13 October 1999

No Discrepancy on Business Tax Funding

Outlined below is a comparison of the revenue estimates for the ‘integrity’ and ‘deferred’ measures outlined in the Government’s announcement of 21 September and the estimate of the equivalent items in the Ralph Report.

Ralph Report Government’s Press Release
2000-01 $510 million $860 million
2001-02 $1560 million $1360 million
2002-03 $1380 million $1530 million
2003-04 $1570 million $1570 million
2004-05 $1630 million $1660 million

The differences between the revenue estimates in Ralph and those in the Government’s announcement stem from different dates when measures commence. In particular, the difference in 2000/2001 mainly arise from the Government’s decision to tighten the 13-month ‘prepayment’ rule as from the date of announcement compared with the Ralph recommendation that this should start from 1 July 2000. The differences in the other years mainly reflect timing changes associated with the deferred measures, particularly international measures.

When the Government released the Report on 21 September it offered the Democrats a full briefing on costings. The offer has been repeated on a number of occasions and when it is conducted it will avoid any further misunderstanding.