Date
This Appendix provides an outline of the changes to the list of tax expenditures since the 2013 Tax Expenditures Statement. Since the 2013 TES, 17 tax expenditures have been modified and 58 tax expenditures have been deleted.
B.1 Modified tax expenditures
Table B.1 reports tax expenditures that have been modified since they were last reported in the 2013 TES.
Modified tax expenditures refer to tax expenditures that have changed materially, for example because of a change to the benchmark, a measure that has been announced since the 2013 TES, a decision to remove a tax expenditure in a certain year, an amalgamation or split of tax expenditures, or the inclusion of a new element to an existing tax expenditure.
| TES code | Tax expenditure title | Modification to the tax expenditure |
|---|---|---|
| A19 | Medicare levy exemption for residents with taxable income below the low-income thresholds | The Medicare levy low-income threshold for families has been increased from the 2013-14 income year. |
| A29 | Dependency tax offsets | The Dependent Spouse Tax offset (DSTO) and the invalid relative, parent, parent-in-law, housekeeper, housekeeper (with child), child-housekeeper and child-housekeeper (with child) tax offsets are being abolished for all taxpayers from 1 July 2014, subject to passage of legislation. |
| A32 | Mature Age Worker Tax Offset | The Mature Age Worker Tax Offset is being abolished from 1 July 2014, subject to passage of legislation. |
| A40 | Exemption of Government contributions to First Home Saver Accounts | First Home Saver Accounts will be abolished from 1 July 2015 and eligibility for Government contributions will cease from 1 July 2014, subject to passage of legislation. |
| A42 | Tax treatment of First Home Saver Accounts earnings | First Home Saver Accounts will be abolished from 1 July 2015, subject to passage of legislation. |
| B10 | Concessional tax treatment of offshore banking units | Deferral of the start date of reforms to the offshore banking unit regime to income years commencing on or after 1 July 2015. |
| B39 | Farm Management Deposit scheme | Non-primary production income limit increased from $65,000 to $100,000. |
| B45 | Shipping — refundable tax offset for employers of qualifying Australian seafarers | The seafarer tax offset will be repealed from 1 July 2015. |
| B74 | Accelerated depreciation for software | The period over which capital expenditure on in house computer software is depreciated is to be increased from four years to five years. |
| B79 | Research and development — exemption of refundable tax offset (current scheme) | The rate of the research and development refundable tax offset will decrease from 45 per cent to 43.5 per cent of expenditure from 1 July 2014, subject to passage of legislation. |
| B80 | Research and development — non-refundable tax offset | The rate of the research and development non-refundable tax offset will decrease from 40 per cent to 38.5 per cent from 1 July 2014, subject to passage of legislation. |
| C11 | Tax on excess non-concessional superannuation contributions | Individuals will have the option to withdraw superannuation contributions in excess of the non-concessional contributions cap made from 1 July 2013 and any associated earnings, with the earnings to be taxed at the individual's marginal tax rate. |
| D23 | Certain relocation and recruitment expenses - exemption and reduction in taxable value | Exemption for engagement of a relocation consultant (D36 in the 2013 TES) and Reduction in taxable value of certain relocation and recruitment expenses (D49 in the 2013 TES) have been merged with Exemption for certain relocation and recruitment expenses (D31 in the 2013 TES). |
| F8 | Concessional rate of excise levied on aviation gasoline and aviation turbine fuel | From 1 February 2015, the re-introduction of biannual indexation by the consumer price index of excise for all fuels except aviation fuels. |
| F9 | Excise concessions for 'alternative fuels' | From 1 July 2015, ethanol and biodiesel excise rates will fall to zero. Over five years, rates will increase (in addition to indexation) until they reach energy content equivalency, discounted by 50 per cent. |
| F10 | Excise levied on fuel oil, heating oil and kerosene | From 1 February 2015, the re-introduction of biannual indexation by the consumer price index of excise for all fuels except aviation fuels. |
| F11 | Excise levied on fuel products used for purposes other than as fuel | From 1 February 2015, the re-introduction of biannual indexation by the consumer price index of excise for all fuels except aviation fuels. |
B.2 Deleted tax expenditures
Table B.2 reports tax expenditures that have been deleted since the 2013 TES. Deleted tax expenditures generally arise because the relevant tax provisions have been abolished or cease to have effect within the reported time horizon of a particular TES.
