Supplementary Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
Taxation Laws Amendment Bill (No. 5) 1999
This amendment removes Schedule 1, amendment of the Sales Tax (Exemptions and Classifications) Act 1992, from Taxation Laws Amendment Bill (No. 5) 1999 (TLAB 5).
This measure was first introduced into Parliament on 2 April 1998 in Taxation Laws Amendment Bill (No. 4) 1998. Because of the 1998 election the measure was reintroduced in TLAB 5 on 11 March 1999.
Given that sales tax ceased to apply from 1 July 2000 with the introduction of the GST, it is considered that the additional compliance burdens which taxpayers could face if the measure was passed outweigh the benefits that it could now provide. Consequently, it has been decided not to proceed with the amendments.
Financial impact: The initial financial impact of this measure was costed at $10 million in 1998 and $50 million in subsequent years.
This amendment deletes Schedule 1 to remove the proposed changes to the Sales Tax (Exemption and Classifications) Act 1992.