Contents

Part 1--Preliminary                                                                                                                1

1............ Short title [see Note 1] ....................................................................... 1

2............ Commencement [see Note 1] .............................................................. 1

3............ Act to bind Crown .............................................................................. 1

4............ Extension to Territories ...................................................................... 1

5............ Object of Act ...................................................................................... 1

6............ Outline of Act ..................................................................................... 2

Part 2--Liability to surcharge                                                                                           3

7............ Application ......................................................................................... 3

8............ Termination payments surcharge ....................................................... 3

9............ Surcharge payable only on part of certain termination payments ...... 4

10.......... Surcharge threshold ............................................................................. 5

Part 3--Assessment and collection of surcharge                                                   7

11.......... Assessment of liability to pay surcharge ........................................... 7

11A....... Periods within which assessments may be amended .......................... 8

12.......... Amendment of assessments ............................................................. 11

13.......... Payment of general interest charge if liability increased by amended assessment    12

14.......... Commissioner may use tax file numbers for the purposes of this Act 13

15.......... Objections against assessments ........................................................ 13

Part 4--Recovery of unpaid surcharge, general interest charge or late payment penalty                14

16.......... Penalty for non‑payment of surcharge ............................................. 14

16A....... Additional liability to pay general interest charge ............................ 14

Part 5--Administration                                                                                                       16

21.......... General administration of Act .......................................................... 16

22.......... Annual report ................................................................................... 16

23.......... Secrecy .............................................................................................. 16

Part 6--Miscellaneous                                                                                                        20

24.......... Authorised officers ........................................................................... 20

25.......... Evidence ............................................................................................ 20

26.......... Access to premises etc. .................................................................... 21

27.......... Obtaining information and evidence ................................................. 22

28.......... Records to be kept and retained by employer .................................. 22

29.......... Application of the Criminal Code .................................................... 23

30.......... Regulations ....................................................................................... 24

Part 7--Interpretation                                                                                                         25

31.......... Definitions ........................................................................................ 25

Notes                                                                                                                                             27

An Act relating to the assessment and collection of termination payments tax, and for related purposes

  

Notes to the Termination Payments Tax (Assessment and Collection) Act 1997

Note 1

The Termination Payments Tax (Assessment and Collection) Act 1997 as shown in this compilation comprises Act No. 73, 1997 amended as indicated in the Tables below.

All relevant information pertaining to application, saving or transitional provisions prior to 13 October 1999 is not included in this compilation. For subsequent information see Table A.

Table of Acts

Act	Number and year	Date of Assent	Date of commencement	Application, saving or transitional provisions
Termination Payments Tax (Assessment and Collection) Act 1997	73, 1997	5 June 1997	5 June 1997
Taxation Laws Amendment Act (No. 3) 1997	147, 1997	14 Oct 1997	Schedule 1 (item 44): Royal Assent (a)	--
as amended by
Superannuation Contributions and Termination Payments Taxes Legislation Amendment Act 1999	131, 1999	13 Oct 1999	Schedule 6: 14 Oct 1997 (aa)	--
Superannuation Contributions and Termination Payments Taxes Legislation Amendment Act 1997	191, 1997	7 Dec 1997	Schedule 9: 5 June 1997 (b)	--
Taxation Laws Amendment Act (No. 3) 1999	11, 1999	31 Mar 1999	Schedule 1 (items 376-392): 1 July 1999 (c)	¾
Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999	44, 1999	17 June 1999	Schedule 7 (items 229-231): 1 July 1999 (see Gazette 1999, No. S283) (d)	S. 3(2)(e) (am. by 160, 2000, Sch. 4 [item 4])
as amended by
Financial Sector Legislation Amendment Act (No. 1) 2000	160, 2000	21 Dec 2000	Schedule 1 (item 21): Royal Assent Remainder: 18 Jan 2001	--
Superannuation Contributions and Termination Payments Taxes Legislation Amendment Act 1999	131, 1999	13 Oct 1999	Schedule 3: Royal Assent (e)	Sch. 3 (item 7)
Public Employment (Consequential and Transitional) Amendment Act 1999	146, 1999	11 Nov 1999	Schedule 1 (items 932-934): (see Gazette 1999, No. S584) (f)	--
A New Tax System (Tax Administration) Act 1999	179, 1999	22 Dec 1999	Schedule 2 (items 108-110, 130, 132): (g)	Sch. 2 (items 130, 132)
A New Tax System (Tax Administration) Act (No. 1) 2000	44, 2000	3 May 2000	Schedule 3 (item 69): (h)	--
A New Tax System (Tax Administration) Act (No. 2) 2000	91, 2000	30 June 2000	Schedule 2 (items 124, 129): (i)	Sch. 2 (item 129)
Superannuation Contributions Taxes and Termination Payments Tax Legislation Amendment Act 2001	96, 2001	15 Aug 2001	Schedule 3: 5 June 1997 (j)	Sch. 3 (items 4, 5)
Superannuation Laws Amendment (Abolition of Surcharge) Act 2005	102, 2005	12 Aug 2005	12 Aug 2005	--
Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006	101, 2006	14 Sept 2006	Schedule 2 (items 1017, 1060-1063) and Schedule 6 (items 1, 6-11): Royal Assent	Sch. 6 (items 1,  6-11)

