Explanatory Memorandum.
(Circulated by authority of the Treasurer, the Rt. Hon. Harold Holt).Clause 1: Short title and citation.
This clause formally provides for the short title and citation of the Amending Act and of the Principal Act as amended.
Clause 2: Commencement.
Section 5(1A.) of the Acts Interpretation Act 1901-1964 provides that every Act shall come into operation on the twenty-eighth day after the day on which the Act receives the Royal Assent, unless the contrary intention appears in the Act.
By this clause it is proposed that the Amending Act will come into operation on the day on which it receives the Royal Assent. This will enable the early issue of any assessments which may be affected by the provisions of the Bill.
Clause 3: Duty on estates.
This clause proposes the amendment of section 8 of the Principal Act. That section provides, in sub-section (5.)(b), that estate duty is not payable on property devised or bequeathed to specified institutions in Australia. The provision also frees from estate duty gifts inter vivos made to those institutions within three years before the death of the donor.
It is proposed to include The Winston Churchill Memorial Trust in this category of institutions.
Paragraph (a) of clause 3 is a drafting amendment consequential on the proposed insertion of a further sub- paragraph in paragraph (b) of sub-section (5.) of section 8.
Paragraph (b) of clause 3 is the operative provision. It adds the name of The Winston Churchill Memorial Trust to the list of institutions property passing to which is exempt from estate duty.
Clause 4: Application of amendments.
This clause proposes that the amendments to be made by the Bill apply in relation to the estates of persons dying on or after 1st February 1965. That date is the date on which Australia's participation in the establishment of the Trust was announced by the Prime Minister.