Supplementary Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
General outline and financial impact
The amendments to the Taxation Laws Amendment (Research and Development) Bill 2001 (R & D Bill) make minor changes of a technical or clarifying nature. The amendments will ensure the R & D tax concession operates as intended. The majority of the amendments relate to the balancing charge and rollover relief provisions for depreciating assets used in R & D activities. There are also amendments which will ensure that R & D depreciating assets continue to be excluded from the capital gains tax provisions.
Date of effect: These amendments will commence at the same time as those contained in Division 2 of Part 3 of Schedule 2 to the R & D Bill.
Proposal announced: The amendments have not been previously announced.
Financial impact: The amendments have no effect on the financial impact of the measures in the R & D Bill.
Compliance cost impact: The amendments will involve no additional compliance costs.