States (Tax Sharing and Health Grants) Amendment Act 1983
No. 31 of 1983
An Act to amend the States (Tax Sharing and Health Grants) Act 1981
[Assented to 19 June 1983]
BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:
Short title, &c.
1. (1) This Act may be cited as the States (Tax Sharing and Health Grants) Amendment Act 1983.
(2) The States (Tax Sharing and Health Grants) Act 19811 is in this Act referred to as the Principal Act.
Commencement
2. (1) Subject to sub-section (2), this Act shall come into operation on the day on which it receives the Royal Assent.
(2) Sections 3 and 4 shall be deemed to have come into operation on 18 June 1981.
Interpretation
3. Section 4 of the Principal Act is amended by adding at the end thereof the following sub-section:
“(3) An amount of, or in respect of, a tax included in a class of taxes specified in Schedule 1 shall not be taken, for any purpose of this Act, to have been received by the Commonwealth until that amount is received by the relevant authority in relation to the class of taxes in which that tax is included.”.
Taxes collected by Commonwealth
4. Section 6 of the Principal Act is amended—
(a) by omitting from sub-section (4) “of the whole or any part of amounts received by the Commonwealth, whether in that year or a previous year, in respect of taxes included in that class” and substituting “, in respect of taxes included in that class, whether each such refund is constituted solely by an amount (in this sub-section called a ‘relevant amount’) representing the whole or any part of an amount or amounts received by the Commonwealth, whether in that year or a previous year, in respect of taxes included in that class or partly by the relevant amount and partly by interest upon the relevant amount”;
(b) by inserting after sub-section (4) the following sub-section:
“(4a) In determining, for the purposes of sub-section (3), the net amount received by the Commonwealth in a year in respect of taxes included in a class of taxes specified in Schedule 1, there shall be included in that amount any amount received by the Commonwealth during that year by way of a penalty (however described) arising from the non-payment by the due date—
(a) of an amount of a tax included in that class of taxes; or
(b) of an amount required to be paid to the Commonwealth in that year on account of a possible liability to pay a tax included in that class of taxes.”; and
(c) by adding at the end thereof the following sub-section:
“(11) For the purposes of this section, an amount shall be taken to have been received by the Commonwealth in a particular year in respect of a tax included in a class of taxes specified in Schedule 1 if it has been received by the Commonwealth in that year on account of a possible liability to pay that tax, whether or not any liability to pay that tax subsequently arises.”.
Schedule 1
5. Schedule 1 of the Principal Act is repealed and the following Schedule is substituted:
SCHEDULE 1 Section 6
COMMONWEALTH TAXES
Column 1 | Column 2 |
Taxes | Relevant authorities |
Customs duty on imports collected under Customs Act 1901 | Comptroller-General of Customs |
Customs duty on coal exports collected under section 133 of Customs Act 1901 | Comptroller-General of Customs |
Excise duty (other than coal excise and canned fruit excise) collected under Excise Act 1901 | Comptroller-General of Customs |
Income tax collected under Income Tax Assessment Act 1936 | Commissioner of Taxation |
Sales tax collected under Sales Tax Assessment Acts (Nos. 1-9) 1930 | Commissioner of Taxation |
Departure tax collected under Departure Tax Collection Act 1978 | Secretary, Department of Immigration and Ethnic Affairs |
Estate duty collected under Estate Duty Assessment Act 1914 | Commissioner of Taxation |
Gift duty collected under Gift Duty Assessment Act 1941 | Commissioner of Taxation |
Tax collected under the Bank Account Debits Tax Administration Act 1982 | Commissioner of Taxation |
Tax collected under the Taxation (Unpaid Company Tax) Assessment Act 1982 | Commissioner of Taxation |
NOTE
1. No. 99, 1981, as amended. For previous amendments, see Nos. 8 and 94, 1982.
Overview
The States (Tax Sharing and Health Grants) Amendment Act 1983 was enacted to address specific issues within the existing tax sharing and health grants framework established by the States (Tax Sharing and Health Grants) Act 1981. This amendment was introduced to ensure clarity and precision in the tax collection and distribution process between the Commonwealth and the states. The Act was passed by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, aiming to provide a more streamlined and transparent system for tax sharing and health grants. The primary objective, as indicated in the text, is to refine the definition and scope of taxes that are included in the tax sharing arrangements, thereby enhancing the efficiency of tax collection and the allocation of health grants.
Scope and Application
The States (Tax Sharing and Health Grants) Amendment Act 1983 applies to the tax arrangements between the Commonwealth and the states as set out in the original States (Tax Sharing and Health Grants) Act 1981. It specifically concerns the timing and recognition of tax receipts by the Commonwealth from certain classes of taxes, as well as the inclusion of penalties for non-payment of taxes in the net amount received by the Commonwealth. The Act amends the Principal Act to clarify that an amount of tax is not considered received by the Commonwealth until it is actually received by the relevant authority. The amendment also specifies that refunds of taxes and penalties for non-payment of taxes are to be included in the net tax amount received by the Commonwealth. The Act applies to the Commonwealth of Australia and the individual states, governing the administration and distribution of specified taxes. It does not explicitly mention exclusions or exemptions but implies certain exclusions through the specific inclusion of taxes and authorities in the Schedule. The application of the Act extends through subordinate instruments such as the Schedule, which details the specific taxes and the authorities responsible for their collection.
Key Provisions
The States (Tax Sharing and Health Grants) Amendment Act 1983 (referred to as the Amendment Act) amends the States (Tax Sharing and Health Grants) Act 1981 (the Principal Act) in several key areas. The primary changes are to how taxes are recognised and shared between the Commonwealth and the States. Section 3 of the Amendment Act adds a new sub-section to the definition of "amount received" in the Principal Act, clarifying that taxes are only considered received by the Commonwealth when they are actually received by the relevant authority (Section 4). Section 4 of the Amendment Act modifies Section 6 of the Principal Act to redefine how refunds and penalties are calculated and attributed to the relevant taxes (Section 6(4) and (4a)). Additionally, Section 4 adds a new sub-section to ensure that taxes are recognised even if a liability to pay them does not ultimately arise (Section 6(11)).
Under the Amendment Act, certain obligations and requirements are imposed on both the Commonwealth and the relevant authorities responsible for collecting specified taxes. The Commonwealth must now ensure that taxes are only recognised when received by the appropriate authority, and this applies to both taxes and penalties related to those taxes. The relevant authorities are mandated to remit collected taxes to the Commonwealth and to provide accurate records of these transactions. This includes any penalties resulting from non-payment or late payment of specified taxes, which must also be remitted to the Commonwealth.
Breaches of the provisions outlined in the Amendment Act can result in various civil or criminal consequences. While the Act itself does not explicitly state penalties for non-compliance, penalties for breaches of related provisions in the Principal Act or other relevant legislation could apply. For instance, penalties for non-compliance with tax collection and remittance obligations under the Income Tax Assessment Act 1936 or the Customs Act 1901 could be invoked. These penalties can include fines and, in more severe cases, criminal charges leading to imprisonment. The specific penalties would depend on the nature and severity of the breach, as well as the relevant provisions of other Acts.