Revised Explanatory Memorandum
(Circulated by authority of the Hon Kelly O'Dwyer MP, Minister for Revenue and Financial Services, Minister for Women, Minister Assisting the Prime Minister for the Public Service)General outline and financial impact
Schedule 1 - Electronic sales suppression tools
Schedule 1 to this Bill prohibits the production, distribution and possession of sales suppression tools in relation to entities that have Australian tax obligations. Schedule 1 also prohibits the use of electronic sales suppression tools to incorrectly keep tax records.
Date of effect: The amendments contained in Schedule 1 commence from the day after this Act receives the Royal Assent.
Proposal announced: 2017-18 Budget.
Financial impact: The measure is estimated to have an unquantifiable gain to receipts over the forward estimates period comprising:
| 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 |
| - | * | * | * | * |
- Nil
* Unquantifiable
Human rights implications: Schedule 1 to the Bill does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 1, paragraphs 1.102 to 1.110.
Compliance cost impact: Nil to low.
Schedule 2 - Third party reporting
Schedule 2 to this Bill requires entities providing courier or cleaning services that have an ABN to report to the ATO information about transactions that involve engaging other entities to undertake those courier or cleaning services for them.
Date of effect: The amendments contained in Schedule 2 apply from 1 July 2018.
Proposal announced: 2017-18 Budget.
Financial impact: The measure is estimated to result in a gain in tax receipts of $132 million over the forward estimates period. This includes an estimated increase in goods and services tax receipts of $56 million over the forward estimates period.
| 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 |
| - | -$6m | $6m | $48m | $84m |
- Nil
The estimated receipts from the expansion of the TPRS have been revised down compared with the estimates published in the 2017-18 Budget. The original costing was overstated due to shortcomings in the underlying data that was used. An adjustment has been included in the 2017-18 Mid-Year Economic and Fiscal Outlook to reflect the revenue gain expected for this measure.
Human rights implications: Schedule 2 to the Bill does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 2, paragraphs 2.38 to 2.46.
Compliance cost impact: low.