Explanatory Memorandum
(Circulated by authority of the Treasurer, the Rt. Hon. Harold Holt.)NOTES ON THE BILL
Clause 1: Short Title and Citation
This clause formally provides for the short title of the Amending Act and the Principal Act as amended.
Clause 2: Definitions
Section 3 of the Principal Act contains definitions of a number of expressions used throughout the Act.
As in the case of similar agreements with the other countries already mentioned, the term "the New Zealand agreement" is being defined so as to simplify references in the Act to that agreement. The term will mean the agreement relating to taxes on income signed on behalf of Australia and New Zealand on 12th May, 1960.
Clause 3: Agreement with New Zealand
Clause 3 of the Bill will give the force of law to the New Zealand agreement as regards Australian tax from the beginning of the current income year 1959-1960. As regards New Zealand tax, the agreement will first apply for the income year ended 31st March, 1960. These commencing dates follow from the terms of article XVII(1) of the agreement, which will continue to have the force of law until it ceases to be effective in accordance with a notice of termination given by either country under article XVII(2).
Clause 4: The Fourth Schedule
This clause will insert as a Fourth Schedule to the Principal Act a copy of the agreement between Australia and New Zealand.