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Wednesday, 16 June 1926


Senator CRAWFORD (QueenslandHonorary Minister) . - Senator Lynch was under a misapprehension when he said that the existing legislation makes no distinction between men who took part in the war and those who stayed at home. It makes a very great difference between them. In the first place, the men who served with the Australian Imperial Force were exempted from the payment of ordinary income tax. In certain circumstances they are also exempted from the payment of taxation under the War-time Profits Tax Act. The principal act, which was passed in 1917. was clear as to the persons to be exempted under its provisions. There could be no doubt that the members of both Houses of Parliament at that time understood clearly the provisions of the legislation which Senator Elliott now seeks to amend. Sub-section 3 of section 8 of the act of 1917 reads -

When any resident of Australia, who is on active service outside Australia with the naval or military forces of any of the allied powers in connexion with the. present war, is the owner of, or is a partner in a business to which this act applies, and who, before he went on active service, devoted the whole or the greater part of his time in connexion with the management of the business, and whose military or naval duties require him to be in any part of the field of operations in connexion with the war, where there is danger to. life as a result of the operations of enemy forces, such person shall -

(a)   when the sole owner of a business be exempt from liability to pay the war-time profits tax;

(b)   when a partner in a business be entitled to a refund from the Commissioner of the part of the tax payable by the partnership which bears the same proportion to the tax payable by the partnership as his interest in the profits of the partnership bears to the total profits.







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