Appendix A: Policy Decisions Taken Since the 1999-2000 Budget

Revenue ($m)

Explanation

This measure reflects the Government’s decision to remove tariffs lower than 5 per cent, which each raised less than $100,000 in revenue in 1996-97 and offer little or no protective benefit to industry. This decision was announced on 11 October 1999 to come into effect on 15 December 1999.

Revenue ($m)

Explanation

This measure reflects the Government’s decision to refine its September 1998 decision to remove tariffs on medical and scientific equipment by reinstating tariffs on certain non-medical and non-scientific equipment, in particular, meters and tape measures. The decision to reinstate the tariffs came into effect on 3 September 1999.

Revenue ($m)

Explanation

The UN will reimburse Australia for some of the costs of the Australian Defence Force (ADF) deployment in East Timor. The amounts included in Budget figuring are estimates of likely UN reimbursements based on current planning scenarios.

Further Information

For further information see the related revenue measure Defence — East Timor levy, expense and net capital investment measures under the Defence portfolio entitled East Timor peace enforcement and peacekeeping, and expense measures entitled Civilian police for the UN Transitional Administration in East Timor in the Attorney-General’s portfolio; Aid for East Timor in the Foreign Affairs and Trade portfolio and Provision of safe haven to internally displaced persons from East Timor in the Immigration and Multicultural Affairs portfolio.

Revenue ($m)

Explanation

The Government has agreed to the sale of surplus Halon 1301 to the United States Department of Defense. The Australian Halon Management Strategy allows for the sale of surplus Commonwealth Halon 1301 to parties to the Montreal Protocol on Substances that Deplete the Ozone Layer for use in essential use applications.

Further Information

See also the related expense measure under the Environment and Heritage portfolio entitled Sale of Halon to the United States for essential use.

Revenue ($m)

Explanation

The Government has decided to extend, until March 2003, the arrangements for statutory self-regulation of the migration advice industry that came into effect in March 1998. Under these arrangements the migration advice industry was moved from full government regulation to statutory self-regulation under the auspices of the Migration Agents Registration Authority (MARA). These arrangements were subject to a sunset clause and were due to cease operation in March 2000. The extension of statutory self-regulation will encourage further development of industry standards and competency levels while ensuring consumer protection.

Further Information

See also the related expense measure under the Immigration and Multicultural Affairs portfolio titled Extension of regulation of the migration advice industry.

Revenue ($m)

Explanation

The revenue cost of the levy in 2001-02 reflects the normal process of refunds on assessment for most taxpayers.

Further Information

For further information see the related revenue measure United Nations reimbursements for East Timor deployment, expense and net capital investment measures under the Defence portfolio entitled East Timor peace enforcement and peacekeeping, and expense measures entitled Civilian police for the UN Transitional Administration in East Timor in the Attorney-General’s portfolio; Aid for East Timor in the Foreign Affairs and Trade portfolio and Provision of safe haven to internally displaced persons from East Timor in the Immigration and Multicultural Affairs portfolio.

Revenue ($m)

Explanation

These changes to the personal income tax scales are illustrated in the following table.

Further Information

The revenue cost of this measure is reflected in the associated legislation that was introduced into Parliament in June 1999 and differs slightly from the costing announced by the Prime Minister in his press release of 28 May 1999.

Revenue ($m)

Explanation

• Australian Ex-Prisoners of War Memorial Fund, from 20 October 1999 to 19 October 2001; and
• The Global Foundation, from 3 November 1999.

Revenue ($m)

Explanation

On 19 August 1999, the Government announced that it would allow immediate tax deductibility for small and medium-sized businesses for expenditure required on new plant equipment or software for the purposes of implementing the GST. This concession will apply to businesses with a turnover of not more than $10 million, for expenditure incurred in the 1999-2000 financial year.

Revenue ($m)

Explanation

In partnership with the Sidney Myer Fund, the Government will establish the Australian Rural Partnerships Foundation. This foundation will assist regional, rural and remote communities to respond to social, cultural and economic change. The Foundation will be granted gift deductibility status for private sector and other contributions.

Revenue ($m)

Explanation

This measure provides an exemption from income tax for business re-establishment grants made from the Cyclones Elaine and Vance Trust Fund. This trust fund was established in the wake of the damage to Exmouth, Western Australia and its surrounding districts by Cyclones Elaine and Vance in March 1999.

Revenue ($m)

Explanation

• the element of Overseas Living Allowance that compensates for cost of living differences.

Revenue ($m)

Explanation

An exit programme will assist those dairy farmers leaving the industry through non-taxable grants of up to $45,000. As a consequence, Commonwealth revenue may decrease by up to $1 million per year for each of the eight years of the programme. This aside, the package has no budgetary impact as it is fully funded by levy revenue.

