This Act imposes a federal "windfall tax" on specified State repayments to persons who paid fees under certain State franchise laws later held invalid. States must withhold the tax from repayments, remit it to the Commissioner (who administers credits and refunds), and are discharged for amounts remitted; taxpayers receive credit for withheld amounts. It operates retrospectively from 5 August 1997, includes special rules for liquor-fee repayments, and enables regulations for timing, penalties and administration.
This Act creates a stand‑alone tax regime that converts certain repayments by States under invalid State franchise laws into a Commonwealth tax liability, prescribes how that tax is to be collected, and allocates administration and reporting responsibilities. It takes effect from 5 August 1997 (s 2) and binds the Crown (s 3). Mechanically, the Act:
defines the class of amounts that are taxable, described as "taxable amounts" (s 6);
makes the person to whom the State would otherwise repay the taxable amount the taxpayer who is liable to pay the tax (s 8);
requires the State that is liable to repay a taxable amount to withhold the tax before repaying or otherwise applying the amount, to notify the taxpayer of the deduction, and to remit the withheld amounts to the Commissioner within 21 days after the end of the month in which the deduction is made, accompanied by a statement identifying the taxpayer (s 9(1)-(3));
provides that once a State makes a deduction under s 9, the State is discharged from liability to account for the deducted amount to any person other than the Commissioner (s 9(4));
gives the taxpayer a credit equal to any amount deducted by a State and treats that credit as a debt due to the taxpayer by the Commissioner on behalf of the Commonwealth (s 10(1), (3));
permits the Commissioner to apply the credit against the taxpayer’s liability to windfall tax, and requires the Commissioner to refund any amount not applied (s 10(4));
reduces the scope of taxable amounts in particular circumstances, notably by excluding repayments that would have been payable even if the State franchise law had been valid (s 6(2)), and by providing a specific reduction mechanism for certain liquor franchise fees where licensing periods end after 6 August 1997 (s 7);
Current sections
Direct links to the current provisions in Franchise Fees Windfall Tax (Collection) Act 1997.
18
Part 1
Preliminary
Part 1—Preliminary
1
Short title [see Note 1]
1 Short title [see Note 1]
This Act may be cited as the Franchise Fees Windfall Tax (Collection) Act 1997.
2
Commencement
2 Commencement
This Act is taken to have commenced on 5 August 1997.
3
This Act binds the Crown
3 This Act binds the Crown
This Act binds the Crown in each of its capacities.
4
Definitions
4 Definitions
(1) In this Act, unless the contrary intention appears:
Commissioner means the Commissioner of Taxation.
liable to repay has the meaning given by subsection (3).
State includes the Australian Capital Territory and the Northern Territory.
State franchise law has the meaning given by subsection (2).
windfall tax means the tax payable under this Act.
(2) The following are State franchise laws for the purposes of this Act:
(a) the Business Franchise (Liquor) Act 1993 of the Australian Capital Territory;
(b) the Business Franchise (Tobacco and Petroleum Products) Act 1984 of the Australian Capital Territory;
(c) the Business Franchise Licenses (Petroleum Products) Act 1987 of New South Wales;
(d) the Business Franchise Licences (Tobacco) Act 1987 of New South Wales;
(e) the Liquor Act 1982 of New South Wales;
(f) the Business Franchise Act 1978 of the Northern Territory;
(g) the Liquor Act 1978 of the Northern Territory;
(h) the Liquor Act 1992 of Queensland;
(i) the Tobacco Products (Licensing) Act 1988 of Queensland;
(j) the Business Franchise (Petroleum Products) Act 1979 of South Australia;
(k) the Liquor Licensing Act 1985 of South Australia;
(l) the Petroleum Products Regulation Act 1995 of South Australia;
(m) the Tobacco Products (Licensing) Act 1986 of South Australia;
(n) the Tobacco Products Regulation Act 1997 of South Australia;
(o) the Liquor and Accommodation Act 1990 of Tasmania;
(p) the Tobacco Business Franchise Licences Act 1980 of Tasmania;
(q) the Petroleum Products Business Franchise Licences Act 1981 of Tasmania;
(r) the Business Franchise (Petroleum Products) Act 1979 of Victoria;
(s) the Business Franchise (Tobacco) Act 1974 of Victoria;
(t) the Liquor Control Act 1987 of Victoria;
(u) the Business Franchise (Tobacco) Act 1975 of Western Australia;
(v) the Liquor Licensing Act 1988 of Western Australia;
(w) the Transport Co‑ordination Act 1966 of Western Australia.
(3) For the purposes of this Act, a State is liable to repay an amount to a person if:
(a) the State is liable to repay the amount to the person; or
(b) the State is required or permitted to offset the amount against other amounts that are owing, or may become owing, to the State by the person; or
(c) the State is required or permitted to apply the amount for the benefit of the person in any other way.
5
Administration
5 Administration
The Commissioner has the general administration of this Act.
Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.
Part 2
Liability
Part 2—Liability
6
Taxable amount
6 Taxable amount
(1) A taxable amount is any amount that meets all the following conditions:
(a) a State is liable to repay the amount to a person (the taxpayer) because a State franchise law is wholly or partly invalid because of section 90 of the Constitution;
(b) the amount is by way of repayment of an amount paid under the State franchise law before 5 August 1997 in respect of a licensing period commencing before 5 August 1997;
(c) the amount is claimed by the taxpayer from the State, or a court orders the State to pay the amount to the taxpayer.
(2) A taxable amount is reduced by deducting any part of it that a State would have been liable to repay even if the State franchise law were wholly valid.
Note: Example: An amount that is repayable solely because of an overpayment by the taxpayer would be deducted.
7
Reduction of taxable amount—liquor franchise fees
7 Reduction of taxable amount—liquor franchise fees
(1) If a taxable amount calculated under section 6 relates to a liquor franchise fee for which the licensing period ends after 6 August 1997, then the taxable amount is reduced by an amount calculated as follows:
(2) If:
(a) a State franchise law required or permitted the payment by instalments of a liquor franchise fee for a licensing period (the actual licensing period); and
(b) at least one of those instalments was payable after 6 August 1997;
then this section applies as if each of the following periods were a separate licensing period (in place of the actual licensing period):
(c) the period starting on the day on which an instalment was payable and ending immediately before the day on which the next instalment was payable;
(d) the period starting on the day on which last instalment was payable and ending at the end of the actual licensing period.
