Timor Sea Treaty Designated Authority (Privileges and Immunities) Regulations 2003 2003 No. 45
EXPLANATORY STATEMENT
STATUTORY RULES 2003 No. 45
Issued by the Authority of the Minister for Foreign Affairs
Subject: International Organisations (Privileges and Immunities) Act 1963
Timor Sea Treaty Designated Authority (Privileges and Immunities) Regulations 2003
Section 13 of the International Organisations (Privileges and Immunities) Act 1963 (the Act) provides that the Governor-General may make regulations for carrying out or giving effect to the Act.
The purpose of the Regulations is to give effect to Australia's obligations under the Timor Sea Treaty in respect of the privileges and immunities of the Designated Authority, a body created by Article 6 of the Treaty to administer on behalf of Australia and East Timor the exploration for and exploitation of petroleum resources of a defined area in the Timor Sea.
The Regulations also repeal regulations conferring privileges and immunities on the Joint Authority established under the Timor Gap Treaty with Indonesia and subsequently kept in being as a transitional measure pending the entry into force of the Timor Sea Treaty, first by agreement with the United Nations Transitional Administration in East Timor and later with the newly independent East Timor.
The Treaty provides that, for three years after its entry into force, or for such different period as Australia and East Timor may agree, the Designated Authority has juridical personality and such legal capacities under the law of both Australia and East Timor as are necessary for the exercise of its powers and the performance of its functions. The Designated Authority is also exempt from income tax imposed under the law of East Timor or the federal law of Australia. In addition, staff of the Designated Authority are exempt from taxation of salaries, allowances and other emoluments paid to them by the Designated Authority in connection with their employment, other than taxation under the law of whichever of Australia or East Timor they are deemed to reside in for taxation purposes. When taking up a post with the Designated Authority located in the country in which they are not resident, staff are exempt from customs duties on imports of furniture and other household and personal effects imported within six months of first entry unless an extension of time is granted by the relevant Government. Such goods may not be alienated except under conditions agreed in advance with the relevant Government. The Regulations enact the above provisions into Australian law.
The Regulations commence on the same day as section 5B of the Act, that is, 2 April 2003. As only the Commonwealth is thereby adversely affected, subsection 48(2) of the Acts Interpretation Act 1901 does not apply.
Details of the Regulations are set out in the Attachment.
Authority: Section 13 of the International Organisations (Privileges and Immunities) Act 1963
ATTACHMENT
Timor Sea Treaty Designated Authority (Privileges and Immunities) Regulations 2003
Details of the Regulations are as follows:
Regulation 1 states the name of the Regulations.
Regulation 2 states that the Regulations commence on the same day as s.5B of the principal Act (inserted by the Petroleum (Timor Sea Treaty)(Consequential Amendments) Act 2003).
Regulation 3 repeals the previous regulations conferring privileges and immunities on the Joint Authority first established under the Timor Gap Treaty with Indonesia and subsequently kept in being on an interim basis pending the entry into force of the Timor Sea Treaty, including a regulation amending those regulations.
Regulation 4 is a definition provision.
Regulation 5 confers on the Designated Authority legal personality and capacities.
Regulation 6 exempts the Designated Authority from liability to pay or collect income tax and fringe benefits tax.
Regulation 7 confers on officers of the Designated Authority other than residents of Australia exemption from taxation of salaries and emoluments received from the Designated Authority and the right to import furniture and effects free of duties within six months of first entry into Australia to take up a post with the Designated Authority, provided that they are not alienated within two years of importation other than by agreement with the Commonwealth, and to export furniture and effects free of duties when leaving Australia on the termination of their functions.
Overview
The Timor Sea Treaty Designated Authority (Privileges and Immunities) Regulations 2003 were enacted to give effect to Australia's obligations under the Timor Sea Treaty, particularly focusing on the privileges and immunities of the Designated Authority established by Article 6 of the Treaty. The Designated Authority is tasked with administering the exploration for and exploitation of petroleum resources in a defined area of the Timor Sea on behalf of Australia and East Timor. These Regulations were created under section 13 of the International Organisations (Privileges and Immunities) Act 1963 and were issued by the Minister for Foreign Affairs. The policy objective behind these regulations is to ensure that the Designated Authority can operate effectively and without undue legal or financial burdens, thereby facilitating the agreed-upon exploration and exploitation activities. The Regulations also repeal the previous regulations that conferred privileges and immunities on the Joint Authority under the Timor Gap Treaty with Indonesia, reflecting the transition to the new framework established by the Timor Sea Treaty.
Scope and Application
The Timor Sea Treaty Designated Authority (Privileges and Immunities) Regulations 2003 apply to the Designated Authority, which is a body established under the Timor Sea Treaty for the administration of petroleum resources in a defined area of the Timor Sea. These regulations are designed to give effect to Australia’s obligations under the treaty by conferring certain privileges and immunities on the Designated Authority and its officers. The regulations extend to the Designated Authority and its officers who are involved in the exploration and exploitation of petroleum resources in the Timor Sea, encompassing both Australian and East Timorese jurisdictions. Notably, these regulations repeal previous regulations that applied to the Joint Authority under the Timor Gap Treaty, ensuring that the current framework aligns with the new treaty. The regulations confer upon the Designated Authority juridical personality, immunity from income tax in both Australia and East Timor, and other specified privileges such as tax exemptions on salaries and allowances for staff, as well as exemptions from customs duties on imported household and personal effects for a period of six months. These privileges are intended to facilitate the operations of the Designated Authority without undue financial or administrative burdens. The regulations come into effect on 2 April 2003, as specified in the International Organisations (Privileges and Immunities) Act 1963, and they are applicable across the Commonwealth of Australia.
Key Provisions
The Timor Sea Treaty Designated Authority (Privileges and Immunities) Regulations 2003 (Regulations) implement Australia's obligations under the Timor Sea Treaty concerning the privileges and immunities of the Designated Authority. This body, established by Article 6 of the Treaty, administers the exploration for and exploitation of petroleum resources in a defined area of the Timor Sea on behalf of Australia and East Timor. Regulation 5 of the Regulations grants the Designated Authority juridical personality and necessary legal capacities under the laws of both Australia and East Timor, enabling it to perform its functions effectively.
The Regulations impose specific obligations on the Designated Authority and its officers. Regulation 6 exempts the Designated Authority from income tax imposed by either Australia or East Timor, ensuring that its financial resources are not diverted for tax purposes. Additionally, Regulation 7 provides that officers of the Designated Authority, who are not residents of Australia, are exempt from taxation on salaries, allowances, and other emoluments paid by the Authority. It also allows them to import furniture and personal effects duty-free within six months of taking up their post in Australia, provided these items are not alienated within two years of importation except by agreement with the Commonwealth.
Failure to comply with the provisions of these Regulations could result in various consequences. While the explanatory statement does not specify particular offences or penalties, non-compliance with tax exemptions and customs regulations could lead to legal challenges and financial penalties under applicable tax laws. The Designated Authority and its officers must ensure adherence to the stipulated conditions to avoid potential breaches and associated civil or criminal liabilities.