Notes for the Minister's Second Reading Speech.
This Bill makes minor technical amendments to the Income Tax (International Agreements) Act as a consequence of the proposed withholding tax on interest derived by non-residents.
The Income Tax (International Agreements) Act gives the force of law to Australia's double taxation agreements with the United Kingdom, the United States, Canada and New Zealand.
In certain provisions the Income Tax (International Agreements) Act refers to the Australian dividend withholding tax by that description. With the introduction of a withholding tax on interest it is proposed that the shorter term "withholding tax" be used to describe the taxes on both dividends and interest.
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 senators.