Explanatory Memorandum
(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)General outline and financial impact
Outer regional and remote payment
Schedule 1 to this Bill amends the Income Tax Assessment Act 1997 to ensure that the outer regional and remote payment (OR & R payment) made under the Better Start for Children with Disability initiative is not subject to income tax.
Date of effect : This measure applies to payments made in the 2011-12 income year and later income years.
Proposal announced : This measure has not previously been announced. The OR & R payment was announced as part of the Government's election commitments on 29 July 2010.
Financial impact : Nil. No provision for the collection of income tax from this new payment would have been factored into the forward estimates.
Compliance cost impact : Low.
Extension of fringe benefits tax exemption for fly-in fly-out arrangements
Schedule 2 to this Bill amends the Fringe Benefits Tax Assessment Act 1986 to provide an exemption from fringe benefits tax for transport, from an employee's usual place of residence to their usual place of employment, where the employee is an Australian resident employed in a remote area overseas, under what is commonly known as a fly-in fly-out arrangement.
Date of effect : These amendments apply to fringe benefits provided after 1 July 2009.
These amendments do not adversely affect any taxpayer.
Proposal announced : This measure was announced in the Assistant Treasurer and Minister for Financial Services and Superannuation's Media Release No. 011 of 18 November 2010.
Financial impact : Nil.
Compliance cost impact : Ongoing - low.
Deductible gift recipients
Schedule 3 to this Bill amends the Income Tax Assessment Act 1997 to update the list of deductible gift recipients (DGRs) by adding two entities, (the New Zealand Government's Christchurch Earthquake Appeal Trust and the Cancer Australia Gift Fund) as DGRs, changing the name of one entity, and removing two other entities from the list.
Date of effect : The listing of the New Zealand Government's Christchurch Earthquake Appeal Trust applies to gifts made after 21 March 2011 and before 22 March 2013. The listing of the Cancer Australia Gift Fund applies to gifts made after 8 June 2011.
The Bionic Ear Institute was removed from the specifically listed DGR list and endorsed as a DGR under the general category of health promotion, effective from 10 November 2010.
The National Breast Cancer Centre Gift Fund will be removed, effective from 1 August 2011.
Proposal announced : The listing of the New Zealand Government's Christchurch Earthquake Appeal Trust was announced in the Assistant Treasurer and Minister for Financial Services and Superannuation's Media Release No. 043 of 2011.
The other changes have not previously been announced.
Financial impact : This measure will have the following revenue implication:
| Organisation | 2010 - 11 | 2011 - 12 | 2012 - 13 | 2013 - 14 |
| New Zealand Government's Christchurch Earthquake Appeal Trust | Nil | -$0.68m | Nil | Nil |
| Cancer Australia Gift Fund | Nil | Nil | Nil | Nil |