[1] The Hon. Mal Brough MP, House Hansard, 8 December 2004, p. 3.
[2] The Hon. Mal Brough MP, House Hansard, 10 February 2005, p. 40.
[3] Senator Julian McGauran, Senate Hansard, 9 February 2005, p. 62.
[4] Selection of Bills Committee, Report No. 1 of 2005, 9
February 2005, p. 62.
[5] With the exception of Submission 1 (William Buck (SA) Pty Ltd) which queried the
commencement date for Schedule 7.
[6] Promoting an
Enterprise Culture, p. 4.
[7] The STS was introduced by the The New Business Tax System (Simplified Tax System) Act 2001 to
apply to income years commencing after 30 June 2001. Its purpose was to reduce
compliance costs of eligible small business taxpayers. The STS allows for the
application of a simplified depreciation system and simplified treatment of
trading stock. The ATO advises in its publication, 'Simplified tax system—overview', that the practical effect of these
features is that eligible businesses do not have to account for trading stock
each year or maintain separate depreciation schedules for each asset. STS
taxpayers must use a cash‑based accounting system (although Schedule 2 of
the bill proposes to allow for cash or accruals accounting systems.) See http://www.ato.gov.au/print.asp?doc=/content/19925.htm
for ATO publication.
[8] Proposed paragraph 61‑510(1)(e).
[9] Proposed paragraph 61‑520(1)(e).
[10] Proposed paragraph 61‑515(1)(e).
[11] Section 328‑370. See also TR 2002/11, Income tax: Simplified Tax System
eligibility—STS average turnover, 26 June 2002.
[12] The value of business supplies is defined in
section 960‑345 of the ITAA 1997 as being the values of all taxable
supplies (excluding GST and receipts from asset sales, interest, dividends and
rental not in the ordinary course of carrying on the business).
[13] Section 328‑380 ITAA 1997 defines 'control'
in the context of the STS grouping rules. In an overview of the STS, the ATO
says that "In broad terms, you control another taxpayer in an income year
if you and/or your STS affiliates: are entitled to at least 40% of any income
or capital of the other taxpayer in that year; or if the other taxpayer is a
company, have the right to exercise at least 40% of the voting power in the
company. See TR 2002/6, Income tax:
Simplified Tax System eligibility—grouping rules (STS affiliate, control of non‑fixed
trusts), 13 March 2002. This ruling provides guidance on the application of
the non‑fixed trust control rule and the definition of 'STS
affiliate'."
[14] Under section 328‑365 ITAA 1997, an 'STS
affiliate' is an entity that could reasonably be expected to act in accordance
with the taxpayer's wishes or in concert with the taxpayer in relation to the
taxpayer's business. See also TR 2002/6.
[15] Tax Laws Amendment (2004 Measures No. 7) Bill
2004, Explanatory Memorandum, the Parliament of the Commonwealth of Australia,
House of Representatives, pp. 15‑16, para. 1.12.
[16] Proposed section 61‑525.
[17] Tax Laws Amendment (2004 Measures No. 7) Bill
2004, Explanatory Memorandum, the Parliament of the Commonwealth of Australia,
House of Representatives, p. 17, para. 1.16.
[18] Tax Laws Amendment (2004 Measures No. 7) Bill
2004, Explanatory Memorandum, the Parliament of the Commonwealth of Australia,
House of Representatives, p. 17, para. 1.19.
[19] Tax Laws Amendment (2004 Measures No. 7) Bill
2004, Explanatory Memorandum, the Parliament of the Commonwealth of Australia,
House of Representatives, pp. 20‑21, para. 1.25.
[20] Proof Committee
Hansard, 1 March 2005, pp. E2‑3.
[21] Proof Committee
Hansard, 1 March 2005, p. E3.
[22] Promoting
an Enterprise Culture, The Howard Government Election 2004 Policy
Statement. The package of reforms for small business included proposals for the
ETO; introduction of optional cash or accrual accounting methods for STS
taxpayers; a reduction in the tax adjustment period from four to two years for
STS businesses and the establishment of a Regulation Reduction Incentive Fund.
[23] Council of Small Business Organisations of Australia
Ltd, Media Release, Big benefits for
Micro Business!, 26 September 2004.
[24] House
Hansard, 10 February 2005, p. 37.
[25] RIS, Explanatory Memorandum, p. 32, para. 1.50.
[26] RIS, Explanatory Memorandum, p. 34, paras. 1.60‑1.61,
p. 34.
[27] RIS, Explanatory Memorandum, p. 30, para. 1.41.
[28] Proof Committee
Hansard, 1 March 2005, p. E1.
[29] A copy of this letter is in Appendix 3.
[30] Proof Committee
Hansard, 1 March 2005, p. E7.
[31] The studies cited were Evans C, Ritchie K, Tran‑Nam
B and Walpole M (1996), Costs of taxpayer
compliance—Final Report, Revenue Analysis Branch of the ATO, Canberra, pp.
9‑67, and Evans C, Ritchie K, Tran‑Nam B and Walpole M (1997), A report into taxpayer costs of compliance,
Commonwealth of Australia, Canberra, p. 51.
[32] Review of
Business Taxation, Final Report—Section 17: Small Business Initiatives.
Accessed at http://www.rbt.treasury.gov.au/publications/paper4/part6/section17.htm
on 28 February 2005.
[33] 'Advisers call for simpler simplified tax', Australian Financial Review, 18
February 2003, p. 49. This article canvasses the views of William Buck
Accountants; BDO Kendalls; Hayes Knight; and CPA Australia.
