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Thursday, 21 May 1936

Senator A J McLACHLAN (SOUTH AUSTRALIA) (Postmaster-General) . - I move -

That at the end of the clause the following paragraph be inserted:- " (s) the income of -

(i)   any fund or association maintained by a religious institution; or

(ii)   any company thewhole of the shar es of which are held by or on behalf of a religious institution, where the fund or association is maintained, or the company was formed and is carried on, for the sole purpose of insuring property belonging to the religious institution, and where the profits arising from the fund, or derived by the association or company, are devoted to that sole purpose or to the purposes of the religious institution.

The income of religious, scientific, charitable or public educational institutions is exempt from taxation under paragraph e. This provision is a repetition of the exemption provision in the present act. Some religious denominations provide for their own insurance risks by means of a fund governed and controlled by the denomination to which the profits, if any, from the transactions enure. It has been represented that a religious denomination which carries its own insurance risks through a company, should be accorded the same exemption as is conceded to the insurance funds of other denominations. Such a company does not come into competition with the ordinary commercial insurance companies because of the fact that its assurance business is transacted solely in connexion with church buildings and schools. A company is formed to facilitate financial and legal transactions, as well as re-insurances with other insurance trading bodies. Whatever savings are effected by the company enure to the benefit of the reserve funds, and thereby to the benefit of the various churches through rebates on premiums. In the circumstances it is considered that, asa matter of equity, such a company should be brought within the exemptions provided in the act.

Amendment agreed to.

Clause, as further amended, agreed to.

Bill reported with a further amendment; reports adopted.

Bill read a third time.

Sitting suspended from 8.12 to 9.30 p.m.

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