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Tuesday, 23 May 1972
Page: 2939


Dr Klugman (PROSPECT, NEW SOUTH WALES) asked the Treasurer, upon notice:

(l)   What is the amount of Commonwealth estate duty payable in cases where an estate passes to a widow, widower, children or grand children, and where the dutiable value of the estate is (a) $19,999 or less, (b) 25,000, (c) $30,000, (d) $40,000, (e) $50,000 and (f) $100,000.

(2)   On how many estates was probate granted during each of the years 1967-68, 1968-69, 1969- 70 and 1970-71.

(3)   How many of the estates referred to in part (2) were assessed for Commonwealth estate duty in each of those years.


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

(1)   The rates of Commonwealth estate duty payable on the value for duty of an estate of a deceased person are the same irrespective of whether or not the estate passes to close relatives. However the law provides for a concession to be granted in favour of estates passing to close relatives by way of specifying higher levels of statutory exemptions for estates passing to other persons. The statutory exemption and any other special exemption are deducted from the 'value of the estate' (i.e., the value remaining after deducting from the gross value of the estate, debts and taxes due at the date of death and probate and succession duties payable under a State Act) to arrive at the 'value of duty' of the estate.

The statutory exemptions allowable are:

(a)   where the whole of the estate passes to the widow, widower, children or grandchildren of the deceased person -

(i)   for qualifying estates of deceased primary producers - $24,000

(ii)   for other estates- $20,000 decreasing by $2 for every, $8 by which the value of the estate exceeds $24,000 or $20,000 as the case may be;

(b)   where no part of the estate passes to the abovementioned relatives -

(i)   for qualifying estates of deceased primary producers - $12,000

(ii)   for other estates- $10,000 decreasing by $2 for every $8 by which the value of the estate exceeds $12,000 or $10,000 as the case may be; and

(c)   where part only of the estate passes to the widow, widower, children or grandchildren of the deceased person - an amount calculated proportionately under (a) and (b) above.

In addition, a rebate of part of any estate duty attributable to rural property included in the estate of a deceased primary producer may be allowable if the value of the estate (before deducting any statutory exemption) is less than $250,000 and certain conditions are satisfied.

The amounts of duty payable on estates (other than qualifying estates of decreased primary producers) passing to the widow, widower, children or grandchildren of the deceased person where the values for duty of the estates are the amounts specified in the honourable member's question, are shown below. The schedule below also shows the value of the estate' corresponding to each amount of value for duty specified, and the amount of the statutory exemption allowable on such values of estates passing to close relatives.

 

As the amount of duty payable on the value for duty of an estate of a deceased primary producer varies depending on the amount of any rebate allowed in respect of the amount of the duty that is attributable to the rural property included in the estate, it is not possible to specify any one amount as the duty payable on a given value for duty, of such an estate.

(2)   The Commonwealth Statistician has supplied the following information.

The only information available on the number of estates on which probate was granted during each of the years 1967-68 to 1970-71 is given in Table 1 below.

 

Table 2 shows for each State except New South Wales the number of estates on which probate or letters of administration were granted. For New South Wales, the details shown relate to the number of estates of deceased persons assessed for death duty during the year. Probate or letters of administration would not be applied for in respect of all these estates. Separate figures for the number of estates on which probate was granted are not available for New South Wales (except for 1967 - see Table 1 above). Victoria or Western Australia.

 

(b)   Includes cases (treated as separate estates) where property subject to interests limited to cease on the death or a specified person became assessable because of the death of the specified person. The number of such cases were as follows:

1967-68. 1046; 1968-69, 765: 1969-70, 812;

and 1970-71, 762.

(c)   Details for Victoria, South Australia and Tasmania are for the Calendar years 1967 to 1970.

(d)   Estates dealt with by the Tasmanian Taxation Department.

3.   The available estate duty statistics, which are compiled in respect of the financial year in which the assessments were issued, do not indicate the year in which probate was granted on the estates assessed. However, some statistics are available of estates classified by year of death of the person in respect of whose estate the assessment was made. The relevant numbers of assessment* are summarised below, based on statistics of assessment issued up to 30th June 1971:

 







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