© Commonwealth of Australia 2001
ISBN 0 642 74052 6
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Contents |
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Chapter 1 Introduction 1
1.1 Background 1
1.2 What is a tax expenditure? 1
1.3 Purpose of this Statement 2
1.4 Interpretation of tax expenditure estimates 3
1.5 Structure of this Statement 4
Chapter 2 Overview of tax expenditure aggregates 5
2.1 Introduction 5
2.2 Tax expenditures by function 5
2.3 Comparison with direct expenditure 8
2.4 Tax expenditures by taxpayer affected 10
Chapter 3 Methodology 13
3.1 Defining benchmarks 13
3.2 General features of the taxation benchmark 14
3.3 The personal income tax benchmark 15
3.4 The retirement benefits benchmark 16
3.5 The fringe benefits tax benchmark 16
3.6 The business tax benchmark 17
3.7 The excise duty benchmark 19
Chapter 4 Tax reform and other changes 21
4.1 Introduction 21
4.2 The effects of tax reform on tax expenditures 21
4.3 Changes in tax expenditures since 1997-98 23
Chapter 5 Tax expenditure estimates 29
5.1 Introduction 29
5.2 Accrual estimates 29
Appendix A Description of tax expenditures 49
A Personal income tax benchmark 49
B Retirement benefits benchmark 62
C Fringe benefits tax benchmark 63
D Business tax benchmark 74
E Excise duty benchmark 96
Appendix B Superannuation benefits 99
B.1 Scope 99
B.2 Interpretation 100
B.3 Estimates 100
Index 103
List of tables
Table 2.1 Aggregate tax expenditures by function 7
Table 2.2 Aggregate tax expenditures and direct expenditure by function in 1999-2000 9
Table 2.3 Tax expenditures by taxpayer affected 11
Table 5.1 Tax expenditures reference table 32
Table B1 Estimated tax expenditures through superannuation tax concessions, 1996-97 to 2003-04 102
Acronyms |
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ABARE |
Australian Bureau of Agricultural and Resource Economics |
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ADF |
Australian Defence Force or Approved Deposit Fund |
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CDEP |
Community Development Employment Project |
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CFC |
Controlled foreign companies |
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CGT |
Capital gains tax |
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DTA |
Double taxation agreement |
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DWT |
Dividend withholding tax |
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ETM |
Economic transaction method |
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ETP |
Eligible termination payments |
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FBT |
Fringe benefits tax |
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FIF |
Foreign investment funds |
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FBTAA86 |
Fringe Benefits Tax Assessment Act 1986 |
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FTB |
Family Tax Benefit |
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FTCS |
Foreign tax credit system |
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GST |
Goods and services tax |
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IED |
Income equalisation deposit |
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ITAA36 |
Income Tax Assessment Act 1936 |
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ITAA97 |
Income Tax Assessment Act 1997 |
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ITLAA00 |
Indirect Tax Legislation Amendment Act 2000 |
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IWT |
Interest withholding tax |
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LPG |
Liquefied petroleum gas |
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MYEFO |
Mid-Year Economic and Fiscal Outlook |
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na |
Not available |
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nec |
not elsewhere classified |
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OECD |
Organisation for Economic Co-operation and Development |
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PBI |
Public benevolent institution |
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Pooled development funds |
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RHQ |
Regional headquarters |
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PNG |
Papua New Guinea |
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R&D |
Research and development |
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SHS |
Schanz-Haig-Simons |
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TES |
Tax Expenditures Statement |
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TLM |
Tax liability meth |
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UPP |
Undeducted purchase price |
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WET |
Wine equalisation tax |
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Y2K |
Year 2000 (compliance) |