Further Information

• monitoring of prices, costs and profits of businesses dealing with liquid milk product sales by the Australian Competition and Consumer Commission (ACCC).

Revenue ($m)

Explanation

In addition, Australia has also signed comprehensive taxation agreements with the Republic of South Africa, the Slovak Republic and the Argentine Republic for the avoidance of double taxation and the prevention of fiscal evasion. These agreements are expected to be revenue neutral.

The New Business Tax System

Further information on these measures can be found in the Treasurer’s Press Releases No. 58 of 21 September 1999 and No. 74 of 11 November 1999, and the document A Tax System Redesigned released by the Ralph Committee.

Revenue ($m)

Explanation

The rate of company tax will be reduced to 34 per cent for the 2000-01 income year and to 30 per cent from the 2001-02 income year. From 1 July 2001, these rates will also apply to other entities taxed like companies, such as trusts. The reduction in the company tax rate will make Australia a more internationally competitive location for business activity.

Revenue ($m)

Explanation

The key elements of the unified entity regime, and their associated revenue implications, are described individually. The revenue estimates for those separate components of the regime take into account features such as the treatment of non-commercial loans from members of closely held entities and the consistent treatment of entity distributions.

Revenue ($m)

Explanation

The revenue impact identified above represents the effect of modifying the business tax measures outlined in A New Tax System.

Revenue ($m)

Explanation

The revenue impact identified above represents the effect of modifying the business tax measures outlined in A New Tax System.

Revenue ($m)

Explanation

The revenue impact identified above represents the effect of modifying the business tax measures outlined in A New Tax System.

Revenue ($m)

Explanation

The revenue impact identified above represents the effect of modifying the business tax measures outlined in A New Tax System. It includes the effect of the introduction of a common start for life insurance policyholder measures.

Further Information

The revenue effect of delaying the life insurance policyholder measures until 1 July 2001 is included in the revenue measure Delayed commencement of life policyholder reform.

Revenue ($m)

Explanation

As a transitional measure related to the introduction of the taxation reform of life insurers, one-third of a life insurer’s management fees derived from life insurance policies taken out before 1 July 2000 will be exempt from tax during the five years following commencement of the new regime. This measure is to commence from 1 July 2000.

The transitional measure allows the up-front costs incurred by life insurers in obtaining existing life insurance business to continue to be recouped through the collection of management fees over the five-year transitional period.

The revenue impact identified above represents the effect of modifying the business tax measures outlined in A New Tax System.

Revenue ($m)

Explanation

The measure was originally announced to commence from 11.45am AEST; 21 September 1999 (see Treasurer’s Press Release No. 58 of 21 September 1999). The delayed commencement of the measure will allow Friendly Societies time to establish benefit funds and appropriate disclosure documents to cater for the new arrangements.

Revenue ($m)

Explanation

The revenue impact identified above represents the effect of modifying the business tax measures outlined in A New Tax System.

Revenue ($m)

Explanation

The rules for an entity bringing losses into a consolidated group and pooling the losses within the group replace the entitlement of that entity, outside of consolidation, to offset a loss carried forward against its own future income or capital gains. They also replace the entitlement, under the existing law, of the entity to transfer losses to members of the same wholly owned company group.

Revenue ($m)

Explanation

With the consolidated tax treatment for groups of companies and trusts, outlined in A New Tax System, to commence from 1 July 2001, existing grouping provisions will be repealed. This will prevent the creation of artificial losses by value shifting between companies in the same group and duplication of losses through multiple layers of ownership (that is, through company chains). The interim measures, Interim value shifting and loss duplication measures, will apply from 22 February 1999 until the commencement of consolidation.

Revenue ($m)

Explanation

The rollover relief measures will have effect from date of announcement. The transitional rollover relief measure will apply until 1 July 2001.

Revenue ($m)

Explanation

The revenue estimates for the measure reflect the impact of removing accelerated depreciation for all taxpayers. The effect of excluding small businesses from the measure is reflected in the measure Small business exemption from accelerated depreciation, balancing charge offset and low-value pooling measures.

Revenue ($m)

Explanation

The revenue estimates for the measure reflect the impact of removing the balancing charge offset for all taxpayers. The effect of excluding small businesses from the measure is reflected in the measure Small business exemption from accelerated depreciation, balancing charge offset and low-value pooling measures.

Revenue ($m)

Explanation

The revenue estimates for the measure reflect the impact of allowing pooling for all taxpayers. The effect of excluding small businesses from the measure is reflected in the measure Small business exemption from accelerated depreciation, balancing charge offset and low-value pooling measures.

