Senate

Explanatory Memorandum

(Circulated by the authority of the Assistant Treasurer,Senator the Hon Jim Short)

Chapter 5 Employer record keeping requirements

Overview

5.1 Item 39 of Schedule 1 of the Bill amends paragraph 59(1)(b) of the Child Support (Registration and Collection) Act 1988 in relation to record keeping requirements for employers.

Summary of the amendment

Purpose of the amendment

5.2 The purpose of the amendment is to bring employer child support record keeping requirements into line with the 1990 amendments to the Income Tax Assessment Act 1936 . The requirement will be for employers to retain their records for five years.

Date of effect

5.3 The amendment will apply from the 28th day after the day on which the Bill receives Royal Assent.

Background to the legislation

5.4 The Income Tax Assessment Act 1936 was amended in 1990 to reduce from seven years to five years the period an employer must retain records which are relevant to their acts and duties under that Act. Many of the records which employers must keep in relation to maintenance deductions and other duties performed under the Registration and Collection Act serve the same purpose as records which the Income Tax Assessment Act requires employers to keep. It is therefore desirable that both Acts should specify the same retention requirements for records which serve the same purposes.

Explanation of the amendment

5.5 The amendment to paragraph 59(b) reduces the period an employer must keep records of the kind specified in subsection 59(1) from seven years to five years . [Item 39 - amended paragraph 59(1)(b)