Bills Digest No. 163  1999-2000New Business Tax System (Alienated Personal Services Income) Tax Imposition Bill (No. 2) 2000


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WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced and does not canvass subsequent amendments. This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official status of the Bill.

CONTENTS

Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer & Copyright Details

Passage History

New Business Tax System (Alienated Personal Services Income) Tax Imposition Bill (No. 2) 2000

Date Introduced: 13 April 2000

House: House of Representatives

Portfolio: Treasury

Commencement: Royal Assent

Purpose

To impose formally a tax on an entity required to pay tax on alienated personal services payments.

Background

The present Bill is introduced in conjunction with the New Business Tax System (Alienation of Personal Services Income) Bill 2000. Background to the Government's proposal appears in the accompanying Digest.(1)

This Bill is necessary to satisfy the requirements of section 55 of the Constitution which states, in part that:

Laws imposing taxation shall deal only with the imposition of taxation, and any provisions therein dealing with any other matter shall be of no effect.

To meet this requirement, it is necessary to have a separate Bill that imposes a tax formally, while the assessment and administration of the tax is dealt with in another Bill.

Main Provisions

Clause 3 will impose a tax on an entity relating to its personal services income where the entity is required to remit amounts of tax under the PAYG system.

Endnotes

1 See Bills Digest no. 161 1999-2000.

Contact Officer and Copyright Details

Chris Field
9 May 2000
Bills Digest Service
Information and Research Services

This paper has been prepared for general distribution to Senators and Members of the Australian Parliament. While great care is taken to ensure that the paper is accurate and balanced, the paper is written using information publicly available at the time of production. The views expressed are those of the author and should not be attributed to the Information and Research Services (IRS). Advice on legislation or legal policy issues contained in this paper is provided for use in parliamentary debate and for related parliamentary purposes. This paper is not professional legal opinion. Readers are reminded that the paper is not an official parliamentary or Australian government document.

IRS staff are available to discuss the paper's contents with Senators and Members
and their staff but not with members of the public.

ISSN 1328-8091
© Commonwealth of Australia 2000

Except to the extent of the uses permitted under the Copyright Act 1968, no part of this publication may be reproduced or transmitted in any form or by any means, including information storage and retrieval systems, without the prior written consent of the Parliamentary Library, other than by Members of the Australian Parliament in the course of their official duties.

Published by the Department of the Parliamentary Library, 2000.

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