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Tuesday, 30 November 1965

Mr FOX (Henty) .- I move-

That the following new clause be inserted in the Bill:- " 14a. After section 53E of the Principal Act the following section is inserted: - 53f. - (1.) In this section- " conversion costs ", in relation to a unit of property, means expenditure incurred by the taxpayer in converting or adapting the unit for use in connexion with the system of currency provided for by Part II. of the Currency Act 1965; and " unit of property " means a unit of property not being trading stock of the taxpayer. (2.) Conversion costs incurred by the taxpayer in the year of income in respect of a unit of property used by him for the purpose of producing assessable income or carrying on a business for that purpose shall, subject to this section, be an allowable deduction. (3.) For the purposes of this Act -

(a)   no part of any conversion costs shall be an allowable deduction, or be taken into account in ascertaining the amount of an allowable deduction, under a provision of this Act other than this section in the assessment of the taxpayer in respect of income of any year of income; and

(b)   conversion costs shall be deemed not to be capital expenditure or expenditure of a capital nature. (4.) Notwithstanding anything in any other provision of this Act, the Commissioner may amend an assessment in respect of income of any year of income before the year of income that commenced on the first day of July, One thousand nine hundred and sixty-five, for the purpose of giving effect to this section.'.".

The purpose of this amendment is to enable the owner of a business machine, such as an accounting machine, cash register or adding machine, to be able to deduct from his assessable income in the year of expenditure the amount of money paid by him to convert this equipment for use with decimal currency. Without this amendment this expenditure would have been treated as capital expenditure which could only be depreciated over a number of years. I shall be moving two other consequential amendments and I shall refer to them a little later.

Proposed new clause agreed to.

Clause 15.

After section 62 of the Principal Act the following section is inserted: -

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