Govt provides commissioner with new power
Assistant Treasurer Josh Frydenberg has announced the government will provide the Commissioner of Taxation with a statutory remedial power to allow for simpler resolution “of certain unforeseen or unintended outcomes in the taxation and superannuation law”.
In an announcement late last week, Mr Frydenberg said this power will allow the commissioner to make a “disallowable legislative instrument” that will have the effect of modifying the operation of the taxation and superannuation law.
This aims to ensure the law can be administered to achieve its purpose or object.
“The power will be appropriately limited in its application and will only apply to the extent that it has a beneficial outcome for taxpayers,” Mr Frydenberg said.
“It will only be available where the modification is not inconsistent with the purpose or object of the law and has no more than a negligible revenue impact. The commissioner will consult publicly prior to any exercise of the power.
“This power provides a mechanism to deal with some aspects of complexity in the tax law, and provides more certainty and better outcomes for taxpayers.”
There are currently similar legislative instruments making powers in Commonwealth law granted to regulators such as APRA and ASIC, Mr Frydenberg said.
Overall, Mr Frydenberg acknowledged the complexity of Australia’s tax law in combination with evolving business practices is increasingly leading to “unintended outcomes”.
“The government is committed to providing more certainty and better outcomes for taxpayers and reducing the regulatory burden on individuals, business and community organisations,” he said.