EXPLANATORY STATEMENT
Tax Laws Amendment (2009 Measures No. 2) Act 2009 — Proclamation
Issued by authority of the Assistant Treasurer
Subsection 2(1) of the Tax Laws Amendment (2009 Measures No. 2) Act 2009 (the Act) provides that Part 2 of Schedule 6 to the Act commences on a day to be fixed by Proclamation. However, if any of the provisions in Part 2 of Schedule 6 do not commence within the period of 12 months beginning on the day on which the Act receives the Royal Assent, then those provisions commence on the first day after the end of that 12 month period. The Act received Royal Assent on 23 June 2009.
The purpose of the Proclamation is to fix 5 April 2010 as the day on which
Part 2 of Schedule 6 of the Act commences.
Schedule 6 makes various amendments to the A New Tax System (Australian Business Number) Act 1999 (ABN Act) to improve the integrity and efficiency of the Australian Business Register (ABR) and assist the ABR in undertaking its new role of Multi-agency Registration Authority. These changes facilitate the introduction of the Standard Business Reporting (SBR) program, which will be available to businesses from 1 July 2010 and will provide business with a streamlined approach to meeting the various reporting requirements of different government agencies in Australia.
Part 2 of Schedule 6 provides for amendments to the ABN Act, which includes various administrative amendments pertaining to the registration process and the use of tax file numbers in the registration process. These changes also provide additional powers to the Registrar and include objection rights for decisions made by the Registrar. These amendments also introduce two new offence provisions which apply where an entity impersonates a registered representative of the enterprise or where an entity is non-compliant with a request for information concerning the identify of the representative or details entered in the ABR in respect of that representative.
The start date of 5 April 2010 will assist the development of the ABR into a
Multi-agency Reporting Authority and facilitate the early registration of individuals and representatives of businesses, for the purpose of enabling electronic dealings with government agencies. This will ensure a smooth progress of the registration component of the SBR program.
The Proclamation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview
The Tax Laws Amendment (2009 Measures No. 2) Act 2009, enacted by the Parliament of Australia, was introduced to address the need for enhancing the integrity and efficiency of the Australian Business Register (ABR) and to assist in its transition to a Multi-agency Registration Authority. The Act aims to streamline the registration process for businesses, facilitating their compliance with various reporting requirements imposed by different government agencies. The policy objective is to provide businesses with a more efficient and unified approach to their interactions with government through the Standard Business Reporting (SBR) program, which was scheduled to commence on 1 July 2010. The Act includes amendments to the A New Tax System (Australian Business Number) Act 1999, such as changes to the registration process and the use of tax file numbers, as well as the introduction of new offence provisions related to impersonation and non-compliance with requests concerning the identity of representatives. The Proclamation issued under the Act sets 5 April 2010 as the commencement date for these amendments, allowing for the timely development of the ABR and the early registration of individuals and business representatives to support the SBR program.
Scope and Application
The Tax Laws Amendment (2009 Measures No. 2) Act 2009, as proclaimed on 5 April 2010, extends to the Australian Business Register (ABR) under the A New Tax System (Australian Business Number) Act 1999. The Act aims to improve the integrity and efficiency of the ABR by facilitating its transition into a Multi-agency Registration Authority, as well as supporting the introduction of the Standard Business Reporting (SBR) program. This program, available from 1 July 2010, seeks to streamline the various reporting requirements businesses must meet with different government agencies in Australia. The legislative changes pertain to the registration process and the use of tax file numbers, providing additional powers to the Registrar and introducing objection rights for decisions made by the Registrar. Furthermore, the Act introduces new offence provisions for impersonation of a registered representative of an enterprise or non-compliance with requests for information concerning the identity of the representative or details entered in the ABR. The Act applies to entities involved in the registration process and individuals acting as representatives of businesses in dealings with the ABR and government agencies. The jurisdictional reach is primarily at the Commonwealth level, as it concerns national registration processes and tax-related administrative measures. The commencement of the Act ensures the timely establishment of the ABR’s new role and the early registration of business representatives, which is crucial for the successful implementation of the SBR program.
Key Provisions
The Tax Laws Amendment (2009 Measures No. 2) Act 2009, specifically through Part 2 of Schedule 6, introduces a range of amendments to the A New Tax System (Australian Business Number) Act 1999 (ABN Act). These amendments are designed to enhance the integrity and efficiency of the Australian Business Register (ABR), positioning it as a Multi-agency Registration Authority. The provisions in Part 2 of Schedule 6 were set to commence on a date to be fixed by proclamation, but not later than 12 months from the Act receiving Royal Assent on 23 June 2009. Consequently, the Proclamation issued under Subsection 2(1) of the Act designates 5 April 2010 as the commencement date for these provisions, facilitating the introduction of the Standard Business Reporting (SBR) program from 1 July 2010. The SBR program aims to provide businesses with a streamlined approach to fulfilling various reporting requirements of different government agencies in Australia.
The amendments outlined in Part 2 of Schedule 6 of the Act encompass several administrative changes to the registration process under the ABN Act. These include modifications to the procedures for registration and the use of tax file numbers in the registration process. Furthermore, the amendments extend additional powers to the Registrar, including the establishment of objection rights for decisions made by the Registrar. The Registrar's enhanced authority and the introduction of objection rights are intended to ensure more effective and accountable administration of the ABR. Additionally, the Act introduces two new offence provisions, which apply in cases where an entity impersonates a registered representative of an enterprise or where an entity fails to comply with a request for information concerning the identity of the representative or the details entered in the ABR in respect of that representative.
In terms of obligations, the Act imposes specific duties on the Registrar and registered entities. The Registrar is now vested with additional powers to manage and oversee the registration process more effectively. Registered entities are required to ensure compliance with the new registration procedures and to provide accurate and timely information to the Registrar. Failure to comply with these requirements may result in penalties and legal consequences. The introduction of objection rights also obligates the Registrar to handle objections to decisions in a fair and transparent manner. Entities that believe a decision by the Registrar is unjust have the right to object, providing an additional layer of accountability and fairness in the registration process.
The Act also delineates offences and associated penalties for breaches of its provisions. The new offence provisions under Part 2 of Schedule 6 specifically target impersonation of a registered representative and non-compliance with requests for information related to the identity of the representative or details entered in the ABR. The penalties for these offences can be severe, reflecting the seriousness of such actions. The specific maximum penalties for these offences are not detailed in the explanatory statement, but under the general legislative framework, penalties for impersonation and non-compliance can include substantial fines and, in some cases, imprisonment. These penalties are designed to deter individuals and entities from engaging in fraudulent activities that undermine the integrity of the ABR and the broader tax system.