[34] ATPF Issues Log, A27—Simplified Tax System take‑up
rate. Accessed on 2 March 2005 at http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/39983.htm&page=249&H22_1.
[35] Criticisms of the STS are discussed in 'Advisers
call for simpler simplified tax',
Australian Financial Review, 18 February 2003, p. 49; 'Small business shuns
STS use', Australian Financial Review,
10 June 2003, p. 59; 'Tax cut at micro end of town', Australian, 27 September 2004, p. 8.
[36] The RBT
ANTS Bite: Small Business the First Casualty, (2004) 19 Australian Tax Reform,
p. 148.
[37] The RBT
ANTS Bite: Small Business the First Casualty, (2004) 19 Australian Tax
Reform, p. 148.
[38] Proof Committee
Hansard, 1 March 2005, p. E3.
[39] Tax Laws Amendment (2004 Measures No. 7) Bill
2004, Explanatory Memorandum, the Parliament of the Commonwealth of Australia,
House of Representatives, p. 79.
[40] Tax Laws Amendment (2004 Measures No. 7) Bill
2004, Explanatory Memorandum, the Parliament of the Commonwealth of Australia,
House of Representatives, p. 83.
[41] From ATO Website: www.ato.gov.au
[42] From ITR Website: www.itr.gov.au
[43] From ITR Website: www.itr.gov.au
[44] From ITR Website: www.itr.gov.au
[45] From ITR Website: www.itr.gov.au
[46] From ITR Website:
www.itr.gov.au
[47] Derived from Parliamentary Library Bills Digest
No.111 for 2004‑05.
[48] Submission by Geoscience Australia to the House of Representatives Standing Committee on Industry and
Resources Inquiry into Resources Exploration Impediments, p. 29.
[49] Proof
Committee Hansard, 1 March 2005, p. E12.
[50] Condensate is a term used to describe
hydrocarbons that exist as a gas in a gas field and which are separated out
from the accompanying gases to form a liquid during production.
[51] Submission
2, APPEA, p. 2.
[52] Submission by Geoscience Australia to the House
of Representatives Standing Committee on Industry and Resources Inquiry into
Resources Exploration Impediments, p. 26.
[53] Submission by Geoscience Australia to the House
of Representatives Standing Committee on Industry and Resources Inquiry into
Resources Exploration Impediments, p. 31.
[54] Submission by Geoscience Australia to the House
of Representatives Standing Committee on Industry and Resources Inquiry into
Resources Exploration Impediments, p. 33.
[55] Proof
Committee Hansard, 1 March 2005, p. E12.
[56] Submission by ExxonMobil to the House of
Representatives Standing Committee on Industry and Resources Inquiry into
Resources Exploration Impediments, p. 3.
[57] Australian Bureau of Statistics, Mineral and
Petroleum Exploration Australia, 1301.0 – 2005.
[58] From Geoscience Australian website, www.ga.gov.au/oceans/projects/q4_2003_apeda.jsp
[59] Submission
2, APPEA, p. 4.
[60] Submission by Geoscience Australia to the House of
Representatives Standing Committee on Industry and Resources Inquiry into
Resources Exploration Impediments, p. 31.
[61] Tax Laws Amendment (2004 Measures No. 7) Bill
2004, Explanatory Memorandum, the Parliament of the Commonwealth of Australia,
House of Representatives, p. 74.
[62] Proof
Committee Hansard, 1 March 2005, p. E12.
[63] House Hansard,
10 February 2005, p. 36.
[64] Proof
Committee Hansard, 1 March 2005, p. E11.
[65] Proof
Committee Hansard, 1 March 2005, p. E17.
[66] Para 3.87, p. 40.
[67] Proof
Committee Hansard, 1 March 2005, p. E12.
[68] Proof Committee Hansard, 1 March 2005, p. E13.
[69] Proof
Committee Hansard, 1 March 2005, p. E13.
[70] Proof
Committee Hansard, 1 March 2005, p. E18.
[71] Proof
Committee Hansard, 1 March 2005, p. E20.
[72] Proof Committee Hansard, 1 March 2005, pp. E21‑2.
[73] Proof
Committee Hansard, 1 March 2005, p. E19.
[74] Proof
Committee Hansard, 1 March 2005, p. E19.
[75] Proof
Committee Hansard, 1 March 2005, p. E20.
[76] Submission
1 (William Buck (SA) Pty Ltd).
[77] Item 20 of Schedule 7.
[78] Press Release CO13/03—Minister for Revenue and
the Assistant Treasurer, Roll‑over Relief for Simplified Tax System
Partnerships, 4 March 2003. At http://assistant.treasurer.gov.au/atr/content/pressreleases/2003/013.asp?pf=1
accessed on 22 February 2005.
[79] Submission
1 (William Buck (SA) Pty Ltd).
[80] Taxation Laws Amendment Bill (No. 2) 2004
(Previous citation: Taxation Laws Amendment Bill (No. 9) 2003), Revised
Explanatory Memorandum, The Parliament of the Commonwealth of Australia, p. 8.
[81] At the Committee's hearing on 1 March 2005, the
Department of the Treasury confirmed the Committee's conclusions about the
starting date for the ETO. See Mr Mark O'Connor, Proof Committee Hansard, 1 March 2005, pp. E3‑E4.
[82] Refer
Committee Hansard Page 7
[83] Refer
Committee Hansard page 18
[84] Refer
Committee Hansard page 21
[85] Refer
Committee Hansard page 17
[86] Refer Committee Hansard Page 17