Revenue ($m)

Explanation

Australian companies will be able to write off expenditure on indefeasible rights of use over telecommunications submarine cable systems. The measure applies to contracts entered into after 11.45 am AEST; 21 September 1999.

Revenue ($m)

Explanation

Assets commenced to be constructed or acquired before 1 July 2001 will retain access to the current allowable capital expenditure provisions.

Revenue ($m)

Explanation

The measure also includes access to a simplified trading stock regime, which will provide an alternative to an annual requirement for stocktaking and stock valuation.

Revenue ($m)

Explanation

From 1 July 2001, as part of The Simplified Tax System, small businesses with a three-year annual average turnover of less than $1 million will be subject to a simplified depreciation regime. This will include access to a pooling arrangement for assets with effective lives of less than 25 years and immediate write-off for assets costing less than $1,000. The pooled assets will be depreciated at a declining balance rate of 30 per cent per annum.

Revenue ($m)

Explanation

To qualify for accelerated depreciation tax benefits, the plant and equipment may not be used predominantly for leasing or for related activities (other than short-term hire). This means that plant and equipment used in rental properties would not be eligible for accelerated depreciation.

Revenue ($m)

Explanation

Indexation of the cost base for calculating capital gains for individuals was frozen as at 30 September 1999 and averaging of capital gains is no longer available, with effect from 21 September 1999.

For assets acquired at, or prior to, 11.45 am AEST; 21 September 1999, and held for at least one year, individual taxpayers are to have the choice of including in their assessable income either half the realised nominal gain, or the whole of the difference between the disposal price and the frozen indexed cost base. For assets acquired after 11.45 am AEST; 21 September 1999, and held for at least one year, capital gains are to be taxed at half the difference between the disposal price and the original cost.

Revenue ($m)

Explanation

For assets acquired at, or prior to, 11.45 am AEST; 21 September 1999, and held for at least one year, complying superannuation and related funds are to have the choice of including in their assessable income either two-thirds of the nominal gain or the whole of the difference between the disposal price and the frozen indexed cost base. For assets acquired after 11.45 am AEST; 21 September 1999, and held for at least one year, capital gains are to be taxed at two-thirds of the difference between the disposal price and the original cost.

Revenue ($m)

Explanation

This is consistent with the freezing of indexation at 30 September 1999 for individuals and for superannuation and related funds. While companies will lose the benefit of indexation, they will receive the ongoing benefit of a lower company tax rate. In addition, shareholders that are either individuals or superannuation funds will benefit directly from CGT reform.

Revenue ($m)

Explanation

CGT rollover relief will be provided when there is an exchange of interests in companies or fixed trusts because of a takeover. The measure is to apply to companies and trusts regardless of whether or not they are widely held. As a result, CGT liability will be deferred at the time of the takeover until ultimate disposal of the replacement asset. The measure will take effect from the date of Royal Assent of the relevant legislation.

Revenue ($m)

Explanation

Investment in innovative Australian firms will be promoted by providing certain CGT exemptions for Australian superannuation funds and non-resident tax-exempt pension funds. Australian widely held superannuation funds will be provided with an exemption where they receive income from a Pooled Development Fund that represents gains on the disposal of eligible venture capital investment. Non-resident tax-exempt pension funds from certain countries will be tax exempt on gains on the disposal of eligible venture capital investments. The measure commences on the date of Royal Assent of the relevant legislation.

Revenue ($m)

Explanation

The existing 50 per cent CGT goodwill exemption is to be replaced by a 50 per cent CGT exemption on active business assets (including goodwill) disposed of by small business taxpayers with effect from 21 September 1999. The CGT small business rollover and retirement exemption provisions are to be streamlined with effect from 21 September 1999.

Revenue ($m)

Explanation

The measure was required in order to address the tax avoidance opportunities that were highlighted in A Platform for Consultation, which was released on 22 February 1999.

Revenue ($m)

Explanation

The first measure prevents loss duplication through a chain of companies upon transfer of revenue losses. The second measure denies tax recognition of artificial losses that are the result of a valuable debt between two commonly owned companies being forgiven by the creditor company.

Revenue ($m)

Explanation

• excess deductions carried forward from the previous income year that were available to a taxpayer at 11.45 am AEST; 21 September 1999 are to be treated as allowable deductions at that time, rather than at the end of the income year as was previously the case; and
• deductions for exploration and prospecting expenditure and allowable capital expenditure, including deductions allowable under the measure component above, will be deductible without limit. If these deductions exceed the available income, the excess will contribute to a tax loss for the year. This applies to assessments for the 1999-2000 income year and later income years.

