REVENUE UNITS BILL 2009 Explanatory Statement

Northern Territory Explanatory Statements

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REVENUE UNITS BILL 2009

2009

LEGISLATIVE ASSEMBLY OF THE
NORTHERN TERRITORY

TREASURER

REVENUE UNITS BILL 2009
SERIAL NO. 64

EXPLANATORY STATEMENT

GENERAL OUTLINE

This Bill repeals the current Revenue Units Act and introduces a new Revenue Units Act. The new Revenue Units Act will provide:

· for the automatic annual adjustment of the monetary value of a revenue unit in accordance with the Darwin consumer price index; and

· for that adjustment to occur on 1 July of each financial year from 1 July 2011, with the value of a revenue unit remaining at $1 until then; and

· for a fee or charge expressed in revenue units to be rounded down to the nearest multiple of $1 where the calculation of the monetary amount of the fee or charge does not yield a multiple of $1.

NOTES ON CLAUSES

Clause 1. Short title

This is a formal clause which provides for the citation of the Act. When passed, the Act may be referred to as the Revenue Units Act 2009.

Clause 2. Commencement

This clause provides for the Revenue Units Act 2009 to commence on 1 January 2010.

Clause 3. Monetary amount of fee or charge

This clause provides for the calculation of a fee or charge that is expressed as a number of revenue units.

Clause 3(1) largely mirrors section 3(1) of the existing Revenue Units Act with an alteration to reflect that the monetary value of a revenue unit will be calculated in accordance with new section 4 rather than an amount prescribed by regulation.

Clause 3(2) provides that a fee or charge expressed in revenue units is to be rounded down to the nearest multiple of $1 where the calculation of the monetary amount of that fee or charge does not yield a multiple of $1.

Clause 3(3) ensures that the application of clause 3(1) is subject to a contrary intention in another Act by or under which a fee or charge, expressed as a number of revenue units, is prescribed. Clause 3(3) is consistent with section 3(2) of the existing Revenue Units Act and merely restates this provision in accordance with current drafting practice.

Clause 4. Indexation of monetary value of revenue unit

Clause 4 provides for the monetary value of a revenue unit to remain at $1.00 until 30 June 2011. Clause 4 also provides a mechanism to automatically adjust the value of a revenue unit, based on a formula to be calculated each financial year from 1 July 2011.

This adjustment formula uses the average Darwin consumer price index (CPI) from the four quarters of the calendar year immediately preceding the financial year for which the calculation is made. The effect of inflation will be determined by comparing this average of the CPI figures for Darwin with the 2009 calendar year average of the CPI figures for Darwin.

This ensures that fees and charges are reviewed annually to better reflect the cost to the Northern Territory Government of providing the services to which each fee or charge relates.

The monetary value of a revenue unit is to be rounded down to two decimal places. The indexation mechanism will only result in a change to the value of a revenue unit if the value yielded by the CPI calculation is equal to or greater than a one cent increase to the monetary value of a revenue unit since its previous review.

Clause 5. New monetary value of revenue unit

Where an increase in the monetary value of a revenue unit occurs, clause 5 ensures that this change applies from 1 July of the financial year for which the revenue unit value is calculated.

The new monetary value of a revenue unit will only apply in calculating the amount of a fee or charge that is payable from 1 July of the relevant financial year.

Clause 6. Notifying new monetary value of revenue unit

Clause 6 requires that the Commissioner of Territory Revenue notify any changes to the monetary value of a revenue unit by Gazette notice before 1 July of the financial year that the change takes effect.

However, if the Commissioner of Territory Revenue does not notify the new value by Gazette notice before 1 July, the change in the monetary value of a revenue unit will still take effect when calculating a fee or charge payable on or after 1 July of the relevant financial year.

Clause 7. Regulations

Clause 7 provides the Administrator with a general power to make regulations under the Act.

Clause 8. Repeal

Clause 8 repeals the current Revenue Units Act 2000 (Act No. 18 of 2000). As a result, the Revenue Units Regulations, which are in force under the Revenue Units Act 2000 and set the amount of a revenue unit at $1.00, will also be repealed.

Clause 9. Application and transitional matters

Clause 9 ensures that the repealed Revenue Units Act continues to apply to a fee or charge incurred before 1 January 2010 that remains unpaid at that date.

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