Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 6 - Rules for certain entities
Overview
6.1 This Chapter explains the provisions in new Part 13 of the Diesel and Alternative Fuels Grants Scheme Act 1999 (DAFGSA). This Part imposes separate obligations on certain entities if other entities have obligations under the DAFGSA and the Taxation Administration Act 1953 (TAA 1953).
Summary of the legislation
6.2 The special rules apply to partnerships and unincorporated associations or bodies of persons.
Explanation of the amendments
6.3 An entity for the purposes of the DAFGSA and the TAA 1953 includes partnerships and unincorporated associations or bodies (see definition of entity in section 5 of DAFGSA and section 37 of the A New Tax System (Australian Business Number) Act 1999.
Treatment of Partners
6.4 Both the DAFGSA and TAA 1953 will apply to partnerships as if it were a person, but with the following changes [new subsections 53 (1) and (6), item 40 of schedule 1] :
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- because a partnership is not a separate legal person, obligations imposed by DAFGSA and the TAA 1953 on a partnership are imposed on each partner, but may be discharged by any of the partners [new subsection 53(2), item 40 of Schedule 1] ;
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- partners will be jointly and severally liable to pay amounts payable by the partnership [new subsection 53(3), item 40 of Schedule 1] ;
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- any offences committed by the partnership will be taken to have been committed by each partner who aided, abetted, counselled or procured the relevant act or omission or was knowingly concerned or a party to that act or omission [new subsection 53(4), item 40 of Schedule 1] ; and
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- a change in the composition of the partnership does not affect the continuity of the partnership [new subsection 53(5), item 40 of Schedule 1] .
Treatment of unincorporated associations
6.5 Both the DAFGSA and TAA 1953 will apply to an unincorporated association as if it were a person, but with the following changes [new subsections 54 (1) and (4), item 40 of Schedule 1] :
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- obligations that would be imposed on an unincorporated association or body of persons are imposed on each member of the committee of management of that association or body, but may be discharged by any of those members [new subsection 54(2), item 40 of Schedule 1] ; and
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- any offences committed by the association or body will be taken to have been committed by each member of its committee of management who aided, abetted, counselled or procured the relevant act or omission or was knowingly concerned or a party to that act or omission [new subsection 54(3), item 40 of Schedule 1] .