House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

Chapter 2 Franchise Fees Windfall Tax (Imposition) Bill 1997

Overview

2.1 The Franchise Fees Windfall Tax (Imposition) Bill 1997 imposes the windfall tax at a rate of 100%.

Summary of the provisions

Purpose of the provisions

2.2 The purpose of the Franchise Fees Windfall Tax (Imposition) Bill 1997 is to impose the windfall tax.

Date of effect

2.3 The Bill will apply from the same date as the Franchise Fees Windfall Tax (Collection) Bill 1997 which is proposed to commence on 5 August 1997. [Clause 2]

Explanation of the provisions

Title and scope of the Act

2.4 When the Bill is enacted, it will be called the Franchise Fees Windfall Tax (Imposition) Act 1997 [Clause 1] .

2.5 The Act will bind the Crown in all its capacities [Clause 3] .

Imposition of franchise fees windfall tax

2.6 The franchise fees windfall tax will be imposed at a rate of 100%. That is, the tax imposed is 100% of the taxable amount as described in the Franchise Fees Windfall Tax (Collection ) Act 1997. [Clause 4]