Local Government (Personal Income Tax Sharing) Amendment Act 1979

Overview

The Local Government (Personal Income Tax Sharing) Amendment Act 1979 was enacted to amend the Local Government (Personal Income Tax Sharing) Act 1976, thereby addressing specific deficiencies and updating provisions related to the sharing of personal income tax revenue between the Commonwealth and local governments. This legislation was introduced by the Parliament of Australia and received Royal Assent, coming into operation on the date of its assent. The primary objective of this amendment is to adjust the "base figure" from 1.52% to 1.75% as part of the ongoing review and adjustment of the financial arrangements for tax sharing, ensuring that local governments receive a fair share of the personal income tax revenue. Additionally, the Act modifies the review mechanism by allowing the Minister to refer the matter of changes to the relevant table to the Commonwealth Grants Commission for inquiry and report, thereby enhancing the flexibility and responsiveness of the tax-sharing arrangements to economic and fiscal conditions.

Scope and Application

The Local Government (Personal Income Tax Sharing) Amendment Act 1979 applies to local government entities in Australia and modifies the Local Government (Personal Income Tax Sharing) Act 1976, which pertains to the sharing of personal income tax revenue between the Commonwealth and local governments. This amendment Act primarily targets local government authorities and the revenue sharing mechanism stipulated in the Principal Act. It adjusts the "base figure" from 1.52% to 1.75%, influencing the calculation of tax shares for the financial year beginning 1 July 1979 and subsequent years. The Act's jurisdictional reach is national, applying across all local governments within the Commonwealth of Australia. There are no specific exclusions, exemptions, or thresholds stated within the text of this amendment Act. The application of the Act might be further defined or expanded through subordinate instruments or regulations issued under the authority of the Principal Act, although no such provisions are explicitly mentioned in the provided text.

Key Provisions

The Local Government (Personal Income Tax Sharing) Amendment Act 1979 introduces significant changes to the Local Government (Personal Income Tax Sharing) Act 1976. Firstly, section 3 of the Principal Act is amended by substituting the base figure from 1.52% to 1.75% (section 3(1)). This amendment applies to the year commencing on 1 July 1979 and subsequent years (section 3(2)). Additionally, section 12 of the Principal Act is revised to allow the Minister to refer to the Commonwealth Grants Commission for an inquiry and report on whether changes are desirable in the table set out in subsection 5(2) (section 4). Under this Act, local governments and the Minister for Local Government are subject to specific obligations. Local governments must adhere to the new base figure of 1.75% for calculating their share of personal income tax. This is a departure from the previous rate of 1.52%, ensuring that the revenue allocation framework is updated accordingly. Furthermore, the Minister has the responsibility to periodically assess the necessity for changes in the tax sharing arrangements, facilitating this by referring the matter to the Commonwealth Grants Commission for expert evaluation and recommendations. The Act also outlines consequences for non-compliance with its provisions. While specific offences, penalties, or civil/criminal consequences are not detailed within the provided sections of the Act, it is customary for such legislative amendments to carry potential sanctions for non-compliance. These could include financial penalties, legal actions, or other administrative measures as prescribed under the overarching legal framework governing local government operations and taxation. The exact nature and extent of these consequences would typically be governed by additional sections of the Principal Act or related legislation.