(a)     The Termination Payments Tax (Assessment and Collection) Act 1997 was amended by Schedule 1 (Item 44) only of the Taxation Laws Amendment Act (No. 3) 1997, subsection 2(1) of which provides as follows:

                 (1)   Subject to this section, this Act commences on the day on which it receives the Royal Assent.

(aa)   The Taxation Laws Amendment Act (No. 3) 1997 was amended by Schedule 6 only of the Superannuation Contributions and Termination Payments Taxes Legislation Amendment Act 1999, subsection 2(4) of which provides as follows:

                 (4)   Schedule 6 is taken to have commenced on 14 October 1997, immediately after the commencement of Schedule 1 to the Taxation Laws Amendment Act (No. 3) 1997.

(b)    The Termination Payments Tax (Assessment and Collection) Act 1997 was amended by Schedule 9 only of the Superannuation Contributions and Termination Payments Taxes Legislation Amendment Act 1997, subsection 2(5) of which provides as follows:

                 (5)   Schedule 9 is taken to have commenced on 5 June 1997, immediately after the commencement of the Termination Payments Tax (Assessment and Collection) Act 1997.

(c)     The Termination Payments Tax (Assessment and Collection) Act 1997 was amended by Schedule 1 (items 376-392) only of the Taxation Laws Amendment Act (No. 3) 1999, subsection 2(3) of which provides as follows:

                 (3)   Subject to subsections (4) and (5), Schedule 1 commences on 1 July 1999.

(d)     The Termination Payments Tax (Assessment and Collection) Act 1997 was amended by Schedule 7 (items 229-231) only of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999, subsections 3(2)(e) and (16) of which provide as follows:

                 (2)   The following provisions commence on the transfer date:

                      (e)   subject to subsection (12), Schedule 7, other than items 43, 44, 118, 205 and 207 (the commencement of those items is covered by subsections (10), (11) and (13)).

               (16)   The Governor‑General may, by Proclamation published in the Gazette, specify the date that is to be the transfer date for the purposes of this Act.

(e)     The Termination Payments Tax (Assessment and Collection) Act 1997 was amended by Schedule 3 only of the Superannuation Contributions and Termination Payments Taxes Legislation Amendment Act 1999, subsection 2(1)of which provides as follows:

                 (1)   Subject to this section, this Act commences on the day on which it receives the Royal Assent.

(f)      The Termination Payments Tax (Assessment and Collection) Act 1997 was amended by Schedule 1 (items 932-934) only of the Public Employment (Consequential and Transitional) Amendment Act 1999, subsections 2(1) and (2) of which provide as follows:

                 (1)   In this Act, commencing time means the time when the Public Service Act 1999 commences.

         (2)  Subject to this section, this Act commences at the commencing time.

(g)     The Termination Payments Tax (Assessment and Collection) Act 1997 was amended by Schedule 2 (items 108-110) only of the A New Tax System (Tax Administration) Act 1999, subsection 2(1) of which provides as follows:

                 (1)   Subject to this section, this Act commences, or is taken to have commenced, immediately after the commencement of section 1 of the A New Tax System (Pay As You Go) Act 1999.

         Section 1 commenced on 22 December 1999.

(h)     The Termination Payments Tax (Assessment and Collection) Act 1997 was amended by Schedule 3 (item 69) only of the A New Tax System (Tax Administration) Act (No. 1) 2000, subsection 2(1) of which provides as follows:

                 (1)   Subject to this section, this Act commences, or is taken to have commenced, immediately after the commencement of section 1 of the A New Tax System (Tax Administration) Act 1999.

         Section 1 commenced on 22 December 1999.

