Second Reading Speech
As part of the Government's reform of business taxation, this bill introduces a new simplified imputation system which will replace the current imputation system. The measure provides further evidence of the Government's commitment towards business tax reform.
After extensive consultation, the Ralph Review of Business Taxation, recommended redesigning of the company tax and imputation system to achieve:
- integrity through the entity chain;
- simplification of the franking account;
- refunding excess imputation credits; and
- the reduction of the company tax rate.
This bill introduces the simplification proposals into the tax laws. Measures such as refunding excess imputation credits and the reduction of the company tax rate have already been introduced by the Government and been passed by Parliament.
The simplified imputation system will apply from 1 July 2002.
Full details of the measures in this bill are contained in the explanatory memorandum.
I commend this bill and present the explanatory memorandum.