Explanatory Notes(Circulated by authority of the Acting Treasurer, the Rt. Hon. R. G. Menzies)
The purpose of this Bill is to amend the Income Tax and Social Services Contribution Assessment Act 1936-1957 (the "Principal Act") so as to give effect to taxation proposals outlined in the Budget Speech.
The principal proposals are -
- To continue for a further three years from 1st July, 1959, the special depreciation allowance of 20 per cent per annum on plant and structural improvements used in connection with agricultural or pastoral pursuits (Clause 5);
- To extend the special depreciation allowance of 20 per cent per annum to plant used wholly and exclusively in the fishing and pearling industries and to certain buildings used in the pearling industry (Clauses 3, 4 and 5);
- To extend the provisions dealing with averaging of income to individual taxpayers carrying on a business of fishing or pearling (Clause 3);
- To increase, in certain circumstances, deductions for capital subscribed to companies engaged in prospecting or mining for petroleum in Australia or Papua-New Guinea (Clauses 7 and 11);
- To increase the zone allowances granted to residents of remote areas of Australia and to members of the Defence Force serving at declared localities overseas (Clauses 8 and 9);
- To extend the deductions allowed to primary producers for the cost of developing rural lands in Australia and Papua to similar expenditure in the Territory of New Guinea (Clause 6);
- To deduct certain capital expenditure incurred in developing rural lands in calculating the taxable proceeds from the sale of those lands (Clause 10).