section 54A of the Excise Act 1901; section 1775 of the A New Tax System (Goods and Services Tax) Act 1999; section 215 of the A New Tax System (Luxury Car Tax) Act 1999; section 2725 of the A New Tax System (Wine Equalisation Tax) Act 1999. These provisions mean that the standard provision in paragraph 322 will not be effective to exempt the body from those special Commonwealth taxes and specific provisions will need to be drafted to do that. If you are instructed to exempt a statutory body from one of these taxes, you will need to specifically exempt the body from that tax. You should “special” advise your instructors to discuss the exemption with Treasury and Finance early in the drafting process. The following is an example of a provision exempting a body from Commonwealth income tax and State and Territory taxes: xx Exemption from taxation (1) For the purposes of section 5025 of the the [statutory Income Tax Assessment Act 1997, is taken to be a public authority constituted under an Australian law. body] Note: This the [statutory is exempt from income tax. body] (2) The [statutory is not subject to taxation under a law of a State or Territory, if the body] Commonwealth is not subject to the taxation. If you want to create a general exemption from Commonwealth tax that does not include the taxes, do not include a specific exception dealing with any of the “special” taxes. The Commonwealth’s view is that it is strongly arguable that an exception “special” dealing with one of those taxes, even though redundant, will have the effect of nullifying the overriding rules of construction that would otherwise apply to the others. This is because the overriding rules of construction are subject to a contrary intention appearing in other legislation. There may be a sufficiently clear legislative intent to exempt a statutory body from a particular tax even if express words are not used as required by the overriding rule of construction. A corporate statutory body that is within the shield of the may be exempt from some Commonwealth, State and Territory taxes without express provision. However, if your instructors want the body to be exempt from taxation, you should provide for this expressly (whether or not the provision set out in paragraph 288 has been included). Use of subordinate instruments You should draw to your instructors’ attention the likelihood that the Senate Standing Committee for the Scrutiny of Bills will object to a provision that deals with the taxexempt status of a statutory body by relying on subordinate legislation.
section 54A of the Excise Act 1901; section 1775 of the A New Tax System (Goods and Services Tax) Act 1999; section 215 of the A New Tax System (Luxury Car Tax) Act 1999; section 2725 of the A New Tax System (Wine Equalisation Tax) Act 1999. These provisions mean that the standard provision in paragraph 322 will not be effective to exempt the body from those special Commonwealth taxes and specific provisions will need to be drafted to do that. If you are instructed to exempt a statutory body from one of these “special” taxes, you will need to specifically exempt the body from that tax. You should advise your instructors to discuss the exemption with Treasury and Finance early in the drafting process. The following is an example of a provision exempting a body from Commonwealth income tax and State and Territory taxes: xx Exemption from taxation (1) For the purposes of section 5025 of the Income Tax Assessment Act 1997, the [statutory body] is taken to be a public authority constituted under an Australian law. Note: This the [statutory body] is exempt from income tax. (2) The [statutory body] is not subject to taxation under a law of a State or Territory, if the Commonwealth is not subject to the taxation. If you want to create a general exemption from Commonwealth tax that does not include the “special” taxes, do not include a specific exception dealing with any of the “special” taxes. The Commonwealth’s view is that it is strongly arguable that an exception dealing with one of those taxes, even though redundant, will have the effect of nullifying the overriding rules of construction that would otherwise apply to the others. This is because the overriding rules of construction are subject to a contrary intention appearing in other legislation. There may be a sufficiently clear legislative intent to exempt a statutory body from a particular tax even if express words are not used as required by the overriding rule of construction. A corporate statutory body that is within the shield of the may be exempt from some Commonwealth, State and Territory taxes without express provision. However, if your instructors want the body to be exempt from taxation, you should provide for this expressly (whether or not the provision set out in paragraph 288 has been included). Use of subordinate instruments You should draw to your instructors’ attention the likelihood that the Senate Standing Committee for the Scrutiny of Bills will object to a provision that deals with the taxexempt status of a statutory body by relying on subordinate legislation.
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