(3) In this section:
liquor franchise fee means a fee payable under a law specified in paragraph 4(2)(a), (e), (g), (h), (k), (o), (t) or (v).
8
Liability to windfall tax
8 Liability to windfall tax
(1) The taxpayer in respect of a taxable amount is the person to whom the State was liable to repay the taxable amount.
Note: Section 9 extinguishes the liability of the State to repay the taxable amount.
(2) The person who is the taxpayer in respect of a taxable amount is liable to pay windfall tax on the taxable amount.
Part 3
Collection
Part 3—Collection
9
State must withhold windfall tax from taxable amounts
9 State must withhold windfall tax from taxable amounts
State must withhold and remit windfall tax
(1) A State that is liable to repay a taxable amount must not repay or otherwise apply the taxable amount without first having deducted the tax on the taxable amount.
(2) As soon as practicable after making a deduction under subsection (1), the State must notify the taxpayer in writing that the deduction was made.
(3) A State that makes a deduction under subsection (1) must remit it to the Commissioner within 21 days after the end of the month in which the deduction is made. The remitted tax must be accompanied by a statement that:
(a) sets out the amount deducted; and
(b) identifies the taxpayer.
State discharged from liability to account
(4) When a State makes a deduction from a taxable amount under subsection (1) (or purportedly under subsection (1)), the State is discharged from any liability to pay or account for the amount deducted to any person other than the Commissioner.
10
Taxpayer entitled to credit for amount deducted by State
10 Taxpayer entitled to credit for amount deducted by State
(1) When a State makes a deduction from a taxable amount under section 9 (or purportedly under section 9), the taxpayer is entitled to a credit equal to the amount deducted.
(2) However, the taxpayer is not entitled to a credit for any amount purportedly deducted under section 9 in relation to an amount paid under a valid State franchise law.
(3) The credit is a debt due to the taxpayer by the Commissioner on behalf of the Commonwealth.
(4) The Commissioner may apply some or all of the credit against the taxpayer’s liability to windfall tax (whether or not that liability is in respect of the taxable amount that gives rise to the credit). The Commissioner must refund any amount not applied.
11
Regulations for collection etc. of unpaid windfall tax
11 Regulations for collection etc. of unpaid windfall tax
The regulations may provide for the collection and recovery of any unpaid windfall tax. In particular, the regulations may:
(a) prescribe the time when windfall tax is due for payment; and
(b) prescribe penalties for late payment of windfall tax (not exceeding an amount calculated at the rate of 20% per annum).
Note: Windfall tax would normally be collected under section 9.
Part 4
Miscellaneous
Part 4—Miscellaneous
12
Annual report
12 Annual report
After the end of each financial year, the Commissioner must give a report to the Minister, for presentation to the Parliament, on the operation of this Act during the year.
13
Arrangements with States
13 Arrangements with States
(1) The Commissioner may make an arrangement with an appropriate officer or authority of a State about any matter in connection with the administration of this Act.
(2) In particular, an arrangement may relate to the Commissioner’s delegation of powers or functions under this Act or the regulations.
Note: Section 8 of the Taxation Administration Act 1953 contains the Commissioner’s delegation power.
14
Regulations
14 Regulations
(1) The Governor‑General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
(2) In particular, the regulations may prescribe penalties for offences against the regulations by way of fines of up to 10 penalty units.
Source text
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Part 1 Preliminary
Part 1—Preliminary
1 Short title [see Note 1]
1 Short title [see Note 1]
This Act may be cited as the Franchise Fees Windfall Tax (Collection) Act 1997.
2 Commencement
2 Commencement
This Act is taken to have commenced on 5 August 1997.
3 This Act binds the Crown
3 This Act binds the Crown
This Act binds the Crown in each of its capacities.
4 Definitions
4 Definitions
(1) In this Act, unless the contrary intention appears:
Commissioner means the Commissioner of Taxation.
liable to repay has the meaning given by subsection (3).
State includes the Australian Capital Territory and the Northern Territory.
State franchise law has the meaning given by subsection (2).
windfall tax means the tax payable under this Act.
(2) The following are State franchise laws for the purposes of this Act:
(a) the Business Franchise (Liquor) Act 1993 of the Australian Capital Territory;
(b) the Business Franchise (Tobacco and Petroleum Products) Act 1984 of the Australian Capital Territory;
(c) the Business Franchise Licenses (Petroleum Products) Act 1987 of New South Wales;
(d) the Business Franchise Licences (Tobacco) Act 1987 of New South Wales;
(e) the Liquor Act 1982 of New South Wales;
(f) the Business Franchise Act 1978 of the Northern Territory;
(g) the Liquor Act 1978 of the Northern Territory;
(h) the Liquor Act 1992 of Queensland;
(i) the Tobacco Products (Licensing) Act 1988 of Queensland;
(j) the Business Franchise (Petroleum Products) Act 1979 of South Australia;
(k) the Liquor Licensing Act 1985 of South Australia;
(l) the Petroleum Products Regulation Act 1995 of South Australia;
(m) the Tobacco Products (Licensing) Act 1986 of South Australia;
(n) the Tobacco Products Regulation Act 1997 of South Australia;
(o) the Liquor and Accommodation Act 1990 of Tasmania;
(p) the Tobacco Business Franchise Licences Act 1980 of Tasmania;
(q) the Petroleum Products Business Franchise Licences Act 1981 of Tasmania;
(r) the Business Franchise (Petroleum Products) Act 1979 of Victoria;
(s) the Business Franchise (Tobacco) Act 1974 of Victoria;
(t) the Liquor Control Act 1987 of Victoria;
(u) the Business Franchise (Tobacco) Act 1975 of Western Australia;
(v) the Liquor Licensing Act 1988 of Western Australia;
(w) the Transport Co‑ordination Act 1966 of Western Australia.
(3) For the purposes of this Act, a State is liable to repay an amount to a person if:
(a) the State is liable to repay the amount to the person; or
(b) the State is required or permitted to offset the amount against other amounts that are owing, or may become owing, to the State by the person; or
(c) the State is required or permitted to apply the amount for the benefit of the person in any other way.
authorises regulations to provide for collection and recovery of unpaid windfall tax and to prescribe time for payment and penalties for late payment (s 11);
places general administration of the Act with the Commissioner of Taxation (s 5), requires an annual report to the Minister on operation of the Act (s 12), and permits administrative arrangements with States including delegations (s 13); and
empowers the Governor‑General to make regulations for matters required or permitted by the Act and to prescribe penalties of up to 10 penalty units for offences against the regulations (s 14).
