Second Reading SpeechMinister for Industrial Relations and Minister Assisting the Treasurer, the Hon. Peter Morris, M.P.
I move that the Bill be now read a second time.
This Bill complements the measures in the Bill I have just introduced.
It will amend the Income Tax Rates Act 1986 to declare the rates of tax payable on the various components of taxable income of life assurance companies and registered organisations.
For the component referable to policies held by complying funds or in respect of rollover annuities the rate is to be 15 per cent. A rate of 47 per cent is to be set in respect of the component referable to policies held by non-complying funds.
The rate set for the component referable to other life assurance and accident and disability insurance is 39 per cent where the insurer is a life assurance office and 30 per cent where the insurer is a registered organisation. Finally, a rate of 39 per cent is to be fixed in respect of the non-statutory fund component of the taxable income of a life assurance company.
The new tax rates for life offices and registered organisations will generally have effect for the year of income commencing on 1 July 1988, but the 47 per cent rate in respect of non-complying fund income is to apply from the income year commencing on 1 July 1990. The rates to apply to non-complying fund income for the income years commencing 1 July 1988 and 1 July 1989 are to be 49 and 48 per cent respectively.
The Bill will also reduce, in two stages, the rate of tax applying to the taxable income of non-complying superannuation funds and approved deposit funds and the special component of the taxable income of a complying fund or pooled superannuation trust. The existing 49 per cent rate is to be reduced to 48 per cent for the income year commencing on 1 July 1989 and to 47 per cent for the year commencing 1 July 1990 and later years.
I commend the Bill to the House.