(i)      The Termination Payments Tax (Assessment and Collection) Act 1997 was amended by Schedule 2 (item 124) only of the A New Tax System (Tax Administration) Act (No. 2) 2000, subsection 3(1) of which provides as follows:

                 (1)   Subject to this section, this Act commences, or is taken to have commenced, immediately after the commencement of section 1‑1 of the A New Tax System (Goods and Services Tax) Act 1999.

         Section 1‑1 of the A New Tax System (Goods and Services Tax) Act 1999 commenced on 1 July 2000.

(j)      The Termination Payments Tax (Assessment and Collection) Act 1997 was amended by Schedule 3 only of the Superannuation Contributions Taxes and Termination Payments Tax Legislation Amendment Act 2001, subsection 2(4) of which provides as follows:

                 (4)   Schedule 3 is taken to have commenced on 5 June 1997, immediately after the commencement of the Termination Payments Tax (Assessment and Collection) Act 1997.

Table of Amendments

ad. = added or inserted      am. = amended      rep. = repealed      rs. = repealed and substituted
Provision affected	How affected
Part 1
S. 6......................................	am. Nos. 11 and 131, 1999; No. 102, 2005
Part 2
S. 7......................................	am. No. 147, 1997 (as am. by No. 131, 1999); No. 102, 2005
S. 8......................................	am. No. 96, 2001
S. 9......................................	rs. No. 96, 2001
S. 10....................................	am. No. 102, 2005
Part 3
S. 11....................................	am. No. 131, 1999; No. 102, 2005
Note to s. 11(2)...................	ad. No. 44, 2000
S. 11A.................................	ad. No. 131, 1999
S. 12....................................	am. No. 191, 1997; No. 131, 1999
S. 13....................................	rs. No. 11, 1999
Note to s. 13(1)...................	am. No. 101, 2006
Part 4
Heading to Part 4.................	rs. No. 11, 1999
S. 16....................................	am. No. 191, 1997; No. 11, 1999
Note to s. 16(1)...................	am. No. 101, 2006
S. 16A.................................	ad. No. 11, 1999
Note to s. 16A(2)................	am. No. 101, 2006
S. 17....................................	am. No. 11, 1999
	rep. No. 179, 1999
Heading to s. 18..................	am. No. 11, 1999
	rep. No. 179, 1999
S. 18....................................	am. No. 11, 1999
	rep. No. 179, 1999
S. 19....................................	rep. No. 11, 1999
S. 20....................................	rep. No. 11, 1999
Part 5
S. 23....................................	am. No.146, 1999
Note 1 to s. 23(2)................	rs. No. 191, 1997
Note 2 to s. 23(2)................	ad. No. 191, 1997
Part 6
S. 24....................................	am. No. 191, 1997; No. 146, 1999
S. 25....................................	am. No. 11, 1999
S. 26....................................	am. No. 91, 2000
S. 28....................................	am. No. 191, 1997
S. 28A.................................	ad. No. 191, 1997
	am. Nos. 11 and 44, 1999
	rep. No. 179, 1999
Part 7
S. 31....................................	am. No. 191, 1997; Nos. 11, 131 and 146, 1999; No. 101. 2006

Table A

Application, saving or transitional provisions

Superannuation Contributions and Termination Payments Taxes Legislation Amendment Act 1999 (No. 131, 1999)

Schedule 3 

7  Application of amendments

The amendments made by items 2 to 6 apply to assessments of surcharge payable for the financial year beginning on 1 July 1999 and later financial years.

A New Tax System (Tax Administration) Act 1999 (No. 179, 1999)

Schedule 2 

130  Recovery of a tax‑related liability that is due and payable

Despite its repeal, a provision listed in the table continues to have effect in relation to an amount that became due and payable before 1 July 2000.

 

