Commonwealth legislation

Classes of Electronic Payment System Transactions Exempt In The 2017/18 Year From Providing Third Party Reports Determination 2016

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Collection

legislative instrument

Plain English Summary

2/10 complexity

What this does: This determination gives two major Australian payment systems a one-year holiday from sending transaction data to the Tax Office for the 2017–18 financial year.

Who it affects: Administrators of:

The Bulk Electronic Clearing System (BECS) – the system behind direct debits, payroll deposits, and automatic bill payments
The New Payment Platform (NPP) – the real-time payment network used for instant transfers (such as PayID or Osko payments)

Why it matters: Normally, payment system administrators must report details of electronic transactions to the ATO. This information helps the tax office match income records against what taxpayers declare on their tax returns. This instrument excuses BECS and NPP operators from that reporting obligation for the 2017–18 year only.

The catch: The exemption is optional. Clause 5 states that if stopping reporting would actually create more paperwork for the payment administrator, they can keep sending the data anyway.

JSON API

Deep dive

Want the full deep dive?

Zoe can write the in-depth analysis on top of the summary above: how it works, who it affects and what each part actually does.

Current sections

Direct links to the current provisions in Classes of Electronic Payment System Transactions Exempt In The 2017/18 Year From Providing Third Party Reports Determination 2016.

Classes of Electronic Payment System Transactions Exempt In The 2017/18 Year From Providing Third Party Reports Determination 2016

Legislative Instrument

CLASSES OF ELECTRONIC PAYMENT SYSTEM TRANSACTIONS EXEMPT IN THE 2017/18 YEAR FROM PROVIDING THIRD PARTY REPORTS

DETERMINATION 2016

I, Greg Williams, Deputy Commissioner of Taxation, make this determination under subsection 396-70(4) of Schedule 1 to the Taxation Administration Act 1953.

Greg Williams

Deputy Commissioner of Taxation

Dated: 11 April 2016

Name of instrument

This instrument is the Classes of Electronic Payment System Transactions Exempt In The 2017/18 Year From Providing Third Party Reports Determination 2016.

Commencement and Expiry

This instrument commences on 1 July 2017 and expires on 30 June 2018.

Application

This instrument applies to administrators of a payment system, within the meaning of the Payment Systems (Regulation) Act 1998.

Determination

Administrators of a payment system, within the meaning of the Payment Systems (Regulation) Act 1998, are not required to provide information to the Commissioner of Taxation under table item 9 in section 396-55 of Schedule 1 to the Taxation Administration Act 1953 in relation to the following transactions:

Payments processed by Bulk Electronic Clearing System Framework Participants under the Bulk Electronic Clearing System governed by Australian Payments Clearing Association Limited.
Payments processed by New Payment Platform Participants using the New Payment Platform governed by NPP Australia Limited.

5. Additional Information

This instrument does not prevent the reporting of information where not

reporting it would impose an increased administrative burden on the reporting entity.

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

1 Classes of Electronic Payment System Transactions Exempt In The 2017/18 Year From Providing Third Party Reports Determination 2016