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Trading stock valuation adjustment



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NO. 68

ir. P R E S S )]

TREASURER RELEASE))

EMBARGO

TRADING STOCK VALUATION ADJUSTMENT

- STATEMENT BY THE TREASURER, THE HON. J. HOWARD, M.P.

Following publication of the Consumer Price Index figures for the

quarter to June 1978, the Treasurer today announced the

prescribed percentage figure that is to be applied in the

calculation of trading stock valuation adjustment deductions in

income tax assessments for the 1977-78 income year.,

Mr Howard said that the 1977-78 figure - 3.9 per cent - is lower

than the figure of 5 per cent that applied for the 1976-77 income

year, the decrease being attributable to the gains that the

Government had been able to achieve in reducing the rate of .

inflation in Australia. The 1977-78 percentage figure is equal

to one-half of the percentage increase in the goods component of

the CPI between the June 1977 and June 1978 quarters.

The Treasurer said that the deduction to be allowed to businesses

that carry stocks of eligible goods would, under rules appropriate

to most cases, be determined by applying the prescribed percentage

to the value (not exceeding cost price) of stock on hand at the

commencement of the 1977-78 income year.

CANBERRA .

.27 July 1978