Australian Federal Police Amendment Regulations 2000 (No. 1) 2000 No. 137
EXPLANATORY STATEMENT
STATUTORY RULES 2000 No. 137
issued by the Authority of the Minister for Justice and Customs
Australian Federal Police Act 1979
Australian Federal Police Amendment Regulations 2000 (No. 1)
Section 70 of the Australian Federal Police Act 1979 (the Act) provides that the Governor-General may make Regulations for the purposes of the Act. In particular, paragraphs 70(c) and (d) of the Act provide that the Governor-General may make regulations in relation to police services that may be rendered by the Australian Federal Police (the AFP) at the request of, inter alia, a member of the public or a prescribed authority of the Commonwealth, and the payment and recovery of fees for those police services.
Regulation 46 of the Australian Federal Police Regulations (the Principal Regulations) made under the Act prescribes:
* the services that might be rendered by the AFP for a fee (column 2 of an item in Schedule 6 of the Principal Regulations); and
* the fee that applies for each prescribed service (column 3 of an item in Schedule 6 of the Principal Regulations).
The fees are prescribed in column 3 of Schedule 6 as either: a specified dollar amount or by reference to the "cost to AFP for use of member's time". As far as is relevant, the Q6cost to AFP for use of member's time" is defined in subregulation 2(1) of the Principal Regulations as the sum of the remuneration payable to the member for the period during which he or she renders the service, plus a percentage of his or her base salary for the period.
Following the commencement of the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act), the AFP will have to remit a percentage of the fees received to the Australian Taxation Office, thereby eroding its revenue base. To offset this loss, these Regulations increase the fees payable by increasing the amounts set out in column 3 of Schedule 6 to the Principal Regulations and the percentage included in the definition of 44cost to AFP for use of member's time". These Regulations also insert a new subregulation 46(2) to provide that the fee set out in column 3 is the price of the taxable supply within the meaning of the GST Act, that is, it is an amount inclusive of a goods and services tax component. Consequential on the insertion of subregulation 46(2), is the renumbering of regulation 46 as subregulation 46(1).
The increase has taken into account any savings from the abolition of the Wholesale Sales Tax and other indirect taxes, and has been determined in accordance with the guidelines prescribed under the Financial Management and Accountability Act 1997, and those provided by the Australian Competition and Consumer Commission.
The Regulations commence on 1 July 2000.
Overview
The Australian Federal Police Amendment Regulations 2000 (No. 1), issued under the authority of the Minister for Justice and Customs, were enacted to address the financial implications of the introduction of the Goods and Services Tax (GST) on the Australian Federal Police (AFP). These Regulations amend the Australian Federal Police Regulations to ensure that the AFP can continue to provide police services at the same level of quality and efficiency by increasing the fees for services rendered and adjusting the percentage included in the definition of "cost to AFP for use of member's time." The increase in fees and the inclusion of the GST component is intended to offset the revenue loss resulting from the new tax regime. The changes were made in accordance with the guidelines provided under the Financial Management and Accountability Act 1997 and those issued by the Australian Competition and Consumer Commission. These Regulations aim to maintain the financial stability of the AFP while complying with the new tax requirements.
Scope and Application
The Australian Federal Police Amendment Regulations 2000 (No. 1) pertain to the Australian Federal Police Act 1979 and modify the Australian Federal Police Regulations to address the financial impact of the introduction of the Goods and Services Tax (GST). These regulations specifically amend the fees for police services rendered by the Australian Federal Police, ensuring that the force can maintain its revenue base despite the additional tax burden. The increased fees are designed to compensate for the erosion of income due to the GST, and the adjustments have been calculated in accordance with established guidelines to ensure consistency and fairness. The regulations apply to all services rendered by the AFP for a fee, as outlined in the Principal Regulations, and the new fees include a GST component as defined by the A New Tax System (Goods and Services Tax) Act 1999. These changes are effective from 1 July 2000 and are designed to maintain the operational capacity of the AFP in providing essential services to the public and prescribed Commonwealth authorities.
Key Provisions
The Australian Federal Police Amendment Regulations 2000 (No. 1) introduce changes to the fees for services rendered by the Australian Federal Police (AFP) as outlined in the Australian Federal Police Regulations 2000 (Principal Regulations). Section 70(c) and (d) of the Australian Federal Police Act 1979 empowers the Governor-General to make regulations concerning police services provided by the AFP, including the fees associated with these services. Specifically, the Regulations revise the fees outlined in column 3 of Schedule 6 of the Principal Regulations, reflecting the need to account for the introduction of the Goods and Services Tax (GST) under the A New Tax System (Goods and Services Tax) Act 1999. These amendments ensure that the fees now include a GST component, as specified in the new subregulation 46(2). The fees are adjusted to include a percentage of the base salary of AFP members, as defined in subregulation 2(1) of the Principal Regulations, thereby reflecting the true cost to the AFP for the use of a member's time.
These Regulations impose specific obligations on the AFP and other parties involved in the payment of fees for services rendered. The AFP is required to adjust the fee structure to account for the GST, ensuring that the new fees include a GST component as outlined in subregulation 46(2). Additionally, the AFP must remit a portion of the fees received to the Australian Taxation Office, as mandated by the GST Act. The amendments also require the AFP to ensure that the increased fees reflect the cost of services, including the remuneration for AFP members and a percentage of their base salary. These obligations are intended to maintain the financial integrity of the AFP while accounting for the impact of the GST.
The Regulations also outline the consequences for non-compliance with the new fee structures and GST requirements. Failure to remit the GST component of the fees to the Australian Taxation Office could result in financial penalties or other legal repercussions under the GST Act. Furthermore, the AFP may face financial strain if the new fees do not adequately cover the costs associated with rendering services, potentially impacting its operational capacity. There are no specific criminal penalties mentioned in the Regulations; however, breaches of the GST Act could lead to fines or other civil penalties as stipulated by that legislation. The Regulations aim to ensure that the AFP can continue to provide necessary services while remaining financially sustainable post-GST implementation.