Revenue ($m)

Explanation

The measure was originally announced to commence from 11.45 am AEST; 21 September 1999 (see Treasurer’s Press Release No. 58 of 21 September 1999). The delayed commencement will synchronise the commencement of this measure with the measure Prevent inter-entity loss multiplication and, thus, significantly reduce compliance costs.

Revenue ($m)

Explanation

• there is no substantial change in the proportionate shareholding among a group of continuing owners; and
• majority ownership is maintained throughout the period from when the loss was incurred.

Revenue ($m)

Explanation

With effect from 21 October 1999, where an asset that has declined in value is sold by one company to another within the same majority-owned group, tax system recognition of the revenue or capital loss will be deferred until the group disposes of the asset. The measure will be of less significance, but still required, when consolidated tax treatment replaces the existing grouping provisions for wholly owned company groups, as under consolidation the tax system disregards transactions between entities within a consolidated group.

Revenue ($m)

Explanation

This measure will prevent carry-forward losses of a company in which ownership has changed from being replicated through the disposal of equity or debt in entities interposed between the loss company and its original underlying owners.

Revenue ($m)

Explanation

The measures apply general value shifting rules to assets of entities and interests in entities, including shares in companies and units in trusts, and are to take effect from 1 July 2001. The measures relating to interests in entities will generally apply to interests of controllers and their associates. Entities within consolidated groups will not be subject to these rules. These measures will prevent inappropriate tax outcomes (including artificially increased capital losses and artificially reduced capital gains) resulting where value is shifted between entities or between assets. These measures are related to the Interim value shifting and loss duplication measures, which are to take effect from 22 February 1999.

Revenue ($m)

Explanation

Individuals not carrying on a business, and small businesses with a three-year average annual turnover of less than $1 million are exempt from the measure. From 1 July 2001 small business taxpayers operating under The Simplified Tax System will remain exempt from this reform, as outlined in Cash accounting for small business.

Revenue ($m)

Explanation

This measure will mean that all revenue prepayments relating to participation in a tax shelter will be deducted over the period to which they relate. If, in substance, the payment contributes to the creation of, or is directed towards acquiring, an asset — that is, it is of a capital nature — it will not be immediately deductible, consistent with the current law. The created or acquired asset will then be treated under the relevant provisions of the tax law.

Revenue ($m)

Explanation

For those activities meeting at least one of the listed criteria, losses are deductible against other income in the same income year, or a future year. If a loss cannot be offset against other income in the year that it arises, the loss can be offset in a future year when there is a profit from this, or a like, activity, or against other income when one of the criteria is satisfied. This measure takes effect from 1 July 2000.

Revenue ($m)

Explanation

Deductions for work related expenses will be limited to those that would be allowable if the individual were employed directly by the service requirer.

Revenue ($m)

Explanation

Dividend streaming and franking credit trading rules are to be amended to reduce the 45 day holding period with effect from 1 July 2000 (and with the length of the reduced holding period to be decided after further analysis and consultation). The exemption for small transactions is to be raised from $2,000 to $5,000 to apply for the 1999-2000 and subsequent income years. The rules applying to trusts will also be simplified and clarified prior to the commencement of the unified entity regime.

Revenue ($m)

Explanation

Under existing arrangements shareholders of Australian companies that are expanding offshore can face high effective tax rates on their foreign investment. This can arise where foreign company tax, foreign DWT and personal tax are imposed on foreign source income distributed to shareholders. This measure will allow companies to partially frank their dividends where they have paid foreign DWT on foreign source income, thereby reducing the effective rate of tax on offshore investments.

Revenue ($m)

Explanation

This measure will replace the existing thin capitalisation provisions and allow the removal of quarantining of interest expenses on foreign source income and the repeal of the debt creation rules.

Revenue ($m)

Explanation

The tax legislation will be amended to counter the avoidance by non-residents of Australian CGT by disposing of an interposed entity holding Australian assets rather than the assets themselves. The measure will be targeted at tax avoidance rather than commercial transactions. The regime will not apply where the gain on the sale of an interposed entity is subject to tax in a broad exemption listed country or would have been subject to tax in such a country except for recognised rollover relief. The measure will apply from 1 July 2001.

Revenue ($m)

Explanation

The revenue impact of this measure is included in the estimates relating to the deferred company tax measure in A New Tax System and Removing the intercorporate dividend rebate on unfranked dividends.

Revenue ($m)

Explanation

The revenue impact of this measure is included in the estimates relating to taxing trusts as companies.

Revenue ($m)

Explanation

The revenue impact of this measure is included in the estimates for taxing trusts like companies.

