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Tuesday, 24 November 1959

Mr CREAN (Melbourne Ports) . - Although this is a formal stage, I want to indicate that a rate of 6s. in the £1 withholding tax will apply to everybody except residents of the United States of America, Canada and the United Kingdom. This has little effect on investment from those three countries, because they are at present covered by the double taxation agreement. However, the non-resident who lives in the United Kingdom will now enjoy a maximum rate of only 3s. in the £1, whereas he could previously be taxed, if his income were sufficient, at a maximum rate equal to half the highest rate applicable to Australian residents on any income. At the moment, this is 13s. 4d. in the £1, less 5 per cent. So, in effect, it gives a considerable concession to those residents of the United Kingdom drawing dividends from Australia where those dividends are of a high order - say £3,000 or £4,000. The maximum amount of tax those persons will now pay will be only 3s. in the £1.

Question resolved in the affirmative.

Resolution reported.

Standing Orders suspended; resolution adopted.

Ordered -

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

Bill presented by Mr. Townley, and passed through all stages without amendment or debate.

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