© Commonwealth of Australia 2003

ISBN 0 642 74178 6

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	Contents

Chapter 1: Introduction

1.1 Background
1.2 What is a tax expenditure?
1.3 Purpose of this Statement
1.4 Interpretation of tax expenditure estimates
1.5 Structure of this Statement

Chapter 2: Overview of tax expenditure aggregates

2.1 Introduction
2.2 Trends in tax expenditures
2.3 Tax expenditures by function
2.4 Comparison with direct expenditure
2.5 Tax expenditures by taxpayer affected

Chapter 3: Methodology

3.1 Defining benchmarks
3.2 General features of the taxation benchmark
3.3 The personal income tax benchmark
3.4 The retirement benefits benchmark
3.5 The fringe benefits tax benchmark
3.6 The business tax benchmark
3.7 The excise duty benchmark

Chapter 4: Changes from 2001 TES

4.1 Introduction
4.2 New tax expenditures
4.3 Modified tax expenditures
4.4 Deleted tax expenditures

Chapter 5: Tax expenditure estimates

5.1 Introduction
5.2 Accrual estimates

Appendix A: Description of tax expenditures

A Personal income tax benchmark
B Retirement benefits benchmark
C Fringe benefits tax benchmark
D Business tax benchmark
E Excise duty benchmark

Appendix B: Superannuation benefits

B.1 Scope
B.2 Interpretation
B.3 Estimates

Index

List of tables

Table 2.1: Total measured tax expenditures
Table 2.2: Aggregate tax expenditures by function
Table 2.3: Aggregate tax expenditures and direct expenditures by function in 2001-02
Table 2.4: Aggregate tax expenditures by taxpayer affected
Table 5.1 Tax expenditure reference table
Table B1: Estimated tax expenditures through superannuation tax concessions, 1998-99 to 2005-06

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	Acronyms

ABARE	Australian Bureau of Agricultural and Resource Economics
ADF	Australian Defence Force or Approved Deposit Fund
ADI	Authorised deposit-taking institution
CDEP	Community Development Employment Project
CFC	Controlled foreign companies
CGT	Capital gains tax
CRAFT	Commonwealth Rebate for Apprentice Full-time Training
DEP	Dairy Exit Program
DGR	Deductible gift recipient
DTA	Double taxation agreement
DWT	Dividend withholding tax
ETM	Economic transaction method
ETP	Eligible termination payment
FBT	Fringe benefits tax
FIF	Foreign investment fund
FBTAA86	Fringe Benefits Tax Assessment Act 1986
FTB	Family Tax Benefit
FTCS	Foreign tax credit system
GDP	Gross domestic product
GST	Goods and services tax
IED	Income equalisation deposits
ITAA36	Income Tax Assessment Act 1936
ITAA97	Income Tax Assessment Act 1997
IT(TP)A97	Income Tax (Transitional Provisions) Act 1997
ITLAA00	Indirect Tax Legislation Amendment Act 2000
IWT	Interest withholding tax
LICs	Listed investment companies
LPG	Liquefied petroleum gas
MYEFO	Mid-Year Economic and Fiscal Outlook
na	Not available
nec	not elsewhere classified
OECD	Organisation for Economic Co-operation and Development
PBI	Public benevolent institution
PDF	Pooled Development Fund
PNG	Papua New Guinea
RBL	Reasonable Benefit Limit
RHQ	Regional headquarters
R&D	Research and development
SATO	Senior Australians' Tax Offset
SHS	Schanz-Haig-Simons
STS	Simplified Tax System
TES	Tax Expenditures Statement
TLM	Tax liability method
UCA	Uniform Capital Allowance
ULSD	Ultra low sulphur diesel
UPP	Undeducted purchase price
WET	Wine equalisation tax
Y2K	Year 2000 (compliance)