Supplementary Explanatory Memorandum
Amendments and New Clauses to be Moved on Behalf of the Government(Circulated by authority of the Treasurer, the Hon Ralph Willis, MP)GENERAL OUTLINE AND FINANCIAL IMPACT
Reportable payments system
Amends the reportable payments provisions of the Bill to defer the commencement of the system from 1 November 1994 to 1 December 1994.
Date of effect: 1 December 1994
Amendment announced: Not previously announced.
Financial impact: The amendment will have a minimal effect on revenue.
Social security payments
Amends the home child care allowance and dependent spouse rebate provisions of the Bill to allow taxpayers the choice of claiming the 'without child' dependent spouse rebate instead of claiming for the home child care allowance.
Date of effect: 29 September 1994
Amendment announced: Foreshadowed by the Assistant Treasurer in the Second Reading Speech in the House of Representatives on 23 August 1994.
Financial impact: The introduction of the option will transfer existing revenue costs from the social security to the tax system. If taxpayers choose to their best advantage there would be a small additional cost to the revenue.
Eligible investment income of registered organisations
Omits from the Bill the provisions designed to include in the assessable income of registered organisations income derived on or after 1 July 1994 from certain assets.
Date of effect: No longer relevant.
Amendment announced: Not previously announced.
Financial impact: None.
Superannuation: Reasonable benefits limits
Amends the reasonable benefits limits (RBL) provisions of the Bill to make a minor technical change to the formula used to determine the excessive component of an eligible termination payment (ETP) arising from the commutation of a pension or annuity so that, when making an RBL determination, the rebatable proportion is applied only to that part of the ETP that is counted for RBL purposes rather than the whole of the ETP.
Date of effect: 1 July 1994
Amendment announced: Not previously announced.
Financial impact: None.
Taxation of Australian branches of foreign banks
Amends the provisions of the Bill relating to the taxation of Australian branches of foreign banks to make a number of technical corrections. The amendments will clarify the operation of the proposed provisions, and in particular their interaction with Australia's double tax agreements, to ensure that the measures have the intended effect.
Date of effect: The amendments do not change the dates of effect as set out in the Bill as introduced.
Amendment announced: Not previously announced.
Financial impact: None.
Sales tax - Incentives for regional headquarters
Amends the Bill to change the definition of 'pre-approved company' so as to extend the application of the credit provisions to companies which obtain approval on or after 15 December 1993 and before the Bill receives the Royal Assent.
Date of effect: The credit will apply to dealings after 14 December 1993 and before Royal Assent.
Amendment announced: Not previously announced.
Financial impact: Given the nature of the measure, a reliable estimate of the financial impact cannot be provided.