Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT (TAX FILE NUMBERS) ACT 1988 No. 97 of 1988 - SCHEDULE 2

SCHEDULE 2
Section 30
AMENDMENTS OF THE INCOME TAX REGULATIONS Subregulation 3 (1):
Insert the following definitions:

" 'employment declaration' means an employment declaration made by an employee
under section 202C of the Act;
'tax file number', in relation to an employee, means the number that is the
employee's tax file number for the purposes of Part VA of the Act;".
Regulation 11:
Add at the end the following subregulation:

"(3) Subregulation (2) does not apply in relation to a period in respect of
which a company is obliged to prepare and give to the Commissioner a report
under regulation 43C.". After subregulation 12 (1):
Insert the following subregulation:

"(1A) The employer shall include in the statement, in relation to each
employee who has, for the purposes of Part VA of the Act, quoted his or her
tax file number in an employment declaration given to the employer:

   (a)  the employee's tax file number; or

   (b)  where the employee is, because of the application of subsection 202CB
        (2) or (4) of the Act, to be taken to have so quoted the number-a
        notice to that effect.". After regulation 43:
Insert the following Part:

"PART VA-TAX FILE NUMBERS Interpretation

"43A. In this Part:
'investment body' means an investment body as defined in section 202D of the
Act;
'investment reference number', in relation to an investment of a kind
mentioned in section 202D of the Act, means the number used by the investment
body in its records for the purpose of identifying the investments of
investors; 'investor' means an investor as defined in section 202D of the Act;
'phasing-in period' means the phasing-in period mentioned in section 202DA of
the Act;
'quarter' means a period of 3 months commencing on 1 January, 1 April, 1 July
or 1 October. File number reports

"43B. (1) Each person who is an investment body in relation to any investments
mentioned in section 202D of the Act in connection with which an investor's
tax file number is quoted under Part VA of the Act during a particular
reporting period shall give to the Commissioner a written report of all such
investments.

"(2) Subregulation (1) does not apply to a reporting period that ended before
the beginning of the phasing-in period.

"(3) The report shall be given to the Commissioner within one month after the
end of the reporting period to which it relates, or within such further time
as the Commissioner, by written notice given to the investment body, allows.

"(4) The report shall state, in relation to each investment referred to in
subregulation (1):

   (a)  the investor's full name and address;

   (b)  the investor's tax file number; and

   (c)  the investment reference number (if any) in relation to the
        investment.

"(5) In this regulation, 'reporting period' means:

   (a)  a quarter; or

   (b)  in respect of an investment body to which a notice has been given
        under subregulation (6), the period specified in the notice.

"(6) The Commissioner may, by notice in writing given to an investment body,
inform the body that, for the purposes of this regulation, the period
specified in the notice (being a period greater than 3 months) is to be the
reporting period in respect of the body. Annual investment income reports

"43C. (1) Subject to subregulation (7), each person who is, at any time during
a financial year, an investment body in relation to any investments mentioned
in section 202D of the Act shall prepare and give to the Commissioner a
written report in relation to all those investments.

"(2) Subregulation (1) does not apply to a financial year that ended at or
before the end of the phasing-in period.

"(3) The report shall be given to the Commissioner within 4 months after the
end of the financial year to which it relates, or within such further time as
the Commissioner, by written notice given to the investment body, allows.

"(4) The report shall state, in relation to each investment to which this
subregulation applies in respect of the financial year:

   (a)  the full name of each person who was, at any time during the financial
        year, an investor in relation to the investment, or, where at any such
        time more than 2 persons were investors in relation to the investment,
        the full names of at least 2 such investors and a notation to the
        effect that there were at that time more than 2 such investors;

   (b)  where a person named for the purpose of paragraph (a) has, for the
        purposes of Part VA of the Act, quoted the person's tax file number in
        connection with the investment-that number;

   (c)  where such a person has not so quoted the number:

        (i)    the person's address; and

        (ii)   if the person is to be taken to have quoted the number because
               of the application of any of the provisions of Division 5 of
               Part VA of the Act-a notation, in the manner approved by the
               Commissioner, to that effect;

   (d)  the total amount of income paid to any such person in respect of the
        investment by the investment body during the financial year;

   (e)  the total amount of any deductions made under Division 3B of Part VI
        of the Act in respect of the income; and

   (f)  the investment reference number (if any) in relation to the
        investment.

