Revised Explanatory Memorandum
(Circulated by the authority of the Treasurer, the Hon Wayne Swan MP)General outline and financial impact
Small Business and General Business Tax Break
This Bill amends the income tax law to provide a temporary bonus income tax deduction for new investment in tangible depreciating assets undertaken between 13 December 2008 and 31 December 2009.
Date of effect: These amendments apply to assessments for the 2008-09, 2009-10, 2010-11 and 2011-12 income years.
Proposal announced: This measure was announced in the Treasurer's Media Release No. 012 of 3 February 2009, Media Release No. 141 of 12 December 2008 and as part of the 2009-10 Budget of 12 May 2009.
Financial impact: The amendments are estimated to have a total cost to the Budget of $3.7 billion from 2009-10 to 2012-13.
Impact on fiscal balance: This measure will have the following revenue implications:
| 2008-09 | 2009-10 | 2010-11 | 2011-12 | 2012-13 |
| Nil | -$1,470m | -$1,863m | -$562m | $153m |
Compliance cost impact: Low.