Exemptions specified by regulations

Issue: Reconsidering exemptions specified by regulations

Submission

(Chapman Tripp, Chartered Accountants Australia and New Zealand)

The exemptions to be specified in regulations should be reconsidered, or public consultation on proposed regulations should be provided for.

In addition, the “low risk of tax avoidance” reason for the Minister making regulations that would exempt certain transfers should be reconsidered. (Chartered Accountants Australia and New Zealand)

The relevant provision be limited to administrative details required to make the two class exemptions of the explanatory note to the Bill workable. (Chapman Tripp)

Comment

The Bill provides that the exemption is only to be applied in a narrow set of circumstances, where it is impractical or involves high compliance costs or where there is a low risk of tax avoidance. The number of transfers that will fall within qualifying categories is likely to be limited.

The “low risk of tax avoidance” criterion aligns with one of the underlying policy objectives of the Bill, which is to improve tax compliance. The process of introducing any regulations will involve consultation with key stakeholders.

Recommendation

That the submissions be declined.

Issue: Reconsidering exemptions specified by regulations

Submission

(EY)

Regulations can be made on the recommendation of the Minister. Clarification is required as to which Minister is intended in this context.

Comment

The Bill will be amended to make it clear that the regulations will be made by the Minister for Land Information. These regulations will be made after consultation with the Minister of Revenue.

Recommendation

That the submissions be accepted.