Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon. P.J. Keating, M.P.)
The amendments being made to counter provisional tax avoidance arrangements are expected to produce a one-off revenue gain of $50m in 1986-87.
The potential gain to the revenue arising from the removal of the tax exemption in respect of Secondary Allowances Scheme (SAS) payments is estimated to be negligible.
The revenue gain from the measures dealing with the source of natural resource income and the requirement for payers of natural resource income payments to remit regularly to the Commissioner amounts sufficient to meet the tax liabilities of the non-resident recipients is estimated to be just over $6m annually. However, for 1986-87 the revenue gain is estimated to be $11.7m reflecting the bringing forward of collections that would otherwise not have been received until 1987-88.
The amendments relating to options granted by companies or trustees of unit trusts are not expected to have a significant effect on revenue.
The amendments being made to the company instalment provisions of the income tax law are calculated to yield $220m in 1986-87, $230m in 1987-88 and $240m in 1988-89.
The revenue forgone by allowing the income tax rebate in respect of certain life assurance policies issued by the State Insurance Office of Victoria will be offset by amounts which the Victorian Government has agreed to reimburse to the Commonwealth.
The amendment to create a third statutory office of Second Commissioner of Taxation will have no direct revenue consequences. Salary costs will be funded by an appropriate reduction in Senior Executive Service positions.
The amendments relating to the payment of fees for taxation references to the Administrative Appeals Tribunal or a court are, based on the current rate of requests for reference, expected to yield $2m in a full year of operation.
The estimated revenue gain from increasing the rate of stamp duty on real property conveyances is $3m in a full year.
The proposed imposition of ACT stamp duty on grants of leases of land by the Commonwealth is estimated to yield a revenue gain of some $2m in a full year.
The revenue gain from including, in the base for stamp duty on conveyances of residential property, the value of chattels conveyed with the property is estimated to be about $300,000 in a full year.
Aligning the rate of stamp duty on the non-rent component of consideration for leases of land with that on the rent component is not expected to have any significant effect on revenue.
The revenue gain from the imposition of ACT tax on registrations of transfers of certain marketable securities is indeterminate.
The amendments being made by this Bill are not expected to have any significant effect on revenue.