How Tax Legislation is Processed, Passed, and Implemented in Australia
Laws and regulations create a system that everyone in society has to follow. These legislations aim to boost a country’s financial condition, which results in a more sustainable place to live. Section 551 of the Australian Constitution provides the Australian Parliament authority to make laws to overcome certain problems. In addition to it, the parliament can propose to amend the old laws or introduce a new rule. The idea given by any political and other authorities in the parliament is known as the bill. Generally, the bills address important problems that Australians face. There is also more that you need to understand the legislation to obey it as an individual or business owner. For this reason, you need to take help from a company or entity that can give you affordable bookkeeping services. This way, you are never going to face problems like filing a tax return late.
Tax Legislation Process
Stage #1: Written Idea
Firstly, any Parliament representative who has an idea for a new law or amendment in the existing one writes it down. As we have discussed, this idea is known as a bill. However, a bill only remains an idea if not processed further. One needs to present it in the Senate and House of Representatives. Stage #2: Presentation Next, the Parliamentarian presents the written bill in the House of Representatives and then the Senate. Both have the right to debate the law. The politicians discuss their concerns about the bill and consider the facts like “Who will be impacted by this bill”? “Will it provide service to the nation?” “Is the idea good and beneficial for everyone?” If the House of Representatives votes for the bill, it passes on to the Senate. Stage #3: Senate Discussion The Senate will also debate and disapprove or vote in favour of the bill. They will study the bill carefully and conduct special meetings to take different authorities’ opinions on the bill. The senate members can also ask experts and government officials to comment on the bill. Lastly, they will either approve it or dismiss it. In case of approval, the Senate may also ask to make a few changes in the bill. Stage #4: Governor General When the Senate approves the bill, it comes to the Governor General for Royal Assent. The governor general will view the bill and has the power to approve or dismiss the bill. If they support it, it becomes law, and you will know it as an Act of Parliament. This Act will also give a specific date on which the new legislation will commence. Generally, this is the next day when the Royal Assent approves the law.
Other Things You May Need to Know
Although most bills first come in the House of Representatives, the debate and approval process can also start from the Senate. However, if it is not related to the taxation and money bills, you should also know that government ministers usually introduce bills. But the Member of Parliament can also present a bill. Furthermore, a bill can also take months or years to get approval by Parliament. On the other hand, urgent bills usually get approved in a few hours or days. Tax legislation bills are usually important and don’t take years to get approved.
Bottom Line
The legislation is a lengthy and challenging process. Not to mention, understanding it can be far trickier for the layman. This is why you need to hire an individual or company that can give accounting services to small businesses, as you need help to understand and obey these laws.
Contact Aone Account & Bookkeeping Pty Ltd today to discuss all things tax! With registered tax agents in house, we are more than happy to answer any questions you may have. Call us on (02) 4555 1847 or email us on support@aoneaccount.com.
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