Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)General outline and financial impact
Venture capital
Schedule 1 to this bill makes amendments to the venture capital regime to ensure that the regime operates as intended and to extend eligibility for the concession to investments in a holding company that meet the eligibility criteria.
Date of effect: 1 July 2002.
Proposal announced: This measure was announced in the Minister for Revenue and Assistant Treasurer's Press Release No. C027/04 of 6 May 2004.
Financial impact: Nil.
Compliance cost impact: Nil.
Worker entitlement funds
Schedule 2 to this bill amends the Fringe Benefits Tax Assessment Act 1986 to extend by one year the transitional arrangements for the fringe benefits tax (FBT) exemption for certain contributions to worker entitlement funds.
Date of effect: The amendment applies for the FBT year beginning 1 April 2004.
Proposal announced: This measure was announced in the Minister for Revenue and Assistant Treasurer's Press Release No. C019/04 of 1 April 2004.
Financial impact: Nil.
Compliance cost impact: Nil.
Technical corrections to foreign tax credit provisions
Schedule 3 to this bill changes the provisions that allow foreign tax credits to arise in particular circumstances to ensure those provisions refer to the correct paragraphs in the general foreign tax credit provisions.
Date of effect: The amendments have effect from the date of Royal Assent to correct a technical problem with the current application of the relevant provisions.
Proposal announced: This measure has not previously been announced.
Financial impact: Nil.
Compliance cost impact: The amendments in this bill make a technical correction to the law to ensure the correct paragraph references are inserted in the particular foreign tax credit provisions.