Notes for the Minister's Second Reading Speech
This Bill will effect minor technical amendments to provisions of the Income Tax (International Agreements) Act. These have been made necessary by the proposed introduction of a withholding tax on interest derived from Australia by non-residents.
The Income Tax (International Agreements) Act gives the force of law to the existing taxation agreements Australia has with the United Kingdom, the United States, Canada and New Zealand for the purpose of relieving double taxation of income flowing between Australia and those countries.
As it stands at present, the Income Tax (International Agreements) Act refers only to the Australian dividend withholding tax. The proposed introduction of a withholding tax on interest as well as on dividends has necessitated a change in the name of the withholding tax.
The amendments proposed by this Bill do no more than incorporate into the Income Tax (International Agreements) Act the new name for the withholding tax.
I commend the Bill to honourable members.