House of Representatives

Indirect Tax Laws Amendment (Assessment) Bill 2012

Explanatory Memorandum

(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)

General outline and financial impact

Assessment of amounts under indirect tax laws

Schedule 1 to this Bill amends the Taxation Administration Act 1953 , the A New Tax System (Goods and Services Tax) Act 1999 and other taxation Acts to harmonise the current self actuating system that applies to the goods and services tax, the luxury car tax, the wine equalisation tax and fuel tax credits with the self assessment system for income tax.

Date of effect : These amendments apply to tax periods and fuel tax return periods commencing on or after 1 July 2012.

Proposal announced : This measure was announced in the then Assistant Treasurer and Minister for Competition Policy and Consumer Affairs' Media Release No. 042 of 12 May 2009.

Financial impact : Negligible net cost to the Budget over the forward estimates.

Human rights implications : This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 1, paragraphs 1.165 to 1.168.

Compliance cost impact : Low.

Correcting errors in working out amounts under indirect tax laws

Schedule 2 to this Bill amends the A New Tax System (Goods and Services Tax) Act 1999 and the Fuel Tax Act 2006 to legislate the Commissioner of Taxation's power to make a determination allowing a taxpayer to take into account, on his or her goods and services tax or fuel tax return for the current tax period or fuel tax return period, errors made in working out net amounts and net fuel amounts for preceding tax periods or fuel tax return periods.

Date of effect : These amendments apply to tax periods and fuel tax return periods commencing on or after 1 July 2012.

Proposal announced : These amendments are part of the measure announced in the then Assistant Treasurer and Minister for Competition Policy and Consumer Affairs' Media Release No. 042 of 12 May 2009.

Financial impact : Nil.

Human rights implications : This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 2, paragraphs 2.14 to 2.17

Compliance cost impact : Low.

Net amounts

Schedule 3 to this Bill amends the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) to confirm that the luxury car tax and the wine equalisation tax are part of the 'net amount' that is calculated under the GST Act. Schedule 3 also makes amendments to create a single 'net amount' definition that applies differently to reflect differing circumstances.

Date of effect : These amendments apply to tax periods commencing on or after 1 July 2012.

Proposal announced : This measure was announced in the then Assistant Treasurer and Minister for Competition Policy and Consumer Affairs' Media Release No. 042 of 12 May 2009.

Financial impact : Nil.

Human rights implications : This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 3, paragraphs 3.19 to 3.22.

Compliance cost impact : Low.

Minor amendments

Schedule 4 to this Bill makes technical corrections and other minor amendments to the taxation laws. These amendments are part of the Government's commitment to the care and maintenance of the tax system.

Date of effect : These amendments commence from Royal Assent unless otherwise stated in this explanatory memorandum.

Proposal announced : These amendments were foreshadowed by release in draft form on the Treasury website on 18 January 2011 and 22 August 2011.

Financial impact : Nil.

Human rights implications : This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 4, paragraphs 4.6. to 4.9

Compliance cost impact : Nil to low.


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