2008-2009

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

SENATE

SUPPLEMENTARY EXPLANATORY MEMORANDUM

Amendments to be moved on behalf of the Government

(Circulated by the authority of the

Treasurer, the Hon Wayne Swan MP)

Amendments 1 to 3

The amendments change the amount of the tax bonus which will be received by eligible taxpayers.

Date of effect :  Royal Assent.

Proposal announced :  These amendments have not been announced.

Financial impact :  There will be a saving (in underlying cash terms) of $370 million in 2008-09, and $65 million in 2009-10.  This gives an overall saving of $435 million across the forward estimates (relative to the original cost of $8.2 billion).

Compliance cost impact :  Nil.

Amendments 1 to 3

1.1                   Amendments 1 to 3 are made to item 6 of the Tax Bonus for Working Australians Bill 2009.

1.2                   The new provisions provide that eligible taxpayers will receive:

•        $900 where their taxable income is up to and including $80,000; 

•        $600 where their taxable income exceeds $80,000 and does not exceed $90,000; or

•        $250 where their taxable income exceeds $90,000 and does not exceed $100,000.