Revenue ($m)

Explanation

These measures are to counter the disincentive to employing foreign expatriates caused by Australia’s residency rules and the high top personal tax rate. The tightening of other rules ensures that Australian tax is collected on income earned in Australia by foreign expatriates.

Revenue ($m)

Explanation

This measure will address an inequity in the tax system. It will apply, for example, where land may be subject to a mining lease or a private utility has recourse to a statutory power to acquire and the vendor has little choice but to sell. The measure applies to involuntary disposals after 1.00 pm AEDST; 11 November 1999.

Revenue ($m)

Explanation

The revenue estimates for the measure reflect the impact of allowing this consistent taxation treatment across all types of blackhole expenditures except for those relating to the taxation of leases and rights.

Revenue ($m)

Explanation

• implementing a cashflow/tax value approach to determining taxable income;
• rules for assigning tax value to different types of assets and liabilities;
• the treatment of leases and rights and financial assets and liabilities;
• including buildings and structures as part of a simplified depreciation regime;
• the treatment of partnerships and other joint activities;
• a treatment of interest and private items;
• a high level arm’s length rule; and
• foreign source income rules and other aspects of international taxation.

Revenue ($m)

Explanation

The rate of excise on diesel fuel that contains sulphur levels above 50 parts per million (ppm) will be increased. This will encourage the production and consumption of more environmentally-friendly fuel types by private users and urban transport.

Further Information

The relevant excise payable on high sulphur fuel above 50 ppm will increase by 1 cent per litre from 1 January 2003 and 2 cents per litre from 1 January 2004.

Revenue ($m)

Explanation

A rebate of diesel fuel excise will be provided for the off-road use of diesel and like fuels under the DFRS. The full rebate will be provided to existing eligible activities under the DFRS — for agriculture, fishing, mining operations and ‘other’ (hospitals, nursing and aged persons homes and other medical institutions, and electricity generation at residential premises). In addition, the full rebate will be extended to business use of rail transport and marine use.

Further Information

These rebates will no longer be able to be obtained for excise paid on diesel that is used in construction, power generation or manufacturing as proposed in A New Tax System. This represents a saving of revenue to the Government.

Revenue ($m)

Explanation

As part of the amendments to A New Tax System announced by the Prime Minister on 31 May 1999, the Government will not rebate the excise on diesel used for power generation and will use the funds to finance Special Purpose Payments for the States and Territories.

Further Information

This measure reflects the revenue implications of not providing a diesel fuel credit that would have been provided by the Commonwealth under A New Tax System. Information on the corresponding payment to the States and Territories can be found in the related expense measure Supporting renewable remote power generation.

Revenue ($m)

Explanation

This measure removes concessional tax treatment of alcohol based food essences that are retailed in bottle sizes greater than 50 ml (or 100 ml in the case of vanilla essence). These essences are highly alcoholic and sold in bottle sizes much larger than those traditionally associated with retail food essences. This measure applies the same tax treatment as that applicable to spirit based beverages.

Revenue ($m)

Explanation

The amendments will apply to dealings in such vehicles on or after 26 June 1998, the date the NSW Government announced the release of 400 additional wheelchair accessible taxi licenses.

Revenue ($m)

Explanation

The Government will extend to all employers the FBT exemption that currently applies to remote area housing provided by primary producers. This measure will take effect from 1 April 2000.

Revenue ($m)

A New Tax System announced that the FBT gross-up rate would be changed from July 2000 to ensure neutrality of treatment between cash salary and fringe benefits following the introduction of the GST. In order to avoid disadvantaging employers in situations where GST input credits are not available, employers will be allowed to apply the existing FBT gross-up formula to fringe benefits on which no GST is payable, or where input credits may not be claimed. The GST-inclusive gross-up will apply in all other situations.

Revenue ($m)

Explanation

This measure reflects the estimated increase in compensation from the States and Territories which will result from the ATO incurring higher administrative costs associated with the exclusion of items such as basic food from the GST revenue base.

Further Information

For further information, see the related expense measure Funding for the ATO to cover the increased cost of administering the GST.

Expenses ($m)

Explanation

The Government has agreed to provide an additional $500,000 to the Australian Bureau of Agricultural and Resource Economics (ABARE) to undertake research on trade liberalisation and to disseminate the results, particularly amongst developing countries.

Further Information

ABARE has committed these funds for World Trade Organisation agricultural trade research. Industry has agreed to match the Government’s contribution.

Expenses ($m)

Explanation

The second element provides for around $6 million over two years to establish a Lamb Industry Development Programme. This programme will provide assistance to industry to enhance performance, improve lamb quality, develop new markets, develop infrastructure and encourage improved on-farm productivity and innovation.

