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Tuesday, 30 April 1968

Mr FREETH (Forrest) (Minister for Air) - in reply - I am grateful that the Opposition is not opposing this Bill. The honourable member for Scullin (Mr Peters) and the honourable member for Reid (Mr Uren) are poles apart from the Government in their approach to this legislation. From the start, they do not want any foreign investment in Australia or, if they do, they are going about getting it in a way which would discourage foreign investment. My only comment on what was said by the honourable member for Reid is that he seemed to be hopelessly confused between the 30% income lax which was paid on net income after the deduction of expenses and a withholding tax on interest and royalties, which is a tax on gross payments - a very substantial difference. I suggest that the honourable member did not get that sorted out in his own mind. 1 rose primarily to answer a question raised by the honourable member for Melbourne Ports (Mr Crean). He was in some doubt as to whether the Government's taxation of royalties would cover the whole situation that he thought should be covered. He asked whether such payments as engineering fees and technical service fees would be regarded as royalties under the definition in this Bill. I am happy to assure him that as far as we can tell these payments are covered. The definition of royalties has been designed specifically to include all payments of an income nature that are made by way of engineering fees, technical service fees, fees for special know-how and the like. I will not detain the House further. I thank honourable members for their consideration of the Bill.

Question resolved in the affirmative.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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