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Wednesday, 10 May 1961

Mr DEPUTY SPEAKER - Order! The honorable member might relate his remarks to the terms of the bill.

Mr FOX - I am relating them to the terms of the bill. I have stated already that I believe this incentive will assist our drive for exports. The whole purpose of the bill is to introduce taxation concessions as financial incentives to increase exports. If 100 per cent, of the amount invested were allowed as a deduction for income tax purposes, there could be no quarrel with the present method of taxing dividends received from mining companies. It could be argued that, because concessions are given to the companies, there is no reason for further concessions to be given to individual shareholders, but as the Government taxes both the companies and the shareholders on the same income, I believe that my proposal is valid. I do not think that if it were accepted there would be any great danger of putting further money into the profits of already rich companies, as it is suggested that this proposal shall apply only to new capital. The established companies already have ample money available for exploration, they are already allowed a 100 per cent. concession for income tax purposes for money spent on exploration, and there is no need for them to call up new capital. It it is conceded that the mining industry is vital to the Australian economy - and I have never heard an opinion to the contrary - and if my proposal will result, as I believe it will, in injecting more money into the search for minerals, I believe it is in line with the sentiments expressed in this bill and should be worthy of the Government's consideration.

Question resolved in the affirmative.

Bill read a second time.

In committee:

Clauses 1 and 2- by leave - taken together, and agreed to.

Clause 3.

After section fifty-one ab of the Principal Act the following section is inserted: - "51 ac. - (1.) In this section, unless the contrary intention appears - export market development expenditure * means prescribed outgoings incurred primarily and principally for the purpose of seeking opportunities, or creating or increasing demand, for - (a)..... but does not include - (d).....

(e)   so much of any outgoings incurred by a person as has been, or is to be, paid or reimbursed to him by another person;

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