The Act locates the taxing power by making the beneficial recipient of a State repayment the taxpayer and by requiring collection primarily through State withholding and remittance to the Commissioner. The Commissioner is given the administrative role, while the Governor‑General may make ancillary regulations. The Act limits the tax focus to repayments arising because a State franchise law is wholly or partly invalid because of section 90 of the Constitution (s 6(1)(a)) and to repayments of amounts paid under those laws before 5 August 1997 in respect of licensing periods commencing before that date (s 6(1)(b)). The Act also identifies the specific State franchise laws to which it refers (s 4(2)).
Main concepts
This short Act introduces a compact set of legal concepts and mechanisms. The main defined and operational concepts are taxable amount, windfall tax, State franchise law, taxpayer, and the treatment of deductions and credits.
Taxable amount (s 6)
A taxable amount is an amount that meets three conditions in s 6(1): (a) the State is liable to repay the amount to a person because a State franchise law is wholly or partly invalid because of section 90 of the Constitution; (b) the amount is by way of repayment of an amount paid under the State franchise law before 5 August 1997 in respect of a licensing period commencing before that date; and (c) the amount is claimed by the person from the State, or a court orders the State to pay the amount to the person (s 6(1)(a)-(c).
Section 6(2) reduces a taxable amount by any part that a State would have been liable to repay even if the State franchise law were wholly valid. The Act gives an explicit example in the text: an amount repayable solely because of an overpayment by the taxpayer would be deducted.
Windfall tax and taxpayer (s 4(1), s 8)
"Windfall tax" is the label used for the tax payable under the Act (s 4(1)).
The taxpayer in respect of a taxable amount is the person to whom the State was liable to repay the taxable amount (s 8(1)), and that person is liable to pay windfall tax on the taxable amount (s 8(2)). The Act notes that s 9 extinguishes the liability of the State to repay the taxable amount, effecting a transfer of collection duties to the Commonwealth via withholding.
State franchise law (s 4(2))
The Act sets out an exhaustive list of statutes that constitute State franchise laws for its purposes. The list runs across the jurisdictions and covers liquor, tobacco, petroleum product licensing and related franchise statutes in the territories and all States. The listed laws are the statutory trigger for s 6(1)(a).
Withholding, notification and remittance (s 9)
The Act requires a State that is liable to repay a taxable amount not to repay or otherwise apply the amount without first deducting the tax (s 9(1)). After deduction, the State must notify the taxpayer in writing as soon as practicable (s 9(2)) and must remit the withheld amount to the Commissioner within 21 days after the end of the month in which the deduction is made, accompanied by a statement setting out the amount deducted and identifying the taxpayer (s 9(3)). When a State makes a deduction under s 9, the State is discharged from any liability to pay or account for the deducted amount to any person other than the Commissioner (s 9(4)).
Credit and refund mechanics (s 10)
A taxpayer is entitled to a credit equal to any amount deducted by a State under s 9 (s 10(1)); the credit is not available if the deduction was purportedly made in relation to an amount paid under a valid State franchise law (s 10(2)). The credit is a debt due to the taxpayer by the Commissioner on behalf of the Commonwealth (s 10(3)). The Commissioner may apply the credit against the taxpayer’s liability to windfall tax, whether or not in respect of the same taxable amount, and must refund any amount not applied (s 10(4)).
Regulatory and enforcement concepts (s 11, s 14)
The regulations may deal with collection and recovery of unpaid windfall tax, including prescribing when the tax is due and prescribing penalties for late payment up to 20% per annum (s 11). The Governor‑General may make regulations to carry out the Act and prescribe penalties for offences against the regulations of up to 10 penalty units (s 14(1), (2)).
Administrative concepts (s 5, s 12, s 13)
The Commissioner has general administration of the Act (s 5). The explanatory note to s 5, embedded in the text, indicates that persons who acquire information under the Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953. The Commissioner must give an annual report to the Minister for presentation to Parliament on the operation of the Act after the end of each financial year (s 12). The Commissioner may make arrangements with appropriate State officers about administration and delegation under the Act (s 13), and may delegate powers under s 8 of the Taxation Administration Act 1953, as noted in the Act.
Specific liquor fee reduction (s 7)
Section 7 provides a specific mechanism reducing taxable amounts that relate to certain liquor franchise fees where the licensing period ends after 6 August 1997. The section provides a formula for reduction and contains an instalment‑specific rule that treats instalment periods as separate licensing periods if at least one instalment was payable after 6 August 1997. Section 7(3) defines which State statutes constitute "liquor franchise fee" for the purposes of that reduction, referencing eight of the statutes listed in s 4(2).
Together, these concepts implement a Commonwealth tax that captures State‑ordered repayments that arise because specified State franchise laws are invalid due to s 90, and they convert State repayment flows into Commonwealth tax receipts by requiring State withholding and remittance to the Commissioner while providing the beneficial recipient with a Commonwealth credit against the tax.
Who it affects
The Act creates duties and financial effects across three distinct actor sets: taxpayers who would receive repayments from States, the States themselves (including their officers and authorities), and the Commissioner of Taxation as the Commonwealth administrator. Each group faces different obligations and adjustment requirements under the Act.
Persons entitled to repayments from States
The primary private persons affected are those to whom a State is liable to repay amounts because a State franchise law is wholly or partly invalid because of section 90 of the Constitution, and who made payments to the State under those franchise laws before 5 August 1997 for licensing periods commencing before that date (s 6(1)). Those persons become taxpayers for the purposes of the windfall tax regime; s 8(1) designates the person to whom the State was liable to repay the taxable amount as the taxpayer, and s 8(2) makes that person liable to pay windfall tax on the taxable amount.
The Act also affects the cash flow and recovery expectations of those persons. If a State makes a deduction under s 9, the taxpayer receives a credit from the Commissioner equal to the amount deducted (s 10(1)), rather than receiving the full amount from the State. If the State does not deduct, the taxpayer remains liable for the windfall tax. The Act does not set out an express taxpayer filing process; it links the taxpayer’s financial position to the credit regime in s 10.
States and State officers or authorities
States are directly regulated by the Act. Section 9 imposes an affirmative withholding and remittance obligation on any State that is liable to repay a taxable amount. The State must not repay or otherwise apply the taxable amount without first deducting the tax (s 9(1)); must notify the taxpayer in writing as soon as practicable after making the deduction (s 9(2)); and must remit the deducted amount to the Commissioner within 21 days after the end of the month in which the deduction is made, together with a statement identifying the taxpayer and the amount deducted (s 9(3)).
