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Appendix A: Policy decisions taken since the 2013‑14 Budget (Continued)

Expense Measures (Continued)

Treasury

Financial System Inquiry

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of the Treasury	‑	‑	‑	‑	‑
Related capital ($m)
Department of the Treasury	‑	‑	‑	‑	‑

The Government will undertake a review of Australia's financial system. The inquiry will make recommendations to foster an efficient, competitive and flexible financial system, consistent with financial stability, prudence, integrity and fairness. Funding for the inquiry will be determined in due course.

This measure delivers on the Government's election commitment.

Further information can be found in the press release of 20 November 2013 issued by the Prime Minister and the Treasurer.

National Insurance Affordability Initiative — reduction

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of the Treasury	‑	‑5.8	‑4.4	‑	‑

The Government will achieve savings of $10.2 million over two years by reducing the amount of uncommitted funding available under the National Insurance Affordability Initiative (NIAI).

The NIAI was established with the intention of funding targeted flood and other natural disaster mitigation measures in order to reduce insurance premiums. This reduction will not affect any of the projects on which negotiations are already underway.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Priority consumer focused superannuation activities

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of the Treasury	‑	‑1.0	‑	‑	‑

The Government will achieve savings of $1.0 million by not proceeding with funding for the Priority consumer focused superannuation activities measure, announced in the Pre‑election Economic and Fiscal Outlook 2013.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Reducing superannuation compliance costs for small business

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Australian Taxation Office	‑	1.2	6.1	6.2	6.2
Department of Human Services	‑	‑1.2	‑6.1	‑6.2	‑6.2
Total — Expense	‑	‑	‑	‑	‑

The Government will reduce red tape for small business by transferring the Small Business Superannuation Clearing House to the Australian Taxation Office (ATO) from April 2014.

This measure will make it easier for small business to meet their superannuation obligations as they already have frequent interaction with the ATO.

As a second step to reducing the superannuation compliance burden on small business the Government will undertake an extensive consultation process to better understand the superannuation compliance burden on small business employers and identify further options.

This measure delivers on the Government's election commitment.

Repeal of the Minerals Resource Rent Tax — Regional Infrastructure Fund and Regional Development Australia Fund — discontinue

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of Infrastructure and Regional Development	‑	‑143.1	‑229.2	‑75.4	‑32.8
Department of the Treasury	‑	‑183.7	‑757.7	‑546.2	‑713.9
Total — Expense	‑	‑326.8	‑986.9	‑621.6	‑746.7

The Government will achieve savings of $2.7 billion over the forward years by not proceeding with the Regional Infrastructure Fund and uncommitted Regional Development Australia Fund projects, which are measures associated with the minerals resource rent tax.

This measure implements the savings announced in the Government's pre‑election costings document.

Repeal the tax bonus for working Australians

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Australian Taxation Office	‑	‑	‑	‑	‑

The Government will repeal the Tax Bonus for Working Australians Act (No. 2) 2009 (the Tax Bonus Act) to ensure that the Australian Taxation Office (ATO) does not issue any further cheques for tax bonus payments.

Tax bonus payments of up to $900 were made to Australian residents who paid tax in the 2007‑08 income year and met certain income tests. The payments were designed to provide stimulus to the Australian economy at the height of the Global Financial Crisis. Most payments were made in 2009, however a small number of cheques continue to be issued by the ATO.

The Government considers that issuing of further cheques is no longer warranted, and as such there is an opportunity to remove government waste. To ensure that further tax bonus cheques cannot be issued by the ATO, the Government will repeal the Tax Bonus Act. The repeal will take effect from the day after Royal Assent.

This measure will have no impact on expenses but will provide cash savings of $0.3 million in 2014‑15.

Further information can be found in the press release of 8 December 2013 issued by the Treasurer.

Review of competition laws and policy

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of the Treasury	‑	1.0	1.4	‑	‑

The Government will provide additional funding of $2.5 million over two years to the Department of the Treasury to support the costs of a comprehensive review of competition laws and policy. The review will examine competition laws and policy and consider broad competition issues, with the goal of delivering more competitive markets and contributing to productivity gains.

The competition review will examine not only the current laws but the broader competition framework, to increase productivity and efficiency in markets, drive benefits to ease cost of living pressures and raise living standards for all Australians.

The 'root and branch' review will help identify ways to build the economy and promote investment, growth and job creation.

This measure delivers on the Government's election commitment.

Further information can be found in the press release of 4 December 2013 issued by the Prime Minister and the Minister for Small Business.

Simplified indexation of the private health insurance Government contribution

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Australian Taxation Office	‑	0.9	0.9	0.7	0.5
Related capital ($m)
Australian Taxation Office	‑	0.1	‑	‑	‑

The Government will provide $3.0 million over four years to the Australian Taxation Office to implement necessary information technology changes to facilitate a simplified implementation of the Mid‑Year Economic and Fiscal Outlook 2012‑13 measure titled Private Health Insurance Rebate — indexing the Government's contribution.

From 1 April 2014, a single rebate adjustment factor will be applied to all insurance products to adjust the rebate percentage received by individuals. This change will reduce the regulatory burden for private health insurers.

The cost of this measure will be offset from savings within the Health portfolio.

Strengthening the Reserve Bank Reserve Fund

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Department of the Treasury	‑	8,800.0	‑	‑	‑

The Government will provide a one‑off $8.8 billion grant to the Reserve Bank of Australia (RBA) to meet its request to strengthen its financial position to the level considered appropriate by the RBA Board. The grant will ensure that the RBA is adequately resourced to conduct its monetary policy and foreign exchange operations in an environment of financial market volatility.

Further information can be found in the press release of 23 October 2013 issued by the Treasurer.

Superannuation advertising savings

Expense ($m)
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
Australian Taxation Office	‑	‑1.0	‑0.5	‑0.5	‑

The Government will achieve savings of $2.0 million over three years by streamlining the superannuation reforms' advertising campaign managed by the Australian Taxation Office.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

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