Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon. John Howard, M.P.)
The main feature of this Bill is the proposed legislation announced in the 1980-81 Budget Speech to provide some relief from Australian tax on certain income which Australian residents earn from their personal services overseas. The Bill also proposes the removal of the 31 December 1980 termination date for deductibility of gifts in accordance with the Taxation Incentives for the Arts Scheme, so that the scheme will now continue indefinitely. The extension of that scheme to cover gifts to Artbank is another feature.
Another amendment proposes an increase in the monetary limits that determine how applications for relief from payment of income tax in cases of hardship are to be handled. A further amendment will make it clear that it is mandatory for the Commissioner of Taxation to allow credit to an employee for tax instalments deducted, where the employer has failed to issue a group certificate or a tax stamps sheet. There are also some amendments to correct drafting errors contained in legislation enacted as the Income Tax Assessment Amendment Act (No. 2) 1980.
Comments on each of the main features of the Bill are given below.