Explanatory Memorandum PART A(Circulated by authority of the Treasurer, the Hon. P.J. Keating, M.P.)
The potential saving to the revenue arising from the introduction of the finance leasing measures is estimated to be in excess of $100m for 1985-86 and even larger amounts for subsequent years.
The introduction of the statutory investment rules for employer-sponsored superannuation funds should have no effect on the revenue.
The estimated cost of increasing from $1,200 to $1,500 the maximum deduction for superannuation contributions by self-employed persons and "unsupported" employees is nil in 1985-86, $14m in 1986-87, and $10m in 1987-88.
The estimated cost of increasing from $50,000 to $55,000 the upper limit of lump sum termination payments taxed at a maximum rate of 15% is $0.5m in 1985-86, rising to $8m per annum in future when payments are wholly attributable to the post-June 1983 period.
The proposed abolition of the concessional expenditure rebate will result in a revenue gain of $15m in 1985-86 and $80m in a full year.
Provision of a medical and hospital expense rebate will have a negligible revenue effect in 1985-86, but a full year cost of $20m.
The estimated cost of exempting the income of animal racing clubs is nil in 1985-86 and $1m in a full year.
The estimated cost of allowing a deduction of up to $1000 per election for expenses incurred by taxpayers in seeking election to local government or the Australian Capital Territory House of Assembly is nil in 1985-86 and $2m in a full year.
The estimated cost of increasing the rebate of tax available to taxpayers in receipt of social security unemployment, sickness or special benefits is nil in 1985-86 and $9m in a full year.
The revenue cost of extending the income tax gift provisions to admit the Australian Academy of the Humanities and the Royal Australian and New Zealand College of Psychiatrists is estimated at nil for 1985-86 and less than $200,000 for a full year.
The Commonwealth/State and Territory co-operation measures will require some commitment of Australian Taxation Office resources. However, reciprocal State and Territory co-operation has the potential to yield revenue for the Commonwealth and offset administration costs.
The proposed amendments of the taxation secrecy provisions to bring within their scope persons who are not actually appointed or employed by, but perform duties for, the Commonwealth are of an administrative nature and will have no revenue consequences.
The revenue gain from removing the ceiling on the Medicare levy payable by individuals and married couples is estimated at $7m in 1985-86 and $12m in a full year. The estimated cost of increasing the low income thresholds is $10m in 1985-86 and $15m in a full year.