Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)General outline and financial impact
Indexation of thresholds and rebates
This Bill amends the Income Tax Assessment Act 1936 , the Fringe Benefits Tax Assessment Act 1986 (FBTAA) and the Sales Tax Assessment Act 1992 to ensure that the threshold and rebate levels that are indexed under the tax laws will not fall as a result of a decrease in the Consumer Price Index (CPI). The Bill also makes two minor technical amendments to the FBTAA.
Date of effect: The indexation amendments will apply from the 1998-1999 income tax, sales tax, and fringe benefits tax years and later years. The amendments to correct the minor technical errors will apply from the 1995-96 fringe benefits tax year and later years.
Proposal announced: The amendments to the threshold provisions were announced in the 1998-99 Budget.
Financial impact: The measure will not have a significant impact on the revenue.
Compliance cost impact: Compliance costs will be negligible.