Explanatory Memorandum(Circulated by the Treasurer, the Rt. Hon. William McMahon).
The purpose of this memorandum is to explain the provisions of three income tax Bills.
The first Bill - the Income Tax Bill 1969 - will declare the ordinary rates of income tax payable by individuals and companies for the current financial year, 1969-70. Features of the Bill are:
- Rates of tax (Clauses 6, 8 and 11)
- The rates of tax applicable for the 1969-70 financial year (including the 2 1/2 per cent additional levy payable by individuals) are to be the same as those that applied for the preceding year, 1968-69.
- Age allowance (Clause 9)
- The exemption level for persons qualified by age - 65 years for men and 60 years for women - will be increased from $1,248 to $1,300 and, for taxpayers assessed under the married couple provisions, from $2,184 to $2,262. The ranges of income within which reduced tax is payable have been extended.
More detailed explanations will be found at pages 3, 4 and 5 of this memorandum.
The second Bill - the Income Tax (Partnerships and Trusts) Bill 1969 - will declare the special rates of tax payable by certain trustees, superannuation funds and partners for the 1969-70 financial year. These rates are unchanged from those that applied for the 1968-69 financial year.
The third Bill - the Income Tax Assessment Bill (No. 2) 1969 - has the following main purposes:
- Structural improvements for water or fodder conservation - (Clause 6)
- The scope of capital expenditure incurred by primary producers which is deductible in full in the year of incurrence is to be extended to include expenditure on improvements made to conserve water or fodder.
- Capital subscribed for purposes of mining or prospecting - (Clauses 7 and 9)
- The provisions of the income tax law which now permit, in specified circumstances, separate deductions for share capital subscribed by Australian residents to -
- petroleum exploration companies; and
- other companies, the principal business of which is mining or prospecting for minerals other than gold or petroleum,
- are to be revised so that, in broad terms, deductions may be available where share capital is subscribed to companies engaged in both of these branches of the mining industry.
- Double Deductions - ( Clause 12)
- The provision which permits share dealers to obtain more than one deduction in respect of share capital subscribed to petroleum exploration companies or in respect of calls paid on shares in mining or afforestation companies is to be withdrawn.
More detailed explanations appear on pages 6 to 29 of this memorandum.