Commonwealth Numbered Regulations - Explanatory Statements

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FOREIGN STATES IMMUNITIES REGULATIONS (AMENDMENT) 1993 NO. 243

STATUTORY RULES 1993 No. 243

Issued by the authority of the Attorney-General

Foreign States Immunities Act 1985

Foreign States Immunities Regulations (Amendment)

Section 43 of the Foreign States Immunities Act 1985 (the Act) empowers the Governor-General to make regulations, not inconsistent with the Act, prescribing matters necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Section 20 of the Act provides that a foreign State is not immune in a proceeding in so far as the proceeding concerns an obligation imposed on it by or under a provision of a law of Australia with respect to taxation, being a provision that is prescribed for the purposes of section 20 of the Act.

The prescribing of legislation for the purposes of section 20 of the Act does not affect the substantive liability of a foreign State to pay particular taxes. It merely enables a foreign State to be sued in an Australian court in order to recover a tax for which it is liable.

The Schedule to the Foreign States Immunities Regulations currently lists provisions of the laws of Australia with regard to taxation which are prescribed for the purposes of section 20 of the Act These laws include the Sales Tax Assessment Acts (Nos. 1-9) 1930 and the Sales Tax Assessment Acts (Nos. 10-11) 1985. As a result of recent changes to the sales tax laws, the Australian Taxation Office has requested that the Schedule be amended so as to include the Sales Tax Assessment Act 1992.

The attached Regulations add the Sales Tax Assessment Act 1992 to the list of Acts contained in the Schedule. This will enable tax to be recovered with respect to dealings with goods that occurred on or after 1 January 1993. The Regulations do not, however, create any retrospective liability but merely introduce a mechanism for recovery.

The amendments leave unaltered the references in the Schedule to the Sales Tax Assessment Acts (Nos. 1-9) 1930 and the Sales Tax Assessment Acts (Nos. 10-11) 1985 as some recovery action may still be occurring under the earlier legislation. The amendments will have no effect on the legislation previously prescribed in Parts II - X of the Schedule which concern, specifically, the States, the Northern Territory, the Australian Capital Territory and Norfolk Island.