Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon. P.J. Keating, MP)
The estimated cost to revenue of amending the Income Tax Rates Act 1986 to reduce the personal rates of tax (ed note: word 'tax' inserted) is as follows-
|Changes to personal income tax rate scale for residents||4,750||5,480|
|Changes to personal income tax rate scale for non-residents||Nil||2|
|Changes to the rate of tax on the unearned income of minors - Division 6AA of Part III of the Income Tax Assessment Act 1936||Nil||1|
The estimated revenue effects of the reduction in the rate of fringe benefits tax are $55 million in 1990-91 and $60 million in 1991-92.
The estimated cost of the change in the rate of tax on certain interest paid by companies on bearer debentures is expected to be negligible.
The changes to the trust recoupment tax legislation should have no effect on the revenue.
The estimated cost of the increases in the levels of concessional rebates for dependants is as follows-
|Rebate for -|
|.||spouse, daughter - housekeeper or housekeeper||127||190||220|
|.||parent or parent-in-law||1||1||1|