EXPLANATORY STATEMENT
Select Legislative Instrument 2011 No. 280.
Issued by the authority of the Assistant Treasurer
Subject – Taxation Administration Act 1953
Taxation Administration Amendment Regulations 2011 (No. 5)
Section 18 of the Taxation Administration Act 1953 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed, or which are necessary or convenient to be prescribed, for carrying out or giving effect to the Act.
Subsection 355-70(12) of Schedule 1 to the Act provides that the regulations may prescribe a taskforce as authorised to receive protected information, provided that a major purpose of the taskforce is to protect the public finances of Australia.
The Regulations amend the Taxation Administration Regulations 1976 to prescribe the Criminal Assets Confiscation Taskforce (CACT) and the National Criminal Intelligence Fusion Centre (Fusion Centre) as taskforces that may receive protected information for or in connection with a purpose of the taskforce.
The interim CACT was established in 2011 to bring together agencies that investigate and litigate proceeds of crime matters, and is expected to be permanently established in early 2012. The Fusion Centre was established in 2010 to maximise the effective use of Commonwealth data holdings, and to facilitate intelligence sharing in relation to serious and organised crime.
Both the CACT and the Fusion Centre have as one of their key objectives the protection of Australia’s public finances.
Consultations on the Regulations were undertaken with the Australian Taxation Office as well as the Department of the Prime Minister and Cabinet. The Office of Best Practice Regulation advised that a Regulation Impact Statement was not required to be prepared in relation to this minor regulatory change.
As the Regulations are machinery in nature and do not substantially alter existing arrangements, pursuant to paragraph 18(2)(a) of the Legislative Instruments Act 2003 (LIA 2003), public consultation was considered unnecessary.
Details of the Regulations are set out in the Attachment.
The Regulations constitute a legislative instrument for the purposes of the LIA 2003, and commence on the day after they are registered on the Federal Register of Legislative Instruments.
Authority: Section 18 of the Taxation Administration Act 1953
ATTACHMENT
Details of the Taxation Administration Amendment Regulations 2011 (No. 5)
Regulation 1 – Name of Regulations
This regulation provides that the title of the Regulations is the Taxation Administration Amendment Regulations 2011 (No. 5)
Regulation 2 – Commencement
This regulation provides for the Regulations to commence on the day after they are registered.
Regulation 3 – Amendment of Taxation Administration Regulations 1976
This regulation provides that the Taxation Administration Regulations 1976 (the Principal Regulations) are amended as set out in Schedule 1.
Schedule 1 – Amendments
Item [1] – Regulation 48
This item inserts a new Part 6A into the Principal Regulations which will contain a table prescribing the Criminal Assets Confiscation Taskforce and the National Criminal Intelligence Fusion Centre as taskforces for the purposes of subsection 355‑70(12) of Schedule 1 to the Taxation Administration Act 1953.
Overview
The Taxation Administration Amendment Regulations 2011 (No. 5) were enacted to address the need for certain taskforces to receive protected information for purposes that align with the protection of Australia's public finances. This regulatory change was introduced under the authority of the Assistant Treasurer and is consistent with section 18 of the Taxation Administration Act 1953, which allows the Governor-General to make regulations necessary for carrying out or giving effect to the Act. Specifically, the Regulations were developed to amend the Taxation Administration Regulations 1976 by recognising the Criminal Assets Confiscation Taskforce and the National Criminal Intelligence Fusion Centre as authorised taskforces capable of receiving protected information. These taskforces were established with key objectives that include the protection of public finances, thereby ensuring that the measures taken are aligned with the overarching policy objective of safeguarding Australia's financial interests.
Scope and Application
The Taxation Administration Amendment Regulations 2011 (No. 5) are subsidiary legislation enacted under the authority of Section 18 of the Taxation Administration Act 1953, which empowers the Governor-General to make regulations necessary for the implementation of the Act. These Regulations amend the existing Taxation Administration Regulations 1976 to include the Criminal Assets Confiscation Taskforce (CACT) and the National Criminal Intelligence Fusion Centre (Fusion Centre) as authorised taskforces capable of receiving protected information for the purpose of protecting Australia's public finances. This inclusion is in line with subsection 355-70(12) of the Act, which allows for the prescription of such taskforces provided their major purpose aligns with safeguarding public finances. Both the CACT and the Fusion Centre, established in 2011 and 2010 respectively, have objectives that include protecting Australia’s public finances. The Regulations are designed to streamline the sharing of protected information among these entities, facilitating more effective law enforcement and intelligence activities. As these Regulations are categorised as minor regulatory changes and do not substantially alter existing arrangements, they were exempted from the requirement for public consultation or a Regulation Impact Statement. These Regulations will come into effect on the day after their registration on the Federal Register of Legislative Instruments.
Key Provisions
The Taxation Administration Amendment Regulations 2011 (No. 5) amend the existing Taxation Administration Regulations 1976 by introducing new provisions that specifically identify the Criminal Assets Confiscation Taskforce (CACT) and the National Criminal Intelligence Fusion Centre (Fusion Centre) as entities authorised to receive protected information. This amendment is grounded in the authority provided by Section 18 of the Taxation Administration Act 1953, which allows the Governor-General to make regulations necessary for carrying out the Act. The new Part 6A inserted into the Principal Regulations includes a table prescribing these two taskforces under subsection 355-70(12) of Schedule 1 to the Act, ensuring that they can legally handle protected information provided their primary objective aligns with protecting Australia's public finances.
The obligations imposed on the CACT and the Fusion Centre, as per these regulations, primarily revolve around the responsible and lawful handling of protected information. They must ensure that any information received is used strictly for the purposes outlined by the Act and that stringent measures are in place to safeguard the confidentiality and integrity of the data. This includes implementing robust internal controls, ensuring that only authorised personnel have access, and maintaining detailed records of information handling and processing activities. Both taskforces are expected to collaborate closely with other relevant agencies to enhance the effectiveness of their operations while adhering to the legislative framework.
Failure to comply with the provisions of the Act and the Regulations may result in both civil and criminal consequences. The specific offences and penalties are detailed within the Act itself, though the Regulations themselves do not specify particular penalties. Generally, breaches of the Act can lead to significant fines for individuals and corporations, with penalties varying based on the severity and intent of the breach. In cases where the breach involves the mishandling of protected information, criminal charges may also be pursued, potentially leading to imprisonment for responsible individuals. The exact penalties are determined by the courts, taking into account the nature and circumstances of the offence.