Supplementary Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
General outline and financial impact
The amendments to Schedule 2 to Taxation Laws Amendment Bill (No. 2) 2002 will:
- extend, from 1 July 2002 until 31 December 2002, the exemption from tax that applies to investment income received by friendly societies that is attributable to funeral policies, scholarship plans and income bonds sold after 30 November 1999; and
- ensure that life insurance companies do not have to change the basis for working out the deduction for the capital component of ordinary life insurance investment policies.
Date of effect: 1 July 2001.
Proposal announced: Minister for Revenue and Assistant Treasurer's Press Release No. C46 of 14 May 2002.
Financial impact: The proposed amendments will have a marginal but unquantifiable revenue cost.
Compliance cost impact: Nil.