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Notice given 31 October 2011

1316  Senator Milne: To ask the Minister representing the Treasurer—In regard to the statutory capped effective life for various categories of oil and gas assets established in section 40-102(5) of the Income Tax Assessment Act 1997 :

(1) How much foregone revenue does the department estimate the Commonwealth has and will incur: (a) since the introduction of these tax breaks in 2002; and (b) over the next decade, given the large investments planned in the oil and gas industry.

(2) Has the department conducted, or is it aware of, any cost-benefit analysis for these tax breaks.

(3) Is the department aware of the analysis by the Australian Conservation Foundation that these tax breaks could cost between $1.6 billion and $2 billion annually by 2018 and does it have any reason to doubt this estimate.

(4) What was the reasoning behind the department advising the Treasurer in 2010 that these tax breaks are arguably inefficient and distortionary.

(5) Will the existence of these tax breaks counteract in part the price signal intended to be created by the carbon tax.