The Commonwealth Treasury

Tax Expenditures Statement 2000

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Description of tax expenditures

This Appendix provides further information on the tax expenditures identified in Table 5.1, including legislative references and, in some cases, an expanded description and discussion of the estimates. Tax expenditure reference codes from the 1997-98 Tax Expenditures Statement are also reported to facilitate comparison.

A Personal income tax benchmark

A1 Exemption of official salaries and ex-Australian income of the Governor-General and Governor of any State

A2 Deduction for Federal, State and Territory government candidates' election expenses

A3 Deduction up to $1000 for local government candidates' election expenses

A4 Exemption of official salary and emoluments of officials of prescribed international organisations

A5 Exemption of income of visitors who are representatives of a foreign press organisation

A6 Total or partial exemptions of income earned by Australians working overseas

A7 Exemption from income tax for non-residents providing advice to Government or as a member of a Royal Commission

A8 Exemption of Australian-sourced income earned by Government representatives visiting Australia or by their official staff

A9 Exemption of income of residents of Norfolk Island

A10 Exemption of pay and allowances for part-time members of Defence Force Reserves

A11 Exemption of certain allowances and bounties payable to Defence Force personnel

A12 Exemption of the value of rations and quarters supplied without charge to Defence Force personnel

A13 Exemption of pay and allowances earned in Australia by foreign forces

A14 Exemption of pay and allowances earned by members of the Defence Force in an area prescribed by regulation

A15 Exemption of some payments to civilian personnel in service with an armed force of the United Nations

A16 Rebates for Defence Force personnel serving overseas

A17 Exemption from the Medicare levy for Defence Force members

A18 Exemption of income earned by visitors assisting in the defence of Australia

A19 Exemption of disturbance allowance for Defence Force members

A20 Exemption of Scholarship Allowance payable to Defence Force members

A21 Exemption of income from certain Commonwealth educational scholarships or forms of assistance

A22 Exemption of income from other scholarships or forms of assistance in limited circumstances

A23 Exemption of Australian income of visiting representatives of educational, scientific, religious or philanthropic societies and associations

A24 Exemption for grants from the Australian-American Educational Foundation

A25 Medical Expenses Rebate

A26 Exemption from the Medicare levy for residents with a taxable income below a threshold

A27 Medicare levy exemption for non-residents, repatriation beneficiaries, foreign government representatives and certain residents

A28 Income-tested tax offset for private health insurance

A29 30 per cent rebate for expenditure on private health insurance; Exemption of private health insurance rebate/benefit, including expense equivalent

A30 Medicare levy surcharge

A31 Rebate for sole parent

A32 Rebate for taxpayers supporting a dependent relative, parent in-law, or invalid relative

A33 Rebate for recipient of taxable repatriation or social security pensions; or unemployment, sickness or special benefits

A34 Rebate for housekeeper who cares for a prescribed dependant of the taxpayer

A35 Rebate for dependent spouse

A36 Rebate for child-housekeeper

A37 Rebate for low income earners

A38 Exemption of certain social security and repatriation payments

A39 Exemption of rent subsidy payments under the Commonwealth/State mortgage and rent relief schemes

A40 Rebate for low income aged persons

A41 Family Tax Assistance, Parts A and B

A42 Rebate for community development employment project (CDEP) participants

A43 Family Tax Benefit, Parts A and B (rebate); Exemption of Family Tax Benefit, Parts A and B, including expense equivalent

A44 Exemption of Child Care Benefit

A45 Exemption of one-off savings bonus payments to senior Australians

A46 Exemption of certain war-related payments and pensions

A47 Exemption of compensation paid by Federal Republic of Germany for Nazi persecution

A48 Exemption of pensions, annuities or allowances paid by certain foreign governments for persecution

A49 Income tax exemption for certain pensions received by a PNG resident

A50 Zone rebates

A51 Concessional rates of tax for abnormal receipts

A52 Deductibility of union dues and subscriptions to business associations

A53 Deferral of tax on share discounts and exemption of share discounts received by an employee under an approved employee share acquisition scheme

A54 Tax deferral advantage of subtracting undeducted purchase price component of pension or annuity from assessable income

Concessions under the substantiation provisions for employment-related expenses [A55-A58]:

A55 A reasonable overtime meal allowance

A56 Expenses on accommodation, meals and incidental costs of travel in Australia

A57 Expenses which do not exceed the amount of certain award transport allowances

A58 Alternatives to the actual expenses method of substantiating car expenses

A59 Rebate on certain payments of income received in arrears

A60 Deduction for gifts other than trading stock to approved donees

A61 Deduction for gifts of trading stock to approved donees

A62 Concession for post-judgement interest awards in personal injury compensation cases

A63 Rebate of interest on certain government securities

B Retirement benefits benchmark

B1 Concessional treatment of superannuation

B2 Concessional treatment of non-superannuation termination benefits

B3 Capped taxation rate applying to unused recreation and long service leave

B4 Taxation of 5 per cent of unused long service leave accumulated by 15 August 1978

