Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon. P.J. Keating, M.P.)FINANCIAL IMPACT
The revenue effect of the thin capitalisation amendments, which are concessional in nature, is unquantifiable and not substantial.
The nature of the transitional arrangements for gold miners and the amendments to the imputation provisions are of such a nature that a reliable estimate of the potential revenue effect cannot be made.
The amendment relating to quarrying is not expected to produce any additional cost to the revenue over and above that previously estimated in August 1989 when the mining provisions were extended to include quarrying. This cost was estimated at $10 million in 1990-91 and 1991-92 and is expected to peak at $20 million later in the decade. There will be no cost to revenue in the 1989-90 year.
The amendments in relation to the zone rebate arrangements will have an estimated cost to revenue of $1 million in 1990-1991 and $3 million in subsequent years.
The amendments to the gift provisions to reflect changes in the names of the Australian College of General Practitioners and the Australian Sports Aid Foundation will have no impact on revenue.
The other amendments proposed in the Bill will have no impact on revenue.