Tax Administration Act 1994

If you need more information about this Act, please contact the administering agency: Inland Revenue Department
6D Modifications made by Order in Council
Orders in Council

(1)

The Governor-General may, by Order in Council made on the recommendation of the Minister of Revenue, modify the application of the Inland Revenue Acts by providing that a provision of the Inland Revenue Acts does not apply or applies with conditions.

Content of modifications

(2)

A modification made under subsection (1)—

(a)

must specify a period for which the modification applies; and

(b)

must, despite section 6C(3), allow a person to whom the modification is available to choose whether or not to apply the modification by means set out in the modification; and

(c)

may—

(i)

be subject to terms and conditions:

(ii)

state whether the modification applies generally or is limited to a particular class of persons or circumstances:

(iii)

provide for transitional, savings, and related matters; and

(d)

may be made by—

(i)

stating an alternative means of complying with the provision:

(ii)

substituting a discretionary power to be exercised by the Commissioner.

Application periods for modifications

(3)

For the purposes of subsection (2)(a), a period for which a modification applies—

(a)

must end no later than the end of the second income year after the income year corresponding to the tax year in which the modification comes into force; and

(b)

may include a period before the date on which the modification comes into force, but any period of retrospective application must not extend back more than 5 income years before the income year corresponding to the tax year in which the modification comes into force; and

(c)

subject to paragraph (b), may include a period before the date on which this section comes into force.

Opt-out or opt-in modifications permitted

(4)

For the purposes of subsection (2)(b), a modification may provide that it applies to a person to whom it is available—

(a)

unless the person chooses not to apply it; or

(b)

only if the person chooses to apply it.

Minister’s recommendations

(5)

Before making a recommendation referred to in subsection (1), the Minister of Revenue must be satisfied that—

(a)

the modification is reasonably necessary to do 1 or more of the following:

(i)

to remedy or mitigate the effect of an obvious error in a provision of the Inland Revenue Acts:

(ii)

to give effect to the intended purpose or object of a provision of the Inland Revenue Acts, or to resolve ambiguity:

(iii)

to reconcile an inconsistency between certain provisions of the Inland Revenue Acts, or between the relevant provision and an administrative practice of the Commissioner; and

(b)

the modification does not materially affect the intended scope or effect of the provisions to which it applies; and

(c)

the modification is not inconsistent with the intended purpose or object of the relevant provision; and

(d)

the modification is the most appropriate way of addressing or resolving the issue at the time; and

(e)

the extent of the modification is not broader than is reasonably necessary to address or resolve the issue that gave rise to it; and

(f)

for a modification that applies to a person unless they choose not to apply it, the person has a reasonable opportunity to choose not to apply it; and

(g)

a consultative process has been undertaken as described in section 6F, unless the Minister has dispensed with the consultative process under section 6F(3); and

(h)

making the modification will not, in substance, have the effect of extending the period for which a modification previously made under this section, or an exemption previously granted under section 6E, applies.

Secondary legislation

(6)

An order under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Publication of modifications

(7)

The Minister of Revenue’s reasons for recommending a modification, and an explanation of the way in which the modification complies with this section, must be published together with an order under this section.

See secondary legislation made under this Act (if published on this website)
Legislation Act 2019 requirements for secondary legislation made under this section
PublicationPCO must publish it on the legislation website and notify it in the GazetteLA19 s 69(1)(c)
Subsection (7) must also be complied with
PresentationThe Minister must present it to the House of RepresentativesLA19 s 114, Sch 1 cl 32(1)(a)
DisallowanceIt may be disallowed by the House of Representatives LA19 ss 115, 116
This note is not part of the Act.

Section 6D: inserted, on 26 June 2019, by section 85 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).

Section 6D(6) heading: replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section 6D(6): replaced, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section 6D(7) heading: inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section 6D(7): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).