"(5) Subregulation (4) applies to an investment in respect of a financial year
if:

   (a)  the investment is an investment referred to in subregulation (1); and

   (b)  the total amount of income, in respect of the investment, paid to one
        or more persons by the investment body during the financial year
        exceeds:

        (i)    if the investment (being an investment of the kind mentioned in
               item 1 or 2 in the table in subsection 202D (1) of the Act) has
               been in existence at all times since the end of the phasing-in
               period-$120; or

        (ii)   in any other case-$1.

"(6) For the purposes of paragraphs (4) (d) and (5) (b):

   (a)  where income is not actually paid to a person but is reinvested,
        accumulated, capitalised or otherwise dealt with on behalf of the
        person, or as the person directs, the income shall be taken to be paid
        to the person when it is so reinvested, accumulated, capitalised or
        otherwise dealt with;

   (b)  where a person becomes presently entitled, as an investor in relation
        to an investment of the kind mentioned in item 5 in the table in
        subsection 202D (1) of the Act, to a share of income in respect of the
        investment, that share of the income shall be taken to be paid to the
        person as income in respect of the investment when the person becomes
        so entitled; and

   (c)  where a person becomes obliged under section 159GQ of the Act to
        include in the person's assessable income an amount in respect of an
        investment of a kind mentioned in section 202D of the Act, that amount
        shall be taken to be paid to the person as income in respect of the
        investment when the person becomes so obliged.

"(7) This regulation does not apply, in respect of a particular financial
year, to a person who has, during that year, been an investment body in
relation to investments mentioned in section 202D of the Act if the total
number of those investments that are investments to which subregulation (4)
applies in respect of that year is less than 10.

"(8) Every return by a company under regulation 11 relating to a financial
year in respect of which the company would, but for subregulation (7) of this
regulation, have been obliged to give to the Commissioner a report under this
regulation shall contain statements setting out all the matters that the
company would, but for that subregulation, have had to state in such a report.
Reviewable decisions

"43D. For the purposes of section 202F of the Act, the following decisions of
the Commissioner, being decisions made following an application by the
investment body concerned, are reviewable decisions:

   (a)  a decision refusing to extend, or extending, the time referred to in
        subregulation 43B (3);

   (b)  a decision refusing to give, or giving, a notice under subregulation
        43B (6);

   (c)  a decision refusing to extend, or extending, the time referred to in
        subregulation 43C (3);

   (d)  a decision varying or revoking a notice given under subregulation 43B
        (3), 43B (6) or 43C (3).". Subregulation 54AB (3):
Omit "or 54DA", and substitute ", 54DA or 54DAAB". Paragraph 54AB (3) (d):
Omit "or". Subregulation 54AB (3):
After paragraph (e) insert the following paragraphs:

"(ea) in the case of an employee to whom regulation 54DAAB applies, not being
a prescribed non-resident-the factor specified in column 3 of the last item in
table 4 or, where no such factor is specified, .5025; or

   (eb) in the case of an employee to whom regulation 54DAAB applies, being a
        prescribed non-resident-the factor specified in column 3 of the last
        item in table 5 or, where no such factor is specified, .49;".
        Paragraph 54AB (3) (j):
Omit "or". Subregulation 54AB (3):
After paragraph (k) insert the following word and paragraph:

