Lodgment of statements by first home saver account providers for the year ended 30 June 2010 in accordance with the Taxation Administration Act 1953
Explanatory Statement
General outline of instrument:
- This instrument sets out the way in which First home saver account providers are required to lodge First home saver account activity statements in accordance with section 391-5 of Schedule 1 of the Taxation Administration Act 1953 for the financial year ended 30 June 2010, in the approved form, and states the due date for lodgment.
2. 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.
Date of effect:
3. The instrument applies to the financial year ended 30 June 2010 and is effective from the day after it is registered.
What is this instrument about?
4. The principal purpose of the Instrument is to set out the form and manner in which statements are to be lodged for the financial year ending 30 June 2010 and states the date that they are required to be lodged. The Legislative Instrument sets the baseline date for lodgment of statements, which can be deferred by the exercise of the Commissioner’s discretion under section 388-55 of Schedule 1 to the Taxation Administration Act 1953.
What is the effect of this instrument?
5. The effect of this instrument is that First home saver account providers have clear guidance on their obligation to lodge statements, the manner in which they must be lodged and the date by which they must be lodged. The instrument also details the penalty that may be applied for failure to lodge on time.
Compliance cost impact:
.
6. Compliance cost impact: An assessment of the compliance cost impact indicates that the impact will be no change for both implementation and on-going compliance costs. The instrument is routine in nature.
Background:
7. Every year the Commissioner publishes the requirements for lodgment of income tax returns and other statements in accordance with relevant legislation.
8. This year a legislative instrument is being made to require the lodgment of First home saver account activity statements in accordance with section 391-5 of the Taxation Administration Act 1953.
9. The instrument sets out the lodgment date for statements and the manner in which they have to be lodged, including details of acceptable electronic media that could be used and the penalties that may be applied for failing to lodge these statements on time.
Consultation:
10. There has been significant consultation in the past in relation to this instrument, both the period of lodgment and lodgment date have been decided with industry. This is considered a machinery provision and a requirement of section 391-5 of Schedule 1 of the Taxation Administration Act 1953 and it is a long standing practice to publish information for lodgment of income tax returns and other statements for each financial year and who must lodge them.
Michael D'Ascenzo
Commissioner of Taxation
10 June 2010
Overview
The F2010L01596 legislative instrument, enacted in 2010, provides a formal framework for the lodgment of First Home Saver Account (FHSA) activity statements for the financial year ending 30 June 2010. This instrument was introduced to ensure that FHSA providers comply with the requirements set out in section 391-5 of Schedule 1 of the Taxation Administration Act 1953. The policy objective is to establish clear guidelines for the form, manner, and due date of lodgment of these statements, thereby ensuring transparency and compliance within the financial sector. This legislative instrument, which is legally binding on the Commissioner of Taxation, serves as an essential tool for maintaining the integrity of the taxation system by specifying penalties for non-compliance. The instrument, having undergone significant consultation with industry stakeholders, is considered routine in nature with no significant compliance cost impact.
Scope and Application
This legislative instrument applies specifically to First home saver account providers who are required to lodge their activity statements for the financial year ending 30 June 2010. It sets out the approved form and manner of lodgment as mandated by section 391-5 of Schedule 1 to the Taxation Administration Act 1953. The instrument is legally binding on the Commissioner of Taxation and is effective from the day after it is registered. The primary purpose is to provide clear guidance to these providers on their obligations, including the specified lodgment date and acceptable methods of electronic media for submission. The instrument also outlines potential penalties for non-compliance, ensuring that First home saver account providers are well-informed about their responsibilities and the consequences of failing to meet the stipulated deadlines. This is a routine requirement and part of the ongoing practice of publishing annual lodgment requirements in alignment with relevant legislation, reflecting a well-established industry consultation process.
Key Provisions
The instrument, F2010L01596, focuses on the lodgment of First Home Saver Account (FHSA) activity statements for the financial year ending 30 June 2010, as outlined in section 391-5 of Schedule 1 of the Taxation Administration Act 1953. It provides specific instructions on the form and manner in which these statements must be lodged, as well as the due date for submission. These instructions are legally binding on the Commissioner of Taxation and come into effect from the day after the instrument is registered. The primary purpose of this instrument is to ensure that FHSA providers have clear guidance on their obligations regarding the lodgment of statements, including the acceptable methods for electronic submission and the penalties for non-compliance.
First home saver account providers are required to adhere to several key obligations under this legislation. They must lodge their activity statements in the approved format and ensure that these statements are submitted by the specified due date. The instrument also details the acceptable electronic media for lodgment, which could include digital formats that meet the Commissioner's criteria. Providers are expected to maintain accurate records and ensure the integrity and timeliness of their submissions. Furthermore, the instrument allows for the Commissioner's discretion to defer the baseline lodgment date under section 388-55 of the Taxation Administration Act 1953, providing some flexibility in certain circumstances.
The consequences for failing to comply with the requirements of this instrument can be significant. Non-compliance may result in penalties being imposed on the FHSA providers. The instrument details the potential penalties, although it does not specify the exact maximum penalties. The penalties are designed to encourage timely and accurate lodgment of statements, ensuring that the tax system remains efficient and that the Commissioner can rely on the information provided. Civil or criminal consequences could also arise from persistent non-compliance, depending on the severity and intent behind the breach. The legislation aims to deter non-compliance by clearly outlining the potential repercussions, thereby ensuring that providers take their obligations seriously.