Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon. Josh Frydenberg MP)General outline and financial impact
Bushfire assistance
Schedule 1 to the Bill amends the ITAA 1997 to make:
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- government support payments to volunteer firefighters in relation to the 2019-20 bushfires non-assessable non-exempt income; and
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- all relief and recovery payments and benefits provided by Australian governments in relation to the 2019-20 bushfires non-assessable non-exempt income.
Date of effect: These amendments apply to the 2019-20 income year and later income years.
Proposal announced: The Prime Minister announced on 29 December 2019 non-assessable non-exempt income tax treatment for payments to volunteer firefighters and the Prime Minister and the Treasurer announced on 8 January 2020 non-assessable non-exempt income tax treatment for all relief and recovery payments and benefits.
Financial impact: The measure has not yet been costed due to the situation still evolving and insufficient time to gather all information required, including needing to source data from the State, Territory and local government agencies. The financial implications are not expected to be significant at this stage and will be reported once the costings have been finalised.
Human rights implications: This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 3, paragraphs 3.1 to 3.5.
Compliance cost impact: This measure is expected to have no more than a minor regulatory impact.
Deductible gift recipients
Schedule 2 to the Bill amends the ITAA 1997 to allow the following entities to be deductible gift recipients under the income tax law:
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- Australian Volunteers Support Trust; and
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- Community Rebuilding Trust.
Date of effect: The amendments apply to gifts made in relation to the 2019-20 income year and later income years.
Proposal announced: Not previously announced.
Financial impact: The measure is estimated to have a cost to revenue of $11.1 million over the forward estimates period.
Human rights implications: This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 3, paragraphs 3.6 to 3.9.
Compliance cost impact: Nil.