Expenses ($m)

Explanation

This is a cross portfolio measure between Agriculture, Fisheries and Forestry — Australia, the Department of Family and Community Services and the Department of Health and Aged Care.

Expenses ($m)

Explanation

This is a cross portfolio measure between Agriculture, Fisheries and Forestry — Australia, the Department of Family and Community Services and the Department of Health and Aged Care.

Expenses ($m)

Explanation

In addition, the Government has decided to provide the AFP with an equity injection of $105 million from 1999-2000 to 2001-02 to enable it to extinguish accumulated liabilities under the present Australian Federal Police Adjustments Scheme (AFPAS) and the Cessation Payment Scheme. These schemes are planned to cease on 5 January 2000, subject to the adoption of a new Certified Agreement. The funding will allow members of the AFP to access any outstanding entitlements accrued under the AFPAS scheme, which commenced in 1990. It is anticipated that payments made to employees as a result of the extinguishment will be spread over three years.

Expenses ($m)

Explanation

The Government will provide funding for the AFP to contribute to the UN Transitional Administration in East Timor (UNTAET) civilian police force. The additional funding is for 80 personnel, including the use of police from other jurisdictions. The AFP’s role will also extend to providing assistance in designing and establishing a new law and order infrastructure in East Timor. Funding for 2000-01 and beyond will be considered in the 2000-01 Budget process.

Further Infomation

For further information see the related expense and net capital investment measure under the Defence portfolio entitled East Timor peace enforcement and peacekeeping, and expense measures entitled Aid for East Timor in the Foreign Affairs and Trade portfolio; Provision of safe haven to internally displaced persons from East Timor in the Immigration and Multicultural Affairs portfolio. In addition, there are two related revenue measures entitled UN reimbursements for East Timor deployment and Defence — East Timor levy.

Expenses ($m)

Explanation

A key objective of these trials will be the integration of services across the three tiers of government, building on the success of Service Tasmania. The TIGERS programme will complement the Building IT Strengths, Intelligent Island and local government programmes to maximise local Tasmanian involvement in the development of innovative government service delivery solutions.

Expenses ($m)

Explanation

As part of the Telstra Social Bonus Programme associated with the sale of a further 16.6 per cent of Telstra, the Government will provide an additional $3 million for a national community education programme to promote safe Internet content. This funding will also provide for research and development grants to develop online content software, including means for providing adult verification of overseas sourced content at the Internet Service Provider level. The NetAlert Secretariat will be located in Tasmania with oversight and policy direction from a board with national representation.

Expenses ($m)

Explanation

The Fund will be used to assist local government authorities in regional Australia to provide online access to their own information and services and public points of access to advanced telecommunications services such as the Internet. Each State will be allocated funding of $6 million; $6 million will be divided among the Territories; and the remaining $3 million will be maintained in a national pool.

Expenses ($m)

Explanation

As part of the Telstra Social Bonus Programme associated with the sale of a further 16.6 per cent of Telstra, the Government will provide $15 million over the period 1999-2000 to 2003-04 to establish a multimedia development centre in Tasmania. This programme also provides for a development fund for small businesses and advanced Internet access in Launceston linking up to 5,000 customers. The Government’s contribution of $15 million will be matched by an equal contribution from Telstra. These initiatives are intended to develop information technology and telecommunication skills in Tasmania.

Expenses ($m)

Explanation

• $40 million for developing Tasmania as an Intelligent Island building on existing Tasmanian Government initiatives to develop further an internationally competitive IT&T sector. The programme will be overseen by a Board comprising representatives of the Commonwealth and Tasmanian governments, industry and the Tasmanian tertiary education sector.

Expenses ($m)

Explanation

In addition to the Commonwealth’s contribution of $15 million, Telstra will provide $5 million and an additional $12 million will be allocated from Tasmania’s existing Networking the Nation allocation. The Tasmanian Government is expected to provide a further $16 million, bringing the total programme budget to $48 million. The computers and networks provided will be equipped with appropriate filtering technology to protect children from exposure to unsuitable material.

Expenses ($m)

Explanation

As part of the Telstra Social Bonus Programme associated with the sale of a further 16.6 per cent of Telstra, the Government has decided to provide an additional $3 million in 1999-2000 to expand mobile phone coverage in major regional centres in South Australia, Western Australia and Tasmania. $1 million is to be allocated to each State. This initiative builds on funding of $25 million announced in 1998, which provided for continuous mobile phone coverage along the nation’s busiest highways.

Expenses ($m)

Explanation

The programme will work with State and Territory Governments and regional communities to agglomerate demand for telecommunications services in regional areas and in doing so improve the commercial case for enhanced services. The programme will promote innovative solutions for service delivery (eg wireless and satellite) and provide scope for new commercial entrants to offer services to regional Australia and enhancing competition in these areas.

