Commonwealth Numbered Regulations - Explanatory Statements

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INCOME TAX REGULATIONS (AMENDMENT) 1998 NO. 92

EXPLANATORY STATEMENT

STATUTORY RULES 1997 NO. 92

Issued By Authority Of The Assistant Treasurer

Income Tax Assessment Act 1936

Income Tax Regulations (Amendment)

Section 266 of the Income Tax Assessment Act 1936 (the Act) provides that the GovernorGeneral may make regulations prescribing matters required to give effect to the Act.

These regulations amend the Income Tax Regulations by inserting new regulation 14E, which prescribes Government schemes for the purposes of subsection 160L(6A) of the capital gains tax (CGT) provisions of the Act.

Subsection 160L(6A) provides that in certain circumstances, CGT will not apply to payments and reimbursements made under government schemes prescribed in the regulations. A scheme covered by subsection 160L(6A) must be established by the Commonwealth, a State or a Territory or by an authority of the Commonwealth, a State or a Territory.

New regulation 14E, proposed by regulation 3, replaces the present regulation 14E. It will add provisions that:

*       the M4/M5 Cashback Scheme, administered by the New South Wales State Government Roads and Traffic Authority, is prescribed as a scheme to which subsection 160L(6A) applies (item 3). The scheme provides a reimbursement of tolls paid on the M4 and M5 toll roads. The reimbursement is limited to motorists driving motor vehicles and motor cycles privately registered in New South Wales. The scheme is prescribed in relation to reimbursements made on or after 1 January 1997.

*       the Sydney Aircraft Noise Insulation Project is now administered by the Department of Transport and Regional Development (item 2). Previously, this scheme was administered by the Commonwealth Department of Administrative Services and the Department of Transport and Regional Development. The scheme provides acoustic insulation treatment for residences in areas most affected by aircraft noise. Under this scheme, a home owner has the right to have their expenses paid by the relevant Department. The scheme is prescribed in relation to payments made on or after 8 December 1994.

These regulations have retrospective effect, and will not impose liabilities on a person or disadvantage the rights of a person (other than the Commonwealth or an authority of the Commonwealth). Accordingly, subsection 48(2) of the Act Interpretation Act 1901 will not be contravened.


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