Supplementary Explanatory Memorandum and Correction to the Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)General outline and financial impact
Income tax-related transactions
The amendments to Part 3 of Schedule 1 to the bill, which allows entities to transfer certain income tax amounts without attracting goods and services tax, will:
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- ensure that the provisions apply where entities are no longer members of the same wholly-owned group at the time of the transfer; and
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- apply the measure from 1 July 2000.
Date of effect: The amendments apply, and are taken to have applied, in relation to net amounts for tax periods starting (or that started) on or after 1 July 2000.
Proposal announced: Not announced.
Financial impact: Negligible.
Compliance cost impact: Nil.
General insurance
The amendments to Schedule 2 to the bill ensure that net premium income is effectively spread over the relevant period of risk of a general insurance policy and that the measures in the bill apply to all companies that carry on general insurance business.
Date of effect: As per explanatory memorandum.
Proposal announced: Not previously announced.
Financial Impact: Nil.
Compliance cost impact: Nil.
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