Expenses ($m)

Explanation

The deployment of ADF personnel in East Timor also involves a cost to the budget through the income tax exemption for pay and allowances of ADF personnel on eligible duty in a specified area outside Australia (Section 23AD of the Income Tax Assessment Act 1936). It is estimated that this exemption will reduce revenue by around $131 million over the next four years relative to budget-time estimates. This cost is included in budget figuring as a variation rather than a measure because the exemption is allowed under existing legislation.

Further Information

For further information see the related net capital investment measure under the Defence portfolio entitled East Timor peace enforcement and peacekeeping, and expense measures entitled Civilian police for the UN Transitional Administration in East Timor in the Attorney-General’s portfolio; Aid for East Timor in the Foreign Affairs and Trade portfolio; Provision of safe haven to internally displaced persons from East Timor in the Immigration and Multicultural Affairs portfolio. In addition, there are two related revenue measures entitled UN reimbursements for East Timor deployment and Defence — East Timor levy.

Expenses ($m)

Explanation

This is a cross portfolio measure between the Department of Education, Training and Youth Affairs and the Department of Family and Community Services.

Expenses ($m)

Explanation

To be eligible for additional funding, universities must demonstrate improvements to work practices and that their enterprise agreements with staff include flexibilities which will improve the capacity of universities to meet the needs of students and the academic community.

Expenses ($m)

Explanation

• new apprenticeships for the eco-tourism sector.

Expenses ($m)

Explanation

The measure will apply only to continuing students aged 21 years and over who are not eligible for mainstream-related entitlements and clients in receipt of the Pensioner Education Supplement. Benefits will be grandfathered at 1999 rates for the duration of continuing students’ existing courses.

Expenses ($m)

Explanation

The Government will provide $75 million in grants over four years from 2000-01 to 2003-04 under The New Tax System — Measures for a Better Environment to implement an Alternative Fuels Conversion Programme. This programme supports the conversion of conventionally fuelled vehicles with a gross vehicle mass weight of at least 3.5 tonnes to either Compressed Natural Gas (CNG) or Liquid Petroleum Gas (LPG).

Expenses ($m)

Explanation

The Government will provide $31 million over four years from 2000-01 to 2003-04 under The New Tax System — Measures for a Better Environment to support the utilisation of photovoltaics on residential and community use buildings. A cash rebate will be available where residences and community use buildings such as schools and community halls are installed with a photovoltaic system for the conversion of sunlight into electricity. This measure will not cover solar thermal generation, such as solar hot water systems because these systems will benefit from the Government’s proposed +2 per cent renewables target programme.

Expenses ($m)

Explanation

The Government will provide $26 million over four years from 2000-01 to 2003-04 under The New Tax System — Measures for a Better Environment to boost the commercialisation of renewable energy. The additional funding will be integrated with the Renewable Energy Commercialisation Programme announced in the Prime Minister’s November 1997 Safeguarding the Future statement.

Expenses ($m)

Explanation

The Government will provide up to $264 million over four years from 2000-01 to 2003-04 under The New Tax System — Measures for a Better Environment as rebates to support the replacement of diesel powered remote power generation with renewable energy. Funding will be made available via the Australian Greenhouse Office to States and Territories to subsidise cash rebates up to 50 per cent of the capital value of renewable remote area power supply systems.

Further Information

This decision is based on the premise that some $66 million a year is collected from excise on diesel for power generation. For further information, see the related revenue measure Supporting renewable remote power generation.

Expenses ($m)

Explanation

The Government will provide a further $400 million over four years from 2000-01 to 2003-04 under The New Tax System — Measures for a Better Environment through the Greenhouse Gas Abatement Programme to support measures, particularly in rural and regional areas, that assist Australia in meeting its obligations on climate change. The measure will support activities that are likely to lead to substantial reductions in greenhouse emissions or substantial enhancement of carbon sinks; and are consistent with ecologically sustainable development. In making programme choices the Government will also take into account the potential for job creation, new technologies, innovative processes, export potential and the capacity of the programme to act as a catalyst for further non-government investment.

Expenses ($m)

Explanation

The Government will provide $40 million over four years from 2000-01 to 2003-04 under The New Tax System — Measures for a Better Environment to develop a diesel NEPM. The NEPM will address the issue of emissions from all diesel vehicles currently in use in Australia (the ‘in-service fleet’) through the establishment of in-service emission standards and testing capabilities in each major city. Furthermore, the NEPM will explore the option of extending the use of these testing facilities to an inspection and maintenance testing programme for petrol vehicles.