Section 9(4) discharges the State from liability to account for the deducted amount to any person other than the Commissioner, shifting the practical route for recovery from the State to the Commonwealth.
The Commissioner may make arrangements with an appropriate State officer or authority about any matter connected with administration of the Act, including delegation of powers or functions (s 13). This provides a statutory basis for administrative coordination between the Commonwealth and State agents.
Commissioner of Taxation and the Commonwealth
The Commissioner has general administration of the Act (s 5), receives remittances from States under s 9, records and accounts for credits owed to taxpayers under s 10(3), applies credits against windfall tax liabilities under s 10(4) and refunds any surplus, and must prepare an annual report for the Minister on the Act’s operation (s 12). The Commissioner has delegated powers available under the Taxation Administration Act 1953 as noted in the Act (s 13 note).
The Governor‑General, acting under the legislative power to make regulations, can affect how collection and recovery operate, including by prescribing when tax is due and the penalties for late payment (s 11), and by prescribing other necessary regulations and penalties for offences against them (s 14).
Other affected actors and interactions
Persons who acquire information under the Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953, as expressed in the note to s 5. This affects State officers, Commissioner staff and any third parties engaged in administrative functions under arrangements between the Commissioner and State agencies.
Because the Act binds the Crown in each of its capacities (s 3), the Commonwealth and State Crowns are within the Act’s reach for its obligations and effects.
In short, the Act reassigns the practical flow of funds arising from court‑ordered or claimed repayments to specified private persons into a Commonwealth tax process, obliging States to act as withholding agents, obliging taxpayers to look to the Commonwealth for credits, and placing administration and reporting functions with the Commissioner.
Key duties and rights
This section extracts the statutory duties and rights created by the Act, with references to the sections that enact them. It focuses on obligations imposed on States, entitlements and liabilities of taxpayers, and administrative duties of the Commissioner.
Duties of States
Duty to withhold before repaying: A State that is liable to repay a taxable amount must not repay or otherwise apply the taxable amount without first deducting the tax on the taxable amount (s 9(1)). This is an absolute procedural requirement placed on a State in the circumstances described by s 6.
Duty to notify the taxpayer: After making a deduction under s 9(1) the State must notify the taxpayer in writing that the deduction was made as soon as practicable (s 9(2)).
Duty to remit withheld tax to the Commissioner: A State that makes a deduction under s 9(1) must remit the deducted amount to the Commissioner within 21 days after the end of the month in which the deduction is made. The remitted tax must be accompanied by a statement setting out the amount deducted and identifying the taxpayer (s 9(3)). These are specific timing and reporting obligations.
Discharge effect when deduction made: When a State makes a deduction under s 9(1) (or purportedly under s 9(1)), the State is discharged from any liability to pay or account for the amount deducted to any person other than the Commissioner (s 9(4)). This extinguishes the State’s obligation to remit the deducted net amount to the original recipient, leaving the Commissioner as the relevant creditor for the deducted portion.
Rights and liabilities of taxpayers
Taxpayer designation and tax liability: The person to whom the State was liable to repay the taxable amount is the taxpayer for the purposes of the Act (s 8(1)), and is liable to pay windfall tax on the taxable amount (s 8(2)). The Act thus converts the person who would have received the State repayment into a taxpayer and imposes on them the primary tax liability.
Right to credit for amounts deducted by the State: If a State makes a deduction under s 9, the taxpayer is entitled to a credit equal to the amount deducted (s 10(1)). The Act, however, excludes credits in one specified circumstance: the taxpayer is not entitled to a credit for any amount purportedly deducted under s 9 in relation to an amount paid under a valid State franchise law (s 10(2)).
Credit as debt owed by the Commissioner: The credit provided to the taxpayer is a debt due to the taxpayer by the Commissioner on behalf of the Commonwealth (s 10(3)). This converts the State‑withheld amount into a Commonwealth debt obligation to the taxpayer.
Commissioner’s power to apply credit and refund: The Commissioner may apply some or all of the credit against the taxpayer’s liability to windfall tax, whether or not the liability is in respect of the taxable amount that gives rise to the credit. Any amount not applied must be refunded (s 10(4)).
Commissioner’s duties and powers
General administration: The Commissioner has general administration of the Act (s 5). That includes receiving remitted amounts from States, maintaining records of credits due, applying credits against liabilities, refunding surpluses, and reporting annually to the Minister on the operation of the Act (s 12).
Delegation and arrangements: The Commissioner may make arrangements with appropriate State officers or authorities about administration (s 13(1)), and may delegate powers or functions in connection with those arrangements (s 13(2)). The note indicates reference to s 8 of the Taxation Administration Act 1953 for delegation power.
Regulatory powers and compliance obligations
Regulations may prescribe when windfall tax is due, and may prescribe penalties for late payment not exceeding an amount calculated at the rate of 20% per annum (s 11). The regulations may also provide for collection and recovery of unpaid windfall tax (s 11).
The Governor‑General may make regulations to carry out the Act and prescribe penalties for offences against those regulations not exceeding fines of 10 penalty units (s 14).
Other rights and limitations
Limitation on taxable amounts: Section 6(2) reduces taxable amounts by any part that a State would have been liable to repay even if the State franchise law were wholly valid. This effectively protects taxpayers from being taxed on repayments that simply correct overpayments or obligations that would have existed under a valid law.
Liquor fee reduction: Section 7 provides a specific reduction formula for taxable amounts that relate to liquor franchise fees for licensing periods ending after 6 August 1997, and contains an instalment‑related rule in s 7(2) that treats instalment periods as separate licensing periods for the purpose of the reduction.
Taken together, the duties and rights reallocate recovery mechanics: States are obliged to act as withholding agents, taxpayers become Commonwealth taxpayers with a right to credits from the Commissioner, and the Commissioner acquires the duty to administer credits, apply them against liabilities, and report on the Act’s operation.
Penalties and enforcement
The Act itself contains limited explicit penalties; it relies substantially on regulations to prescribe enforcement mechanisms, timing for payment, and penalties for late payment. The statutory enforcement structure is primarily administrative, relying on State withholding, Commissioner administration and delegated regulatory powers.
