Supplementary Explanatory Memorandum
INTRODUCTORY NOTE
This supplementary explanatory memorandum explains the amendments proposed to the Taxation Laws Amendment (Tax File Numbers) Bill 1988 (referred to in this memorandum as the "Bill") as introduced into the House of Representatives. The amendments ensure that taxpayers retain the option of choosing not to quote their tax file number (TFN). However failure to do so in the circumstances provided for in the Bill will result in an amount being withheld from any payments of relevant investment income or salary and wages at the maximum marginal rate plus Medicare Levy (currently 50.25%). (Any excess tax withheld would be refunded on assessment of the taxpayer's annual income tax return.) In addition, the amendments will give effect to the proposal, announced by the Treasurer when introducing the Bill, to ensure that people receiving any part of a qualifying pension will be exempt from the need to quote a TFN. Other amendments are, in the main, drafting measures to ensure the original intention of the Bill.