Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello MP)General outline and financial impact
Repeal of inoperative material in the tax laws
This Bill repeals over 4,100 pages of tax law provisions that have been identified as inoperative. This Bill also repeals a number of tax Acts that have been identified as inoperative.
An inoperative provision or Act is one which no longer applies to taxpayers, either because it has no effect after a date in the past or because all the transactions it did affect have now concluded.
Date of effect : This Bill has three main dates of effect:
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- Schedules 1 and 2 commence on Royal Assent but generally apply to the 2006-07 and later income years;
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- Schedules 3 and 4 commence on 1 January 2008 and generally apply to the 2007-08 and later income years; and
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- Schedule 5 commences on Royal Assent and applies to things done after that time.
Proposal announced : This measure was announced in the Treasurer's Press Releases No. 102 of 24 November 2005 and No. 018 of 4 April 2006.
Financial impact : Nil.
Compliance cost impact : This measure will reduce compliance costs for tax practitioners and provide material benefits to practitioners and taxpayers who read, interpret and apply the tax laws.