Senate

Supplementary Explanatory Memorandum

Circulated by the authority of the Treasurer, the Hon Wayne Swan MP

General outline and financial impact

Amendment of the Extension of Charitable Purpose Act 2004

These amendments add Schedule 2 to the Bill. Schedule 2 amends the Extension of Charitable Purpose Act 2004 to include in the definition of charitable purpose the provision, by a charitable body, of rental dwellings under the National Rental Affordability Scheme. The extension will apply to approved participants of the National Rental Affordability Scheme during the first two years of the Scheme's operation.

Proposal announced : The amendments have not previously been announced.

Financial impact : The amendments to extend the definition of charitable purpose to incorporate the provision of rental dwellings under the National Rental Affordability Scheme will be in the order of $90 million over the forward estimates. The extension will have the following financial implications:

GST impact : The amendments are estimated to cost $30 million to $40 million in lost GST receipts over the forward estimates.

Compliance cost impact : Negligible.