Revised Explanatory Memorandum
(Circulated by authority of the Minister for Revenue and Financial Services, Minister for Women and Minister Assisting the Prime Minister for the Public Service, the Hon Kelly O'Dwyer MP)General outline and financial impact
Enterprise tax plan base rate entities
Schedule 1 to this Bill amends the Rates Act to ensure that a corporate tax entity will not qualify for the lower corporate tax rate if more than 80 per cent of its assessable income is income of a passive nature.
Date of effect: The measure applies from the 2017-18 income year.
Proposal announced: The proposal was announced by the Minister for Revenue and Assistant Treasurer on 18 September 2017.
Financial impact: The measure is expected to have a small but unquantifiable gain to revenue.
Human rights implications: This Bill does not raise any human rights issues. See Statement of Compatibility with Human Rights - paragraphs 1.27 to 1.30.
Compliance cost impact: Low.