In the 2014 TES, deleted tax expenditures include tax expenditures that have been abolished and do not have an impact over the forward estimates.
| 2013 TES code | Tax expenditure title | Reason for deletion |
|---|---|---|
| A2 | Exemption of official salaries and certain other income of the Governor-General and Governor of any State | This exemption no longer exists as the current Governor-General and State Governors have all been appointed after 28 June 2001 and do not qualify for the tax exemption. |
| A16 | Education Tax Refund | The Education Tax Refund was abolished on 26 May 2012 when it was replaced by the Schoolkids Bonus. |
| A28 | Exemption of the Baby Bonus | The Baby Bonus was discontinued from 1 March 2014 and the Maternity Immunisation Allowance was discontinued from 1 July 2012. |
| A31 | Flood and cyclone reconstruction levy | The temporary flood and cyclone reconstruction levy expired on 30 June 2012. |
| A43 | Exemption of the first child tax offset (Baby Bonus) | The first child tax offset expired on 30 June 2009. |
| A44 | Exemption of Utilities Allowance and Seniors Concession Allowance | The Utilities Allowance and Seniors Concession Allowance expired on 20 September 2009. |
| A52 | Income tax exemption for LPG conversion grants | The LPG vehicle scheme expired on 30 June 2014. |
| A59 | Exemption of Tax Bonus for Working Australians | The Tax Bonus for Working Australians Repeal Act 2013 received royal assent on 27 May 2014 and has a date of effect from 28 May 2014. |
| A64 | A reasonable overtime meal allowance | Reporting modification - no tax expenditure exists. |
| A66 | Certain travel expenses in and outside Australia | Reporting modification - no tax expenditure exists. |
| B12 | Deemed tax credits under tax sparing provisions in Australia's tax treaties | Most of the tax sparing articles have expired or never entered into force. This no longer has an impact over the reported time horizon. |
| B31 | Exemption of Tobacco Growers Adjustment Assistance grants |
This no longer has an impact over the reported time horizon. |
| B39 | Conservation tillage refundable tax offset | The conservation tillage refundable tax offset was repealed as part of the repeal of the carbon pricing mechanism on 17 July 2014. |
| B45 | Tax exemption for farm help re-establishment grants | The Farm Help Re-establishment Grant Scheme was repealed with effect from 1 July 2014. |
| B47 | Infrastructure Bonds Scheme | The issue of certificates that give rise to the tax concessions has been terminated for new cases by the Taxation Laws Amendment (Infrastructure Borrowings) Act 1997. |
| B53 | 25 per cent entrepreneurs' tax offset | The entrepreneurs' tax offset was repealed with effect from the 2012-13 income year. |
| B55 | Capital protected borrowings | The concession expired on 30 June 2013. |
| B64 | New tax system for managed investment trusts | This no longer has an impact over the reported time horizon. |
| B65 | Philanthropy — Income tax exemption for certain non-charitable funds | Section 50-20 of the Income Tax Assessment Act 1997 was repealed by the Charities (Consequential Amendments and Transitional Provisions) Act 2013, which received Royal Assent on 28 June 2013, with a date of effect of 1 January 2014. |
| B70 | Pooled Development Funds | The Pooled Development Funds program was closed to applications for registration on 21 June 2007. |
| B74 | Tax incentives for film investment | The incentive expired on 1 July 2010. |
| B75 | Accelerated depreciation for grapevine plantings | This concession is not available for grapevines planted after 1 October 2004. |
| B78 | Landcare and water facility offset | This concession expired on 30 June 2001. |
| B85 | Capital expenditure deduction for mining, quarrying and petroleum operations | This concession expired on 30 June 2001. |
| B86 | Deduction for environmental protection activities and environmental impact studies | This concession expired on 30 June 2001. |
| B94 | Establishment costs for carbon sink forests | This concession expired on 30 June 2012. |
| B95 | Research and development — exemption of refundable research and development tax offset payments (former scheme) | The Research and Development tax offset expired on 30 June 2011. |
| B97 | Research and development — immediate deduction for expenditure on core technology | This deduction expired on 30 June 2011. |
| B99 | Research and development — premium tax concession for additional expenditure | This concession expired on 30 June 2011. |
| B100 | Research and development — Research and Development Tax Concession | This concession was abolished on 30 June 2011. |
