Supplementary Explanatory Memorandum
(Circulated by authority of the Assistant Treasurer, the Hon Stuart Robert MP)Amendment to the Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill 2017
Outline of chapter
1.1 This Chapter explains the amendment to the Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill 2017 (the Bill).
Detailed explanation of new law - amendment 1
1.2 Schedule 2 to the Bill contained amendments to the Income Tax Assessment Act 1997 to allow taxpayers to choose to self-assess the effective life of certain intangible depreciating assets rather than using the statutory effective life for such assets specified in the tax law.
1.3 Schedule 2 to the Bill would have applied to intangible depreciating assets first held on or after 1 July 2016.
1.4 The amendment omits Schedule 2 from the Bill. As a result of this change, the Bill will not allow taxpayers to choose to self-assess the effective life of certain intangible depreciating assets.
Financial and compliance cost impact
1.5 The revenue impact of this measure was included in the 2015-16 Mid-Year Economic and Fiscal Outlook. The Government has decided not to proceed to implement this measure. The decision not to implement this measure is estimated to have the following gain to revenue over the forward estimates period:
| 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 |
| - | - | $170m | $115m | $140m |
- Nil
1.6 The amendment removes the compliance cost impact of Schedule 2 to the Bill, which was minimal.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 Amendment to the Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill 2017
1.7 The amendment to the Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
1.8 The amendment omits Schedule 2 from the Bill. As a result of this change, the Bill will not allow taxpayers to choose to self assess the effective life of certain intangible depreciating assets.
Human rights implications
1.9 This amendment does not engage any of the applicable rights or freedoms.
Conclusion
1.10 This amendment is compatible with human rights as it does not raise any human rights issues.