Lodgment of returns for the year of income ended 30 June 2009 in accordance with the Income Tax Assessment Act 1936, the Income Tax Assessment Act 1997, the Taxation Administration Act 1953, the Superannuation Industry (Supervision) Act 1993 and the Income Tax (Transitional Provisions) Act 1997
Explanatory Statement
General outline of Instrument
This Instrument sets out who is required to lodge an annual return, in the approved form, and the due date for lodgment.
The proposed Instrument will be a Legislative Instrument for the purposes of the Legislative Instruments Act 2003 and it is legally binding on the Commissioner of Taxation (“the Commissioner”)
Date of effect
The Instrument applies to the financial year ended 30 June 2009 or an approved period in lieu and is effective from the day after it is registered.
What is this Instrument about:
The principal purpose of the Instrument is to require lodgment of income tax and annual returns in accordance with section 161 of the Income Tax Assessment Act 1936 and section 35D of the Superannuation Industry (Supervision) Act 1993 for an income year by specifying who is to lodge and to stipulate the date by which they are to lodge. The Instrument establishes due dates for lodgment of returns which can be deferred by the exercise of the Commissioner’s discretion under s 388-55 of Schedule 1 to the Taxation Administration Act 1953, for example the deferred due date for returns lodged under the tax agent lodgment program.
What is the effect of this Instrument:
The effect of this Instrument is that taxpayers have guidance on their obligations to lodge returns in the approved form and the date by which they must be lodged and the penalty that may be applied for failure to lodge on time.
Compliance cost impact:
An assessment of the compliance cost impact indicates that the impact will be minimal for both implementation and on-going compliance costs. The Instrument is routine in nature.
Background:
Since the commencement of the Income Tax Assessment Act 1936, section 161 of that Act refers to the requirement to lodge an annual return. Every person must, if required by the Commissioner, give to the Commissioner a return for a year of income within the period specified in the notice.
Each year the Commissioner publishes a notice that sets out the requirements for certain taxpayers to lodge returns and the date by which they must be lodged. It also identifies classes of taxpayers who are not required to lodge a return.
The notice defines a ‘person’ and in tables sets out in detail the requirements for a ‘person’ to lodge a return, as well as supplementary information such as the requirement for lodgment in the approved form and the penalties that may be applied for failing to lodge the return on time.
Consultation:
There has been no consultation in relation to this Instrument. This is a machinery provision and a requirement of section 161 of the Income Tax Assessment Act 1936 and section 35D of the Superannuation Industry (Supervision Act) 1993 and it is a long standing practice to publish the due dates for lodgment of returns for each financial year and who must lodge them.
Michael D'Ascenzo
Commissioner of Taxation
19th June 2009
________________________________________________________________________________________
Overview
The legislative instrument F2009L02500, titled "Lodgment of returns for the year of income ended 30 June 2009 in accordance with the Income Tax Assessment Act 1936, the Income Tax Assessment Act 1997, the Taxation Administration Act 1953, the Superannuation Industry (Supervision) Act 1993 and the Income Tax (Transitional Provisions) Act 1997 Explanatory Statement," was enacted to address the need for clarity and guidance on the lodgment of annual income tax returns and superannuation returns for the financial year ending 30 June 2009. The instrument was introduced by the Commissioner of Taxation, Michael D'Ascenzo, to ensure that taxpayers are aware of their obligations regarding the lodgment of returns in the approved form and the specific due dates for such lodgments. The primary objective of this instrument is to facilitate compliance with existing tax laws by providing precise instructions on who must lodge returns and the deadlines for doing so, thereby reducing confusion and potential penalties for non-compliance.
This legislative instrument is legally binding on the Commissioner of Taxation and applies to the financial year ended 30 June 2009, coming into effect the day after its registration. It operates under the authority of the Legislative Instruments Act 2003, ensuring that the specified requirements for lodgment are clearly communicated to taxpayers. The instrument also allows for the deferral of due dates through the exercise of the Commissioner's discretion, as stipulated under the Taxation Administration Act 1953. The overall effect is to provide taxpayers with clear guidance on their obligations, including the penalties for late lodgment, thereby promoting adherence to tax laws and efficient administration of the tax system.
Scope and Application
The legislation F2009L02500 pertains to the lodgment of returns for the financial year ended 30 June 2009, and it applies to those required to file annual income tax and superannuaton returns under the Income Tax Assessment Act 1936, the Income Tax Assessment Act 1997, the Taxation Administration Act 1953, the Superannuation Industry (Supervision) Act 1993, and the Income Tax (Transitional Provisions) Act 1997. This legislative instrument, binding on the Commissioner of Taxation, outlines the obligations of taxpayers to submit their returns in an approved format and specifies the due dates for lodgment. The Act provides for the possibility of deferring these due dates under certain conditions, such as through the exercise of the Commissioner's discretion as outlined in the Taxation Administration Act 1953. It also details the penalties for non-compliance, thus ensuring taxpayers are aware of their obligations and the consequences of failing to meet them. The legislation applies nationally within the Commonwealth of Australia and does not include any specific exclusions or exemptions beyond those already defined in the primary acts it references.
Key Provisions
The primary sections of this Instrument, namely sections 161 of the Income Tax Assessment Act 1936 and section 35D of the Superannuation Industry (Supervision) Act 1993, mandate the lodgment of annual income tax returns by specified individuals or entities to the Commissioner of Taxation within a prescribed timeframe. These provisions also include stipulations on the approved form for lodgment and the due dates, which are published annually by the Commissioner. The Commissioner has the discretion to defer due dates under section 388-55 of Schedule 1 to the Taxation Administration Act 1953, particularly for those using the tax agent lodgment program.
The obligations imposed by this legislation on taxpayers include the requirement to submit their annual income tax returns by the specified due dates. This entails not only completing the return in the approved form but also ensuring it is submitted on time. The Commissioner of Taxation has the authority to issue notices that outline who must lodge returns, the acceptable forms, and the penalties for non-compliance. The Instrument ensures that taxpayers are informed about their specific obligations through these annual notices, which also delineate the penalties for late lodgment or failure to lodge altogether.
The penalties and consequences for non-compliance with the lodgment requirements set out in this Instrument can be severe. Failure to lodge a return by the due date can result in the imposition of penalties, including fines and interest on any unpaid taxes. The exact amount of these penalties can vary based on the severity and duration of the non-compliance. While the Instrument does not specify the exact penalties, it refers to the applicable laws, particularly the Income Tax Assessment Act 1936 and the Taxation Administration Act 1953, which detail the potential fines and interest rates. Additionally, persistent failure to comply can lead to further enforcement actions by the Commissioner, including legal proceedings.