Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
General outline and financial impact
This Bill amends the Income Tax Rates Act 1986 to reduce the company tax rate:
- to 34% from 36% for the 2000-2001 year of income; and
- to 30% from 34% for the 2001-2002 and later years of income.
Date of effect : The amendments giving effect to the 34% rate apply to assessments for the 2000-2001 year of income. The amendments giving effect to the 30% rate apply to assessments for the 2001-2002 and later years of income.
Proposal announced : The proposal was announced in Treasurer's Press Release No. 58 of 21 September 1999 (in particular, refer to Attachment A of that Press Release).
Financial impact : The following table sets out the financial impact of the reduction in the company tax rate:
Compliance cost impact : Negligible.