Explanatory Memorandum
(Circulated by authority of the Treasurer, the Rt. Hon. William McMahon.)INTRODUCTORY NOTE
The purpose of this memorandum is to explain the provisions of three income tax Bills.
Income Tax Bill 1967
The first Bill - the Income Tax Bill 1967 - will declare the ordinary rates of income tax payable by individuals and companies for the current financial year 1967-68. Features of the Bill are :
Rates of Tax (Clauses 6 and 9)
The rates of tax applicable for the 1967-68 financial year (including the 2 1/2 per cent special levy payable by individuals) are to be the same as those that applied for the preceding year 1966-67.
The exemption level for persons qualified by age - 65 years for men and 60 years for women - will be increased from $1,980 to $2,106 for taxpayers assessed under the married couple provisions and from $1,070 to $1,196 for other aged taxpayers; also, the allowance will be based on the taxable income of an aged person instead of net income as in previous years.
More detailed explanations will be found at pages 4 and 5 of this memorandum.
Income Tax (Partnerships and Trusts) Bill 1967
The second Bill - the Income Tax (Partnerships and Trusts) Bill 1967 - will declare the special rates of tax payable by certain trustees, superannuation funds and partners for the 1967-68 financial year. These rates are unchanged from those that applied for the 1966-67 financial year.
Income Tax Assessment Bill (No. 3) 1967
The third Bill - the Income Tax Assessment Bill (No. 3) 1967 - is designed to give effect to proposals amending the basis upon which tax is assessed. Broadly stated, the main proposals covered by this Bill are :
A woolgrower whose assessable income of an income year includes the proceeds of two wool clips may, where the inclusion of the proceeds of the additional clip was due to an advanced shearing by reason of fire, drought or flood, elect to transfer the proceeds of the additional clip, less shearing and other direct expenses, to the assessable income of the next succeeding income year.
Disposal of Live Stock (Clause 5)
A primary producer who is forced to sell live stock in consequence of fire, drought or flood may elect that the profit be excluded from his assessable income of the year of sale and be applied in reducing the cost, for income tax purposes, of live stock acquired as replacements.
Special Depreciation Allowance to Primary Producers (Clause 7)
The special 20 per cent depreciation allowances on plant and structural improvements used for primary production purposes are to be continued without a time limit as to their operation.
Erection of Subdivisional Fencing (Clause 8)
The cost of erecting subdivisional fencing on land used for primary production is to be deductible in the year in which the expenditure is incurred.
Concessional Allowances (Clauses 9, 10 and 11)
The concessional deduction allowable for each dependant and for a housekeeper is to be increased by $26. The deduction for payments by a taxpayer to obtain life insurance and superannuation cover for himself and his family is to be increased by $400.
More detailed explanations will be found at pages 6 to 25 of this memorandum.