Chapter 3: Tax expenditures

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3.3 Benchmarks used in the TES estimates

To provide a clear structure for reporting tax expenditures, the TES benchmarks are divided into three major components reflecting Australia's taxation arrangements.

  • The income tax benchmark describes the standard taxation arrangements applying to personal and business income, superannuation, fringe benefits and capital gains.
  • The consumption tax benchmark describes the standard taxation arrangements that apply either directly or indirectly to consumption; namely the supply of goods and services to consumers, tobacco, fuel, types of alcoholic beverages, motor vehicles, natural resources, customs duty and other indirect taxes.
  • The externalities benchmark covers taxation or other revenue-raising arrangements imposed to recover the external costs of particular activities.