Commonwealth Numbered Regulations - Explanatory Statements

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INCOME TAX REGULATIONS (AMENDMENT) 1993 NO. 15

STATUTORY RULES 1993 No. 15

ISSUED BY THE AUTHORITY OF THE TREASURER

Income Tax Assessment Act 1936

Income Tax Regulations (Amendment)

These Regulations are made under the Income Tax Assessment Act 1936 (the Act) and complement the recent amendments to the Prescribed Payments System (PPS) provisions contained in Division 3A of Part VI of the Act. The amendments, which simplify the administration of the PPS, were contained in Taxation Laws Amendment Act (No. 6) 1992.

Under the simplified arrangements, payers report details of payments made on an annual instead of the current monthly basis. Also, the Commissioner of Taxation will obtain details of payees from a new payee declaration form instead of the current deduction forms which generally have to be completed by both payers and payees each time a payment is made. Finally, the current arrangements for deduction variation and exemption certificates have been modified to make it easier for payers and payees to comply with the PPS provisions.

These Regulations relate principally to the amounts deducted under the PPS system and the forwarding of those amounts and associated forms to the Commissioner.

An explanation of the Regulations appears below.

Regulation 1 provides that the Income Tax Regulations will be amended as set out in these amending Regulations. The amending Regulations will commence on gazettal.

Regulation 2 omits Regulation 128 which currently describes the relevant amount to be deducted from prescribed payments. Regulation 128 is no longer necessary because the amounts to be deducted from prescribed payments under the simplified arrangements are determined from sections 221YHD and 221YHDA of the Act.

Regulation 3 changes Regulation 129 to accommodate the new reporting arrangements. Amended Regulation 129 refers to the new forms and details where those forms are to be sent under the simplified arrangements.

Regulation 4 changes Regulation 130 to provide that amounts deducted from prescribed payments must be sent to the Deputy Commissioner where the new forms referred to in Regulation 129 are sent.

Regulation 5 replaces Regulation 131 and provides how payers are to provide the new payment summary and householder payment summary forms to payees. These forms replace the deduction forms which are currently referred to in Regulation 131.

Regulation 6 alters the sub-sectional reference in Regulation 132 because of a change in numbering of the directing section in the Act. Regulation 132 is otherwise unchanged.