Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon. P.J. Keating, M.P.)FINANCIAL IMPACT
INCOME TAX ASSESSMENT AMENDMENT BILL 1989
The estimated gain to the revenue from the introduction of twice-monthly payment of tax instalment deductions is $550 million in 1989-90. This gain is in the form of a one off bring forward of revenue. Additionally, outlays on public debt interest will reduce by $20 million in 1989-90 and $70 million in subsequent years.
The increase in the threshold below which quarterly instalments of provisional tax are not payable is estimated to increase outlays on public debt interest by $20 million in 1989-90, $18 million in 1990-91 and $15 million per annum in subsequent years.
The adoption of a reduced uplift factor of 10 per cent for the calculation of 1989-90 provisional tax will result in an estimated cost to revenue of $160 million in 1989-90.
INCOME TAX AMENDMENT BILL (No.2) 1989
This Bill will formally impose tax payable for the 1989-90 financial year.
MEDICARE LEVY AMENDMENT BILL 1989
The estimated cost of the increased Medicare levy low income thresholds is $10 million in 1989-90 and $35 million in 1990-91.