House of Representatives

Explanatory Memorandum

Circulated By the Authority of the Treasurer, the Hon Wayne Swan MP

Chapter 3 - Outer regional and remote payment made under the Helping Children with Autism package

Outline of chapter

3.1 Schedule 3 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to ensure that the outer regional and remote payment made under the Helping Children with Autism package is exempt from income tax.

Context of amendments

3.2 The outer regional and remote payment was announced via press release on 25 June 2008, as part of a review of the Helping Children with Autism package.

3.3 The outer regional and remote payment is provided to families living in outer regional and remote areas when a child is diagnosed with autism spectrum disorder.

3.4 The payment is designed to assist families living in outer regional and remote areas with the additional costs of accessing early intervention as well as training, respite and other resources.

3.5 This amendment will retrospectively exempt from income tax, payments made in the 2008-09 income year and later income years.

Summary of new law

3.6 This amendment provides that no income tax will be paid by recipients on the receipt of the outer regional and remote payment. This amendment will apply retrospectively for the 2008-09 income year and later income years.

Comparison of key features of new law and current law

Detailed explanation of new law

3.7 The outer regional and remote payments made under the Helping Children with Autism package are exempt from income tax . [Schedule 3, item 2, section 52-170]

Application and transitional provisions

3.8 This amendment applies retrospectively for the 2008-09 income year and later income years.

3.9 As such, these payments will be subject to the provisions of the ITAA 1997 dealing with amounts of exempt income.

Consequential amendments

3.10 The checklist of exemptions from income tax has been updated . [Schedule 3, item 1, section 11-15]