"; or (m) in the case of an employee to whom regulation 54DAAB
applies-$0.00.". Subregulation 54B (1):
After "employee" (first occurring) insert "(other than an employee to whom
regulation 54DAAB applies)". Subregulation 54BA (1):
After "employee" (first occurring) insert "(other than an employee to whom
regulation 54DAAB applies)". Regulation 54C:
After "employee" (first occurring) insert "(other than an employee to whom
regulation 54DAAB applies)". Regulation 54CA:
After "employee" (first occurring) insert "(other than an employee to whom
regulation 54DAAB applies)". Regulation 54D:
Omit "or 54DAA", substitute ", 54DAA or 54DAAB". Regulation 54DA:
After "employee" (first occurring) insert "(other than an employee to whom
regulation 54DAAB applies)". Subregulations 54DAA (1), (2), (3) and (4):
After "employee" (first occurring) insert "(other than an employee to whom
regulation 54DAAB applies)". Regulation 54DAAA:
After "employee" insert "(other than an employee to whom regulation 54DAAB
applies)". After regulation 54DAAA:
Insert the following regulation: Rate of deductions-employee who has failed to
quote tax file number

"54DAAB. (1) Subject to this Subdivision, where an employee is not an employee
in respect of whom an employment declaration, given to his or her employer,
is, for the purposes of Part VA of the Act, effective, the prescribed rate of
deductions to be made for the purposes of section 221C of the Act by the
employer from payments of salary or wages that the employee receives or is
entitled to receive in respect of a week or part of a week is the amount that,
in accordance with regulation 54AB, is, for the purposes of this regulation,
the income tax instalment amount in relation to the employee in respect of
that week or part of a week.

"(2) This regulation does not apply in relation to an employee who:

   (a)  is not an employee in respect of whom Part VA of the Act provides for
        the making of an employment declaration to his or her employer; or

   (b)  is under 16 years of age and receives or is entitled to receive from
        his or her employer as salary or wages in respect of a week an amount
        in respect of which, but for this regulation, the employer would not
        be obliged to make deductions.". Paragraph 54DAB (b):
Omit "$40", substitute "$60". After subregulation 54DAC (2):
Insert the following subregulation:

"(2A) Nothing in subregulation (2) affects the operation of section 202C of
the Act in relation to the making by an employee of a separate employment
declaration in relation to each of the employee's employers.". Regulation
54DACA:
Add at the end the following subregulation:

"(6) Nothing in this regulation prevents a Medicare levy variation declaration
being incorporated in the form for an employment declaration.". Regulation
54DAD:
Add at the end the following subregulation:

"(5) Nothing in this regulation prevents a declaration referred to in
paragraph 54A (2) (a) being incorporated in the form for an employment
declaration.". Subregulations 54DAG (5), (6) and (7):
Omit the subregulations, substitute the following subregulations:

"(5) A declaration under this Subdivision ceases to have effect if the person
who made the declaration ceases to be an employee of the employer to whom the
employee gave the declaration.

"(6) A declaration under this Subdivision to which a determination under
subregulation (7) applies ceases to have effect at the end of the day fixed by
the determination.

"(7) The Commissioner may determine that:

   (a)  all declarations under this Subdivision; or

   (b)  a specified class of declarations under this Subdivision; shall cease
        to have effect at the end of the day specified in the determination.
        "(7A) A determination shall be made by notice published in the
        Gazette.". Subregulation 54DAK (1):
After paragraph (a) insert the following paragraph:

"(ab) the employee is not an employee to whom regulation 54DAAB applies;".
Regulation 54DAN:
Repeal the regulation, substitute the following regulation: Forwarding of
declaration to Commissioner

"54DAN. (1) Where an employee gives an employer a declaration under this
Subdivision, the employer shall:

   (a)  countersign the original of the declaration;

   (b)  within the forwarding period, send the original to the office of a
        Deputy Commissioner; and

   (c)  retain the copy of the declaration in accordance with subregulation
        (3).
Penalty: $1,000.

"(2) The forwarding period is a period of 28 days or such longer period as the
Commissioner, by notice in writing given to an employer, allows in a
particular case.

"(3) The employer shall retain the copy of a declaration until:

   (a)  the employee next gives a declaration under this Subdivision to the
        employer; or

   (b)  the 1 July next following the day on which the declaration ceases to
        have effect.

