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No "piggy bank" tax



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TREASURER

EMBARGO STATEMENT BY THE ..TREASURER, THE HON. J. W. HOWARD, MP

NO "PIGGY BANK" TAX

It is ludicrous to describe the measures aimed at

reducing tax minimisation through the use of family

trusts and similar arrangements as a "piggy bank"

tax. . ·

There will absolutely be no liability at all.unless

the amount of non-^employment income from a trust or

investment is at least $1040 a year.

This means that there would have to be about $10,000

in the trust or investment before any liability arises.

Furthermore, the full rate of tax under the measures

would not apply until the amount of non-employment income is $3,625 and that in turn would imply a trust . or investor.vr. of about $30,0CO. '

■These amounts can hardly be described as representing

a piggy bank. . .

Such a highly emotive and misleading description will

only cause unnecessary worry to thousands of „

Australian parents who hav6 made modest provision for

their children and who will be absolutely unaffected

by the measures. . . .

As had already been pointed out these measures are

designed to counter tax minimisation and deserve support

as yet another step in producing a fairer taxation system

27 March 1980

Canberra