Commonwealth Numbered Regulations - Explanatory Statements

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UNIVERSITY OF CANBERRA REGULATIONS 1993 NO. 244

Statutory Rules 1993 No. 244

Issued by the Authority of the Minister for Employment, Education and Training

University of Canberra Act 1989

University of Canberra Regulations

Subsection 38(1) of the University of Canberra Act 1989 (the Act) provides for the University of Canberra (the University) to be generally exempt from taxation laws of the Commonwealth or of a State or Territory. However, subsection 38(3) gives the Governor-General power to make regulations providing that this general exemption does not apply in relation to taxation under a specified law.

The Act established the University from 1 January 1990. The University is the successor in law to the former Canberra College of Advanced Education (the College). It was intended that the Act would continue the College's liability for the payment of payroll tax. To this end, section 47 of the Act continues the effect of any College instrument after the commencement of the University and subsection 46(1) provides for the assets and liabilities of the College to become the assets and liabilities of the University.

However, recent legal advice, confirmed by the Office of General Counsel, Attorney-General's Department, has indicated that, in the absence of specific regulations made by the Governor-General under subsection 38(3) of the Act, the University is not liable to the payment of tax under the Payroll Tax Act 1987 of the Australian Capital Territory. The University has paid payroll tax since its inception.

The University of Canberra Regulations make the University liable to the payment of payroll tax under the Payroll Tax Act 2987 of the Australian Capital Territory with effect from 1 January 1990.

Subsection 48(2) if the Acts Interpretation Act 1901 states that regulations should not have retrospective effect if the rights of a person (other than the Commonwealth or an authority of the Commonwealth) would be prejudiced or liabilities would be imposed before the date of notification. The Office of General Counsel, Attorney-General's Department, has advised that, although the University is granted considerable autonomy in carrying out its functions, the Commonwealth retains significant powers in relation to those functions. The University is created as an instrument of government and established as a body with the purpose of providing higher education and associated pursuits, services and facilities in the Australian Capital Territory. This purpose may rightly be viewed as governmental and the University as an authority of the Commonwealth. The commencement date of 1 January 1990 for the University of Canberra Regulations is not, therefore, in contravention of subsection 48(2) of the Acts Interpretation Act 1901.