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Budget 2013 Home Page Budget Economic and Fiscal Update 2013

Tax Policy Changes

This section details the changes to forecast tax revenue since the Half Year Economic and Fiscal Update as a result of changes in tax policy. Table 10 gives a full breakdown of the changes, while the supplementary text describes the specific policy changes.

Table 10 - Tax forecasting effects of tax policy changes
Year ending 30 June
$ millions
2013
Forecast
2014
Forecast
2015
Forecast
2016
Forecast
2017
Forecast
Total
5 years
Specified mineral mining ..  3 27 30 30 90
Property compliance ..  ..  45 45 45 135
Salary trade-offs ..  (2) (17) (17) (17) (53)
Thin Capitalisation improvements ..  ..  1 9 10 20
Other measures ..  ..  (2) (2) (3) (7)
Total ..  1 54 65 65 185

Source: The Treasury

Changes in tax policy

Specified mineral mining

The rules for the taxation of specified mineral mining are to be more closely aligned with general income tax rules.

Property compliance

Inland Revenue is to be provided with continued funding for audit and compliance work in the property sector.

Salary trade-offs

The Government has decided not to proceed with some proposed changes to the Fringe Benefit Tax rules.

Thin Capitalisation improvements

Thin capitalisation rules are to be changed to ensure that separate investors acting together are not unfairly advantaged over a single non-resident investor.

Other measures

A number of policy changes that, individually, are each below the materiality threshold of $10 million p.a.

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