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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2013-04-10 Daily Xml
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NATIONAL TAX REFORM (STATE PROVISIONS) (ADMINISTRATIVE PENALTIES) AMENDMENT BILL

Introduction and First Reading

The Hon. M.F. O'BRIEN (Napier—Minister for Finance, Minister for Police, Minister for Correctional Services, Minister for Emergency Services, Minister for Road Safety) (15:54): Obtained leave and introduced a bill for an act to amend the National Tax Reform (State Provisions) Act 2000. Read a first time.

Second Reading

The Hon. M.F. O'BRIEN (Napier—Minister for Finance, Minister for Police, Minister for Correctional Services, Minister for Emergency Services, Minister for Road Safety) (15:55): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

The National Tax Reform (State Provisions) (Administrative penalties) Bill 2013 amends the National Tax Reform (State Provisions) Act 2000. This amendment gives effect to South Australia's commitment under a national agreement to extend the Commonwealth’s interest and penalties regime to the notional GST liabilities of government entities.

There has been uncertainty about whether state and local governments were liable to pay penalty and interest charges in relation to their notional GST liabilities where necessary. This amendment makes it clear that interest and penalty charges will apply to state and local government GST obligations where necessary.

While this amendment will allow the Australian Taxation Office to charge South Australian government entities interest and penalties on outstanding notional GST payments, this measure is not expected to have a material impact on the state’s finances as South Australian government entities are already compliant with the GST law.

A uniform interest and penalties regime will promote competitive neutrality and provide clarity and certainty to government, taxpayers and the Australian Taxation Office.

These amendments are consistent with those passed by the Parliament of Victoria.

The Bill is intended to take effect from 1 July 2013.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

This clause is formal.

2—Commencement

The measure will come into operation on 1 July 2013.

3—Amendment provisions

This clause is formal.

Part 2—Amendment of National Tax Reform (State Provisions) Act 2000

4—Amendment of section 2—Interpretation

This clause amends the interpretation provision of the Act by inserting two new definitions. An administrative penalty is an administrative penalty prescribed under the Commonwealth Taxation Administration Act 1953. An interest charge is a general interest charge imposed under the Commonwealth General Interest Charge (Imposition) Act 1999 or a shortfall interest charge imposed under the Commonwealth Shortfall Interest Charge (Imposition) Act 2005.

5—Amendment of section 4—Exempt entities to pay GST equivalent, interest and penalties

Section 4 provides that an entity that has an exemption from GST under section 114 of the Commonwealth Constitution must pay to the Commonwealth Commissioner of Taxation amounts that would have been payable for GST if the entity were liable to GST. Under the section as amended by this clause, the entity will also be liable to pay amounts that would have been payable as interest charges or as administrative penalties if the entity were liable to pay GST.

Debate adjourned on motion of Ms Chapman.

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