EXPLANATORY STATEMENT
TAX FILE NUMBER GUIDELINES — AMENDMENT 2003 No. 1
Background
1. Section 17(1) of the Privacy Act 1988 ("the Act") provides:
The Commissioner shall, by notice in writing, issue guidelines concerning the collection, storage, use and security of tax file number information.
2. The current Tax File Number Guidelines ("the TFN GLs") were issued in 1992. They were amended twice in 1996.
3. TFN GL 9.8 defines "taxation law" for the purposes of the Guidelines as including, inter alia:
An Act for which the Commissioner of Taxation has the general administration; including the Child Support (Registration and Collection) Act 1988 and the Child Support (Assessment) Act 1989.
Reasons for Amendments
4. On 30 June 2001, the Commissioner of Taxation ceased to be the Child Support Registrar and to have responsibility for the administration of the two child support Acts. The relevant sections of the Income Tax Assessment Act 1936 and the Taxation Administration Act 1953 make provision for the administration of the two child support Acts.
5. The two child support Acts were also amended to permit the handling of tax file numbers by the Child Support Agency in the administration of the child support scheme.
6. Also, to correct a typographical error (incomplete entry) at Guideline 9.8(c).
Explanation of Amendments
7. The effect of the legislative amendments (referred to in paragraph 4 above) needs to be reflected in those references to the child support Acts in the Guidelines. Therefore, I have taken the view that
The changes to the legislation represent a change in administrative arrangements for, as distinct from a change in the policy affecting, the collection, use, disclosure and security of tax file numbers;
As such, the amended administrative arrangements have minimal impact on the relevant provisions relating to the TFN GLs;
Accordingly, an amendment to the TFN GLs, which is intended to reflect these changes, should also be minimal.
8. I also refer to the correction of the typographical error contained in the present Guideline 9.8(c), and the consequent amendment to Guideline 9.8(d) to reflect that the relevant sections of the child support Acts do not confer Regulation making powers on the Registrar in relation to tax file numbers.
9. For these reasons, I have issued amendments to Tax File Number Guideline 9.8 in the terms referred to above.
MALCOLM WOODHOUSE CROMPTON Federal Privacy Commissioner
17 November 2003
Overview
The Privacy Act 1988 was enacted by the Australian Parliament to protect personal information and ensure its proper handling, storage, use, and security. One of the key provisions of this Act is the requirement for the Commissioner to issue guidelines concerning tax file number information. To address administrative changes and correct typographical errors, the Tax File Number Guidelines were amended in 2003. These amendments were made in response to the Commissioner of Taxation no longer being the Child Support Registrar and to correct an incomplete entry in the guidelines. The objective was to ensure that the guidelines accurately reflect the updated administrative arrangements for the collection, use, disclosure, and security of tax file numbers, thereby maintaining compliance with the Privacy Act.
Scope and Application
The Tax File Number Guidelines — Amendment 2003 No. 1 pertains to guidelines concerning the collection, storage, use, and security of tax file number information as stipulated in Section 17(1) of the Privacy Act 1988. These guidelines apply to entities and individuals who handle tax file numbers, particularly those involved in the administration of taxation laws, including the Child Support (Registration and Collection) Act 1988 and the Child Support (Assessment) Act 1989. The amendment responds to the transfer of administrative responsibilities from the Commissioner of Taxation to the Child Support Agency, as well as the correction of a typographical error in the existing guidelines. The amendment does not alter the fundamental policy regarding the handling of tax file numbers but instead ensures the guidelines reflect the updated administrative arrangements. The changes are intended to be minimal and are implemented to maintain consistency with the legislative amendments, ensuring that the guidelines accurately represent the current administrative processes and legal frameworks.
Key Provisions
The main operative sections of the Tax File Number Guidelines Amendment 2003 (No. 1) pertain to the updates made to Guideline 9.8, which defines "taxation law" for the purposes of the Guidelines (Section 9.8). These amendments are necessary to reflect changes in administrative arrangements following the cessation of the Commissioner of Taxation's role as the Child Support Registrar on 30 June 2001. The relevant sections of the Income Tax Assessment Act 1936 and the Taxation Administration Act 1953 now govern the administration of the child support Acts. Moreover, the Guidelines have been updated to permit the Child Support Agency's handling of tax file numbers in the administration of the child support scheme. Additionally, a typographical error in Guideline 9.8(c) has been corrected, with consequential adjustments made to Guideline 9.8(d).
The Tax File Number Guidelines Amendment 2003 (No. 1) imposes several obligations and requirements on the parties governed by the Guidelines. Firstly, entities collecting, storing, using, and securing tax file number information must align their practices with the updated Guideline 9.8, which now includes references to the Income Tax Assessment Act 1936 and the Taxation Administration Act 1953 for the administration of child support Acts. This change necessitates entities to ensure that their administrative arrangements for handling tax file numbers comply with the new legislative framework. Secondly, the Child Support Agency is now explicitly permitted to handle tax file numbers in the administration of the child support scheme, requiring entities to facilitate and cooperate with these processes as necessary.
The Tax File Number Guidelines Amendment 2003 (No. 1) does not explicitly outline specific offences, penalties, or consequences for breach within the explanatory statement. However, entities that fail to comply with the updated Guidelines may face repercussions under the overarching Privacy Act 1988, which mandates compliance with the Commissioner's guidelines concerning tax file number information. Non-compliance with the Guidelines could potentially lead to enforcement actions, including legal proceedings, fines, or other penalties as determined by the relevant authorities. The precise penalties would depend on the specific nature and severity of the breach, in accordance with the broader provisions of the Privacy Act 1988.