Senate

Taxation Laws Amendment Bill (No. 4) 1993

Supplementary Explanatory Memorandum

Amendments and requests for amendments to be moved by the Government

(Circulated by the authority of the Treasurer the Hon Ralph Willis, M.P.)

General Outline and Financial Impact

Amendments

Leases of luxury cars

Omits from the Bill the amendments designed to ensure that the luxury car depreciation limits were not avoided by the use of the "finance method" to return lease income form the leasing of luxury motor vehicles, as the Commissioner of Taxation has succeeded in challenging this particular arrangement in the courts.

Date of effect: No longer relevant.

Proposal announced: Not previously announced.

Financial Impact: None.

Penalties for over-franking dividends

Amends the provisions of the Bill relating to penalties for over-franking dividends) to ensure the amendments proposed will operate entirely on a prospective basis.

Date of effect: 14 December 1993.

Proposal announced: Not previously announced.

Financial Impact: None.

Heritage conservation rebate

Amends the heritage conservation rebate provisions to reflect the changed administrative arrangements by replacing references to the Minister for and the Department of the Arts and Administrative Services with the Minister for and the Department of Communications and the Arts.

Date of effect: Royal Assent.

Proposal announced: Not previously announced.

Financial Impact: None.

Superannuation Guarantee amendments - Seafarers' Retirement Fund

Amends the Bill to ensure that all employers in the maritime industry who contribute to the Seafarers' Retirement Fund can use the Benchmark Rate specified in the Fund's trust deed as a notional earnings base.

Date of effect: 1 July 1992.

Proposal announced: Not previously announced.

Financial impact: None.

Requests for amendments

Payment of instalments by companies and certain trustees

Amends the Bill to provide that the grouping rules for the new company tax instalment regime commence from the 1995-96 year of income.

Date of effect: Royal Assent.

Proposal announced: Not previously announced.

Financial impact: None.

Deductions allowable to life insurance companies and registered organisations

Amends the income tax provisions that provide deductions for expenditure incurred by life insurance companies and registered organisations in obtaining premiums which are excluded from assessable income. The amendments will limit deductions to expenses incurred directly in getting in Australian premiums which are invested to produce assessable income.

Date of effect: The amendments will take effect from either the year of income in which 1 July 1988 occurred or from 1 January 1990 or 1 July 1994.

Proposal announced: Treasurer Press Release of 2 December 1993.

Financial impact: The amendments protect revenue of approximately $3.8 billion up to the year ended 30 June 1993 as well as future revenue of approximately $0.9 billion per year.


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