Income Tax Assessment (Infrastructure Project Designation) Rule 2013 [F2013L01335]-Continuing matters [2014] AUSStaCSDLM 31 (12 February 2014)

• Income Tax Assessment (Infrastructure Project Designation) Rule 2013 [F2013L01335]
• Unclear basis for determining fee

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Income Tax Assessment (Infrastructure Project Designation) Rule 2013 [F2013L01335]

Purpose	Sets out processes and conditions relating to applications for designated infrastructure project status
Last day to disallow	4 March 2014
Authorising legislation	Income Tax Assessment Act 1997
Department	Treasury

ISSUE:

Unclear basis for determining fee

This instrument sets out processes and conditions relating to applications for designated infrastructure project status. Designated projects are able to access tax incentives intended to promote and support private expenditure on nationally significant infrastructure. Rule 7 of the instrument provides that an application for the designation of a project must be accompanied by an application fee of $20 000. However, no information is provided as to the basis for, or factors considered in relation to, determining the level of this fee. The committee's usual expectation where an instrument of delegated legislation introduces or changes a fee (or charge, levy or scale of costs as the case may be) is that the relevant ES makes clear the basis on which the new or changed fee has been calculated [the committee requested further information from the Assistant Treasurer.

ASSISTANT TREASURER'S RESPONSE:

The Assistant Treasurer advised that the quantum of the fee was intended to contribute to the administrative costs incurred by the Office of the Infrastructure Coordinator (OIC) associated with the designation process, including determining the eligibility of applications, the setting of conditions under the rules, assessing whether conditions for designation have been met and ongoing monitoring to ensure project implementation is consistent with the designation. Other administrative costs related to the OIC's role in managing the capital expenditure cap and review processes associated with Administrative Appeal Tribunal processes.

COMMITTEE RESPONSE:

The committee thanks the Assistant Treasurer for his response and has concluded its interest in the matter.