ACT Numbered Regulations - Explanatory Statements

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TAXATION (GOVERNMENT BUSINESS ENTERPRISES) AMENDMENT REGULATION 2006 (NO 2) (NO 36 OF 2006)

2006


THE LEGISLATIVE ASSEMBLY FOR THE
AUSTRALIAN CAPITAL TERRITORY




TAXATION (GOVERNMENT BUSINESS ENTERPRISES) AMENDMENT REGULATION 2006 (No 2)

Subordinate Law SL2006 - 36

EXPLANATORY STATEMENT

TAXATION (GOVERNMENT BUSINESS ENTERPRISES) AMENDMENT REGULATION 2006 (No 2) Subordinate Law SL2006 - 36

PURPOSE

Regulations created under section 11 of the Taxation (Government Business Enterprises) Act 2003 (“Act”) list those Territory entities that are to be subject to the Act.

ACT Forests is currently listed under section 3 and section 4 of the Regulations as being subject to the National Tax Equivalent Regime under section 6 of the Act, and Territory taxes and charges under section 9 of the Act respectively. As ACT Forests is essentially no longer a commercial entity, the purpose of the Taxation (Government Business Enterprises) Amendment Regulation 2006 (No 2) is to omit ACT Forests from section 3 and section 4 of the Taxation (Government Business Enterprises) Regulation 2003 (“Regulation”). This will remove ACT Forests from its obligation under section 6 and section 9 of the Act, in recognition that it should no longer be subject to competitive neutrality principles.

The Land Development Agency is currently only liable for Territory taxes and charges under section 9 of the Act. It has been decided, on competitive neutrality grounds that the Land Development Agency should also be subject to the National Tax Equivalent Regime. The purpose of the Taxation (Government Business Enterprises) Amendment Regulation 2006 (No 2) is to insert the Land Development Agency into section 3 of the Regulation so as to make the Land Development Agency subject to the National Tax Equivalent Regime.

DETAILS OF THE AMENDING REGULATION

Clause 1 states the name of the regulation as the Taxation (Government Business Enterprises) Amendment Regulation 2006 (No 2).

Clause 2 provides that the regulation is to commence from 1 June 2006.

Clause 3 provides that this regulation amends the Taxation (Government Business Enterprises) Regulation 2003.

Clause 4 omits ACT Forests from the list of entities under section 3 of the Taxation (Government Business Enterprises) Regulation 2003 that are subject to the national tax equivalent regime.

Clause 5 inserts Land Development Agency into the list of entities under section 3 of the Taxation (Government Business Enterprises) Regulation 2003 that are subject to the national tax equivalent regime.

Clause 6 omits ACT Forests from the list of entities under section 4 of the Taxation (Government Business Enterprises) Regulation 2003 that are subject to Territory taxes and charges.

REGULATORY IMPACT STATEMENT

A Regulatory Impact Statement was not required for the Taxation (Government Business Enterprises) Amendment Regulation 2006 (No 2) as it does not impose an appreciable cost on the community.