Treasury
Election Commitments
Financial Product Disclosure Simplification
| 2007‑08 | 2008‑09 | 2009‑10 | 2010‑11 | 2011‑12 | |
|---|---|---|---|---|---|
| Department of the Treasury | 1.0 | 2.0 | - | - | - |
The Government will provide $3.0 million over two years to introduce a standard disclosure form for financial services products. This will reduce the red tape burden on business and help ensure consumers are provided with easy to read information on which to base their investment decisions.
This measure delivers on the Government's election commitment.
First Home Saver Accounts
| 2007‑08 | 2008‑09 | 2009‑10 | 2010‑11 | 2011‑12 | |
|---|---|---|---|---|---|
| Australian Taxation Office | 2.4 | 130.2 | 226.2 | 301.4 | 372.5 |
| Related revenue ($m) | |||||
| Australian Taxation Office | - | -5.0 | -15.0 | -40.0 | -65.0 |
| Related capital ($m) | |||||
| Australian Taxation Office | 0.3 | 20.8 | - | - | - |
The Government will provide $1.2 billion over five years to implement First Home Saver Accounts, which will assist Australians to save larger deposits for their first home. Eligible individuals will be able to make post‑tax contributions into a First Home Saver Account. A Government contribution of 17 per cent will be paid on the first $5,000 (indexed). Personal contributions will be able to be made to the account until the balance reaches $75,000 (indexed). Earnings on the account will be concessionally taxed at 15 per cent. Tax free withdrawals from the account to purchase or build a first home in which to live can only be made after contributions of at least $1,000 have been made in at least four separate financial years.
The cost of Government contributions is estimated at $975.0 million over four years, and the cost of the concessional taxation of earnings is estimated at $125.0 million over four years. In addition, the Australian Taxation Office will receive $78.8 million in implementation funding over five years. This departmental funding includes $21.1 million in capital over two years.
First Home Saver Accounts will commence from 1 October 2008 and form part of the Government's national housing affordability strategy which is designed to improve the affordability of homes and rental properties.
This measure delivers on the Government's election commitment.
Monitoring of grocery prices
| 2007‑08 | 2008‑09 | 2009‑10 | 2010‑11 | 2011‑12 | |
|---|---|---|---|---|---|
| Australian Competition and Consumer Commission | 1.6 | 4.0 | 4.1 | 3.1 | - |
The Government will provide $12.9 million over four years to the Australian Competition and Consumer Commission to undertake a new function of monitoring grocery prices and publishing prices data on a dedicated website. These initiatives are intended to benefit families with cost of living pressures by promoting competition in the grocery market and helping families to identify the lowest cost supplier of groceries in their local area.
This measure delivers on the Government's election commitment.
Petrol price monitoring — appointment of a permanent Petrol Commissioner
| 2007‑08 | 2008‑09 | 2009‑10 | 2010‑11 | 2011‑12 | |
|---|---|---|---|---|---|
| Australian Competition and Consumer Commission | 1.3 | 4.3 | 3.6 | 2.1 | - |
The Government will provide $11.4 million over four years to the Australian Competition and Consumer Commission for the appointment of a Petrol Commissioner and to support the formal monitoring of petrol prices. The Government has directed the Australian Competition and Consumer Commission under Part 96ZE of the Trade Practices Act 1974 to formally monitor petrol prices, costs and profits for all unleaded petrol products in the Australian petroleum industry.
The Government has separately provided an additional $20.9 million over four years to establish and implement FuelWatch, a national scheme involving prices commitment rules for petrol retailers.
This measure delivers on a Government election commitment.
See also related expense measure titled Petrol price monitoring — FuelWatch in the Treasury portfolio.
Superannuation Clearing House Facility
| 2007‑08 | 2008‑09 | 2009‑10 | 2010‑11 | 2011‑12 | |
|---|---|---|---|---|---|
| Australian Taxation Office | - | - | 4.0 | 6.0 | 6.1 |
The Government will provide $16.1 million over three years to the Australian Taxation Office to fund a Superannuation Clearing House Facility from 2009‑10, to assist in managing employers' obligations to provide superannuation choice to employees.
This facility will be offered free of charge by the Australian Government to small businesses with fewer than 20 employees and on a fee‑for‑service basis to larger businesses. The facility will be contracted to the private sector.
This measure delivers on the Government's election commitment.
Other measures
Australia's Future Tax System
| 2007‑08 | 2008‑09 | 2009‑10 | 2010‑11 | 2011‑12 | |
|---|---|---|---|---|---|
| Department of the Treasury | - | 5.0 | 5.0 | - | - |
The Government will provide $10.0 million over two years to undertake a comprehensive review of Australia's tax system to create a tax structure that will position Australia to deal with the demographic, social, economic and environmental challenges of the 21st century. As proposed at the 2020 Summit, the review will encompass Australian Government and State taxes, except the GST, and interactions with the transfer system.
The review should make coherent recommendations to enhance overall economic, social and environmental wellbeing, with a particular focus on ensuring there are appropriate incentives for: workforce participation and skill formation; individuals to save and provide for their future, including access to affordable housing; investment and promotion of efficient resource allocation to enhance productivity and international competitiveness; and reducing tax system complexity and compliance costs.
A review panel will be appointed to lead the review, supported by a working group from within the Treasury, with representation from the Department of Families, Housing, Community Services and Indigenous Affairs, and drawing on other Australian Government and State agencies as appropriate.
In the spirit of the 2020 Summit, the review panel will consult the public to allow for community and business input. The review will also, where necessary, draw on external expertise and shall have the co‑operation of State Governments and their Treasuries as well as relevant COAG working groups. The review process will be conducted in several stages. An initial discussion paper will be released by the end of July 2008. The review panel will provide a final report to the Treasurer by the end of 2009.
Petrol price monitoring — FuelWatch
| 2007‑08 | 2008‑09 | 2009‑10 | 2010‑11 | 2011‑12 | |
|---|---|---|---|---|---|
| Australian Competition and Consumer Commission | - | 5.8 | 4.5 | 4.5 | 4.5 |
| Related capital ($m) | |||||
| Australian Competition and Consumer Commission | - | 1.3 | 0.1 | 0.1 | 0.1 |
The Government will provide $20.9 million over four years to establish and implement a national FuelWatch scheme. The scheme will include daily prices notification by retail sites in Australia. This will provide motorists with detailed and up to date information about petrol prices, thereby providing an opportunity for them to choose the lowest available price.
See also the related expense measure titled Petrol Prices Monitoring — Appointment of a permanent Petrol Commissioner in the Department of the Treasury portfolio.
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