EXPLANATORY STATEMENT

 

Select Legislative Instrument 2010 No. 10

 

Taxation Administration Act 1953

 

Taxation Administration Amendment Regulations 2010 (No. 1)

 

Section 18 of the Taxation Administration Act 1953 (TAA 1953) provides that the Governor-General may make Regulations, not inconsistent with the TAA 1953, prescribing all matters which by the TAA 1953 are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for giving effect to the TAA 1953.

 

The purpose of these Regulations is to replace certain numerical rates currently listed in the Taxation Administration Regulations 1976 (the Principal Regulations) with references to rates in the Income Tax Rates Act 1986 with which they are aligned. This will ensure the continued alignment of these rates into the future.

 

The rates that have been changed are used to calculate an amount of tax to be withheld from payments in certain circumstances where the recipient has not provided the payer with a Tax File Number, or an Australian Business Number.

 

These changes reduce the requirement for further changes to the Principal Regulations in the future should the personal tax rates be altered by the Parliament. These changes have no material effect on taxpayers.

 

Drafts of the Regulations were released for public consultation on the Treasury website on 14 August 2009, as a part of the employee share scheme exposure draft package.

 

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

The Regulations commenced on the day after they were registered on the Federal Register of Legislative Instruments.