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Wednesday, 23 March 1994
Page: 2083

Senator WATSON (4.18 p.m.) —I have concerns about the bunching effect. The group test, in terms of the company tax instalment rules, differs from the group test applicable to the transfer of losses and other taxation matters. Can the government explain why a uniform group test in the Income Tax Assessment Act is not the simplest and most efficient method? I remind the chamber that large companies will now be required to lodge their tax returns on 1 December instead of on 15 March. How far does this government intend to squeeze the cash flow of companies, given that corporations must now cope with initial tax, quarterly instalments and extra taxes arising from the fringe benefits tax changes on items which were not previously subject to tax deductions but which are now deductible and subject to fringe benefits tax arrangements? I believe that these new arrangements are causing a compact effect and having a major impact on cash flow financing arrangements.