Tax‑related liability that became due and payable before 1 July 2000
Item	Act	Provision
1	Fringe Benefits Tax Assessment Act 1986	section 94
47 valign=top style='width:35.4pt;border:none;border-bottom:solid windowtext 1.0pt; padding:0cm 5.35pt 0cm 5.35pt'> 2	Petroleum Resource Rent Tax Assessment Act 1987	section 86
47 valign=top style='width:35.4pt;border:none;border-bottom:solid windowtext 1.0pt; padding:0cm 5.35pt 0cm 5.35pt'> 3	Sales Tax Assessment Act 1992	section 69
47 valign=top style='width:35.4pt;border:none;border-bottom:solid windowtext 1.0pt; padding:0cm 5.35pt 0cm 5.35pt'> 4	Superannuation Contributions Tax (Assessment and Collection) Act 1997	section 26 or 27
47 valign=top style='width:35.4pt;border:none;border-bottom:solid windowtext 1.0pt; padding:0cm 5.35pt 0cm 5.35pt'> 5	Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997	section 22 or 23
47 valign=top style='width:35.4pt;border:none;border-bottom:solid windowtext 1.0pt; padding:0cm 5.35pt 0cm 5.35pt'> 6	Superannuation Guarantee (Administration) Act 1992	section 50
47 valign=top style='width:35.4pt;border:none;border-bottom:solid windowtext 1.0pt; padding:0cm 5.35pt 0cm 5.35pt'> 7	Termination Payments Tax (Assessment and Collection) Act 1997	section 17 or 18
47 valign=top style='width:35.4pt;border:none;border-bottom:solid windowtext 1.0pt; padding:0cm 5.35pt 0cm 5.35pt'> 8	Taxation Administration Act 1953	subsection 8AAV(1) or (2)
9	Tobacco Charges Assessment Act 1955	section 21
10	Wool Tax (Administration) Act 1964	section 44

132  Collecting amounts from third parties

Despite the repeal of a provision listed in the table:

                     (a)  anything done under that provision before 1 July 2000 continues to have effect on and after that day as if the provision had not been repealed; and

                     (b)  anything done on or after that day, under that provision as it continues to have effect because of this item, has effect as if the provision had not been repealed.

 

Collecting amounts from third parties
Item	Act	Provision
1	Fringe Benefits Tax Assessment Act 1986	section 99
47 valign=top style='width:35.4pt;border:none;border-bottom:solid windowtext 1.0pt; padding:0cm 5.35pt 0cm 5.35pt'> 2	Petroleum Resource Rent Tax Assessment Act 1987	section 91
47 valign=top style='width:35.4pt;border:none;border-bottom:solid windowtext 1.0pt; padding:0cm 5.35pt 0cm 5.35pt'> 3	Sales Tax Assessment Act 1992	section 74
47 valign=top style='width:35.4pt;border:none;border-bottom:solid windowtext 1.0pt; padding:0cm 5.35pt 0cm 5.35pt'> 4	Superannuation Contributions Tax (Assessment and Collection) Act 1997	section 40A
47 valign=top style='width:35.4pt;border:none;border-bottom:solid windowtext 1.0pt; padding:0cm 5.35pt 0cm 5.35pt'> 5	Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997	section 35
47 valign=top style='width:35.4pt;border:none;border-bottom:solid windowtext 1.0pt; padding:0cm 5.35pt 0cm 5.35pt'> 6	Superannuation Guarantee (Administration) Act 1992	section 56
47 valign=top style='width:35.4pt;border:none;border-bottom:solid windowtext 1.0pt; padding:0cm 5.35pt 0cm 5.35pt'> 7	Termination Payments Tax (Assessment and Collection) Act 1997	section 28A
47 valign=top style='width:35.4pt;border:none;border-bottom:solid windowtext 1.5pt; padding:0cm 5.35pt 0cm 5.35pt'> 8	Wool Tax (Administration) Act 1964	section 54

A New Tax System (Tax Administration) Act (No. 2) 2000 (No. 91, 2000)

Schedule 2 

129  Transitional--existing RBAs

Although the A New Tax System (Pay As You Go) Act 1999 repealed subsection 8AAZL(3) of the Taxation Administration Act 1953, special priority credits referred to in that subsection are to continue to be applied in accordance with that subsection.

Superannuation Contributions Taxes and Termination Payments Tax Legislation Amendment Act 2001 (No. 96, 2001)

Schedule 3 

4  Application

The amendments made by this Schedule apply only to payments made after 7.30 pm by legal time in the Australian Capital Territory on 22 May 2001.

5  Amendment of assessments

Nothing in the Termination Payments Tax (Assessment and Collection) Act 1997 prevents the amendment of an assessment of surcharge on termination payments made to or for a taxpayer for a financial year for the purpose of giving effect to an amendment of that Act made by this Schedule or Schedule 1 if the Commissioner has sufficient information to satisfy himself or herself that the amendment is required or permitted for that purpose and the amendment does not increase the amount of surcharge payable in respect of those termination payments.

 

Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006
(No. 101, 2006)

Schedule 6

1  Application of Schedule 1 and 2 amendments

Except as mentioned in items 2 and 3, the repeals and amendments made by Schedules 1 and 2 apply:

                     (a)  so far as they affect assessments--to assessments for the 2006‑07 income year and all later income years; and

                     (b)  otherwise--to acts done or omitted to be done, or states of affairs existing, after the commencement of the repeals and amendments.

