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Tuesday, 9 May 1972
Page: 1497


Senator Douglas McClelland (NEW SOUTH WALES) asked the Minister representing the Treasurer, upon notice:

What would be the estimated cost to the Treasury in each year if Federal probate duty were abolished on all estates up to the value of (a) $50,000 and (b) $70,000.


Senator Sir KENNETH ANDERSON The Treasurer has provided the following answer to the honourable senator's question:

The annua) cost to revenue of exempting estates of net value (a) up to $50,000 and (b) up to $70,000 from Commonwealth Estate Duty, without altering the rate scale or statutory exemptions, has been estimated as follows:

 

In these estimates, allowance has been made for shading-in', i.e., a reduction in duty otherwise payable on estates with net values somewhat higher than these exemption levels. The purpose of shading-in' is to case the transition from complete exemption from duty to liability for duty at normal rates. Under the 'shading-in' arrangement assumed for purposes of the estimates, the duty payable on the excess of the net value of an estate over $50,000 (or $70,000, as appropriate) is limited to 50 per cent of the excess, so that reduced duty applies to estates of net value up to the level at which the amount of duty calculated on the dutiable value of the estate at normal rates equals the amount of duty payable under the shading-in' arrangement.

I must emphasise that, if at any time it should be decided to exempt from estate duty estates of net value up to the amounts mentioned by the honourable senator, it would not follow either that the present rate scale would continue in force or that 'shading-in' would be provided on the basis of the arrangement assumed for purposes of the present estimates. If the exemption of estates of these net values were to be effected by increasing the statutory exemptions (i.e., the statutory amounts which are deducted from the net value of estates to arrive at the value for duty) without adjusting the present rates of duty, then the cost to revenue would be much greater than the estimates given above.







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