Identify and describe the key features of financial legislation covering taxable transactions and reporting requirements

Answer:

The term financial legislation refers to the two categories of proposed laws or bills which are distinguished by sections of Constitution and which have different procedures applied to them by the provisions of that section. The rationale of these provisions is to reserve to the executive government the initiative in proposing appropriations and impositions of taxation, without affecting the substantive powers of the Senate.

Amongst the various types of financial legislation one type is Tax Bills. It includes

a) bills imposing taxation; b) bills which do not impose taxation, but which deal with taxation; c) customs tariff bills, which impose customs duties; d) excise tariff bills, which impose excise duties; e) other taxation measures.

Bills which impose taxation must be separate from bills which otherwise deal with taxation, and bills imposing taxation must deal with only one subject of taxation, except for customs tariff and excise tariff bills.

The Australian Securities and Investments Commission (ASIC) is Australia’s corporate, financial markets and financial services regulator. Companies operating in Australia are required to prepare and lodge financial reports with ASIC, usually at the end of the financial year. Annual financial reports are required to be audited. In some circumstances, companies may be exempt from financial reporting.

Australian Accounting Standards meet the requirements of International Financial Reporting Standards (IFRS) as Australia adopted IFRS in 2005, with application for financial periods beginning on or after 1 January 2005.