Supplementary Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
General outline and financial impact
The amendments to the Thin Capitalisation Bill will ensure that the new thin capitalisation regime will operate as intended. There are a number of amendments as a result of the consideration of submissions made after the Thin Capitalisation Bill was introduced on 28 June 2001. Other amendments will ensure the integrity of the new regime. The amendments also make a number of changes which are of a technical and clarifying nature.
There are also a number of corrections to the explanatory memorandum that clarify the operation of the Thin Capitalisation Bill.
Date of effect: 1 July 2001.
Proposal announced: Not previously announced.
Financial impact: The proposed changes will have a marginal but unquantifiable revenue cost.
Compliance cost impact: Overall, the amendments will involve a net reduction in compliance costs as compared with the operation of the Thin Capitalisation Bill.