Social Security and Other Legislation Amendment (Australian Apprentices) Act 2009
No. 52, 2009
An Act to amend the law relating to taxation, social security and veterans’ entitlements, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Amendments
Income Tax Assessment Act 1997
Social Security Act 1991
Veterans’ Entitlements Act 1986
Social Security and Other Legislation Amendment (Australian Apprentices) Act 2009
No. 52, 2009
An Act to amend the law relating to taxation, social security and veterans’ entitlements, and for related purposes
[Assented to 24 June 2009]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Social Security and Other Legislation Amendment (Australian Apprentices) Act 2009.
2 Commencement
This Act commences on 1 July 2009.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendments
Income Tax Assessment Act 1997
1 Section 11‑15 (at the end of the table item headed “education and training”)
Add:
Skills for Sustainability for Australian Apprentices payment, recipient of | 51‑10 |
Tools for Your Trade payment (under the program known as the Australian Apprenticeships Incentives Program), recipient of | 51‑10 |
2 Section 51‑10 (at the end of the table)
Add:
2.7 | a recipient of a payment under the program known as Skills for Sustainability for Australian Apprentices | the payment | none |
2.8 | a recipient of a payment under the program known as Tools for Your Trade (within the program known as the Australian Apprenticeships Incentives Program) | the payment | none |
3 Application of amendments
The amendments made by items 1 and 2 of this Schedule apply to assessments for the 2009‑10 income year and later income years.
Social Security Act 1991
4 After paragraph 8(8)(ta)
Insert:
(tb) a payment to the person made by the Commonwealth under the program known as Skills for Sustainability for Australian Apprentices;
(tc) a payment to the person made by the Commonwealth under the program known as Tools for Your Trade (within the program known as the Australian Apprenticeships Incentives Program);
Veterans’ Entitlements Act 1986
5 After paragraph 5H(8)(xaa)
Insert:
(xab) a payment to the person made by the Commonwealth under the program known as Skills for Sustainability for Australian Apprentices;
(xac) a payment to the person made by the Commonwealth under the program known as Tools for Your Trade (within the program known as the Australian Apprenticeships Incentives Program);
[Minister’s second reading speech made in—
House of Representatives on 28 May 2009
Senate on 17 June 2009]
Overview
The Social Security and Other Legislation Amendment (Australian Apprentices) Act 2009 was enacted by the Parliament of Australia to address issues concerning the taxation, social security, and veterans' entitlements of Australian apprentices. This legislation was introduced to ensure that payments made to apprentices under specific Commonwealth programs, such as the Skills for Sustainability for Australian Apprentices and the Tools for Your Trade within the Australian Apprenticeships Incentives Program, are appropriately accounted for in the Income Tax Assessment Act 1997, the Social Security Act 1991, and the Veterans' Entitlements Act 1986. The policy objective of the Act is to align the legislative framework with the economic contributions and entitlements of apprentices, ensuring they are neither disadvantaged nor overlooked in the taxation and social security systems.
Scope and Application
The Social Security and Other Legislation Amendment (Australian Apprentices) Act 2009 amends several legislative instruments to alter the treatment of certain payments made to Australian apprentices under specific Commonwealth programs. This Act applies to individuals who are recipients of payments under the Skills for Sustainability for Australian Apprentices program and the Tools for Your Trade payment, which is part of the Australian Apprenticeships Incentives Program. It amends the Income Tax Assessment Act 1997 to ensure these payments are correctly identified for taxation purposes, specifically for assessments for the 2009-10 income year and subsequent years. Furthermore, the Act modifies the Social Security Act 1991 and the Veterans’ Entitlements Act 1986 to clarify that payments made under these programs are not considered in the determination of social security and veterans’ entitlements, respectively. This Act operates at the Commonwealth level and does not explicitly state any exclusions, exemptions, or thresholds. However, its application may be further defined through subordinate instruments.
Key Provisions
The Social Security and Other Legislation Amendment (Australian Apprentices) Act 2009 (hereafter referred to as the Act) primarily amends the Income Tax Assessment Act 1997, the Social Security Act 1991, and the Veterans’ Entitlements Act 1986. The Act introduces new provisions relating to payments made under the Skills for Sustainability for Australian Apprentices and the Tools for Your Trade programs. Specifically, section 11-15 of the Income Tax Assessment Act 1997 is amended to include the Skills for Sustainability for Australian Apprentices payment and the Tools for Your Trade payment as non-assessable non-exempt income (section 1). Section 51-10 is similarly amended to add these payments to the list of payments that are not subject to income tax (section 2). These amendments apply to assessments for the 2009-10 income year and later years (section 3).
The Act imposes certain obligations on the recipients of these payments. Firstly, it requires that these payments be treated as non-assessable non-exempt income for tax purposes (section 1). This means that recipients do not need to include these payments in their taxable income. Secondly, it ensures that these payments are not subject to income tax, effectively exempting them from tax assessment (section 2). Additionally, the Act mandates that these payments be included in the Social Security Act 1991 and the Veterans’ Entitlements Act 1986 for the purposes of assessing eligibility for social security benefits and veterans' entitlements (sections 4 and 5).
There are no specific offences or penalties outlined within the Act itself. However, failure to comply with the tax obligations imposed by the Act could result in civil or criminal consequences under the Income Tax Assessment Act 1997. For instance, providing false or misleading information to the Australian Taxation Office could lead to penalties under the general anti-avoidance provisions of the Act, which may include fines or imprisonment for serious cases. Similarly, under the Social Security Act 1991 and the Veterans’ Entitlements Act 1986, providing false information could result in penalties, including fines or imprisonment. The exact penalties would depend on the severity of the breach and the applicable provisions of the respective Acts.