Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon. P.J. Keating M.P.)FINANCIAL IMPACT
TAXATION LAWS AMENDMENT BILL (NO. 2) 1987
Any revenue forgone by the changes to the substantiation rules relating to deductions for car expenses will arise from relaxing the stringent requirements to document business kilometres by continuous log book records and to evidence car fuel costs by receipts. It is not possible to accurately estimate the amounts, but they could be significant.
The revenue implications of the amendments associated with the imputation system form part of the estimated net cost of that system of $50 million in 1987-88 and $300 million per annum thereafter.
The amendment relating to the film concession provisions of the income tax law will not have any significant effect on revenue.
The amendments relating to the access and information gathering provisions of the taxation laws will have no direct effect on revenue.
The extension of debits tax to debits made to payment order accounts with non-bank financial institutions will prevent the unquantifiable, but possibly substantial, cost to the revenue that would result if those debits were not included in the debits tax base. The revenue gain from the other substantive amendments of the debits tax legislation is likely to be minimal but will prevent erosion of the tax base.
The cost to revenue of the exemption from ACT tax of premiums in respect of international trade insurance should be negligible.
The revenue cost of exempting first year apprentices and trainees from ACT pay-roll tax is estimated to be $220,000 for 1987-88. A reliable estimate of the cost for subsequent years is not available.
The amendments relating to acting arrangements for the Commissioner and Second Commissioners of Taxation will have no effect on revenue.
The transfer of administrative responsibility for ACT stamp duties and taxes will have no net effect on Commonwealth revenue.
BANK ACCOUNT DEBITS TAX AMENDMENT BILL 1987
As announced in the 1986-87 Budget, the revenue loss from abolishing the higher rates of bank account debits tax in the ACT, and certain ACT stamp duties on financial transactions, will be broadly offset by the revenue gain from the introduction of a financial institutions duty in the ACT on 1 July 1987.