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Wednesday, 13 June 1984
Page: 2900


Senator WALSH (Minister for Resources and Energy)(11.27) —I am going to be very brief. I think we have had enough nit picking on the Income Tax Assessment Amendment Bill (No. 3). In reply to Senator Jack Evans's final query regarding the defence forces, nobody is to be taxed at the rate of 30 per cent at any time in the future. The first $50,000 has the concessional rate of 15 per cent, so the average would never be 30 per cent. The entitlement which Defence service personnel have can be rolled over, can be subsequently added to or, alternatively, an annuity can be purchased. So the tax rate is not 30 per cent, it never will be 30 per cent and, even when it could conceivably be an average of something like 25 per cent for a very high payment, other options are available to the person who has the entitlement. Senator Messner's question-I have forgotten the exact words-was essentially why small businessmen are not allowed to run their own funds, or something like that.


Senator Messner —Business organisations.


Senator WALSH —Well, business organisations. It is a question of judgment as to where the line should be drawn for organisations that are eligible to run their own funds. People may agree or disagree with judgments that have been made, but I think there would be a general agreement that a line has to be drawn somewhere .