The Tax Expenditures Statement provides details of concessions, benefits and incentives delivered to taxpayers through the tax system. These are referred to as ‘tax expenditures’. The Tax Expenditures Statement provides details of each identified tax expenditure provided by the Australian Government and, where possible, reports the estimated pecuniary value or order of magnitude of the benefit to taxpayers.
Tax expenditures, like direct expenditures, affect the government’s budget. However, unlike direct expenditures, tax expenditures once legislated become part of the tax law with a recurring fiscal impact and do not receive regular scrutiny through the budget process. The Tax Expenditures Statement publishes information to assist transparency and encourage public scrutiny of government programmes delivered through the tax system.
This statement lists around 270 tax expenditures and estimates their value over an eight year period, from 2001-02 to 2008-09. The tax expenditures in this statement reflect all announced policies and legislation applying up to the date of publication of the 2005-06 Mid-Year Economic and Fiscal Outlook.