2002

THE LEGISLATIVE ASSEMBLY

FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)

(Treasurer)

2002

THE LEGISLATIVE ASSEMBLY

FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)

(Treasurer)

An Act about the payment of tax, and amounts equivalent to tax, by government business enterprises, and for other purposes

The Legislative Assembly for the Australian Capital Territory enacts as follows:

This Act is the Taxation (Government Business Enterprises) Act 2002.

(1) Parts 2 and 3 are taken to have commenced on 1 July 2002.

(2) The remaining provisions commence on the day after the notification day.

Note The naming and commencement provisions automatically commence on the notification day (see Legislation Act, s 75 (1)).

The dictionary at the end of this Act is part of this Act.

Note 1 The dictionary at the end of this Act defines certain words and expressions used in this Act, and includes references (signpost definitions) to other words and expressions defined elsewhere in this Act.

For example, the signpost definition ‘memorandum of understanding—see section 5.’ means that the expression ‘memorandum of understanding’ is defined in that section.

Note 2 A definition in the dictionary (including a signpost definition) applies to the entire Act unless the definition, or another provision of the Act, provides otherwise or the contrary intention otherwise appears (see Legislation Act, s 155 and s 156 (1)).

A note included in this Act is explanatory and is not part of this Act.

Note See Legislation Act, s 127 (1), (4) and (5) for the legal status of notes.

The purpose of this part is to give effect in relation to the Territory to the 2001 memorandum of understanding between the Territory, the Commonwealth, the States and the commissioner of taxation about the national tax equivalent regime.

A Territory entity prescribed under the regulations for this section must comply with—

(a) the taxation laws listed in the memorandum of understanding, schedule 2 subject to the modifications of the application of those laws made by the memorandum and the manual; and

(b) the manual.

In making regulations for section 6, the Executive must have regard to the principle that, to eliminate resource allocation distortions arising out of the public ownership of entities engaged in significant business activities, government businesses should not enjoy any net competitive advantage simply because of their public ownership.

A Territory entity prescribed for section 6 must, on being asked to do so by the Minister, give the Minister—

(a) any information asked for by the Minister about the entity’s compliance with its obligations under this part; or

(b) a copy of any return or other document the entity has given the commissioner of taxation in compliance, or purported compliance, with its obligations under this part.

A territory entity prescribed under the regulations for this section is not exempt from liability for any tax (however described), or any fee or charge, under Territory law.

(1) The Minister may, in writing, direct a Territory entity that is not prescribed for section 9 to pay any tax (however described), or any fee or charge payable under a Territory law.

(2) A direction is a notifiable instrument.

Note A notifiable instrument must be notified under the Legislation Act.

The Executive may make regulations for this Act.

Note Regulations must be notified, and presented to the Legislative Assembly, under the Legislation Act.

Schedule 1 amends the Acts mentioned in it.

ACTIA is exempt from the payment of any insurance levy or stamp duty on an insurance policy issued by ACTIA.

business plan, of the authority for a financial year—see section 27.

A business plan, of the authority for a financial year, is the business plan of the authority in force for that year, and includes any modification of the plan under section 31.

(h) from a bank account kept under the Financial Management Act 1996, part 5, unless—

(i) the bank account is nominated by the Minister in writing for this subparagraph; or

(ii) the wages are paid or payable by an entity prescribed for the Taxation (Government Business Enterprises) Act 2002, section 9; or

(iii) the wages are paid or payable by an entity to which a direction under the Taxation (Government Business Enterprises) Act 2002, section 10 applies to make the entity liable to tax under this Act; or

(i) by a Territory authority funded solely by money appropriated from the public money of the Territory by an Act unless—

(i) the wages are paid or payable by a Territory authority prescribed for the Taxation (Government Business Enterprises) Act 2002, section 9; or

(ii) the wages are paid or payable by a Territory authority to which a direction under the Taxation (Government Business Enterprises) Act 2002, section 10 applies to make the authority liable to tax under this Act.

(2) A nomination under subsection (1) (h) (i) is a disallowable instrument.

Note A disallowable instrument must be notified, and presented to the Legislative Assembly, under the Legislation Act.

(4A) This section does not apply to a Territory owned corporation prescribed for the Taxation (Government Business Enterprises) Act 2002, section 9 or to a subsidiary of such a corporation.

Note 1 The Legislation Act contains definitions and other provisions relevant to this Act.

Note 2 In particular, the Legislation Act, dict, pt 1, defines the following terms:

• administrative unit

• State

• Territory authority

• Territory owned corporation.

commissioner of taxation means the Commissioner of Taxation of the Commonwealth.

manual means the manual kept by the commissioner of taxation under the memorandum of understanding.

memorandum of understanding—see section 5.

Territory entity includes the following:

(a) a Territory authority;

(b) a Territory owned corporation;

(c) an administrative unit;

(d) a part of an administrative unit.

For the latest republication of amended laws, see www.legislation.act.gov.au.