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Notice given 15 April 2002

245  Senator Brown: To ask the Minister for Revenue and Assistant Treasurer—With reference to the revenue impact of the forestry prepayments under Taxation Laws Amendment Bill (No. 1) 2002:

(1) Is it correct, as stated in the explanatory memorandum to the bill, that ‘industry and independent estimates place the presence or absence of the prepayment rule at 50 000 to 60 000 hectares per annum’.

(2) Is it correct, as stated in the explanatory memorandum to the bill, that the ‘cost to revenue resulting from the prepayment measure is estimated to be $25 million in 2002-2003, $5 million in 2003-2004, nil in 2004-2005 and $25 million in 2005-2006 and each year thereafter’.

(3) In assessing the cost to revenue of the measure what did the Minister assume to be the tax deductible costs over the life of the plantation.

(4) Using the figures in parts (1), (2) and (3), what is the cost of the measure in each of the next five years assuming: (a) a marginal tax rate of 37 per cent; and (b) a marginal tax rate of 50 per cent.

(5) With reference to the response provided to questions raised by Senator Murphy by Julia Neville from the Minister’s office, dated 21 March 2002: (a) what is included in the ‘entire amount of investment in the forestry industry’ (estimated at $560 to $700 million per annum); and (b) why does it differ from the ‘actual investment in forestry plantations in 2000-01’ (stated to be $200 million).

(6) Can the analysis be provided of marginal tax rates of taxpayers likely to invest in schemes which supports the assertion that a marginal tax rate of 37 per cent is appropriate for these calculations.

(7) Does the Minister agree that the following costs are representative for the purposes of estimating the cost of the measure - establishment cost $5 069 per hectare, total cost over 11 years $9 286 per hectare (Lonsdale Securities Ltd, mean costs for nine eucalypt pulpwood prospectus projects).