Statutory enforcement mechanics
State withholding as first line of collection: Section 9(1) makes it unlawful for a State that is liable to repay a taxable amount to repay or otherwise apply the taxable amount without first deducting the tax. That requirement operates as a de facto enforcement mechanism by transferring the obligation to withhold and remit tax to the State, thereby reducing reliance on post‑payment collection actions.
Discharge of State liability on deduction: Once a State makes a deduction under s 9(1), s 9(4) discharges the State from liability to pay or account for the deducted amount to any person other than the Commissioner. The discharge both clarifies the creditor for the deducted portion and constrains claimants from pursuing the State for the deducted portion.
Regulatory enforcement powers (s 11)
Section 11 authorises the regulations to provide for collection and recovery of any unpaid windfall tax. In particular, regulations may prescribe when windfall tax is due for payment and prescribe penalties for late payment not exceeding an amount calculated at the rate of 20% per annum. The Act’s note indicates that windfall tax would normally be collected under s 9, but s 11 supplies a backstop for unpaid amounts. The exact mechanics for collection, recovery, and calculation of late payment penalties are left to the regulations.
Penalties for breach of regulations (s 14)
Section 14(2) provides that regulations may prescribe penalties for offences against the regulations by way of fines of up to 10 penalty units. The Act does not itself prescribe criminal offences or civil penalties for breaches of the statutory withholding duty or for State non‑compliance; instead, it empowers regulations to establish offences and fines up to the specified ceiling.
Penalties not directly in the Act
The Act does not itself specify a civil penalty for a State that fails to withhold a tax prior to repaying a taxable amount. Nor does it specify administrative penalties directly on taxpayers for failure to discharge the windfall tax liability; rather, s 11 contemplates that the regulations may set those matters. The Act establishes the legal duty and the withholding mechanism, and leaves the particulars of enforcement and financial penalties for late payment or non‑payment to the regulatory regime.
Other enforcement implications
The Commissioner’s administrative powers include receiving remittances and holding a debt obligation to the taxpayer for amounts withheld by States (s 10(3)). The Commissioner may therefore exercise powers available under the Taxation Administration Act 1953 to administer and collect tax debts, subject to the limits and delegation provisions noted in s 13.
Because the Act binds the Crown (s 3), enforcement and compliance measures apply to the Crown as a legal person, but the Act does not create separate enforcement regimes or special liabilities for Crown actors beyond the duties and mechanisms specified.
Practical enforcement risks and gaps in the text
The Act’s reliance on State withholding as the primary collection approach reduces the need for post‑event enforcement against private taxpayers, but places operational compliance burden on States. The Act leaves unspecified many procedural details that affect enforcement risk, such as how disputes about the validity of deductions are to be resolved administratively, and how the Commissioner will process and apply credits when deductions relate to amounts later characterised as paid under a valid State franchise law (s 10(2)). Regulations may provide remedies and penalties; until regulations are examined and promulgated, those processes are not detailed in the Act.
In sum, the Act sets a collection architecture centred on State withholding and Commonwealth administrative handling, supplies statutory authorisations for regulations to prescribe due dates and late payment penalties up to specified limits, and leaves detailed recovery and penalty mechanisms to subordinate instruments.
How it interacts with other laws
The Act is tightly defined and cross‑references three main legal sources: the specified State franchise statutes enumerated in s 4(2), section 90 of the Constitution as the ground for invalidity in s 6(1)(a), and the Taxation Administration Act 1953 for administrative and confidentiality contexts. It also contemplates regulations that will interact with general Commonwealth regulatory frameworks.
State franchise laws (s 4(2))
The Act explicitly lists the State franchise laws whose invalidity because of section 90 of the Constitution will give rise to taxable amounts (s 4(2)). The list includes franchise statutes for liquor, tobacco, petroleum products, and related licensing regimes across the Australian Capital Territory, New South Wales, Northern Territory, Queensland, South Australia, Tasmania, Victoria and Western Australia, and includes the Transport Co‑ordination Act 1966 of Western Australia. For the special liquor fee reduction under s 7, only a subset of those laws are treated as "liquor franchise fee" statutes, as specified in s 7(3), namely the statutes listed at s 4(2)(a), (e), (g), (h), (k), (o), (t) and (v).
Section 90 of the Constitution (s 6(1)(a))
The Act conditions the taxable amount on a State franchise law being wholly or partly invalid because of section 90 of the Constitution (s 6(1)(a)). The Act therefore ties the scope of its tax to a constitutional doctrine that determines federal and State excise and franchise power boundaries. The Act does not further define s 90 or its operation; it simply makes that constitutional invalidity the triggering legal fact.
Taxation Administration Act 1953 and confidentiality (s 5 note; s 13 note)
Section 5 vests general administration of the Act in the Commissioner. The note to s 5 states that an effect of that provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953. The Act therefore imports the confidentiality regime applicable to taxation information without restating it.
Section 13(2) notes that s 8 of the Taxation Administration Act 1953 contains the Commissioner’s delegation power, which is relevant to the Commissioner’s ability to delegate functions under the arrangements with States contemplated by s 13(1).
Regulations and the general Commonwealth regulatory framework (s 11, s 14)
Section 11 contemplates regulations that deal with the collection and recovery of unpaid windfall tax, prescribing when the tax is due and penalties for late payment up to 20% per annum. Section 14 authorises the Governor‑General to make regulations necessary to carry out the Act and to prescribe penalties for offences against the regulations up to 10 penalty units. Those regulations will interact with the general mechanisms of Commonwealth tax collection and recovery, and with other procedural or penalty provisions that may be established by regulation.
State repayment obligations and Commonwealth tax rules (s 9, s 10)
The Act creates an interface between State repayment obligations and Commonwealth tax mechanics by requiring States to withhold and remit to the Commissioner, and by converting the withheld amount into a debt owed by the Commonwealth via the Commissioner to the taxpayer (s 9(3), s 10(3)). In effect, the Act replaces State disbursement of certain repayments with Commonwealth tax receipts and credits.
Other laws and unstated interactions
The Act does not itself amend the listed State statutes. It operates post factum on repayments that may be due because those statutes are invalid because of s 90. The Act does not create or alter the underlying rights to challenge or claim repayments under State laws. It also does not set out civil remedies between taxpayers and States beyond the withholding obligation and discharge mechanism in s 9(4). For collection of unpaid tax or disputes between taxpayers and the Commissioner about credits and liabilities, the Act leaves the mechanics to be developed under regulations and the Commissioner’s administration, implying interaction with general Commonwealth tax administration law.
