Explanatory Memorandum(Circulated by authority of the Acting Treasurer, the Rt. Hon. R. G. Menzies.)
In this memorandum explanations are given in relation to the provisions of the two Bills relating to income tax.
The first Bill (the Income Tax and Social Services Contribution Bill 1964) declares the rates of income tax and social services contribution payable by individuals and companies for the current financial year 1964-65. It also prescribes the circumstances in which an age allowance is available to residents of Australia who, in the case of men, have attained the age of 65 years and, in the case of women, are not under 60 years of age.
The second Bill (the Income Tax and Social Services Contribution Assessment Bill (No. 2) 1964) has the following purposes:-
- Pay and allowances received for part time service in the Citizen Forces are to be exempt from tax.
- Civilian persons who serve overseas with the armed forces of the United Nations may be accorded special income tax treatment corresponding to that accorded to members of the Defence Force serving at certain overseas localities.
- The Commissioner will be authorised to advise the Commonwealth Statistician of the names, addresses and industries of persons who are employers for the purpose of the income tax law. The information is to be used by the Statistician in collecting employment statistics.
- Provisional tax in respect of the income of the 1964-65 income year is to be an amount which would have been payable if the rebate of 5 per cent of tax payable by individuals had not applied in respect of the 1963-64 income year.
The provisions of the two Bills are explained in succeeding paragraphs of this memorandum.