House of Representatives

Supplementary Explanatory Memorandum and correction

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

Chapter 3 - Small business taxpayers

Omit paragraph 3.12.

Insert the following:

3.12 Turnover does not include things that are not supplies, such as dividend receipts, and non-business supplies as is usually the case for interest and rent received by an individual.

Omit paragraph 3.25.

Insert the following:

3.25 Group turnover does not include:

•

supplies not made in the ordinary course of carrying on a business for example, the proceeds of sale of a capital asset, goods taken for own use and rental and interest receipts (unless the rental or lending activities constitute business activities); and

•

things that do not constitute the making of a supply for example, dividend receipts.