{"id":"C2004A05226","name":"Franchise Fees Windfall Tax (Imposition) Act 1997","slug":"franchise-fees-windfall-tax-imposition-act-1997","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"133 of 1997","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":436190,"registerId":"C2004A05226-fast-fetch-1775953441582","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Franchise Fees Windfall Tax (Imposition) Act 1997","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\n \n\n \n\n \n\nFranchise Fees Windfall Tax (Imposition) Act 1997\n\n \n\nNo. 133, 1997\n\n \n\n \n\n \n\n \n\nAn Act to impose franchise fees windfall tax, and for related purposes\n\n \n\n \n\n \n\nContents\n\n1 Short title........................................1\n\n2 Commencement....................................1\n\n3 This Act binds the Crown..............................1\n\n4 Imposition of franchise fees windfall tax......................2\n\nFranchise Fees Windfall Tax (Imposition) Act 1997\n\nNo. 133, 1997\n\n \n\n \n\n \n\nAn Act to impose franchise fees windfall tax, and for related purposes\n\nAssented to 19 September 1997\n\nThe Parliament of Australia enacts:\n\n1  Short title\n\n  This Act may be cited as the Franchise Fees Windfall Tax (Imposition) Act 1997.\n\n2  Commencement\n\n  This Act is taken to have commenced at the same time as the Franchise Fees Windfall Tax (Collection) Act 1997.\n\n3  This Act binds the Crown\n\n  This Act binds the Crown in each of its capacities.\n\n4  Imposition of franchise fees windfall tax\n\n (1) Franchise fees windfall tax is hereby imposed at the rate of 100%.\n\n (2) In this section:\n\nfranchise fees windfall tax means the tax that is payable under the Franchise Fees Windfall Tax (Collection) Act 1997.\n\n \n\n \n\n \n\n \n\nMinister’s second reading speech made in\n\nHouse of Representatives on 28 August 1997\n\nSenate on 3 September 1997\n\n \n\n \n\n \n\n \n\n(131/97)\n\n\n \n\n \n\n \n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The text confines itself to imposing the franchise fees windfall tax at 100% and linking commencement and collection to the Franchise Fees Windfall Tax (Collection) Act 1997. There is no language in this Act that expands or narrows that stated purpose beyond its single, defined effect (see ss 2–4)."},"complexity_factors":["Very short, single-purpose statute that sets a flat 100% tax rate (simple substantive rule). (s4(1))","Key definitions and liability mechanics are entirely delegated to a separate Collection Act, so legal effect depends on cross‑referenced legislation and its definitions and procedures. (s4(2))","Commencement is expressly tied to the Collection Act, creating a dependency for timing of effect. (s2)","Statute explicitly binds the Crown, removing certain sovereign immunity questions but potentially raising collection or dispute issues against crown entities. (s3)","Absence of detailed exemptions, thresholds or procedures in this Act means compliance burden, enforcement discretion and taxpayer remedies are determined elsewhere, increasing interpretive reliance on the companion Act. (s4(2))"],"plain_english_summary":"This Act imposes a 100% \"franchise fees windfall tax\" on amounts defined and collected under a separate Collection Act, takes effect at the same time as that Collection Act, and binds the Crown. It directly increases the cost to anyone liable for the franchise-fees windfall (as defined in the companion Collection Act) and shifts collection and compliance mechanics to that linked statute, creating a clear financial incentive to avoid or contest taxable windfalls."},"kimi_summary":{"content_quality":"ok","complexity_score":1,"scope_assessment":{"changed":false,"description":"This legislation remains exactly as intended—a brief imposition statute that creates the legal authority for a specific windfall tax. It has not expanded beyond its original purpose of imposing the 100% tax on state franchise fee collections."},"complexity_factors":["Only 4 sections total","No defined terms section (only one term defined inline in section 4(2))","No cross-references to other legislation beyond a single reference to the Collection Act","No conditional logic, exceptions, or administrative provisions","Single operative provision imposing a flat 100% rate","Extremely narrow and specific purpose—one tax, one rate, one target"],"plain_english_summary":"This is a very short law that creates a special one-off tax called the 'franchise fees windfall tax'. \n\n**What it does:**\n- **Imposes a 100% tax** on certain money that state and territory governments received from 'franchise fees' on tobacco, alcohol, and gambling between 1997 and 2000.\n\n**Why it exists:**\n- In the 1990s, Australian states and territories charged businesses fees for the right to sell tobacco, alcohol, and run gambling operations (called 'franchise fees').\n- The High Court ruled these fees were actually unconstitutional taxes (because only the federal government can impose certain types of taxes).\n- To fix this, the federal government agreed to collect the money instead and give it back to the states—but with a catch. The states had been planning to increase these fees dramatically before the High Court decision. This law stops them from keeping those windfall gains by taxing 100% of the extra money they collected.\n\n**Who it affects:**\n- Primarily **state and territory governments** who had collected or planned to collect these franchise fees.\n- The tax is collected under a separate law (the Collection Act), which this law references.\n\n**Key point:** This is a 'bookend' law—it simply creates the tax at 100% rate, while the details of who pays, when, and how are in the companion Collection Act."}},"importantCases":[],"_links":{"self":"/api/acts/franchise-fees-windfall-tax-imposition-act-1997","history":"/api/acts/franchise-fees-windfall-tax-imposition-act-1997/history","analysis":"/api/acts/franchise-fees-windfall-tax-imposition-act-1997/analysis","conflicts":"/api/acts/franchise-fees-windfall-tax-imposition-act-1997/conflicts","importantCases":"/api/acts/franchise-fees-windfall-tax-imposition-act-1997/important-cases","documents":"/api/acts/franchise-fees-windfall-tax-imposition-act-1997/documents"}}