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Wednesday, 20 May 1936

Senator A J McLACHLAN (SOUTH AUSTRALIA) (Postmaster-General) . - In my second-reading speech, I pointed out that if any difficulties arose from the operation of this clause they could be corrected by subsequent legislation. In my opinion, this provision will not give rise to any inconvenience ; I consider that it widens the door in order to extend allowable deductions.

Senator Gibson - The clause may widen the door, but the word " necessarily " appears to close it again.

Senator A J McLACHLAN (SOUTH AUSTRALIA) - Why ? Does the honorable senator suggest that expenditure which is not necessary for the production of income should be allowable as a deduction ? Surely not ! This clause specifically refers to all losses and outgoings to the extent to which they are incurred in gaining or" producing the assessable income. Suppose that a gentleman entertains honorable senators at a champagne supper in the interests of a certain industry; is he to be permitted to put the expenses down to advertising, and claim them as deductions? The Commonwealth Government hopes to bring all the States into line in this matter. It has been most troublesome for the officers of the department, and if uniformity is not obtained, more difficulties win be created for the tribunals. The wiser course for the committee to adopt would be to agree to the clause in its present form, on the understanding that if any difficulties arise they will be corrected by amending legislation. The only reason why thu officers of the department requested nin to give this undertaking was because they are aware that some taxpayers have such fears as Senator Leckie has expressed. We desire uniformity, and if this provision does not operate as is intended, the Commonwealth Government will request the States at some future conference to agree to amend the law.

Clause agreed to.

Clause 52 agreed to.

Clause 53 (Repairs).

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