Lodgment of returns for the year of income ended 30 June 2012 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
3. The Instrument applies to the year of income ended 30 June 2012 or an approved period in lieu and is effective from the day after it is registered.
What is this Instrument about:
4. 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 dates for returns lodged under the tax agent lodgment program.
What is the effect of this Instrument:
5. 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:
6. An assessment of the compliance cost impact indicates that the impact will be minor for both implementation and on-going compliance costs. The new instrument is of a minor or machinery nature.
Background:
7. 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.
8. Each year the Commissioner publishes a notice that sets out the requirements for certain persons to lodge returns and the date by which they must be lodged. It also identifies classes of persons who are not required to lodge a return.
9. 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:
10. There has been no external 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.
Statement of compatibility prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011:
11. This instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
12. This legislative instrument specifies which persons which persons are required to lodge an income tax return for the year ended 30 June 2012.
Human rights implications
13. This legislative instrument does not engage any of the applicable rights or freedoms.
Conclusion
14. This legislative instrument is compatible with human rights as it does not raise any human rights issues.
Michael D'Ascenzo
Commissioner of Taxation
25 June 2012
Overview
The Legislative Instrument F2012L01365, enacted in 2012, provides detailed instructions for lodgment of income tax and annual returns for the financial year ending 30 June 2012. This legislation serves to clarify the obligations of taxpayers 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. It specifies who is required to lodge returns in the approved form and sets out the due dates for lodgment, while also allowing for the deferral of due dates under the Commissioner’s discretion. The legislative instrument aims to ensure taxpayers have clear guidance on their obligations, including the penalties for late lodgment, thereby promoting compliance and reducing ambiguity regarding tax return obligations. This legislative measure was introduced to streamline the process of lodgment and to provide explicit guidance on the requirements and consequences of non-compliance.
Scope and Application
The legislative instrument F2012L01365 pertains to the lodgment of returns for the income year ending 30 June 2012, 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. This Instrument is a binding legal directive for the Commissioner of Taxation, who is tasked with specifying the individuals and entities obligated to lodge annual returns in an approved format, along with the stipulated due dates for such lodgment. The instrument aims to ensure taxpayers are aware of their obligations and the deadlines by which they must comply, while also outlining the penalties for non-compliance. The application of this Instrument is limited to the specified income year, and it became effective the day after its registration. While there has been no external consultation on this particular instrument, it is a customary practice to publish the requirements and due dates for the lodgment of returns each financial year, aligning with the long-standing practices under the aforementioned Acts.
Key Provisions
The primary operative sections of this legislative instrument are those that specify who must lodge an income tax return and the due date for lodgment. Under section 161 of the Income Tax Assessment Act 1936, every person is required to lodge an annual return within the period specified by the Commissioner. The instrument details the classes of individuals and entities required to submit these returns and provides the due dates for lodgment. This includes the discretion under section 388-55 of Schedule 1 to the Taxation Administration Act 1953, which allows the Commissioner to defer due dates for certain returns, such as those lodged under the tax agent lodgment program. The Superannuation Industry (Supervision) Act 1993 is also referenced, particularly section 35D, which pertains to the lodgment of returns related to superannuation.
The Act imposes several obligations on the parties or entities it governs. Primarily, it mandates that specified individuals and entities must lodge their annual income tax returns by the stipulated due dates. The Commissioner of Taxation is required to publish notices annually that specify who must lodge returns, the due dates, and the penalties for non-compliance. The returns must be lodged in the approved form as prescribed by the Commissioner. This includes both individuals and businesses, ensuring that all taxable entities comply with the legal requirement to report their income and pay the appropriate taxes.
In terms of consequences for non-compliance, the legislation outlines penalties for failure to lodge returns on time. Although the specific penalties are not detailed in the explanatory statement, they typically include financial penalties that increase with the length of delay. Additionally, persistent non-compliance can lead to more severe civil or even criminal consequences. The Commissioner has the authority to impose these penalties as a means to enforce the requirements of the Act and ensure that taxpayers meet their obligations. The penalties serve as a deterrent against non-compliance and help maintain the integrity of the tax system.