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Thursday, 10 November 1938


Mr CASEY (Corio) (Treasurer) . - I move-

1.   That in lieu of the rates of tax imposed by the Land Tax Act1910-1927. as affected by the Financial Relief Act 1932-1935, there be imposed land tax at thefollowing rates: -

Division A.- Rate of Tax when Owner is not an A bsen tee.

For so much of the taxable value as does not exceed £75,000, the rate of tax per pound shall be one half-penny and one thirty-seven thousand live hundredth of one penny where the taxable value is one pound, and shall increase uniformly with each increase of one pound of the taxable value by one thirty-seven thousand live hundredth of one penny.

For every pound of taxable value in excess of £75,000 the rate of tax shall be fourpence half-penny.

The rale of tax for so much of the taxable value as does not exceed £75,000 may becal- culated from the following formula: -

 

Division B. - Rate of Tax when Owner is an Absentee.

For so much of the taxable value as does not exceed £5,000, the rate of tax per pound shall he one half-penny. For so much of the taxable value as exceeds £5,000, but does not exceed £80,000, the rate of tax per pound shall be one penny and one thirty-seven thousand rive hundredth of one penny where the excess is one pound, and shall increase uniformly with each increase of one pound in the taxable value by one thirty-seven thousand five hundredth of one penny.

For every pound of taxable value in excess of £80,000 the rate of tax shall be fivepence.

The rate of tax for so much of the taxable value as exceeds £5,000, and does not exceed £80.000, may be calculated from the following formula: -

 

2.   Thatland tax in accordance with the foregoing provisions of this resolution shall be levied and paid for the financial year beginning on the first day of July, one thousand nine hundred and thirty-eight and for each financial year thereafter.

3.   That the land tax payable in respect of any financial year prior to the financial year beginning on the first day of July, one thousand nine hundred and thirty-eight shall be the amount of land tax that would have been payable if from the schedules to the Land Tax Act1910, and from the schedules enacted in substitution for those schedules by the Land Tax Act 1014, the word "sterling",wherever it occurs, had been omitted.

The motion seeks to implement the Government's proposal to increase the rates of land tax by approximately 11.1 per cent., bringing them up, as I said in my budget speech, to 50 per cent. of the rates obtaining in 1914-15. There are two principal divisions in the motion. "Division A applies to residents, and division B to absentees.

In respect of residents the rate of tax commences at one half-penny and one thirty-seven five hundredth of a penny, and increases uniformly by one thirtyseven thousand five hundredth of a penny as the taxable value increases until it reaches £75,000. For every pound of taxable value in excess of £75,000 the rate of tax is a flat rate of 4½d.

Absentees provided for under division B do not receive the deduction of £5,000 which is allowed to residents in arriving at the taxable value of their land. They, therefore, pay tax on the full unimproved value. For the first £5,000 of taxable value, the rate of tax is a flat rate of one half-penny in the £1. When the taxable value exceeds £5,000 for absentees, the rate of tax on the excess up to £80,000 is one penny and one thirtyseven thousand five hundredth of a penny, increasing uniformly by one thirty-seven thousand five hundredth of a penny until the taxable value reaches £80,000.For every £1 of taxable value in excess of £80,000 the tax is at a flat rate of 5d.

Clause 2 of the resolution provides that land tax calculated in accordance with the formulas in divisions A and B shall be paid for the current financial year and for subsequent years. When expressing the formulae which was contained in the Land Tax Acts of 1910 and 1914 the words "pound sterling" were used to denote the Australian pound. In view of the different currency value of the Australian and sterling pound, it is necessary to delete the word " sterling " from these formulas wherever it appears. Clause 3 provides for this to be done.

Question resolved in the affirmative.

Resolution reported.

Standing Orders suspended; resolution adopted.

Ordered -

That Mr. Casey and Mr. Menzies do prepare and bring in a bill to carry out the foregoing resolution.

Bill brought up by Mr. Casey, and read a first time.







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