Explanatory Notes
(Amendments to be moved by the Assistant Treasurer, the Honourable H.P. Lazzarini.)Ed. Note
NEW CLAUSE-
PROPOSED SECTION 26 (ea).
The purpose of the proposed paragraph (ea) is to remove the technical discrimination at present made in favour of members of the Citizen Forces as compared with voluntarily enlisted members of the Forces. Section 26 (e) of the Principal Act has the effect of including in assessable income the value to the employee of meals and quarters allowed to him. Section 26 (e), however, does not apply to cause the value of quarters and rations allowed to members of the Citizen Forces to be assessable income as the relationship between the Commonwealth and these members of the Forces, as stated above, is not that of employer and employee.
On the other hand, the relationship of employer and employee exists between the Commonwealth and voluntarily enlisted members of the Forces. Consequently, voluntarily enlisted personnel are assessable to income tax on the value of quarters and rations allowed to them.
This discrimination will be removed by paragraph (ea). The new provision, however, will not affect the exemption granted in respect of pay and allowances of the A.I.F. and of members of the other arms of the Forces, who embark for service outside Australia or serve in a seagoing ship.
NEW CLAUSE 20A.
This new clause is being inserted for the reasons stated in connexion with the amendment to Clause 2 of the Bill and to Section 5 of the Principal Act.