Explanatory Memorandum.(Circulated by authority of the Treasurer, the Rt. Hon. Harold Holt.)
In this memorandum, explanations are given of the three Bills mentioned above.
The major Bill is the Income Tax and Social Services Contribution Assessment Bill (No. 3) 1964. By this Bill it is proposed to amend the Income Tax and Social Services Contribution Assessment Act 1936-1964, which will be referred to as "the Principal Act".
Stated very briefly, the main proposals relate to companies, leases, trusts, partnerships, superannuation funds and alienation of income. Each of these matters has been the subject of recommendations by the Ligertwood Committee, which was a Commonwealth Committee on Taxation set up under the chairmanship of Sir George Ligertwood.
The second Bill - the Income Tax and Social Services Contribution Bill (No. 2) 1964 - will amend the law declaring the rates of tax for the 1964-65 financial year. The principal purpose of the amendment will be to declare the rate of tax payable for that year on certain income of superannuation funds. The need to declare that rate of tax arises from provisions of the major Bill relating to those funds.
The remaining Bill will amend the Income Tax (International Agreements) Act 1953-1963. The amendments are of a technical nature and are consequential on provisions of the major Bill.