STATUTORY RULES
1971 No.
REGULATIONS UNDER THE OVERSEAS TELECOMMUNICATIONS ACT 1946-1971.*
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Overseas Telecommunications Act 1946-1971.
Dated this ninth day of December, 1971.
Paul Hasluck
Governor-General.
By His Excellency’s Command,
Postmaster-General.
Amendments of the Overseas Telecommunications Commission Regulations†
Parts.
1. Regulation 2 of the Overseas Telecommunications Commission Regulations is amended by adding at the end thereof the words and figures “Part VIII.—Liability of Commission to Taxation (Regulation 43).”.
2. After Part VII. of the Overseas Telecommunications Commission Regulations the following Part is inserted:—
“Part VIII.—Liability of Commission to Taxation.
Liability to pay-roll tax.
“43. Sub-section (2.) of section 52 of the Act does not apply in relation to taxation under a law of a State or of a Territory of the Commonwealth that relates to the imposition upon employers of a tax on wages paid or payable by them and the assessment and collection of that tax.”.
Application.
3. The Part inserted in the Overseas Telecommunications Commission Regulations by the last preceding regulation has effect, and shall be deemed to have taken effect, from and including the first day of September, 1971.
* Notified in the Commonwealth Gazette on 1971.
† Statutory Rules 1955, No. 87, as amended by Statutory Rules 1970, No. 197; and 1971, No. 132.
Printed by Authority by the Government Printer of the Commonwealth of Australia
22051/71—Price 5c 10/17.11.1971
Overview
Statutory Rules 1971 No. 168, made under the Overseas Telecommunications Act 1946-1971, aims to address the issue of the Overseas Telecommunications Commission's liability to state and territory payroll taxes. Enacted by the Governor-General in Council, these regulations amend the Overseas Telecommunications Commission Regulations to specifically exempt the Commission from payroll tax liabilities imposed by state or territory laws. The overarching policy objective is to ensure that the Commission can operate without the burden of additional payroll taxes, thereby supporting its role in managing overseas telecommunications services on behalf of the Commonwealth. This legislative instrument was designed to provide clarity and legal certainty regarding the tax obligations of the Commission, ensuring that its operations are not unduly hampered by fiscal constraints imposed by state and territory governments.
Scope and Application
The Statutory Rules 1971 No. 168, being regulations made under the Overseas Telecommunications Act 1946-1971, apply specifically to the Overseas Telecommunications Commission and its liabilities concerning taxation. These regulations amend the Overseas Telecommunications Commission Regulations to include provisions about the Commission's liability to pay-roll tax, particularly exempting it from certain state and territory taxation laws that apply to employers on wages. The regulations clarify that subsection (2) of section 52 of the Act does not extend to taxes on wages imposed by state or territory laws. These regulations extend their reach to the entire Commonwealth of Australia, ensuring that the specified tax liabilities are consistently applied across all jurisdictions within the country. The regulations came into effect from the first day of September, 1971, and are applicable to the Commission in its capacity as an employer.
Key Provisions
The main operative sections of these Regulations (sections 1 to 3) introduce an amendment to the Overseas Telecommunications Commission Regulations. Specifically, they add a new Part VIII, which addresses the liability of the Commission to taxation (section 2). The new Part VIII stipulates that subsection (2) of section 52 of the Overseas Telecommunications Act 1946-1971 does not apply to taxation imposed by State or Territory laws concerning employers' tax on wages (section 43). This amendment is effective from 1 September 1971 (section 3).
These Regulations impose specific obligations on the Overseas Telecommunications Commission regarding its tax liability. Under the new Part VIII, the Commission is exempt from certain tax obligations as outlined in section 43 of the Regulations. This exemption is limited to taxes on wages imposed by State or Territory laws, aligning with the provisions of section 52(2) of the Act. This amendment ensures that the Commission’s liability to such taxes is governed by the state or territory laws rather than by the Act itself.
Breaching the provisions of these Regulations could result in significant consequences. Although the Regulations themselves do not explicitly state penalties for non-compliance, the underlying Act and relevant state or territory laws might impose penalties. The maximum penalties would depend on the specific tax laws of the state or territory involved. Non-compliance with tax obligations can lead to civil or criminal penalties, including fines or legal action, as determined by the respective tax authorities.
The Regulations are designed to clarify the Commission's tax obligations, ensuring that it adheres to state or territory laws rather than the provisions of the Act. By specifying the exemption from certain tax liabilities, the Regulations aim to avoid potential conflicts between federal and state tax laws, thereby ensuring that the Commission operates within the correct legal framework. The introduction of this amendment reflects a broader effort to streamline tax obligations and ensure compliance with relevant legislation.