House of Representatives

Supplementary Explanatory Memorandum

Amendment to be moved on behalf of the Government (Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

General outline and financial impact

Amendments to the Taxation Laws Amendment Bill (No. 6) 1999

Amends item 34 of Part 3 of Schedule 1 of the Taxation Laws Amendment Bill (No.6) 1999 (TLAB 6) to:

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address the technical omission from its scope of taxation agreements that are with territories, rather than countries; and,

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ensure that the original amendments concerning income from spectrum licences derived through a permanent establishment apply in relation to taxation agreements generally, whether they have entered into force before the amending provisions of TLAB 6, or do so later.

Date of effect: The amendment does not affect the date of effect of the TLAB6 spectrum measures. Proposal announced: Treasurers Press Release No. 26 of 11 March 1998, as for the TLAB 6 spectrum measures. Financial impact: The financial impact of the measures is expected to be minimal. Cost of compliance impact: The compliance cost is expected to be minimum minimal since the amendment would reflect licence conditions attached to the spectrum licence.

Summary of Regulation Impact Statement

Impact: Low

Main points: The amendment does not change the regulation impact statement (RIS) contained in the explanatory memorandum (EM) to TLAB 6.

Policy Objective: The amendment does not change the RIS contained in the EM to TLAB 6.