House of Representatives

Income Tax Assessment Bill (No. 2) 1945

Income Tax Assessment Act (No.2) 1945

Second Reading Speech

Mr. Chifley (Macquarie-Prime Minister and Treasurer).-by leave-I move-

That the bill be now read a second time.

This bill is also a part of theplan for the establishment of the system of social services contributions. As already indicated, it is proposed that the present income tax shall be separated into two levies, one of which will be a social services contribution. This proposal has necessitated some amendments to the Income Tax Assessment Act and those alterations are embodied in this bill.

Social services contribution will not be paid unless the income exceeds, in the case of a-

  Pd
Taxpayer without dependants 104
Taxpayer with dependent wife 156
Taxpayer with dependent wife and one child 175
Taxpayer with dependent wife and two children 211
Taxpayer with dependent wife and three children 257
Taxpayer with dependent wife and four children 277

Income tax will not be paid unless the income exceeds, in the case of a-

  Pd
Taxpayer without dependants 200
Taxpayer with dependent wife 266
Taxpayer with dependent wife and one child 318
Taxpayer with dependent wife and two children 347
Taxpayer with dependent wife and three children 380
Taxpayer with dependent wife and four children 413

It is important that I should mention that rebates of income tax allowable in respect of dependants, life assurance premiums, medical expenses, &c., will be preserved. At present, these rebates are calculated at the personal exertion rate appropriate to the taxable income of the taxpayer. It is proposed that the rate at which the rebate is to be calculated shall be increased by the social service contribution rate. In effect, the combined rates of income tax and social service contribution shall be used in determining the rebates of income tax to which taxpayers are entitled.

Mr. MENZIES.-Would it be possible to let us know as soon as possible how much income tax for the financial year 1944-45 is unassessed or uncollected?

Mr. Chifley.-I shall try to get that information for the right honorable gentleman.

Debate (on motion by Mr. MENZIES) adjourned.