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Wednesday, 6 May 1987
Page: 2714


Mr HURFORD (Minister for Community Services and Minister Assisting the Treasurer)(4.15) —I move:

That the Bill be now read a second time.

This Bill will amend the Bank Account Debits Tax Act in two respects. It will give effect to the 1986-87 Budget proposal to abolish the higher rates of bank account debits tax that presently apply in the Australian Capital Territory in lieu of the State-type financial institutions duty. The abolition of the higher Australian Capital Territory rates is a consequence of the proposed introduction, from 1 July 1987, of a financial institutions duty in the Australian Capital Territory-also announced in the 1986-87 Budget. The abolition of those rates will mean that bank account debits tax rates are uniform throughout Australia. The revenue loss from this measure, and from the proposed abolition of certain Australian Capital Territory stamp duties on financial transactions, will be broadly offset by the introduction of the financial institutions duty.

The Bill will also ensure that anti-avoidance provisions in the Bank Account Debits Tax Act apply to payment order accounts kept with non-bank financial institutions. Debits to such accounts are being brought within the debits tax base by the Taxation Laws Amendment Bill (No. 2) 1987 about which I have just spoken. The explanatory memorandum on that earlier Bill also contains an explanation of the provisions of this Bill. I commend the Bill to the House.

Debate (on motion by Mr Connolly) adjourned.