Income Tax Assessment Bill (No. 2) 1969

Income Tax Assessment Act (No. 2) 1969

Explanatory Memorandum

(Circulated by authority of the Minister representing the Treasurer, Senator the Hon. Ken Anderson).

The purpose of this memorandum is to explain two amendments to clause 6 of the Bill that were made in the House of Representatives.

The first amendment was made for the purpose of making it quite clear that the proposed new paragraph (h) of section 75 of the Income Tax Assessment Act would, as under the present law, cover the cost of sinking bores or wells.

This has been done by specifically referring to this type of expenditure.

The second amendment proposes that the new paragraph (1) of section 75 will extend, not only to on-farm improvements for the conservation of fodder, but also to on-farm improvements for the storage of grain or hay.

As shown on page 8 of the main Explanatory Memorandum to this Bill, the amendments proposed by clause 6 will extend the scope of capital expenditure for which a primary producer will be entitled to a full deduction in the year the expenditure is incurred.