Explanatory Memorandum
(Circulated by the authority of the Treasurer, the Hon John Dawkins, M.P.)Chapter 9 Members of the Defence Force Serving in Cambodia
Clauses: 2 and 5
Exempt from income tax the pay and allowances of members of the Australian Defence Forces allotted for duty with the United Nations Advance Mission in Cambodia and the United National Transitional Authority in Cambodia.
Members of the Defence Force Serving in Cambodia
Members of the Defence Force Serving in Cambodia
Summary of the proposed amendments
9.1. The proposed amendments will exempt from income tax the pay and allowances of members of the Australian Defence Forces (ADF) allotted for duty in Cambodia as a part of the United Nations Advance Mission in Cambodia (UNAMIC) and the United Nations Transitional Authority in Cambodia (UNTAC).
Background to the legislation
9.2. The amendments will exempt from tax the pay and allowances of ADF personnel serving in Cambodia with the United Nations peacekeeping forces (UNAMIC and UNTAC) from 20 October 1991.
Explanation of the proposed amendments
9.3. Section 23AC exempts from income tax the pay and allowances of ADF personnel during a period of operational service in an operational area.
9.4. An area covered by the section 23AC exemption is defined as 'an operational area'. The amendment will include Cambodia as an operational area with effect from 20 October 1991. [Subclause 5(d)]
9.5. To qualify for the exemption, ADF personnel have to be engaged in operational service in an operational area. To qualify as engaged in operational service, ADF members serving in the new operational area must have a written certificate from the Chief of the Defence Force. This certificate must state that the allotment for duty to the operational area is in respect of service with either of the groups called the United Nations Advance Mission in Cambodia or the United Nations Transitional Authority in Cambodia. The reason for this requirement is to exclude from the exemption ADF personnel who may be allotted for duty in the operational area for reasons unconnected with UNAMIC and UNTAC. [Subclause 5(a)]
9.6. The exemption will apply for the period of operational service. In relation to service in Cambodia, this period commences on 20 October 1991 and will continue until a termination date is specified by the Chief of the Defence Force. [Subclause 5(d)]
9.7. Paragraph (c) ensures that the existing delegation and review procedures apply to the new operational area. [Subclause 5(c)]
Commencement date
9.8. The amendments to section 23AC apply from the 1991-92 year of income. The amendments will provide relief to affected taxpayers.
Clauses involved in the proposed amendments
Subclause 5(a): amends section 23AC to extend the operational area for the exemption to include Cambodia
Subclause 5(d): amends section 23AC to have effect in relation to Cambodia from 20 October 1991
Subclause 2(1): specifies the commencement date.