Explanatory Memorandum(Circulated by authority of the Treasurer, the Rt. Hon. Harold Holt.)
The main features of the Resolution are -
Rates of Tax: Individual Taxpayers and Companies.
- That the rates at which tax was payable by individuals and companies for the financial year 1960-61 shall continue to apply for the current financial year 1961-62, that is, to the income of individuals of the year ending 30th June, 1962 and to the income of companies of the year ended 30th June, 1961. Rates of Tax: Trustees of Superannuation Funds.
- The declaration of rates of tax for the 1961- 62 financial year for application to any investment income of a superannuation fund that, by reason of legislation enacted earlier this year, is not exempt from tax. These rates are to apply to income of the year ending 30th June, 1962. Age Allowance.
- That the exemption level for persons qualified by age - 65 years for men and 60 years for women - shall be increased from Pd442 to Pd455 and that, for married couples, both of whom satisfy the age qualification, the exemption point be raised from Pd884 to Pd910.
The principal proposals to be implemented by the Income Tax and Social Services Contribution Assessment Bill are -
Compensation for Death or Compulsory Destruction of Live Stock.
- That amounts taxable to primary producers in consequence of the receipt of compensation and certain other payments upon the compulsory destruction of live stock for the purpose of controlling or eradicating disease, or upon the death of live stock through a disease prescribed by a law dealing with disease control or eradication, may, at the option of the primary producer, be taxed over a period of five years rather than in the year of derivation of the compensation etc. Certain Expenditure on Land Used for Primary Production.
- That the cost of purchasing and laying pipes underground for the purpose of conveying water for primary production purposes shall be allowable as an outright deduction when incurred by a taxpayer engaged in primary production. Calls on Shares.
- That, subject to certain limitations, one-third of calls paid on mining and afforestation shares will be allowable as a deduction to a company which subscribes the money notwithstanding that another company is interposed between it and the operating company. Gifts.
- That gifts of Pd1 and upwards to the Ian Clunies Ross Memorial Foundation will be allowable deductions for income tax purposes. Medical Expenses.
- That the present limit of Pd30 on deductions for dental expenses, within the maximum deduction of Pd150 available for the medical (including dental) expenses of the taxpayer and each of his dependants, shall be removed.
Other amendments will effect minor changes in the procedures by which double taxation is relieved as between Australia and the Territory of Papua and New Guinea. The new provisions will facilitate administrative arrangements which will free certain Australian residents deriving income from the Territory from an obligation to lodge Territory income tax returns and enable both their Australian and Territory taxes to be met by a single payment in Australia.