Taxation Administration (Unanimous Resolution by the City of Newcastle) Notifiable Instrument 2023
I, Ben Kelly, Deputy Commissioner of Taxation, make the following notifiable instrument.
Dated 22 June 2023
Ben Kelly
Deputy Commissioner of Taxation
Contents
1 Name
2 Commencement
3 Authority
4 Notice of unanimous resolution
1 Name
This instrument is the Taxation Administration (Unanimous Resolution by the City of Newcastle) Notifiable Instrument 2023.
2 Commencement
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provisions | Commencement | Date/Details |
1. The whole of this instrument | The day after this instrument is registered. | |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under subsection 446-5(5) in Schedule 1 to the Taxation Administration Act 1953.
4 Notice of unanimous resolution
(1) The City of Newcastle has passed a unanimous resolution that the remuneration of its members be subject to withholding under Part 2-5 in Schedule 1 to the Taxation Administration Act 1953.
(2) The resolution takes effect from 1 July 2023.
Overview
The Taxation Administration (Unanimous Resolution by the City of Newcastle) Notifiable Instrument 2023 was enacted to address the specific need for clear and legally binding resolutions regarding the taxation of council members' remuneration within local government entities. This notifiable instrument, made by Ben Kelly, Deputy Commissioner of Taxation, under subsection 446-5(5) of the Taxation Administration Act 1953, formalises the City of Newcastle's unanimous resolution to subject the remuneration of its members to withholding tax under Part 2-5 of the same Act. The resolution aims to ensure transparency and compliance with tax obligations, effective from 1 July 2023. The instrument serves to provide a clear legal framework for the application of withholding tax on council members' remuneration, thereby addressing a gap in the consistent application of taxation laws across local government remuneration.
Scope and Application
The Taxation Administration (Unanimous Resolution by the City of Newcastle) Notifiable Instrument 2023 applies specifically to the City of Newcastle and its members. It mandates that the remuneration of the City of Newcastle's members is subject to withholding under Part 2-5 of Schedule 1 to the Taxation Administration Act 1953. This legislation ensures that the resolution, which was unanimously passed by the City of Newcastle, will take effect from 1 July 2023. The instrument is enacted under subsection 446-5(5) of the Taxation Administration Act 1953, which grants the authority for such regulations. The scope of this notifiable instrument is limited to the City of Newcastle and its members, and it does not extend to other entities or individuals outside this specific context. The instrument's commencement is tied to its registration, with all provisions becoming effective the day after the instrument is registered.
Key Provisions
The Taxation Administration (Unanimous Resolution by the City of Newcastle) Notifiable Instrument 2023 (hereafter referred to as the Instrument) was made under subsection 446-5(5) of the Taxation Administration Act 1953. It includes provisions for the commencement of the instrument and a notice of a unanimous resolution passed by the City of Newcastle (section 2 and 4 respectively). According to section 2, the entire instrument commences on the day after it is registered. The resolution, as noted in section 4, mandates that the remuneration of the City of Newcastle's members will be subject to withholding under Part 2-5 of Schedule 1 to the Taxation Administration Act 1953, effective from 1 July 2023.
Under the authority of this instrument, the City of Newcastle has agreed to the withholding of its members' remuneration as per the specified tax provisions. This decision imposes an obligation on the City of Newcastle to ensure that any remuneration paid to its members from 1 July 2023 is subject to withholding tax, as stipulated in Part 2-5 of Schedule 1 to the Taxation Administration Act 1953. This likely includes the requirement to withhold and remit appropriate tax amounts to the Australian Taxation Office.
The Instrument also outlines potential consequences for non-compliance with the unanimous resolution. While the Instrument does not explicitly state offences, penalties, or civil/criminal consequences for breach, it is reasonable to infer that any failure to comply with the withholding obligations set out by the resolution could lead to legal repercussions. Such repercussions might include penalties for underpayment of tax or administrative actions against the City of Newcastle for failing to adhere to the tax withholding requirements, as per the general provisions of the Taxation Administration Act 1953. Penalties for such breaches could range from fines to more severe legal actions, depending on the nature and severity of the non-compliance.