Explanatory Memorandum
(Circulated by the Treasurer, the Rt. Hon. William McMahon)Introductory Note.
The main features of this Bill are -
Petroleum Activities on the Continental Shelf (Clauses 3 and 4)
Measures complementary to the Petroleum (Submerged Lands) Act 1967-1968 will clarify Australia's taxing rights in respect of petroleum exploration or mining and associated activities on the continental shelf. In general, enterprises engaged in these activities will be treated in the same way for income tax purposes as if the activities had taken place on the Australian mainland.
Taxpayer Resident in Territories (Clauses 5, 7 and 8)
Special provisions relating to the taxation of residents of Nauru which were enacted when that country was a territory of Australia are being withdrawn with effect from 1 July 1968. Residents of Nauru will, in consequence, be placed in the same position, for Australian income tax purposes, as residents of other countries.
Rebate for Export Market Development Expenditure (Clauses 6, 9 and 10)
The special income tax allowance for certain classes of expenditure incurred before 1 July 1968 in promoting the export from Australia of goods and services will be continued for a further period of five years in a revised form. A rebate of income tax will replace the special deduction from assessable income previously available. In addition, the classes of expenditure eligible for the allowance will be extended.
The clauses of the Bill are explained in the following notes.
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