Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon. John Howard, M.P.)
This memorandum explains the provisions of the Income Tax (Assessment and Rates) Amendment Bill 1981. Part I contains formal provisions and Part II will amend the Income Tax Assessment Act 1936. Part III will amend the Income Tax (Rates) Act 1976.
Among the main features of the Bill are measures announced on 30 April 1981 to give effect to modifications of certain taxation concessions in the light of the ministerial Review of Commonwealth Functions.
Other main features relate to the announcement of 29 April 1981 that there is to be a half-indexation adjustment to personal income tax for the 1981-82 financial year and that 1981-82 is to be the last year to which the present system of indexation adjustments will apply.
The Bill will also introduce the income tax rebate for contributions paid for basic medical or basic hospital insurance that was announced on 29 April 1981.
The main features of the Bill are as follows: