Regulation Impact Statement (RIS) – Department of the Treasury
On 1 September 2016, the Government introduced the Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016. The bill reduces corporate tax rates, increases the small business income tax offset for unincorporated small businesses, and increases the small business annual turnover threshold from $2 million to $10 million.
The RIS prepared by the Treasury was compliant, but not consistent with best practice under the Government’s RIS requirements because:
- the level of analysis in the RIS was not commensurate with the likely impacts of the proposals;
- the views of all stakeholders (including dissenting views) were not identified in the RIS;
- the conclusion that the proposals will result in a net benefit was not demonstrated by the impact analysis in the RIS; and
- the status of the RIS at each major decision-making point was not clearly identified.
The RIS estimates the change to the small business threshold will reduce regulatory burden by $32 million a year. The OBPR has agreed to the change in regulatory burden.