In summary, the Act interacts with specified State franchise statutes by using their invalidity under s 90 as the tax trigger, imports confidentiality and delegation machinery from the Taxation Administration Act 1953, and depends on subordinate regulations for details of payment timing and enforcement that will need to be understood in relation to broader Commonwealth taxation administration law.
Amendment history
The text of the Act supplied contains only a short set of preliminary and operative provisions and includes the commencement date and short title. The following are the only explicit legislative history indicators present in the Act text itself:
Short title and commencement: The Act is cited as the Franchise Fees Windfall Tax (Collection) Act 1997 and is taken to have commenced on 5 August 1997 (s 1; s 2). These provisions anchor the Act’s operative date.
Binding the Crown: The Act expressly binds the Crown in each of its capacities (s 3).
The Act text as provided does not contain schedules indicating amendments, repeals, substituted text, or later enacted variations. The Act does not include an express list of amending Acts, nor is there an internal chronology of changes. There is no internal provision that states that the Act has been amended or lists prior versions or revisions.
Practical implications for research and compliance
Because the Act text provided does not include amendment annotations, an interested reader or practitioner should treat the supplied text as static for the purposes of this note. The Act itself, in s 14, contemplates the making of regulations, and s 11 and s 14 refer to matters that may be prescribed by regulations. Those regulations, if made or varied subsequently, would affect the operation of the Act, but the Act text supplied does not include any such regulations.
The Commissioner’s annual report obligation in s 12 implies an ongoing administrative record that may reveal operational changes or policy decisions, but the Act text does not include those reports or any indication of whether they have been delivered.
Section 13 contemplates arrangements with States and possible delegations under the Taxation Administration Act 1953; such arrangements and delegations may have been developed and amended administratively, but no such instruments or delegations are recorded in the Act text.
What is not in the Act text
There are no amendment clauses, transitional provisions, or savings provisions included beyond those parts expressly set out. The Act does not record subsequent legislative amendments or repeal. The Act does not specify any retrospective amendment to other Commonwealth or State statutes.
Readers and practitioners should therefore consult parliamentary records, the Federal Register of Legislation, the Commissioner’s reports and relevant regulations to determine whether the Act has been amended or whether regulations have been made under ss 11 and 14 since commencement. The Act itself, as supplied, contains only the original core provisions and the commencement date.
Litigation history
The Act text supplied does not record any judicial decisions, litigation references, or interpretive rulings. There are no schedules, notes, or appended judicial annotations that indicate a litigation history within the Act itself.
What the Act establishes that could generate litigation
The Act channels repayments that arise because a State franchise law is wholly or partly invalid due to section 90 of the Constitution into a Commonwealth tax scheme. Litigation could therefore arise on multiple fronts that the Act itself does not resolve: constitutional litigation about the validity of State franchise laws under s 90; disputes about whether particular repayments meet the s 6(1) conditions and are therefore taxable amounts; disputes about the correct calculation of reductions under s 6(2) and s 7; and administrative or procedural disputes concerning a State’s compliance with its withholding and remittance obligations under s 9 and the Commissioner’s application of credits under s 10.
The Act anticipates payments or court orders in s 6(1)(c), referencing amounts claimed by the taxpayer from the State or ordered by a court. This intertwines State court determinations of repayment entitlements with Commonwealth tax consequences, which is a set of facts likely to generate disputes over prioritisation, timing, and remedial remedies.
Limitations of the Act as to litigation record
The Act does not provide guidance about dispute resolution procedures specific to conflicts arising under the Act, nor does it provide a private right of action against the Commissioner for delay in applying or refunding credits beyond the general debt created by s 10(3). It therefore anticipates that general Commonwealth tax administration mechanisms and the regulations authorised by ss 11 and 14 will provide detailed procedural routes, but none of those are in the Act text supplied.
Practical note for practitioners
While the Act itself contains no litigation history, any practical assessment of risk or precedent will require checking court records for litigation about (a) the underlying State franchise laws invalidity under s 90; (b) State withholding actions under s 9; and (c) disputes with the Commissioner over credits and tax liabilities under s 10. The Act’s operation presumes inter‑action with State courts, administrative processes and possibly tax litigation, but the Act text itself records no outcomes and contains no cases.
Gotchas
This section flags specific textual features and operational consequences in the Act that can produce counter‑intuitive results or operational risks. Each point is grounded in the Act’s language.
Tax applies only when invalidity is because of s 90, not all invalidities (s 6(1)(a))
The Act makes taxable amounts contingent on a State franchise law being wholly or partly invalid because of section 90 of the Constitution. Repayments that arise for other reasons of invalidity or mistake are not captured by the Act’s definition of taxable amount. Practitioners must therefore separate repayments attributable to s 90 invalidity from repayments for other legal or factual reasons when determining tax exposure.
Taxable amounts are confined by date and licensing period criteria (s 6(1)(b))
The amount must be a repayment of an amount paid under the State franchise law before 5 August 1997 in respect of a licensing period commencing before 5 August 1997. Payments outside those temporal windows are excluded. The Act therefore draws a narrow temporal boundary that may exclude later claims.
Reduction for amounts that would have been repayable even if law were valid (s 6(2))
Section 6(2) requires deduction from the taxable amount of any part that the State would have been liable to repay even if the law were valid. This protects some repayments from taxation, but it places an evidential and calculation burden on taxpayers and administrators to identify and quantify the non‑windfall portion. The Act gives an example , overpayments , but does not provide an evidentiary mechanism; that detail is left to administration.
Liquor fee formula and instalment treatment are specific and potentially complex (s 7)
Section 7(1) provides a formula for reducing taxable amounts that relate to certain liquor franchise fees when the licensing period ends after 6 August 1997, but the Act text embeds the formula as a separate graphic object. Practitioners must ensure they are applying the exact statutory formula and the instalment rule in s 7(2) which treats instalment periods as separate licensing periods for the reduction. The Act confines "liquor franchise fee" to specified statutes (s 7(3)), so mapping the fee to the statute list is necessary.
State withholding extinguishes the State’s liability to the taxpayer for the deducted portion (s 9(4))
When a State makes a deduction under s 9, the State is discharged from any liability to pay or account for the deducted amount to any person other than the Commissioner (s 9(4)). This means that taxpayers cannot pursue the State for the deducted portion and must instead rely on the Commissioner’s credit regime under s 10. If the State deducts incorrectly, the taxpayer’s remedy is against the Commonwealth per s 10(3), not the State for the deducted portion.
