Part 1: Revenue Measures (Continued)
Treasury
Personal income tax — 50 per cent tax discount for interest income — revised policy
| 2009‑10 | 2010‑11 | 2011‑12 | 2012‑13 | 2013‑14 | |
|---|---|---|---|---|---|
| Australian Taxation Office | - | - | - | 470.0 | 200.0 |
| Related expense ($m) | |||||
| Department of Veterans' Affairs | - | - | - | -0.1 | .. |
| Department of Health and Ageing | - | - | -0.3 | -1.9 | -1.2 |
| Department of Education, Employment and Workplace Relations | - | - | -2.1 | -0.9 | - |
| Department of Families, Housing, Community Services and Indigenous Affairs | - | - | -26.9 | -16.2 | -2.9 |
| Centrelink | - | -0.4 | -0.5 | 1.5 | 0.8 |
| Australian Taxation Office | - | -2.9 | -12.5 | 5.7 | 0.7 |
| Total | - | -3.3 | -42.2 | -11.9 | -2.5 |
| Related capital ($m) | |||||
| Australian Taxation Office | - | -1.9 | -2.4 | 4.3 | - |
The Government will defer the commencement of the 50 per cent tax discount for interest income announced in the 2010‑11 Budget by 12 months and lower the cap on interest income that is eligible for the discount in its first 12 months of operation. Under the revised measure, the Government will provide individuals with a 50 per cent tax discount on up to $500 of interest income received in 2012‑13, and up to $1,000 of interest income received each year from 1 July 2013.
This change will deliver savings of $730 million over the forward estimates which will go towards funding the Government's Regional Australia Package.
Personal income tax — exemption of payments made to individuals affected by Thalidomide
| 2009‑10 | 2010‑11 | 2011‑12 | 2012‑13 | 2013‑14 | |
|---|---|---|---|---|---|
| Australian Taxation Office | - | - | - | - | - |
The Government will provide an income tax exemption for certain payments made to individuals affected by their mothers' use of the morning sickness drug Thalidomide from 1 July 2010. These payments will be made to individuals with significant physical disabilities. The payments would otherwise be exempt but for the fact they are paid periodically over the course of the recipient's lifetime or until the funds are exhausted. This measure has no revenue impact.
Philanthropy — updating the list of specifically listed deductible gift recipients
| 2009‑10 | 2010‑11 | 2011‑12 | 2012‑13 | 2013‑14 | |
|---|---|---|---|---|---|
| Australian Taxation Office | - | - | -0.2 | - | - |
| Related expense ($m) | |||||
| Department of Families, Housing, Community Services and Indigenous Affairs | - | - | -0.2 | - | - |
Since the 2010 Pre-Election Economic and Fiscal Outlook, the following organisation has been approved as a deductible gift recipient (DGR):
- the Mary MacKillop Canonisation Gift Fund, from 5 August 2010 until 30 June 2011.
Taxpayers may claim an income tax deduction for certain gifts of money or property to DGRs. This measure has an estimated cost to revenue of $0.15 million in the 2011‑12 financial year.
This measure delivers on the Government's election commitment and will be fully offset from the Community Investment Program. See also the related expense measure titled Canonisation of Mary MacKillop — celebrations under the Families, Housing, Community Services and Indigenous Affairs portfolio.
This measure delivers on the Government's election commitment.
Tax Breaks for Green Buildings
| 2009‑10 | 2010‑11 | 2011‑12 | 2012‑13 | 2013‑14 | |
|---|---|---|---|---|---|
| Australian Taxation Office | - | - | - | -15.0 | -120.0 |
| Related expense ($m) | |||||
| Department of Climate Change and Energy Efficiency | - | - | - | - | - |
| Various Agencies | - | - | - | -15.0 | -120.0 |
| Total | - | - | - | -15.0 | -120.0 |
Businesses that undertake a retrofit of certain commercial buildings between 1 July 2011 and 30 June 2015 that significantly improves their energy efficiency will be able to apply for a one-off bonus tax deduction.
Eligibility for the bonus tax deduction will be determined by a competitive approval process, as well as a requirement to demonstrate that the desired improvement in energy efficiency has been achieved. This will ensure that projects that deliver the best environmental outcomes are prioritised, and that the scheme is managed on a fiscally responsible basis.
This measure is expected to reduce taxation revenue by $135.0 million over the forward estimates period. This measure also includes an increase in funding for the Department of Climate Change and Energy Efficiency of $14.6 million over the same period to administer the program.
The cost of this measure will be met from the existing funding provision for the Renewable Energy Future Fund.
This measure delivers on the Government's election commitment.
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