Commonwealth Numbered Regulations - Explanatory Statements

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INCOME TAX ASSESSMENT AMENDMENT REGULATIONS 2008 (NO. 5) (SLI NO 145 OF 2008)

EXPLANATORY STATEMENT Select Legislative Instrument 2008 No. 145

 

Issued by authority of the Assistant Treasurer

Income Tax Assessment Act 1997

Income Tax Assessment Amendment Regulations 2008 (No. 5)

Section 909‑1(1) of the Income Tax Assessment Act 1997 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The Act provides for a bonus of up to $1,000 received for early completion of an apprenticeship to be exempt from income tax subject to the occupation being of a kind specified in the Regulations and if the apprenticeship is finished within a timeframe specified in the Regulation. The bonus must be provided under a State or Territory scheme specified in the Regulations.

The purpose of the Regulations is to list the Queensland Government early completion bonus scheme for apprentices as a scheme that can offer bonuses that are income tax exempt as provided for in the Act.

In addition, the Regulations list occupations in which apprentices must be trained to qualify for this income tax exemption. These occupations will be those listed by the Queensland Government on version 3 of the Eligible Skill Shortage Occupation List dated 17 March 2008.

The Regulations will also determine the time frame within which eligible apprenticeships must be completed to qualify for the income tax-exempt bonus. For full-time apprentices, the apprenticeship must be completed at least six months prior to the expected completion date for the apprenticeship. For part-time apprentices, the apprenticeship must be completed at least 12 months prior to the expected completion date.

No formal consultation was undertaken on the Regulations. However, correspondence was exchanged with the Queensland Government on the design of the Regulations. The Queensland Government and Queensland apprentices are the only groups that are directly affected by the Regulations.

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

The Regulations commence on the commencement of Schedule 5 to the Tax Laws Amendment (2008 Measures No. 2) Act 2008 and apply to assessments for the 2007‑08 income year and later income years.


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