"(4) This regulation does not apply in relation to a declaration under this
Subdivision that is given to the employer on the same form as an employment
declaration.". Subregulation 54DAO (2):
Insert the following definition:

" 'prescribed non-resident' means a prescribed non-resident as defined in
regulation 54A;". Subregulation 54DAP (1):
After "employee" insert "(not being an employee to whom subregulation (1A)
applies)". After subregulation 54DAP (1):
Insert the following subregulations:

"(1A) Where:

   (a)  any salary or wages that an employee receives or is entitled to
        receive in respect of a week consists or consist of an eligible
        termination payment; and (b) the employee is not an employee who has,
        for the purposes of this subregulation, quoted his or her tax file
        number in a statement under regulation 54DAQ to his or her employer;
        the prescribed rate of deductions to be made for the purposes of
        section 221C of the Act from that payment is the amount (being a
        multiple of 5 cents) that is, or is nearest to:

   (c)  if the employee is not a prescribed non-resident-the amount
        ascertained by multiplying the number of whole dollars in the net
        relevant amount by the factor specified in column 3 of the last item
        in table 4 in the Third Schedule, or, where no such factor is
        specified, .5025; or

   (d)  if the employee is a prescribed non-resident-the amount ascertained by
        multiplying the number of whole dollars in the net relevant amount by
        the factor specified in column 3 of the last item in table 5 in the
        Third Schedule, or, where no such factor is specified, .49.

"(1B) For the purposes of subregulation (1A), an employee shall be taken to
have quoted his or her tax file number in a statement under regulation 54DAQ
if: (a) the employee is not an employee in respect of whom Part VA of the Act
provides for the making of an employment declaration to his or her employer;
or

   (b)  had the statement been an employment declaration given to his or her
        employer under Part VA of the Act, the employee would have been taken,
        for the purposes of that Part, to have quoted the number in the
        declaration.". After subregulation 54DAQ (2):
Insert the following subregulation:

"(2A) The employee shall, on the form referred to in subparagraph (1) (a) (i),
quote his or her tax file number.". After subregulation 54ZED (1):
Insert the following subregulation:

"(1A) Subject to subregulation (2), the amount for the purposes of paragraph
221YHD (5) (b) of the Act is an amount equal to the amount ascertained by
multiplying the number equal to the number of whole dollars in the prescribed
payment by the factor specified in column 3 of the last item in table 4 in the
Third Schedule, or, where no such factor is specified, .5025.". Subregulation
54ZED (2):
Omit "sub-regulation (1)", substitute "this regulation". After regulation
54ZEJ:
Insert the following Division:

"Division 3B-Collection of tax in respect of certain payments Minimum amounts
of income from which deductions to be made for failure to quote tax file
number

"54ZEK. (1) The amount for the purposes of subparagraph 221YHZC (1A) (c) (i)
of the Act is:

   (a)  if the income is payable in respect of the whole of a financial
        year-$420; or

   (b)  in any other case-the amount ascertained in accordance with the
        formula:
P X $420
365
where P is the number of days in the period in respect of which the income is
payable.

"(2) The amount for the purposes of subparagraph 221YHZC (1A) (c) (ii) of the
Act is:

   (a)  if the income is payable in respect of the whole of a financial
        year-$120; or

   (b)  in any other case-the amount ascertained in accordance with the
        formula:
P X $120
365
where P is the number of days in the period in respect of which the income is
payable.

"(3) The amount for the purposes of subparagraph 221YHZC (1A) (c) (iii) of the
Act is $1. Ascertaining amounts to be deducted for failure to quote tax file
number

"54ZEL. For the purposes of subsection 221YHZC (1C) of the Act, the factor is
the factor specified in column 3 of the last item in table 4 in the Third
Schedule, or, where no such factor is specified, .5025.". Regulation 65:
Add at the end the following subregulation:

"(2) This regulation does not apply in relation to regulation 43B or 43C.".