Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
 Download Full Day's HansardDownload Full Day's Hansard    View Or Save XMLView/Save XML

Previous Fragment    Next Fragment
Tuesday, 17 November 1964

Senator HENTY - The Treasurer has supplied the following answers to the honorable senator's questions -

1.   Income tax concessional deductions are allowed in a taxpayer's assessment in respect of certain payments made by him on account of himself or his family and in respect of the maintenance by him of his family. The entitlement to these deductions attaches to the taxpayer personally. Where a taxpayer dies, the concessional deductions -are available in assessments of income derived by him up to the date of his death. Medical and funeral expenses, and any education expenses within the normal prescribed limits, incurred prior to a taxpayer's death but not paid until after his death, are allowed in the final assessment of income of the taxpayer derived in his lifetime. The position' regarding assessments of income of the estate of a deceased taxpayer is dealt with in the reply to the remaining parts of the question. 2 and 3. Following the death of a taxpayer, there may be a period during which no person has a present entitlement to the income of the estate. In these circumstances, the income is included in an assessment which the trustee is liable to pay and, generally speaking, concessional deductions are not allowable in the assessment. In some cases, however, the trustee is empowered by the will to apply income to, or for the benefit or maintenance of, beneficiaries. Where this occurs, a beneficiary in respect of whom the trustee exercises his power is deemed to be presently entitled to the income so applied and, if the beneficiary is not a minor, the income is excluded from 'the assessment of the trustee and included in the assessment of the beneficiary. Any concessional deductions to which the beneficiary is personally entitled are allowed in his own assessment, as is a concessional deduction in respect of medical expenses paid by the trustee for the beneficiary. If the beneficiary is a minor, the trustee is assessed on the income so applied separately from the other income of the estate, and may be allowed a concessional deduction for medical expenses paid by him in respect of the beneficiary.

Suggest corrections