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Tuesday, 2 October 1984
Page: 1407

Mr HOWARD(11.33) —I move:

Clause 13, page 8, after proposed sub-section (2) insert the following sub- section:

'' ' (2A) Where the existence of non-voting, redeemable preference shares in a subsidiary does not have any relevance to the beneficial ownership of that subsidiary, they will be disregarded for the purposes of paragraph 2 (a).' . '' .

The purpose of this amendment is very simply that where there is a situation in which there is 100 per cent common ownership in relation to companies entitled to the group taxation deduction provisions but for the existence of non-voting redeemable preferences shares in a subsidiary which do not have any relevance to the beneficial ownership of the subsidiary, we believe that the intention of the Government's very wise measure should be given effect to. I am very pleased that the Government has resurrected a measure that was contained in the Fraser Government's last Budget. It was put aside last year. The Government, to its credit, has brought it back this year. I am simply suggesting that in those cases where but for what is basically a technicality one has a common ownership and there is no shifting of beneficial interests the full effect of the measure ought to be available. Once again I appeal to the common sense of the Minister for Housing and Construction (Mr Hurford) and ask him to consider accepting this amendment on behalf of the Government. It will stand the Government in good stead.