House of Representatives
Income Tax Assessment Amendment Bill (No. 4) 1984
Income Tax Assessment Amendment Act (No. 4) 1984
Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon. Paul Keating. M.P.)Financial Impact
The estimated revenue effects in 1984-85 and in a full year of the major measures outlined above and contained in this Bill are as follows:
| 1984-85 | Full year | $m | $m | ||||
|---|---|---|---|---|---|---|---|
| Transfer of losses in company groups | - | -200(a) | |||||
| Increased depreciation allowance on buildings | - | -5(b) | |||||
| Extension of the investment allowance cut-off date | - | -1(c) | |||||
| Mineral exploration expenditure deductible from income from any source | - | -10(d) | |||||
| Increase in basic rates of zone rebates and modifications to the boundaries of the special zone areas | -5 | -11 | |||||
| Recognition of de facto relationships for dependent spouse and other rebate purposes | -2 | -7(e) | |||||
| Rebates for unemployment, sickness and special beneficiaries | - | -2 | |||||
| Change to pensioner rebate shade-out threshold | -2 | -6 | |||||
| Extension of section 75C for two years | - | -1(f) | |||||
| Gifts | |||||||
| - | to the Work Skill Australia Foundation Incorporated | Negligible | Up to 250,000 | ||||
| - | to The Academy of the Social Sciences in Australia Incorporated | Negligible | Unlikely to exceed 50,000 | ||||
| - | of property to National Trust bodies | -1 | -2 | ||||
| - | of trading stock to which sub-section 36(1) applies | Negligible | 150,000 | ||||
| Change to special depreciation on trading ships | - | - | |||||
| Substitution of certain securities | - | -(g) | |||||
- (a)
- Estimated effect in 1985-86; the amount will reduce year by year to an eventual full year estimate of around $50m.
- (b)
- Estimated effect in 1985-86; the amount will grow year by year over a number of decades.
- (c)
- This measure will have no cost in the current financial year, but will cost altogether around $70m - $100m, of which 40% is expected to be met in 1987- 88.
- (d)
- Estimate is for full year effect in 1986-87; revenue reduction in 1985-86 is estimated at $8m.
- (e)
- $8m in 1985-86. This is higher than in a full year, given that most eligible taxpayers will get the benefit of the change from 1 July to 1 November 1984 "on assessment" rather than through the PAYE system.
- (f)
- $0.5m in each of 1985-86 and 1986-87.
- (g)
- The purpose of this measure is to guard against revenue losses which cannot be reliably estimated.