Supplementary Explanatory MemorandumAmendments to be moved on behalf of the Government (Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
General outline and financial impact
Amends the income tax law to raise the threshold above which the medical expenses rebate applies.
Date of effect: Applies for the income year 1996-97 and subsequent income years.
Proposal announced: 1996-97 Budget, 20 August 1996.
Financial impact: This measure is expected to raise $45 million in
1997-98, $45 million in 1998-99 and $50 million in 1999-00.
Compliance cost impact: There will be no additional compliance costs in regard to this measure as taxpayers will not be required to keep additional records. To qualify for the rebate taxpayers will have to keep records of medical expenses as they do under the existing law.