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DEVELOPMENT ALLOWANCE AUTHORITY REGULATIONS 1995 NO. 30
EXPLANATORY STATEMENTSTATUTORY RULES 1995 No. 30
Issued by the Authority of the Treasurer
Development Allowance Authority Act 1992
Development Allowance Authority Regulations
Section 123 of the Development Allowance Authority Act 1992 (the Act) provides for the Governor-General to make regulations prescribing matters required or permitted by this Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to this Act.
The purpose of the regulations is to:
• prescribe a list of investments for Infrastructure Borrowings raised, but not immediately spent; and
• to inform the public of the intended maximum cost to the Commonwealth for a financial year of the taxation consequences of the issue of (Infrastructure Borrowing) certificates.
The Development Allowance Authority is responsible for the administration of Infrastructure Borrowings. Infrastructure Borrowings are a tax concession designed to encourage genuine private investment, or public investment on a commercial basis, in publicly accessible infrastructure. Prescribed investments are necessary to ensure that where money has been raised, on the basis of a concession provided by the Government, then that money must be readily available to be used for the specific purpose for which the concession was provided, and not used elsewhere. In addition, they ensure that such investments are of a. capital secure nature. Prescribed investments will only cover the short-term 'parking' of money and are, therefore, more liquid than longer term investments.
The intended maximum cost to the Commonwealth for the financial year of the taxation consequences of the issue of Infrastructure Borrowing certificates will be $50 million for the financial year 1994-95, $100 million for the financial year 1995-96, $150 million for the financial year 1996-97 and $200 million for the financial year 1997-98.