House of Representatives
Income Tax Assessment Bill (No. 2) 1972
Income Tax Assessment Act (No. 2) 1972
Explanatory Memorandum
(Circulated by the Treasurer, the Hon. B.M. Snedden, Q.C., M.P.)Introductory Note
This Bill proposes an amendment to the Income Tax Assessment Act 1936-1972 (referred to in this memorandum as the "Principal Act") which will have the effect that otherwise taxable profits or deductible losses made by a person (not including a company) on the sale of shares will not be taken into account for income tax purposes if specified conditions are satisfied. Broadly stated, these conditions are
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- The shares in question were listed on a stock exchange at the time of acquisition by the person, or within three months afterwards.
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- The person had not acquired the shares as an incident of a business carried on by him and had not formally notified the Commissioner of Taxation that they had been acquired by him for the purpose of profit-making by sale.
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- The person had continued to be the owner of the shares for a period of eighteen months or more.
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- The shares were acquired by the person on or after 12 April 1972.
The clauses of the Bill are explained in the notes that follow.