Schedule 5 Amendment of Public Finance and Audit Act 1983 No 152
(Section 3)
Insert after Part 4:Part 4A Payment of tax-equivalents
In this Part:Intergovernmental Agreement means the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations (as set out in Schedule 1 to the Intergovernmental Agreement Implementation (GST) Act 2000).
National tax-equivalent regime means the arrangements between the Commonwealth and the States and Territories relating to income tax equivalent payments to be made by government businesses under a National Tax Equivalent Regime, as referred to in clause 24 of the Intergovernmental Agreement and given effect to from time to time by a memorandum of understanding between the Commonwealth, the Commissioner of Taxation of the Commonwealth and the States and Territories.
State tax-equivalent regime means the arrangements approved from time to time by the Treasurer relating to income tax equivalent payments to be made by government businesses that are not subject to the National tax-equivalent regime, as reflected in any policy or guidelines from time to time published by the Treasury.
statutory body means a person, group of persons or body specified in Schedule 2.
58B Treasurer may direct statutory bodies to pay tax-equivalents
(1) The Treasurer may at any time direct a statutory body:(a) to pay amounts to the Treasurer under the National tax-equivalent regime, or(b) to pay amounts to the Treasurer under the State tax-equivalent regime.(2) The Treasurer may at any time:(a) direct a statutory body to cease making payments to the Treasurer under the National tax-equivalent regime or the State tax-equivalent regime, or(b) grant an exemption from payment of any amount under this Part in respect of any period.(3) Amounts that a statutory body is required to pay to the Treasurer under this Part are referred to in this Part as tax-equivalents.58C Assessment of tax-equivalents—National scheme
(1) A statutory body that is directed by the Treasurer to pay tax-equivalents under the National tax-equivalent regime must pay to the Treasurer such amounts as the Tax Assessor determines, in accordance with the National tax-equivalent regime, to be payable by the statutory body as a tax-equivalent.(2) Payments are to be made on such terms as the Tax Assessor determines, in accordance with the National tax-equivalent regime, to be equivalent to the terms on which the amounts would be payable (including terms as to instalments and times of payment) if the statutory body were liable to pay corresponding taxes under the law of the Commonwealth.(3) A statutory body and the Treasurer may enter into agreements regarding the amounts to be paid under this section or the terms on which they are to be paid, and any such agreements have effect despite anything in subsections (1) and (2).(4) The determinations of the Tax Assessor under this section are to be made in such a way as to give effect to any such agreements.(5) Any such determination of the Tax Assessor is final, and the Treasurer and the statutory body are required to make all the necessary payments and refunds to give effect to the determination.(6) A statutory body is not required to make payments under this section:(a) to the extent that it is or becomes liable to pay the Commonwealth taxes referred to in subsection (2), or(b) if it is directed by the Treasurer to cease making payments under the National tax-equivalent regime or is granted an exemption from payment in respect of a period.(7) The Treasurer may nominate any person or persons to be the Tax Assessor for any one or more statutory bodies, and may revoke any such nomination.(8) In this section:Tax Assessor, in relation to a statutory body, means the person nominated for the time being under subsection (7) as the Tax Assessor for the statutory body.
Note. Commonwealth taxation officers generally exercise the functions of Tax Assessor under the National tax-equivalent regime.58D Assessment of tax-equivalents—State scheme
(1) A statutory body that is directed by the Treasurer to pay tax-equivalents under the State tax-equivalent regime must pay to the Treasurer such amounts as the Chief Commissioner of State Revenue determines, in accordance with the State tax-equivalent regime, to be payable by the statutory body as a tax-equivalent.(2) The Chief Commissioner of State Revenue may require a statutory body to prepare and submit to the Chief Commissioner such accounting statements (if any), required for the determination of tax-equivalents payable by the statutory body, in such manner (if any) and such form (if any) as the Chief Commissioner determines.(3) A statutory body must comply with a requirement made in respect of it by the Chief Commissioner of State Revenue under this section.(4) The Treasurer may approve arrangements for the review of determinations made by the Chief Commissioner of State Revenue under this section. Determinations of the Chief Commissioner are reviewable in accordance with those arrangements.(5) A statutory body is not required to make payments under this section:(a) to the extent that it is or becomes liable to pay the Commonwealth taxes that are the subject of the State tax-equivalent regime, or(b) if it is directed by the Treasurer to cease making payments under the State tax-equivalent regime or is granted an exemption from payment in respect of a particular period.58E Tax-equivalents to be credited to Consolidated Fund
(1) Amounts paid by a statutory body as tax-equivalents under this Part are to be credited to the Consolidated Fund.(2) Despite any other Act, the Treasurer may, in relation to a payment by a statutory body under this Part, make any one or more of the following determinations:(a) that the payment is taken to be payment or part payment of another amount, specified by the Treasurer, which the statutory body is required to pay to the Treasurer,(b) that the payment is to be paid in addition to any other amount which the statutory body is required to pay to the Treasurer,(c) that the payment is taken to be an obligation of the statutory body under the Act by which the statutory body is constituted.(3) Subject to subsection (2), the Treasurer, or the Chief Commissioner of State Revenue, may refund any amount paid in excess of a statutory body’s liability to pay a tax-equivalent. The Consolidated Fund is appropriated to the extent necessary to enable such refunds.
[2] Schedule 4 Savings, transitional and other provisions
Insert at the end of clause 1 (1):
Insert after Part 4:Part 5 Provisions consequent on enactment of State Revenue Legislation Amendment Act 2005
13 Validation for tax-equivalent payments
(1) Anything done or omitted to be done that would have been validly done or omitted if Part 4A of this Act, and section 5 of the Taxation Administration Act 1996, as inserted by the State Revenue Legislation Amendment Act 2005 had been in force at the time that it was done or omitted is validated.(2) Any direction given by, or nomination made by, the Treasurer before the commencement of this clause that could have been given or made under Part 4A, had that Part been in force at the time that it was given or made, is taken to have been given or made under that Part.(3) Any determination made by the Chief Commissioner of State Revenue before the commencement of this clause in respect of the liability of a statutory body to make payments under the State tax-equivalent regime that could have been made under Part 4A, had that Part been in force at the time that it was made, is taken to have been made under that Part.