Credit depends on correctness of State deduction; no credit for deductions relating to valid laws (s 10(2))
Section 10(2) denies a taxpayer a credit for any amount purportedly deducted under s 9 in relation to an amount paid under a valid State franchise law. If a State incorrectly withholds on an amount that was payable under a valid law, the taxpayer may not obtain the credit to which they expected to be entitled, producing a potential dispute over the validity of the underlying State obligation. The Act does not describe the administrative reconciliation process in that event.
The Act leaves many procedural details to regulations (s 11, s 14)
The Act delegates to regulations the power to prescribe when windfall tax is due, to set penalties for late payment up to 20% per annum, to provide for collection and recovery of unpaid tax, and to create offences and fines up to 10 penalty units (s 11; s 14). Until those regulations are examined, significant operational questions remain open, including how the Commissioner will collect unpaid tax from taxpayers who received repayments without a State deduction, what interest or penalty mechanics will apply, and whether criminal or civil sanctions will be imposed for non‑compliance.
Credit is a Commonwealth debt, not a State payment obligation (s 10(3))
The credit equal to amounts deducted is a debt due to the taxpayer by the Commissioner on behalf of the Commonwealth (s 10(3)). That converts the State‑withheld amounts into Commonwealth liabilities, which affects recovery priorities and remedies. Credit treatment may differ from direct cash receipt from a State and may affect the taxpayer’s cash flow and secured creditor status.
The Act binds the Crown (s 3) but does not set out enforcement against the Crown separately
Section 3 binds the Crown in each of its capacities. However, the Act does not create special enforcement or administrative mechanisms tailored to Crown or State failures beyond the general regulatory powers. This could complicate disputes where a State does not comply with withholding obligations.
No explicit taxpayer lodgement mechanism in the Act
The Act does not set out a taxpayer filing or claim procedure for securing a credit or for asserting that a deducted amount relates to a valid franchise payment and is thus ineligible for credit. The Commissioner’s application of credits and refunds under s 10(4) is the only statutory mechanism set out. Practical administration will therefore be governed by the Commissioner’s procedures and regulations, which are not in the Act text.
These features mean that effective compliance and advisory work requires attention to the precise statutory triggers and to the subordinate regulatory and administrative instruments that implement collection, payment timing, penalties, and dispute resolution.
How to comply
The Act prescribes a concise set of required acts by States and sets out the taxpayer’s entitlement and the Commissioner’s handling of credits. Compliance therefore involves procedural steps by States, documentation and notification duties, and administrative steps by the Commissioner. The Act leaves detailed payment timing and penalty rules to regulations. The following is a practical compliance checklist strictly grounded in the Act text.
For States or State officers who are liable to repay taxable amounts
Identify taxable amounts before payment: Before repaying or otherwise applying an amount that might be a taxable amount, determine whether the three conditions in s 6(1) are satisfied: the repayment is because a State franchise law is wholly or partly invalid because of s 90; the repayment is of an amount paid under that law before 5 August 1997 in respect of a licensing period commencing before that date; and the amount is claimed by the person or ordered by a court (s 6(1)(a)-(c). If any element is uncertain, seek legal advice before repaying.
Withhold tax before repaying: Do not repay or otherwise apply the taxable amount without first deducting (withholding) the tax on the taxable amount (s 9(1)). The Act makes withholding mandatory.
Notify the taxpayer: After making the deduction, notify the taxpayer in writing that the deduction was made, as soon as practicable (s 9(2)). Maintain records of the notification.
Remit promptly to the Commissioner: Remit the amounts deducted to the Commissioner within 21 days after the end of the month in which the deduction is made, and ensure the remittance is accompanied by a statement setting out the amount deducted and identifying the taxpayer (s 9(3)). Retain supporting documentation for audit and reconciliation.
Recognise discharge of State liability: Understand that once the deduction is made, the State is discharged from any liability to pay or account for the deducted amount to any person other than the Commissioner (s 9(4)). Ensure internal systems reflect that the State’s residual payable to the claimant excludes the withheld tax.
Treat instalment payments consistently for liquor licences: If a State franchise law permitted payment by instalments and at least one instalment was payable after 6 August 1997, treat each instalment period as a separate licensing period for the purposes of the s 7 liquor fee reduction (s 7(2)(a)-(d)). Apply the reduction formula in s 7(1) for the relevant periods and ensure that only fees defined as "liquor franchise fee" in s 7(3) are treated under that provision.
For taxpayers (persons to whom a State would otherwise repay)
Anticipate that repayments may be reduced by withholding: If you are the person to whom a State is liable to repay a taxable amount, anticipate that the State must withhold tax before repaying and must remit the withheld amount to the Commissioner (s 9). Your cash flow from a State repayment will therefore be the net amount after the deduction.
Obtain the State’s notification and statement: Expect to receive a written notification from the State that a deduction was made (s 9(2)). Ensure you receive and retain the statement that the State must provide to the Commissioner identifying the amount deducted and the taxpayer (s 9(3)) as proof of the deduction.
Obtain and use the credit from the Commissioner: When the State has made a deduction, you are entitled to a credit equal to the amount deducted (s 10(1)). The credit is a debt due to you by the Commissioner on behalf of the Commonwealth (s 10(3)). The Commissioner may apply the credit against your liability to windfall tax, and must refund any amount not applied (s 10(4)). Monitor communications from the Commissioner about how the credit will be applied or refunded.
Check for invalid withholding: If you believe the State has withheld in relation to an amount that was payable under a valid State franchise law, note s 10(2) denies a credit in that circumstance. You will need to pursue the appropriate dispute resolution or administrative remedy to address an incorrect withholding; the Act does not set out a specific taxpayer claim process within its text.
Keep evidence of payments and licensing period dates: Because the taxable amount relief in s 6(2) reduces taxable amounts by any part that would have been repayable even if the law were valid, you should keep records showing any overpayments or elements of the repayment that are not attributable to the franchise law’s invalidity.
For the Commissioner and Commonwealth administrators
Receive and reconcile remittances: Establish procedures to receive remittances from States, reconcile statements identifying taxpayers and amounts deducted, and record the credits as debts due to taxpayers under s 10(3).
Apply credits and refund surpluses: Develop administrative processes, consistent with s 10(4), to apply credits against taxpayers’ windfall tax liabilities and to refund any amounts not applied. Determine and publish procedures for calculation and timing of refunds, subject to the regulations that may prescribe due dates and penalties (s 11).
