© Commonwealth of Australia 2001
ISBN 0 642 74085 2
This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth available from Info Products. Requests and inquiries concerning reproduction and rights should be addressed to:
The Manager
Legislative Services
Info Products, Finance
GPO Box 1920
CANBERRA ACT 2601
A copy of this document and other Treasury information appears on the Treasury Website. The Treasury Website address is:
Printed by CanPrint Communications Pty Ltd.
Contents |
||
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 Trends in tax expenditures 5
2.3 Tax expenditures by function 6
2.4 Comparison with direct expenditure 8
2.5 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 Changes from 2000 TES 21
4.1 Introduction 21
4.2 New tax expenditures 21
4.3 Modified tax expenditures 22
4.4 Deleted tax expenditures 24
Chapter 5 Tax expenditure estimates 25
5.1 Introduction 25
5.2 Accrual estimates 25
Appendix A Description of tax expenditures 47
A Personal income tax benchmark 47
B Retirement benefits benchmark 60
C Fringe benefits tax benchmark 62
D Business tax benchmark 73
E Excise duty benchmark 98
Appendix B Superannuation benefits 101
B.1 Scope 101
B.2 Interpretation 102
B.3 Estimates 102
Index 105
List of tables
Table 2.1: Total measured tax expenditures 5
Table 2.2: Aggregate tax expenditures by function 7
Table 2.3: Aggregate tax expenditures and direct expenditures
by function in 2000-01 9
Table 2.4: Aggregate tax expenditures by taxpayer affected 11
Table 5.1: Tax expenditures reference table 28
Table B1: Estimated tax expenditures through superannuation tax
concessions, 1997-98 to 2004-05 104
Acronyms |
||
|
ABARE |
Australian Bureau of Agricultural and Resource Economics |
|
ADF |
Australian Defence Force or Approved Deposit Fund |
|
CDEP |
Community Development Employment Project |
|
CFC |
Controlled foreign companies |
|
CGT |
Capital gains tax |
|
CRAFT |
Commonwealth Rebate for Apprentice Full-time Training |
|
DEP |
Dairy Exit Program |
|
DTA |
Double taxation agreement |
|
DWT |
Dividend withholding tax |
|
ETM |
Economic transaction method |
|
ETP |
Eligible termination payment |
|
FBT |
Fringe benefits tax |
|
FIF |
Foreign investment fund |
|
FBTAA86 |
Fringe Benefits Tax Assessment Act 1986 |
|
FTB |
Family Tax Benefit |
|
FTCS |
Foreign tax credit system |
|
GDP |
Gross domestic product |
|
GST |
Goods and services tax |
|
IED |
Income equalisation deposits |
|
ITAA36 |
Income Tax Assessment Act 1936 |
|
ITAA97 |
Income Tax Assessment Act 1997 |
|
ITLAA00 |
Indirect Tax Legislation Amendment Act 2000 |
|
IWT |
Interest withholding tax |
|
LICs |
Listed investment companies |
|
LPG |
Liquefied petroleum gas |
|
MYEFO |
Mid-Year Economic and Fiscal Outlook |
|
na |
Not available |
|
nec |
not elsewhere classified |
|
OECD |
Organisation for Economic Co-operation and Development |
|
PBI |
Public benevolent institution |
|
|
Pooled development fund |
|
RHQ |
Regional headquarters |
|
PNG |
Papua New Guinea |
|
R&D |
Research and development |
|
SHS |
Schanz-Haig-Simons |
|
STS |
Simplified Tax System |
|
TES |
Tax Expenditures Statement |
|
TLM |
Tax liability method |
|
UPP |
Undeducted purchase price |
|
WET |
Wine equalisation tax |
|
Y2K |
Year 2000 (compliance) |