Commonwealth Numbered Regulations - Explanatory Statements

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INCOME TAX AMENDMENT REGULATIONS 2004 (NO. 1) 2004 NO. 37

Subsection 266(1) of the Income Tax Assessment Act 1936 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act or the Income Tax Assessment Act 1997 (the 1997 Act), prescribing all matters which by the Act or the 1997 Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for giving effect to the Act or the 1997 Act.

The amending Regulation repealed Regulations 57A to 57D dealing with the administration of the now redundant Investment Body Remitter Number (IBRN) system.

Section 202DDA of the Act allows an entity who is a trustee in an investment arrangement (i.e. an "interposed entity") to provide an IBRN to the Australian Taxation Office where the interposed entity is unwilling or unable to provide their Tax File Number. This section also provides for the development of a system to administer the IBRNs through regulation.

As part of the A New Tax System (Pay As You Go) Act 1999, section 12-155 was inserted into the Taxation Administration Act 1953. The insertion of this section makes the IBRN system redundant because interposed entities may now quote their Australian Business Number to investment bodies in the same manner as they previously quoted their IBRN. As a consequence, the Australian Taxation Office ceased allocating IBRNs shortly after this amendment took effect.

The primary consequence of the repeal of these regulations is the simplification of taxation regulations. The repeal of these regulations reduced the potential for confusion by providing taxpayers with clear information on their reporting obligations.

Accordingly, Regulations 57A to 57D have been repealed because they are no longer used.

The amending Regulations commenced on gazettal.