House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon. Paul Keating, M.P.)

GENERAL OUTLINE

Bank Account Debits Tax Administration Amendment Bill 1984

This Bill will amend the bank account debits tax law to:

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exempt debits made to an account of an organisation whose sole function is support of a specified public benevolent or religious institution, hospital, school, college or university that is presently exempt from the bank account debits tax;

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exempt debits made in relation to a minor or insignificant business activity of a government body (including local municipal councils) that does not carry out as its sole or principal function an activity in the nature of a business;

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make it clear that a tax exemption provision contained in the enabling legislation of a government body does not apply to exempt that body from bank account debits tax; and

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vary a machinery provision dealing with the lodgment by banks of returns relating to exempt accounts.

Bank Account Debits Tax Amendment Bill 1984

This Bill will exempt debits of less than $1 and increase the rate of tax on debits of $10,000 or more from $1 to $1.50.