Make arrangements with States: Use s 13 to create arrangements with appropriate State officers or authorities regarding administration and delegation of functions. Ensure that any delegation complies with the Commissioner’s delegation powers under the Taxation Administration Act 1953 as referred to in the Act.
Report annually: Prepare the annual report required by s 12 on the operation of the Act during each financial year for presentation to the Minister and to Parliament.
Regulatory and procedural compliance
Monitor and comply with regulations: Because s 11 and s 14 empower regulations to prescribe due dates, collection and recovery processes, late payment penalties and offences with fines up to 10 penalty units, ensure that relevant State agencies, taxpayers and the Commissioner’s office comply with any regulations made under the Act. Until regulations are promulgated and examined, some procedural elements remain unspecified in the Act.
Maintain confidentiality: Persons acquiring information under the Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953, as noted in the text adjacent to s 5. Administrative systems must therefore observe those confidentiality requirements for taxpayer information.
Practical checklist summary
States: verify taxable amount status, withhold before paying, notify taxpayer, remit to Commissioner within 21 days after month end with identifying statement, retain records.
Taxpayers: obtain State notification and statement, claim credit from Commissioner, provide documentation supporting reductions under s 6(2) or s 7 where relevant, monitor Commissioner application/refund.
Commissioner: receive remittances and statements, record credits as debts, apply credits against liabilities and refund surpluses, enter arrangements with States, publish guidance, and report annually.
Adherence to the Act requires coordination between State payment processes and Commonwealth tax administration, careful record keeping relating to licensing periods and instalment timing under s 7, and attention to regulations that may add further compliance steps or penalties.
The Commissioner has the general administration of this Act.
Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.
Part 2 Liability
Part 2—Liability
6 Taxable amount
6 Taxable amount
(1) A taxable amount is any amount that meets all the following conditions:
(a) a State is liable to repay the amount to a person (the taxpayer) because a State franchise law is wholly or partly invalid because of section 90 of the Constitution;
(b) the amount is by way of repayment of an amount paid under the State franchise law before 5 August 1997 in respect of a licensing period commencing before 5 August 1997;
(c) the amount is claimed by the taxpayer from the State, or a court orders the State to pay the amount to the taxpayer.
(2) A taxable amount is reduced by deducting any part of it that a State would have been liable to repay even if the State franchise law were wholly valid.
Note: Example: An amount that is repayable solely because of an overpayment by the taxpayer would be deducted.
7 Reduction of taxable amount—liquor franchise fees
7 Reduction of taxable amount—liquor franchise fees
(1) If a taxable amount calculated under section 6 relates to a liquor franchise fee for which the licensing period ends after 6 August 1997, then the taxable amount is reduced by an amount calculated as follows:
(2) If:
(a) a State franchise law required or permitted the payment by instalments of a liquor franchise fee for a licensing period (the actual licensing period); and
(b) at least one of those instalments was payable after 6 August 1997;
then this section applies as if each of the following periods were a separate licensing period (in place of the actual licensing period):
(c) the period starting on the day on which an instalment was payable and ending immediately before the day on which the next instalment was payable;
(d) the period starting on the day on which last instalment was payable and ending at the end of the actual licensing period.
(3) In this section:
liquor franchise fee means a fee payable under a law specified in paragraph 4(2)(a), (e), (g), (h), (k), (o), (t) or (v).
8 Liability to windfall tax
8 Liability to windfall tax
(1) The taxpayer in respect of a taxable amount is the person to whom the State was liable to repay the taxable amount.
Note: Section 9 extinguishes the liability of the State to repay the taxable amount.
(2) The person who is the taxpayer in respect of a taxable amount is liable to pay windfall tax on the taxable amount.
Part 3 Collection
Part 3—Collection
9 State must withhold windfall tax from taxable amounts
9 State must withhold windfall tax from taxable amounts
State must withhold and remit windfall tax
(1) A State that is liable to repay a taxable amount must not repay or otherwise apply the taxable amount without first having deducted the tax on the taxable amount.
(2) As soon as practicable after making a deduction under subsection (1), the State must notify the taxpayer in writing that the deduction was made.
(3) A State that makes a deduction under subsection (1) must remit it to the Commissioner within 21 days after the end of the month in which the deduction is made. The remitted tax must be accompanied by a statement that:
(a) sets out the amount deducted; and
(b) identifies the taxpayer.
State discharged from liability to account
(4) When a State makes a deduction from a taxable amount under subsection (1) (or purportedly under subsection (1)), the State is discharged from any liability to pay or account for the amount deducted to any person other than the Commissioner.
10 Taxpayer entitled to credit for amount deducted by State
10 Taxpayer entitled to credit for amount deducted by State
(1) When a State makes a deduction from a taxable amount under section 9 (or purportedly under section 9), the taxpayer is entitled to a credit equal to the amount deducted.
(2) However, the taxpayer is not entitled to a credit for any amount purportedly deducted under section 9 in relation to an amount paid under a valid State franchise law.
(3) The credit is a debt due to the taxpayer by the Commissioner on behalf of the Commonwealth.
(4) The Commissioner may apply some or all of the credit against the taxpayer’s liability to windfall tax (whether or not that liability is in respect of the taxable amount that gives rise to the credit). The Commissioner must refund any amount not applied.
11 Regulations for collection etc. of unpaid windfall tax
11 Regulations for collection etc. of unpaid windfall tax
The regulations may provide for the collection and recovery of any unpaid windfall tax. In particular, the regulations may:
(a) prescribe the time when windfall tax is due for payment; and
(b) prescribe penalties for late payment of windfall tax (not exceeding an amount calculated at the rate of 20% per annum).
Note: Windfall tax would normally be collected under section 9.
Part 4 Miscellaneous
Part 4—Miscellaneous
12 Annual report
12 Annual report
After the end of each financial year, the Commissioner must give a report to the Minister, for presentation to the Parliament, on the operation of this Act during the year.
13 Arrangements with States
13 Arrangements with States
(1) The Commissioner may make an arrangement with an appropriate officer or authority of a State about any matter in connection with the administration of this Act.
(2) In particular, an arrangement may relate to the Commissioner’s delegation of powers or functions under this Act or the regulations.
Note: Section 8 of the Taxation Administration Act 1953 contains the Commissioner’s delegation power.
14 Regulations
14 Regulations
(1) The Governor‑General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
(2) In particular, the regulations may prescribe penalties for offences against the regulations by way of fines of up to 10 penalty units.