Explanatory Memorandum(Circulated by the Treasurer, the Honourable J. B. Chifley.)
CLAUSE 14.-CONCESSIONAL REBATES.
The first amendment to this clause is simply a drafting amendment, and is not shown in this memorandum.
Under section 160(2.)(a) of the Principal Act provision is made for the allowance of a tax rebate in respect of a dependent female relative of a widowed person having the care of that person's children under the age of sixteen years. Under paragraph (b) of the sub-section provision is also made for an allowance of a tax rebate in respect of the taxpayer's children under the age of sixteen.
The Bill extends the concessional allowances to include an allowance for a tax rebate in respect of a dependent daughter keeping house for her widowed father or mother.
In a case where the widowed person had dependent children under the age of sixteen years and his daughter had the care of his children and kept house for him, it would be possible for a double allowance to be given in respect of the daughter, firstly, under section 160(2.)(a) as a female relative having the care of his children and, secondly, under the proposed paragraph (aa) as a daughter wholly engaged in keeping house for him.
As a matter of fact, if the daughter were herself under the age of sixteen years it would be possible for a treble allowance to be made under paragraph (a), proposed paragraph (aa) and paragraph (b) of the sub-section.
The second amendment to the clause is designed to prevent a double or treble allowance of a tax rebate in respect of the same person. The allowance will be based on the highest amount applicable under the paragraphs which apply to the particular case.