Supplementary Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
General outline and financial impact
Schedule 2 to the Bill enables an employer to claim a credit for earlier fringe benefits tax (FBT) instalments where the notional tax amount is reduced during the FBT year (the 'credit measure'). The proposed amendments to Schedule 2 will change the application date of the crdit measure from 1 April 20001 to 1 April 2000.
Date of effect: The amendments relating to the credit measure will apply for the year of tax commencing on 1 April 2000 and all later years of tax.
Proposal announced: The original measures were announced in the Government's Tax Reform Document: Tax Reform: not a new tax, a new tax system (ANTS). These amendments have not been previously announce, but are not inconsistent with the ANTS announcement.
Financial impact: These amendments do not alter the original estimates contained in the explanatory memorandum to this Bill.
Compliance cost impact: There will be no change to the compliance costs as outlined in the explanatory memorandum to this Bill.