Senate

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

PART 5 - Termination Payments Tax Imposition Amendment Bill 1997

Part 5 of the Explanatory Memorandum (Chapter 20) explains the provisions of the Termination Payments Tax Imposition Amendment Bill 1997.

Chapter 20 - Termination Payments Tax Imposition Amendment Bill 1997

Overview

20.1 This Bill amends the Termination Payments Imposition Act 1997 (the Imposition Act) to round the rate of termination payments surcharge imposed under that Act to 5 decimal places.

Explanation of the provisions

Title and commencement of the Act

20.2 When the Bill is enacted it will be called the Termination Payments Tax Imposition Amendment Act 1997. [Clause 1]

20.3 The Act is to commence on the day it receives the Royal Assent. Schedule 1 of the Act will be taken to have commenced on 5 June 1997 immediately after the commencement of the Imposition Act . [Clause 2]

Schedule 1

20.4 Section 5 of the Imposition Act identifies the rate of termination payments surcharge imposed on certain termination payments.

20.5 Item 1 and Item 2 provide that the rate of termination payments surcharge imposed under the Imposition Act is rounded to 5 decimal places.