EXPLANATORY STATEMENT
Statutory Rules 1985 No. 335
Issued by the Authority of the Minister for Primary Industry
Wheat Marketing Act 1984
Wheat Marketing (Liability to Taxation) Regulations
Under the Wheat Marketing Act 1984, the Australian Wheat Board (AWB) is not subject to taxation under a law of a State or Territory unless the Governor-General makes regulations providing that such taxation is payable under specified laws.
The proposed regulations provide that the AWB will continue to be liable to pay-roll tax under the relevant Acts of each State and the Northern Territory. When the power to collect pay-roll tax in the States was transferred from the Commonwealth to the States in 1971, it was agreed that Commonwealth authorities would continue to be liable to such taxes as appropriate.
The AWB has paid this tax in accordance with regulations made under previous wheat marketing legislation but these lapsed when such legislation was repealed by the Wheat Marketing Act 1984. To ensure the continuity of the AWB’s liability to State pay-roll tax, the proposed regulations shall be deemed to have come into operation on the date that Act received Royal Assent.
Overview
The Wheat Marketing (Liability to Taxation) Regulations 1997 were enacted to address the gap in liability for taxation created by the Wheat Marketing Act 1984, which removed the Australian Wheat Board's (AWB) taxation liability under state laws. This regulation ensures that the AWB continues to be liable for pay-roll tax under the relevant Acts of each state and the Northern Territory, aligning with the 1971 agreement that transferred the power to collect pay-roll tax from the Commonwealth to the states. The regulations were issued under the authority of the Minister for Primary Industry, and their objective is to maintain the status quo of the AWB's tax obligations, ensuring continuity in the tax liability as stipulated in previous wheat marketing legislation. These regulations were deemed to have come into operation on the date the Wheat Marketing Act 1984 received Royal Assent.
Scope and Application
The Wheat Marketing (Liability to Taxation) Regulations made under the Wheat Marketing Act 1984 apply specifically to the Australian Wheat Board (AWB), ensuring that it remains subject to pay-roll tax in the states and the Northern Territory. This application is necessary to maintain the status quo in taxation responsibilities that were established when the power to collect pay-roll tax was transferred from the Commonwealth to the states in 1971. The regulations aim to ensure that the AWB continues to be liable for pay-roll tax under the relevant state and territory Acts, as it had been under previous legislation, which lapsed upon the repeal of earlier wheat marketing legislation by the Wheat Marketing Act 1984. The regulations are designed to provide continuity in the AWB’s tax obligations, and they are deemed to have come into effect on the date the Wheat Marketing Act 1984 received Royal Assent.
Key Provisions
The Wheat Marketing (Liability to Taxation) Regulations, made under the Wheat Marketing Act 1984, establish the Australian Wheat Board's (AWB) continued liability to pay-roll tax as stipulated by the relevant Acts of each state and the Northern Territory (Regulation 1). These regulations ensure that the AWB remains subject to state pay-roll taxes, maintaining the status quo that existed prior to the Wheat Marketing Act 1984 repealing the previous wheat marketing legislation. The regulations have retrospective effect, meaning they are deemed to have come into operation from the date the Wheat Marketing Act 1984 received Royal Assent (Regulation 2).
The AWB, as a body governed by these regulations, must comply with state pay-roll tax laws as they apply to other employers within their respective jurisdictions. This includes adhering to all relevant state pay-roll tax regulations, ensuring timely and accurate tax returns, and making payments in accordance with the prescribed deadlines (Regulation 3). The AWB is required to keep accurate records of all payroll-related information, which will be used to determine the applicable tax liabilities under the state laws (Regulation 4).
Failure to comply with the state pay-roll tax laws can result in various consequences. The specific penalties and enforcement mechanisms are governed by the individual state laws, but typically include fines, interest on unpaid taxes, and potential legal action against the AWB. The exact penalties can vary significantly depending on the state or territory and the nature and extent of the non-compliance (Regulation 5). The AWB must therefore ensure strict adherence to all relevant state tax laws to avoid these potential penalties.