Explanatory Memorandum
(Circulated by authority of the Minister for Industry, Tourism and Resources, the Hon Ian Macfarlane MP)Schedule 1 - Amendments
ACIS Administration Act 1999
Item 1 - After subsection 94(1)
This amendment will confirm the circumstances under which an ACIS participant is not entitled to duty credits. The amendment confirms that no entitlement to a credit arises if that credit was issued in respect of an investment that was not an eligible investment. Previously, subsection 94(1) provided that a person was not entitled to credits if an error was made in its calculation, if information was incomplete or if the credit was earned in a transaction that was deemed not at arm's length. This amendment allows the Commonwealth to issue a UCL to recover credits in circumstances where a participant was not entitled to receive them.
New section 95 creates automatic liability on the part of participants in circumstances where a participant has received duty credits to which the participant is not entitled for a reason set out in section 94, or any other reason.
Item 3 - Paragraphs 114(j) and (k)
Section 114 of the ACIS Act sets out the grounds on which the AAT may review decisions. Paragraph 114(j) previously provided that a decision made by the Secretary under Section 95 could be reviewed. The Secretary will no longer make a decision under Section 95 as the UCL will simply arise because the person is not entitled to the credit. Section 102 provides that if the Secretary determines that there is a UCL, then the Secretary must give the person notice in writing. This amendment will allow the person to seek a review of a decision to issue a notice and it will therefore ensure that the right to seek a review of a decision to issue a UCL remains.
Paragraph 114(k) allows participants to seek the review of decisions made by the Secretary under Section 101. The amendment which provides for a review of a decision under Section 102 makes this provision (Paragraph 114(k)) redundant.
Applying the amendments from the beginning of stage 2 of ACIS will ensure equity in the way in which credits are issued and will ensure that ACIS continues to operate in line with its original policy intent that was agreed to by industry when ACIS was established.