B5 CGT exemption on the sale of a small business at retirement

B6 Small business 15 year retirement CGT exemption

B7 CGT rollover relief for ADF and superannuation funds

B8 Savings rebate

C Fringe benefits tax benchmark

C1 Benefits provided by certain international organisations

C2 Loan benefits on war service home loans

C3 Exclusion from reporting requirement for certain benefits provided to Defence Force personnel

C4 Exclusion from reporting for certain elements of the Overseas Living Allowance

C5 Education costs for children of employees posted oversees

C6 Disregard of possible application of the $250 threshold for deductibility for some self-education expenses

C7 Benefits provided by public hospitals to their employees

C8 Employee/family travel costs associated with overseas medical treatment

C9 Safety award benefits up to $200 per year per employee

C10 Recreational/child-care facilities on an employer's premises

C11 Employer contributions to secure child care places in certain centres

C12 Benefits provided by PBIs (excluding public hospitals) to employees

C13 Accommodation, fuel and meals for live-in employees caring for the elderly or disadvantaged

C14 Employer provided property/facilities for immediate relief of employees/families in times of emergency

C15 Housing benefits and residential fuels in remote areas

C16 Exemption for housing provided by certain employers in regional areas

C17 Exclusion from reporting for regional housing benefits provided by certain employers in regional areas

C18 Discount on interest or purchase price for remote area housing purchase assistance and associated fuel benefits

C19 Free or discounted commuter travel to employees where the employer carries on a business of providing public transport

C20 Employee taxi travel arriving at or leaving from place of work

C21 Exemption for free travel to and from duty by police officers on public transport

C22 Discounted valuation of employee stand-by travel for airline employees and travel agents

C23 Long service awards of more than 15 years to $500 per employee

C24 Food and accommodation provided to employees training under the Australian Traineeship Scheme

C25 Compensation-related benefits, certain relocation and recruitment expenses

C26 Occupational health and counselling services and some training courses

C27 Discounted valuation of certain relocation and recruitment expenses

C28 Reimbursement of car expenses incurred with occupational health and counselling services and some training courses

C29 Exemption for certain loan benefits

C30 Discounted valuation of certain loan benefits

C31 Application of statutory formula to value car benefits

C32 Record keeping for employers submitting a return with $5,000 or less in taxable benefits

C33 Car parking on small business premises

C34 Rebate of FBT for some non-government, non-profit organisations

C35 Benefits in relation to certain compassionate travel of employees

C36 Fringe benefits provided by religious institutions

C37 Staff accommodation at religious institutions and meals provided in religious houses

C38 Provision of food and drink in certain circumstances

C39 Discounted valuation of arm's length transaction price for in-house property and residual fringe benefits

C40 Airline transport fringe benefits and free discounted goods and services up to a threshold

C41 Board fringe benefits

C42 Certain car parking fringe benefits

C43 Benefits resulting from valuation arrangements for car parking

C44 Discounted valuation for holiday travel for employees posted overseas

C45 Transport for oil rig and remote area employees in certain circumstances

C46 Discounted valuation for remote area holiday benefits

C47 Minor benefits

C48 Private use of business property consumed on business premises

C49 Allowances and accommodation benefits

C50 Private use of company car that is minor and infrequent

C51 Loans provided to employees to meet employment-related and accommodation-related expenses

C52 Exclusion from reporting for certain travel in marked emergency vehicles

C53 Exemption for organisations promoting the prevention or control of disease in people

D Business tax benchmark

Income tax benchmark

D1 Income tax exemption for certain non-profit societies

D2 Income tax exemption for the Australian Film Finance Corporation

D3 Income tax exemption for Australian film receipts

D4 Income tax exemption for certain promotion and development non-profit societies

D5 Infrastructure Bonds Scheme

D6 Infrastructure Borrowings Tax Offset Scheme

D7 Income tax exemption for sale, transfer or assignment of mining rights

D8 Income tax exemption for funds established for scientific research

D9 Income tax exemption for registered health benefit organisations

D10 Income tax exemption for public and non-profit hospitals

D11 Income tax exemption for religious, scientific, charitable or public educational institutions

D12 Concessional taxation treatment of mining payments made in connection with the use of Aboriginal land

D13 Taxation of life insurance investment income

D14 Income tax averaging for primary producers

D15 Deferment of income from a double wool clip

D16 Spreading insurance recoveries for loss of timber or livestock

D17 Valuation of livestock from natural increase

D18 Income tax exemption for trade unions and registered organisations

D19 Income tax exemption for CRAFT apprenticeship rebates

D20 Concessional tax rate for the life insurance business of friendly societies

D21 Income tax exemption for current pension liabilities

D22 Income tax exemptions for foreign superannuation funds

D23 Pooled Development Funds (PDFs)

