Commonwealth Numbered Regulations - Explanatory Statements

[Index] [Search] [Download] [Related Items] [Help]

INCOME TAX AMENDMENT REGULATIONS 2011 (NO. 3) (SLI NO 110 OF 2011)

EXPLANATORY STATEMENT

Select Legislative Instrument 2011 No. 110

Issued by authority of the Assistant Treasurer

Income Tax Assessment Act 1936

Income Tax Regulations 1936

Income Tax Amendment Regulations 2011 (No. 3)

Section 266 of the Income Tax Assessment Act 1936 (the Act) provides, in part, that the Governor-General may make regulations not inconsistent with the Act, prescribing all matters which by the Act are required to be prescribed, or necessary or convenient to be prescribed for giving effect to the Act.

The amending Regulations update the Income Tax Regulations 1936 (the Principal Regulations) in respect of tax arrangements for overseas defence service. 

Schedule 1 to the amending Regulations provides an end date of 31 December 2012 to Operation Palate II and updates the period over which duty with Operation Kruger and Riverbank are 'eligible duty' for the purposes of section 23AD. 

Details of the amending Regulations are as follows:

Regulation 1 - Name of Regulations

Regulation 1 provides that the Regulations are the Income Tax Amendment Regulations 2011 (No. 3).

Regulation 2 - Commencement

Regulation 2 provides that these Regulations commence on the day after they are registered.

Regulation 3 - Amendment of Income Tax Regulations 1936

Regulation 3 provides that Schedule 1 amends the Income Tax Regulations 1936 (the Principal Regulations).

Schedule 1 - Amendments

Items 1 - Paragraph 7A(b) 

Item 1 substitutes paragraph 7A(b) of the Principal Regulations with:

            (b)  duty with the United Nations Assistance Mission in Afghanistan, including within the land territory, internal waters, airspace and superjacent airspace of Afghanistan, starting on or after 27 June 2005 and ending at the end of 31 December 2012 (Operation Palate II). 

Section 23AD provides an exemption from income tax of pay and allowances of Australian Defence Force (ADF) members performing certain overseas duty.  Subsection 23AD(1) of the Act exempts the pay and allowances earned by ADF members from income tax where there is a certificate in force, issued in writing by the Chief of the Defence Force, to the effect that the members are on 'eligible duty'.  Subsection 23AD(2) of the Act provides that the regulations may declare that duty with a specified organisation, in a specified area outside Australia and after a specified day, is 'eligible duty' for the purposes of that section.

Regulation 7A of the Principal Regulations specifies duty with various organisations in various areas outside Australia and declares that duty to be 'eligible duty' for the purposes of section 23AD of the Act.

The regulation amended the period over which service as part of Operation Palate II is 'eligible duty' for the purposes of section 23AD until 31 December 2012, being the end date for the Operation.

Items 2 - Paragraph 7A(c) 

Item 2 omits Paragraph 7A(c). 

Paragraph 7A(c) dealt with duty on Operation Catalyst.  Operation Catalyst was the ADF contribution to the multinational force effort to develop a secure and stable environment in Iraq and assist national recovery programs.  The final ADF members deployed on Operation Catalyst were withdrawn on 29 July 2009 and the Operation has now ceased. 

Items 3 - Paragraph 7A(d) 

Item 3 omitted 30 June 2011 in paragraph 7A(d) of the Principal Regulations and inserted 16 November 2011. 

Operation Kruger was previously approved until 30 June 2011 however the Operation had been extended until 16 November 2011.  Operation Kruger is the ADF contribution to the provision of security to the Australian Embassy in Iraq.

The regulation extended the period over which service as part of Operation Kruger is 'eligible duty' for the purposes of section 23AD until 16 November 2011. 

Items 4 - Paragraph 7A(e) 

Item 4 omitted 31 December 2011 in paragraph 7A(e) of the Principal Regulations and inserted 31 December 2012. 

Operation Riverbank was previously approved until 31 December 2011 however the Operation had been extended until 31 December 2012.  Operation Riverbank is the ADF contribution to the United Nations Assistance Mission in Iraq.

The regulation extended the period over which service as part of Operation Riverbank is 'eligible duty' for the purposes of section 23AD until 31 December 2012. 

AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback