Explanatory Memorandum
(Circulated by the Treasurer, the Rt. Hon. William McMahon)Introductory Note
The purpose of this memorandum is to explain the provisions of two Bills amending the income tax and the pay-roll tax law.
Income Tax Assessment Bill 1969
The main purpose of the first Bill - the Income Tax Assessment Bill 1969 - is to amend section 23C of the Income Tax Assessment Act so that an exemption from tax provided by the section for income derived from export sales of gold (and dividends paid out of such income) applies also in respect of income derived from the sale of newly-mined gold for industrial use in Australia.
The Bill will also effect a technical amendment to provisions of section 160AC of the Assessment Act which are designed to limit the amount of the special rebate of income tax available under that section in respect of expenditure incurred in promoting the export of goods and services from Australia.
The clauses of the Bill are explained at pages 2 to 5 of this memorandum.
Pay-Roll Tax Assessment Bill 1969
The second Bill - the Pay-roll Tax Assessment Bill 1969 - will amend section 16X of the Pay-roll Tax Assessment Act under which gold producers may qualify for rebates of pay-roll tax in relation to exports.
Under this section, a gold producer's total production (some of which may be sold for industrial use in Australia) and the dividends he receives which are exempt from income tax and which result from the export of part of his production are treated as export sales for rebate purposes. The proposed amendment is designed to ensure that the part of a gold producer's production that is sold for industrial use in Australia will no longer be eligible for the pay-roll tax export rebate.
The clauses of the Bill are explained at pages 6 to 10 of this memorandum.