Commonwealth Numbered Regulations - Explanatory Statements

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INCOME TAX REGULATIONS (AMENDMENT) 1996 NO. 274

Statutory Rules 1996 No. 274

Issued by the Authority of the Assistant Treasurer

Income Tax Assessment Act 1936

Income Tax Regulations (Amendment)

The Governor-General may make regulations under section 266 of the Income Tax Assessment Act 1936 (the Act) for the purposes of the Act.

Section 23AB of the Act applies to a person or a class of persons who have been prescribed for the purposes of the section by the Regulations, have performed United Nations (UN) services, other than as a member of the Australian Defence Forces, outside Australia and whose salaries and allowances are paid, given or granted by the Commonwealth or by the UN as an agent for the Commonwealth.

Section 23AB provides certain concessions, including, a rebate of tax in respect of a year of income in which the taxpayer performed UN service and derived income by way of salary, wages or other allowances in respect of that service. The maximum rebate allowable per annum (for 1993-94 and later years of income) is $338, plus 50 per cent of certain other rebates to which the taxpayer is entitled.

Regulation 6 of the Income Tax Regulations (the Principal Regulations) prescribes a class of person for the purposes of section 23AB. This regulation currently prescribes Australian Federal Police (AFP) performing peace keeping duties in Cyprus and those who served in Mozambique as part of the United Nations Operation in Mozambique.

From 5 November 1994 to 21 March 1995 certain members of the AFP served as part of the Multinational Force in Haiti. These members provided support to the Haitian Police Force and monitored human rights in accordance with UN Security Council Resolution 940.

Regulation 6 will be amended to provide the abovementioned concessions to the AFP members who served in Haiti.

Details of the Regulations are as follows.

Regulation 1 provides that regulation 3 will operate retrospectively from 5 November 1994 which was the date that AFP members first served in Haiti. The change will benefit taxpayers and will not impose any retrospective liability on any taxpayer. Therefore, they will not contravene subsection 48(2) of the Acts Interpretation Act 1901 which prohibits the retrospective operation of regulations which affect the rights of, or impose liabilities on, taxpayers.

Regulation 2 provides that the Regulations will amend the Principle Regulations.

Regulation 3 will prescribe, for the purposes of section 23AB, AFP members who served as part of the Multinational Force in Haiti from 5 November 1994 to 21 March 1995 (inclusive). This will extend the concessions available under section 23AB to the AFP members who served as part of the Multinational Force in Haiti.