| B103 | Small business and general business tax break | This concession expired on 31 December 2010. |
| B104 | Exemption of tax offsets paid under the National Urban Water and Desalination Plan | The tax offset expired on 30 June 2014. |
| B106 | Company loss carry-back | The loss carry back provisions ceased to apply commencing from the 2013-14 income year. |
| C10 | Superannuation — tax on excess concessional contributions | Reporting modification - this tax expenditure exists in C5 Concessional taxation of employer superannuation contributions and C8 Concessional taxation and exemption of certain personal superannuation contributions from the 2013 TES. |
| D25 | Discounted valuation of travel for airline employees and travel agents | Legislation was repealed in 2013. |
| D36 | Exemption for engagement of a relocation consultant | Reporting modification. This exemption is included in D31 Certain relocation and recruitment expenses - exemption and reduction in taxable value from the 2013 TES. |
| D49 | Reduction in taxable value of certain relocation and recruitment expenses | Reporting modification. This exemption is included in D31 Certain relocation and recruitment expenses - exemption and reduction in taxable value from the 2013 TES. |
| E21 | Capital gains tax roll-over for financial service providers on transition to the Financial Services Reform regime | This no longer has an impact over the reported time horizon. |
| E25 | Capital gains tax roll-over for transfer of Public Sector Superannuation Fund assets to pooled superannuation trust | This no longer has an impact over the reported time horizon. |
| E26 | Capital gains tax roll-overs to facilitate the consolidation of Commonwealth Superannuation Schemes | The consolidation of public sector superannuation funds was a one off event and expired on 30 June 2012. |
| F4 | Rebate for broadcasting licence fees | The rebate expired on 30 June 2012. |
| G1 | MRRT — denial of refund of tax credits for losses at project end | Repealed by the Minerals Resource Rent Tax Repeal and Other Measures Act 2014 on 5 September 2014. |
| G2 | MRRT — exemption for smaller miners | Repealed by the Minerals Resource Rent Tax Repeal and Other Measures Act 2014 on 5 September 2014. |
| G3 | MRRT — loss uplift rates exceeding the 10 year bond rate | Repealed by the Minerals Resource Rent Tax Repeal and Other Measures Act 2014 on 5 September 2014. |
| G4 | MRRT — royalty allowance uplift | Repealed by the Minerals Resource Rent Tax Repeal and Other Measures Act 2014 on 5 September 2014. |
| G5 | MRRT — starting base and uplift rate for capital assets | Repealed by the Minerals Resource Rent Tax Repeal and Other Measures Act 2014 on 5 September 2014. |
| G7 | Crude Oil Excise — condensate | This exemption expired on 30 June 2012. |
| G11 | PRRT — increased deduction for petroleum exploration expenditure in designated offshore frontier areas | The increased deduction expired in 2009. |
| G13 | PRRT — transfer of exploration expenditure between petroleum resource rent tax projects | This no longer has an impact over the reported time horizon. |
| H28 | GST – Clean Energy Future | The carbon pricing mechanism was repealed on 17 July 2014 by the Clean Energy Legislation (Carbon Tax Repeal) Act 2014. |
| I1 | CPM uncovered sectors — deforestation | The carbon pricing mechanism was repealed on 17 July 2014 by the Clean Energy Legislation (Carbon Tax Repeal) Act 2014. |
| I2 | CPM thresholds for obligations | The carbon pricing mechanism was repealed on 17 July 2014 by the Clean Energy Legislation (Carbon Tax Repeal) Act 2014. |
| I3 | CPM uncovered sectors — legacy emissions from synthetic greenhouse gases | The carbon pricing mechanism was repealed on 17 July 2014 by the Clean Energy Legislation (Carbon Tax Repeal) Act 2014. |
| I4 | CPM uncovered sectors — legacy landfill emissions | The carbon pricing mechanism was repealed on 17 July 2014 by the Clean Energy Legislation (Carbon Tax Repeal) Act 2014. |
| I5 | Synthetic greenhouse gases &m dash; exemptions for certain products |
The carbon pricing mechanism was repealed on 17 July 2014 by the Clean Energy Legislation (Carbon Tax Repeal) Act 2014. |
| I6 | CPM uncovered sectors — agriculture | The carbon pricing mechanism was repealed on 17 July 2014 by the Clean Energy Legislation (Carbon Tax Repeal) Act 2014. |
| I7 | CPM uncovered sectors — decommissioned mines | The carbon pricing mechanism was repealed on 17 July 2014 by the Clean Energy Legislation (Carbon Tax Repeal) Act 2014. |
| I8 | CPM — exclusion of the Joint Petroleum Development Area and Greater Sunrise Unit Area | The carbon pricing mechanism was repealed on 17 July 2014 by the Clean Energy Legislation (Carbon Tax Repeal) Act 2014. |