Tax Administration Act 1996
This Act gives OSR the authority to collect taxes for the State Government.
Until 1996, State Taxation Acts had their own administrative provisions. Over time they became varied in interpretation and application. Inconsistencies developed and caused much confusion and frustration.
To gain consistency, a number of jurisdictions in Australia formed the Taxation Administration Act (TAA). The NSW Act became effective on 1 January 1997 and contains administrative provisions for debits tax, land tax, pay-roll tax, health insurance levies, parking space levy and stamp duties.
The main appeal of the TAA from a client's point of view, is the consistent treatment in state/territory tax matters. For example, administrative treatment will be the same whether a client is dealing with land tax or a pay-roll tax.
Features of the TAA include:
Specified interest rate for late payment consistent across all taxes (to be reset from time to time);
a structured penalty tax regime where culpability exists;
an option for clients to proceed to the supreme court when a notice of a decision has not been issued within 90 days of receiving the objection;
the payment of interest on a refund when a client successfully objects to or appeals an assessment;
a commitment to allow all decisions to be tested - only compromise assessments are non-reviewable.