Explanatory Memorandum(Circulated by the Minister Assisting the Treasurer, the Hon. Phillip Lynch).
The purpose of this memorandum is to explain the provisions of two income tax Bills.
The first Bill - the Income Tax Bill 1970 - will declare the ordinary rates of income tax payable by individuals and companies for the current financial year, 1970-71. Features of the Bill are:-
- Rates of tax, individuals (Clauses 6 and 8). The rates of tax are to be revised for the 1970-71 financial year so that reduced tax will be payable by individuals with taxable incomes of less than $32,000. On taxable incomes of $32,000 and above the tax payable will be the same as for the preceding year, 1969-70.
- Rates of tax, companies (Clause 10). The primary rates of tax payable by companies for the 1970-71 financial year (in assessments based on income derived during the 1969-70 income year) to be increased by 2.5 cents in the dollar.
- Age allowance (Clause 9). The exemption level for persons qualified by age - 65 years for men and 60 years for women - will be increased from $1,300 to $1,326 and, for taxpayers assessed under the married couple provisions, from $2,262 to $2,314.
- Further relief is to be given by adjustments to the "shading-in" provisions which limit the tax payable by an aged person whose taxable income is somewhat above the exemption level.
The second Bill - the Income Tax (Partnerships and Trusts) Bill 1970 - will declare the special rates of tax payable by certain trustees, superannuation funds and partners for the 1970-71 financial year. These rates are unchanged from those that applied for the 1969-70 financial year.
The following notes are restricted to the provisions of the Bills that differ from those enacted in 1969. Otherwise, the Bills have the same practical effects as the measures declaring the rates of tax for the 1969-70 financial year.
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