EXPLANATORY STATEMENT 1982 NO. 231
MINUTE NO 14 OF 1982 - MINISTER FOR NATIONAL DEVELOPMENT AND ENERGY
SUBJECT : SNOWY MOUNTAINS HYDRO-ELECTRIC POWER REGULATIONS (AMENDMENT)
In 1979 the Snowy Mountains Hydro-electric Power Act 1949 (the Act), was amended, inter alia, to bring its financial provisions into line with legislation applicable to other Commonwealth statutory authorities. At that time a new Section 30B, dealing with taxation of the Snowy Mountains Hydro-electric Authority (the Authority) under Commonwealth, State and Territory laws, was incorporated into the Act.
Section 30B(2) states that, subject to sub-section (3), the Authority is not subject to taxation under a law of a State or of a Territory.
Section 30B(3) provides that the regulations may provide that Sub-section (2) does not apply in relation to a specified law of a State or of a Territory.
Although, the Authority had been specifically designated as one of the Commonwealth institutions which would become subject to State pay-roll tax on transfer of the relevant taxing function from the Commonwealth to the States in 1971, and had commenced to meet New South Wales State pay-roll tax from that time, advice has subsequently been received from the Department of Finance that amendment of the Act in 1979 avoids the need for it to continue to meet State pay-roll tax unless appropriate regulations are made. Amendment of the Regulations is required with retrospective application to validate payments which have been made by the Authority since 1979 and to provide authority for future pay-roll tax disbursements.
Overview
The Snowy Mountains Hydro-electric Power Regulations (Amendment) 1982 was introduced by the Minister for National Development and Energy to amend the financial provisions of the Snowy Mountains Hydro-electric Power Act 1949. This amendment was necessary to bring the financial provisions of the Act into line with the legislation applicable to other Commonwealth statutory authorities. One of the key changes introduced by this amendment was the incorporation of a new Section 30B, which deals with the taxation of the Snowy Mountains Hydro-electric Authority under Commonwealth, State, and Territory laws. The policy objective of this amendment was to ensure that the financial provisions of the Act were consistent with other Commonwealth legislation and to avoid any potential conflicts or inconsistencies that may arise from the differing tax regimes. The regulations provide for the validation of payments made by the Authority since 1979 and to provide authority for future payroll tax disbursements.
Scope and Application
The Snowy Mountains Hydro-electric Power Regulations (Amendment) Minute No 14 of 1982 pertains to the amendment of the Snowy Mountains Hydro-electric Power Act 1949. This legislation applies to the Snowy Mountains Hydro-electric Authority, a Commonwealth statutory authority, and governs its financial provisions, including taxation under Commonwealth, State, and Territory laws. The Authority is generally exempt from State and Territory taxation as per Section 30B(2) of the Act, unless specified by regulation under Section 30B(3). The amendment was enacted to ensure that the Authority no longer needs to pay State payroll tax unless the relevant regulations provide otherwise. The regulations are required to have retrospective effect to validate past payments made by the Authority since 1979 and to authorise future payroll tax payments. The application of this regulation is confined to the geographic and jurisdictional reach of the Commonwealth, State, and Territory laws as they pertain to the Authority.
This amendment ensures that the financial provisions of the Snowy Mountains Hydro-electric Power Act 1949 align with current legislative standards, while also addressing specific tax obligations of the Authority. The Act and its amendments are significant for the precise management of financial and tax liabilities of the Authority, a key entity in the hydro-electric power sector within Australia. The scope of this legislation is thus narrowly focused on the financial and tax regulatory framework of the Authority, with its applicability strictly tied to the Authority’s operations and obligations under Commonwealth, State, and Territory laws.
Key Provisions
The main operative sections of the Snowy Mountains Hydro-electric Power Regulations (Amendment) are section 30B(2) and section 30B(3). Section 30B(2) specifies that the Snowy Mountains Hydro-electric Authority is exempt from taxation under any State or Territory law, subject to the conditions outlined in section 30B(3). Section 30B(3) allows the regulations to specify that the exemption does not apply in relation to a particular State or Territory law, effectively permitting certain taxes to apply under defined circumstances.
These sections impose specific obligations on the Snowy Mountains Hydro-electric Authority, primarily ensuring that it is exempt from State and Territory taxation, unless the regulations expressly permit otherwise. This exemption aims to streamline the financial management of the Authority, aligning it with other Commonwealth statutory authorities. Additionally, the regulations must be amended to clarify the Authority’s obligations concerning payroll tax, ensuring that any retrospective validations of payments made since 1979 are legally sound and future payments are properly authorised.
Failure to comply with the provisions of the Act and the regulations could result in various consequences. For instance, if the Authority is found to have paid taxes in contravention of section 30B(2) without the necessary regulatory provisions in place, this could be deemed an unauthorised payment. Additionally, if the regulations are not amended to allow for payroll tax payments as permitted by section 30B(3), the Authority might be required to back-pay taxes to the relevant State or Territory. The precise penalties for such breaches are not specified in the explanatory statement, but they could include financial liabilities for the Authority and potential legal action from affected parties.
In terms of enforcement, while the explanatory statement does not detail specific penalties, breaches of the Act or its regulations could lead to administrative or legal actions. The Authority might face financial penalties, and in more severe cases, officials could be subject to prosecution under applicable laws. It is important for the Authority to adhere strictly to the legislative framework to avoid these potential consequences.