House of Representatives

Supplementary Explanatory Memorandum & Correction to Explanatory Memorandum

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

Correction to explanatory memorandum

2.79 Page 114, paragraph 5.25:

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change 'section 8-10' to 'section 8-5'.

2.80 Page 120, paragraph 5.48:

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insert 'and other fees that are currently exempt from tax' after 'premium-based fees'.

2.81 Page 133, paragraph 5.122:

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change 'section 320-120' to 'section 320-170'.

2.82 Page 154, Example 5.3:

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after 'Tax' insert '(including tax on transfer)'.

2.83 Pages 159 and 160, Example 5.5:

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fifth dot point - replace the words in the brackets with 'i.e. the gross gain without indexation ($400) reduced by the amount referable to eligible policies as calculated under section 112A ($40)';

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sixth dot point - replace the dot point with '$180 - that is, the amount calculated applying subsection 116CB(2) to the non-exempt modified capital gain (60% divided by 90% $270)'; and

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last dot point - replace the dot point with '$160 - that is,

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the amount calculated applying subsection 116CB(2) to the non-exempt modified discount capital gain (60% divided by 90% $360 = $240)

less

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a one-third CGT discount ($80) - the result of applying new paragraph 116CD(7)(b)'.

2.84 Page 179, paragraph 5.319:

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change '2000' to '2001'.

2.85 Page 185, Appendix 5A:

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change 'p320-205(4)(f)' to 'p320-205(4)(a)'.