Supplementary Explanatory Memorandum
(Circulated by authority of the Minister for Housing and Assistant Treasurer the Hon Michael Sukkar MP)General outline and financial impact
Amendment to the Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019
The amendments to Schedule 3 to the Bill make clear that deductions may be available for entities that incur costs in holding land:
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- that becomes or is treated as being vacant due to significant and unusual events or occurrences outside the reasonable control of the entity, such as fire, flood, or substantial building defects;
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- while carrying on a business of primary production; or
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- that is used by another entity in carrying on a business.
These amendments ensure that the integrity rules set out in Schedule 3 do not adversely affect:
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- entities solely because land the entity holds is affected by a natural disaster or other unforeseeable event beyond their control;
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- primary producers because of the ways in which many forms of primary production make use of land; and
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- land being used for business purposes under arm's length arrangements.
Date of effect : This amendment will apply at the same time as Schedule 3 of the Bill.
Proposal announced : These amendments have not previously been announced.
Financial impact : The indicative financial impact of these proposed changes is unquantifiable.
Human rights implications : These amendments do not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 2, paragraphs 2.1 to 2.5.
Compliance cost impact : The amendment is not expected to substantially alter the compliance costs of the original measure.