D24 Concessional treatment of some credit unions

D25 Income tax exemption for business assistance grants from the Katherine and District Business Re-Establishment trust fund

D26 Income tax exemption for business grants from the Cyclones Elaine and Vance trust fund

D27 Transitional taxation of life insurance management fees

D28 Income tax exemption for State/Territory bodies

D29 Income tax exemption for municipal authorities and other local governing bodies

Capital gains tax (CGT) benchmark

D30 CGT exemption for disposal of assets under the Cultural Bequests And Cultural Gifts programs

D31 CGT exemption for disposal of assets under the Rural And Remote General Practice program

D32 Venture capital concessions

D33 Small business 50 per cent CGT exemption for the sale of active business assets

D34 Small business CGT rollover

D35 Small business CGT partial exemption for goodwill

D36 Limited CGT rollover for merging superannuation funds

D37 Exemption from reducing the cost base of trusts for CGT purposes

D38 CGT discount for individuals

D39 CGT discount for superannuation funds

D40 CGT scrip-for-scrip rollover relief

D41 CGT rollover relief for involuntary disposals

D42 CGT exemption for valour or brave conduct decorations

D43 CGT main residence exemption

D44 CGT exemption for payments under the Sydney Aircraft Noise Insulation project

D45 CGT exemption for payments under the M4/M5 Cashback Scheme

Deductions benchmark

D46 Tax incentives for film investment

D47 Film Licensed Investment Companies

D48 Development allowance

D49 Investment allowance

D50 Research and development tax concession

D51 Concession for eligible scientific research

D52 Capital expenditure deduction for mining, quarrying and petroleum operations

D53 Deduction for patents, designs and copyright

D54 Exploration and prospecting deduction

D55 Deduction for expenditure on environmental impact studies

D56 Deduction for expenditure on pollution control

D57 Depreciation to nil value rather than estimated scrap value

D58 Depreciation balancing charge rollover relief

D59 Balancing charge rollover relief for exploration, mining and quarrying activities

D60 Absence of cost base recapture for certain assets

D61 Accelerated depreciation allowance for plant and equipment

D62 Accelerated depreciation for employees' amenities

D63 Accelerated depreciation for mining buildings

D64 Depreciation pooling for low-value assets

D65 Accelerated depreciation for Australian trading ships

D66 Accelerated depreciation for water management costs

D67 Landcare deduction

D68 Landcare offset

D69 Deduction for horse breeding stock

D70 Depreciation of the capital cost of telephone lines for primary producers

D71 Tax write-off for horticultural plants

D72 Accelerated depreciation for grapevine plantings

D73 Drought investment allowance

D74 Depreciation for upgrading mains electricity to a business property

D75 Accelerated depreciation for software

D76 Immediate deduction relating to Y2K upgrades

D77 Immediate deductibility for GST-related plant and software

D78 13-month rule for prepayments

D79 Transitional arrangements for prepayments

D80 The 10-year rule for prepayments

D81 Exemption from the tax shelter prepayments measure for passive investments

D82 Capitalisation of ownership costs of assets held partly for private use

D83 Exemption from non-commercial losses provisions (primary producers and artists)

D84 Deductibility of expenses incurred in providing entertainment free to members of the public who are sick, disabled, poor or otherwise disadvantaged

D85 Income Equalisation Deposits (IED) scheme

D86 Farm Management Deposit scheme

D87 Deduction to co-operative companies

International benchmark

D88 Income tax exemption for certain US projects in Australia

D89 Income tax exemption for prescribed international organisations

D90 Half IWT on foreign bank branch interest payments to the foreign bank

D91 Deductibility of costs of setting up a regional headquarters

D92 Concessional tax treatment of income of offshore banking units

D93 DWT exemption for Pooled Development Funds

D94 IWT exemption for certain overseas organisations

D95 DWT exemption for certain overseas organisations

D96 IWT and DWT exemptions for prescribed international organisations

D97 Tax sparing provisions in Australia's DTAs

D98 Exemption for branch profits from foreign tax credit system

D99 Exemption of non-portfolio dividends from foreign tax credit system

D100 Exemption from accrual taxation for controlled foreign companies

D101 Exemption from accrual taxation for transferor trusts

D102 Exemption from IWT on widely spread debentures issued offshore and onshore

D103 Exemption from IWT on some government loans

E Excise duty benchmark

E1 Penalty rate of excise levied on leaded petrol

E2 Penalty rate of excise levied on cigarettes with less than 0.8 grams of tobacco

E3 Exemption from excise for `alternative fuels'

E4 Concessional rate of excise levied on fuel oil, heating oil and kerosene

E5 Concessional rate of excise levied on aviation gasoline and aviation turbine fuel

E6 Concessional rate of excise levied on brandy

E7 No excise-free threshold for alcoholic beverages (other than beer) not exceeding 10 per cent alcohol

E8 Wine Equalisation Tax (WET) rebate scheme