6  Object

The object of this Part is to ensure that, despite the repeals and amendments made by this Act, the full legal and administrative consequences of:

                     (a)  any act done or omitted to be done; or

                     (b)  any state of affairs existing; or

                     (c)  any period ending;

before such a repeal or amendment applies, can continue to arise and be carried out, directly or indirectly through an indefinite number of steps, even if some or all of those steps are taken after the repeal or amendment applies.

7  Making and amending assessments, and doing other things, in relation to past matters

Even though an Act is repealed or amended by this Act, the repeal or amendment is disregarded for the purpose of doing any of the following under any Act or legislative instrument (within the meaning of the Legislative Instruments Act 2003):

                     (a)  making or amending an assessment (including under a provision that is itself repealed or amended);

                     (b)  exercising any right or power, performing any obligation or duty or doing any other thing (including under a provision that is itself repealed or amended);

in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.

Example 1: On 31 July 1999, Greg Ltd lodged its annual return under former section 160ARE of the Income Tax Assessment Act 1936. The return stated that the company had a credit on its franking account and that no franking deficit tax was payable for the 1998‑99 franking year. Under former section 160ARH of that Act, the Commissioner was taken to have made an assessment consistent with the return.

                   Following an audit undertaken after the repeal of Part IIIAA of that Act, the Commissioner concludes that Greg Ltd fraudulently overfranked dividends it paid during the 1998‑99 franking year, and had a franking account deficit for that franking year. As a result, the Commissioner considers that franking deficit tax and a penalty by way of additional tax are payable.

                   The Commissioner can amend the assessment under former section 160ARN of that Act, because item 7 of this Schedule disregards the repeal of that section for the purposes of making an assessment in relation to the 1998‑99 franking year. Item 7 will also disregard the repeal of Division 11 of former Part IIIAA to the extent necessary for the Commissioner to assess Greg Ltd's liability to a penalty by way of additional tax.

                   Despite the repeal of sections 160ARU and 160ARV, item 9 will ensure that the general interest charge will accrue on the unpaid franking deficit tax and penalty until they are paid.

                   Item 7 will also preserve Greg Ltd's right, under former section 160ART of that Act, to object against the Commissioner's amended assessment (including the penalty), since the objection is the exercise of a right in relation to a franking year that ended before the repeal of Part IIIAA.

Example 2: During the 1997‑98 income year, Duffy Property Ltd withheld amounts from its employees' wages as required by former Divisions 1AAA and 2 of Part VI of the Income Tax Assessment Act 1936. The company failed to notify the Commissioner of those amounts, and failed to remit them to the Commissioner.

                   Following an audit undertaken after the repeal of those Divisions, the Commissioner discovers that the withheld amounts have not been remitted. The company's records are incomplete and the Commissioner is unable to completely ascertain the extent of its liability for the withheld amounts. Under section 222AGA of that Act, the Commissioner makes an estimate of the liability.

                   Item 7 will disregard the repeal of section 220AAZA of that Act (which empowered the Commissioner to recover the amount of the estimate). Even though the estimate is made after the repeal, it relates to amounts withheld before the repeal.

8  Saving of provisions about effect of assessments

If a provision or part of a provision that is repealed or amended by this Act deals with the effect of an assessment, the repeal or amendment is disregarded in relation to assessments made, before or after the repeal or amendment applies, in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.

9  Saving of provisions about general interest charge, failure to notify penalty or late reconciliation statement penalty

If:

                     (a)  a provision or part of a provision that is repealed or amended by this Act provides for the payment of:

                              (i)  general interest charge, failure to notify penalty or late reconciliation statement penalty (all within the meaning of the Income Tax Assessment Act 1936); or

                             (ii)  interest under the Taxation (Interest on Overpayments and Early Payments) Act 1983; and

                     (b)  in a particular case, the period in respect of which the charge, penalty or interest is payable (whether under the provision or under the Taxation Administration Act 1953) has not begun, or has begun but not ended, when the provision is repealed or amended;

then, despite the repeal or amendment, the provision or part continues to apply in the particular case until the end of the period.

10  Repeals disregarded for the purposes of dependent provisions

If the operation of a provision (the subject provision) of any Act or legislative instrument (within the meaning of the Legislative Instruments Act 2003) made under any Act depends to any extent on an Act, or a provision of an Act, that is repealed by this Act, the repeal is disregarded so far as it affects the operation of the subject provision.

11  Schedule does not limit operation of section 8 of the Acts Interpretation Act 1901

This Schedule does not limit the operation of section 8 of the Acts Interpretation Act 1901.