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Thursday, 2 December 1971
Page: 4113


Mr Whitlam asked the Treasurer, upon notice:

(1)   For what dependants can a taxpayer claim deductions from bis taxable income if they are resident in Australia but not if they are resident overseas.

(2)   For what expenditures can a taxpayer claim deductions from his taxable income if they are incurred in Australia but not ifthey are incurred overseas.


Mr Snedden - The answer to the honurable member's question is as follows:

(1)   Under the income tax law, a taxpayer who is a resident may be entitled to a concessional deduction if he contributes to the maintenance of any of the following dependants who are residents of Australian, namely, the spouse of the taxpayer, a daughter-housekeeper, a child less than 16 years of age, a student child, an invalid relative and a parent of the taxpayer or of his spouse. The maintenance deduction otherwise allowable in respect of a dependant is reduced by the amount by which the separate net income of the dependant exceeds $130. No deduction is allowable in respect of a dependant who does not qualify as a resident of Australia.

In the case of a migrant taxpayer with a dependent wife and children oversells, it is the administrative practice of the Commissioner of Taxation to treat the wife and children also as residents of Australia if the taxpayer intends to bring them to this country. Concessional deductions are allowed for a period of up to 5 years on the basis that this period provides sufficient lime to enable the taxpayer to make the necessary transport and accommodation arrangements. If the dependants have not taken up physical residence inAustralia after5 years, the concessional deductions are discontinued on the grround that there are no indications that the dependants intend migrating to Australia.

(2)   The allowance of deductions for expenditure falling within the scope of the concessional deductions . provisions is not conditional upon the expenditure being incurred in Australia. '1 he basic requirement is that the taxpayer himself be a resident of Australia. Expenditure in this category comprises life 'assurance and superannuation fund contributions; medical, funeral and education expenses; and contributions to medical and hospital benefits funds. However, in the case of medical or funeral expenses incurred in respect of a dependant, a deduction is allowable only if the dependant is also a resident of Australia or was a resident at the time of death.

Commonwealth Securities (Question No. 4644) >Jr Bryant asked the Treasurer, upon notice:

Will he provide a statement, using the latest figures available, showing the principal holders of

 

Commonwealth Government securities (a) in Australia and (b) Overseas.


Mr Snedden - The answer to the honourable member's question is as follows:

(a)   Preliminary figures for. .principal holders of Commonwealth Government securities on issue in Australia at 30th September 1971 arc as follows:

 

(b)   Details of holders of 'Commonwealth Government securities issued in public loans overseas are not available. The main types of borrowings overseas by the Commonwealth outstanding as at 30;h September 1971 are estimated as follows:

 







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