face retrospective tax assessments. Similarly, if entities continued to use the repealed regulation 61 for appointing delegates after its repeal, such actions might be deemed invalid. The primary consequence would be the need for taxpayers to rectify any non-compliance by adjusting their tax filings and ensuring they adhere to the current regulations.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.