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Part 2: Expense Measures (Continued)

Treasury

Education Tax Refund — extension

Expense ($m)

	2009‑10	2010‑11	2011‑12	2012‑13	2013‑14
Australian Taxation Office	-	-	110.0	110.0	120.0

The Government will extend the Education Tax Refund (ETR) to include expenditure incurred on school uniforms from 1 July 2011. The ETR provides a refundable tax offset for 50 per cent of eligible education expenses, up to a maximum amount. For expenses incurred in 2009‑10, the maximum amount of ETR is $390 for each eligible primary school student and $779 for each eligible secondary school student. In later years, these maximum amounts will increase in line with increases in the Consumer Price Index. Following the change, eligible expenses will include the costs of computers, computer software for educational use, school text books, stationery and uniforms.

This increases expenses by $340.0 million over the forward estimates.

The measure has a lower impact of $220.0 million on the underlying cash balance over the forward estimates. This is because the fiscal balance impact occurs in the year in which the expense is incurred, whereas the impact on underlying cash occurs when refunds are paid.

This measure delivers on the Government's election commitment.

This measure was originally reported in the Economic Statement 2010.

Financial Reporting Panel — termination

Expense ($m)

	2009‑10	2010‑11	2011‑12	2012‑13	2013‑14
Department of the Treasury	-	-0.1	-0.4	-0.4	-0.4

The Government will wind up the operations of the Financial Reporting Panel in 2010‑11 due to a lower than expected referral rate. The Panel had the function of resolving disputes between the Australian Securities and Investments Commission and companies concerning accounting treatments in companies' financial reports.

This measure will provide savings of $1.2 million over four years. Lower savings are expected in 2010‑11 due to the need to ensure the Panel's existing commitments are met.

This measure was originally reported in the Economic Statement 2010.

Regional Infrastructure Fund — additional funding

Expense ($m)

	2009‑10	2010‑11	2011‑12	2012‑13	2013‑14
Department of the Treasury	-	100.0	100.0	100.0	100.0

The Government will provide $400 million over four years to the Regional Infrastructure Fund. The Fund was established to reinvest the proceeds of the resources boom in regional Australia.

This measure was originally reported in the Pre-Election Economic and Fiscal Outlook 2010.

Stronger, fairer, simpler — resource exploration refundable tax offset — reversal

Expense ($m)

	2009‑10	2010‑11	2011‑12	2012‑13	2013‑14
Australian Taxation Office	-	-0.5	-521.6	-601.2	-681.2

As a result of the new resource taxation arrangements announced on 2 July 2010, the Government will not pursue the resource exploration refundable tax offset previously announced in the 2010‑11 Budget.

This measure will provide savings of $1.8 billion over four years.

Instead, resource exploration costs will continue to be deductible in the normal way and the Policy Transition Group, set up to implement the new Mineral Resource Rent Tax and expanded Petroleum Resource Rent Tax arrangements, will consider the best way to promote future resource exploration activity.

This measure was originally reported in the Economic Statement 2010.

Tax Reform Communications campaign advertising funding reduction

Expense ($m)

	2009‑10	2010‑11	2011‑12	2012‑13	2013‑14
Department of the Treasury	-2.1	-20.3	-	-	-

The Government ceased the tax reform advertising campaign from 24 June 2010 achieving savings of $22.4 million over 2009‑10 and 2010‑11.

This represents a reduction in the funding provided in the 2010‑11 Budget measure titled Stronger, fairer, simpler tax reform — development and implementation.

This measure was originally reported in the Economic Statement 2010.

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