Expenses ($m)

Explanation

The Government will provide $60 million over four years from 2000-01 to 2003-04 under The New Tax System — Measures for a Better Environment to support the development of a comprehensive system of product stewardship and assist the development of environmentally and ecologically sustainable refining and reuse of waste oil.

Expenses ($m)

Explanation

The Government will provide funds of $286,000 for heritage grants projects in 1999-2000 to be offset from unexpended National Estate Grants Programme money to be returned to the Commonwealth from several States. Grants will be provided for the Irish Famine Memorial, the search for the HMB Endeavour, a feasibility study for the development of an aquatic park/nature reserve at Serpentine Creek, Queensland and additional grants under the Cultural Heritage Projects Programme.

Expenses ($m)

Explanation

The Government has agreed that proceeds from the sale of surplus Halon 1301 to the United States Department of Defense should be retained by the Department of the Environment and Heritage to fund ozone protection activity including the ongoing management of the National Halon Bank.

Further Information

See also the related revenue measure under the Environment and Heritage portfolio titled Sale of Halon to the United States for essential use.

Expenses ($m)

Explanation

The Government will provide $470,000 in 1999-2000 to meet a shortfall in estimated receipts from the EMC.

Further Information

The Great Barrier Reef Marine Park Authority receives a Special Appropriation equivalent to the EMC. Funding for the Authority was reduced in the 1996-97 Budget proportionate to a rise in the revenue expected to be received through an increase in the EMC. The level of the EMC was ultimately set at $4 per visitor per day with a range of concessions available. The availability of concessions had a higher than estimated impact on EMC revenue and has led to a shortfall in funding for the Authority.

Expenses ($m)

Explanation

This is a cross portfolio measure between the Department of Family and Community Services and the Department of Veterans’ Affairs.

Expenses ($m)

Explanation

The legislative amendments for this initiative are contained in the Social Security (Family Allowance & Related Matters) Legislation Amendment Act 1999 that received Royal Assent on 22 September 1999. A technical amendment to the Health Insurance Act 1973 further ensures that young people covered by this initiative will retain their Health Care Card. This benefit may be claimed as a direct payment, or through the taxation system as a rebate.

Expenses ($m)

Explanation

Participating couples will have access to pre-marriage education from a range of accredited providers. Relationship education kits will also be made available to couples in rural and remote areas and to those who prefer an alternative approach.

Further Information

This initiative responds to a key recommendation of the Report of the House of Representatives Standing Committee on Legal and Constitutional Affairs (To Have and to Hold). This report highlights the importance of pre-marriage education in developing lasting relationship skills.

Expenses ($m)

Explanation

• the person did not receive in excess of $1,000 of income from business or wages.

Further Information

The qualification criteria for the original SFRSB group (ie, people of age pension age or over on 1 July 2000) remain unchanged (ie, they have to be an Australian resident on 1 July 2000; they are not allowed to have received a Commonwealth Income Support Payment from 1 April 2000 until 30 June 2000; and they must have over $1,000 of annual savings and investment income).

Expenses ($m)

Explanation

The measure provides assistance to people who are homeless or at risk of homelessness due to social disadvantage or housing and income crisis. The measure relates to all three key aspects of the portfolio’s strategic framework: preventing dependency, providing assistance in times of need and promoting engagement in work and other aspects of life.

Further Information

SAAP services are currently delivered through a network of approximately 1,200 community organisations. SAAP is Australia’s primary service delivery response to homelessness including, for example, homeless youth and domestic violence victims and aims to provide transitional support and accommodation in order to help homeless people or those at risk to achieve self-reliance and independence.

Expenses ($m)

Explanation

This measure demonstrates the Government’s commitment to people with disabilities.

Expenses ($m)

Explanation

This is a cross portfolio measure between the Department of Finance and Administration and the Department of Family and Community Services.

Expenses ($m)

Explanation

This is a cross portfolio measure between the Department of Finance and Administration and the Department of Family and Community Services.

Expenses ($m)

Explanation

The Government has decided that the Department of Finance and Administration is to provide assistance to Commonwealth agencies with the implementation of the GST. A unit is to be established within the Department to ensure that agencies receive the coordinated advice necessary for successful implementation of the GST, and to monitor the progress of implementation by agencies. The cost of $4.5 million for establishing and maintaining the unit is to be funded using the Department’s existing cash reserves.

Expenses ($m)

Explanation

The HIPC Initiative is a multilateral plan to provide debt relief to the world’s poorest countries who are pursuing sound adjustment and reform programmes supported by the International Monetary Fund (IMF) and World Bank. The Government recognises that international debt is a serious problem and supports the HIPC initiative as part of a lasting solution to this.