Explanatory Memorandum(Circulated by the authority of the Treasurer the Hon Ralph Willis, M.P.)
Chapter 21 - Secrecy
21.1 This Bill will amend section 16 of the Income Tax Assessment Act 1936 (the Act) to permit the Commissioner of Taxation to provide information to the Health Insurance Commission (HIC) as to whether a registered carer or an applicant for registration as a carer under the new childcare rebate scheme has a tax file number (TFN). The Commissioner will not be providing the carer's TFN.
Purpose of amendments
21.2 To enable the Commissioner of Taxation to provide TFN information to the HIC for the purpose of administering the childcare rebate scheme [Clause 117].
Date of effect
21.3 The amendment will apply to the communication of information after 30 June 1994 [Clause 119].
21.4 The Childcare Rebate Act 1993, which received Royal Assent on 24 December 1993, introduced the childcare rebate scheme.
21.5 The childcare rebate scheme will allow families to claim a rebate on part of their work-related childcare expenses. The rebate will be payable through the HIC from 1 July 1994.
21.6 For a childcare user to obtain the childcare rebate, the carer will be required to have registered with the HIC. The registration form will require a declaration that the carer has a TFN.
21.7 The Bill proposes to insert new paragraph 4(fa) into section 16 of the Act. The amendment will enable the Commissioner of Taxation to provide information to the HIC as to whether a registered carer or an applicant for registration as a carer under the childcare rebate scheme has a TFN [Clause 118].
21.8 Under the proposed arrangements, the HIC will provide information to the Commissioner about the carer from the registration form. That information will then enable the Commissioner to confirm whether or not the carer has a TFN. The Commissioner will not provide the HIC with the carer's TFN.
21.9 The matching of information is expected to discourage artificial receipts by carers and encourage carers to comply with the tax laws.