Statutory Remedial Power
The government has announced that the Commissioner of Taxation will be provided with a power to make a disallowable legislative instrument to modify the operation of the taxation and superannuation law to ensure that the purpose or object of the law is achieved.
The power will ensure the Commissioner can administer the law consistently with its purpose or object provided that the modification has no more than a negligible revenue impact. Importantly, the power will only apply to the extent that it has a beneficial outcome for affected taxpayers.
The proposed statutory power aims to provide:
- a more timely resolution of certain legislative problems
- flexibility in dealing with certain legislative problems which cannot be resolved by way of interpretation
- a reduced regulatory burden, more certainty and better outcomes for taxpayers.
The Commissioner will consult publicly prior to the making of any legislative instrument.
The measure will have effect from the date of Royal Assent of the enabling legislation.
Legislation and supporting material
On 17 March 2016 the measure was reintroduced in Tax and Superannuation Laws Amendment (2016 Measures No.2) Bill 2016. The Bill was before parliament at the time the election was called and has lapsed.
The government has announced that the Commissioner of Taxation will be provided with a statutory remedial power to allow for a more timely resolution of certain unforeseen or unintended outcomes in the taxation and superannuation law.