House of Representatives

Explanatory Notes

(Circulated by the Treasurer, the Rt. Hon. Sir Arthur Fadden.)

INTRODUCTORY NOTE

The main features of the Bill are -

(1)

Amendments which will place adopted children and other children towards whom a taxpayer has all the legal obligations of parenthood in the same position, for income tax purposes, as the children of the marriage of the taxpayer (clause 4);

(2)

Exemption of income derived by residents of the Island of Nauru from sources in the Island (clause 5);

(3)

Increase of 50% in the rates of annual depreciation allowances where the diminishing value method is used (clause 6);

(4)

Provision of options to change from the prime cost method to the diminishing value method of calculating annual depreciation, and vice versa (clause 7);

(5)

Provision of an alternative basis of depreciation balancing adjustment in relation to proceeds from the disposal of assets (clauses 12 and 13);

(6)

Allowance of deductions of gifts to certain authorities and institutions in Australia (clause 17);

(7)

Increase in the concessional allowances for maintenance of dependants (clauses 18 to 20);

(8)

Provision of a concessional allowance for maintenance of parents-in-law (clause 19).