On 4 September 2014, Tax and Superannuation Laws Amendment (2014 Measures No 5) Bill 2014 was introduced into the House of Representatives.
The following is extracted from the Explanatory Memorandum.
SCHEDULE 1 to the Bill amends the ITAA 1997 and the Taxation Administration Act 1953 to abolish the mature age worker tax offset. This measure applies to the 2014-15 income year and later income years.
SCHEDULE 2 to the Bill amends the ITAA 1997 to abolish the seafarer tax offset. This measure applies to assessment for 2015-16 and later income years.
SCHEDULE 3 to the Bill amends the ITAA 1997 to reduce the rates of the tax offset available under the research and development tax incentive by 1.5 percentage points. The higher (refundable) rate of the tax offset will be reduced from 45% to 43.5% and the lower (non-refundable) rates of the tax offset will be reduced from 40% to 38.5%.
The EM says that the reduction in the tax offset rates is consistent with the Government’s commitment to cut the company tax rate from 1 July 2015, with the gain to revenue and savings from this measure to be redirected to repairing the budget. This measure applies to income years starting on or after 1 July 2014.
SCHEDULE 4 to the Bill amends the ITAA 1997 to update the list of specifically listed deductible gift recipients.