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
Thursday, 31 August 1972
Page: 1117


Dr Gun asked the Treasurer, upon notice:

(1)   What was the estimated annual loss to Commonwealth revenue of deductions from taxable income for education expenses for the latest year for which figures are available.

(2)   What was the average deduction from taxable income for educational expenses per taxpayer earning the national minimum wage or less for the same year.

(3)   What is the tax saving on the figure for the average deduction from taxable income in the answer to part (2) at the marginal rate of tax paid by a person earning the present national minimum wage.

(4)   What would be the loss to revenue, compared with the revenue obtained from the complete abolition of educational deductions, if deductions from taxable income for educational expenses were replaced by a standard deduction from tax payable per dependant of the amount given in answer to part (3).


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

(1)   Based on income tax statistics of taxable individuals relating to the 1970-71 income year, it has been estimated that the loss to Commonwealth revenue due to concessional deductions allowed in respect of the 1970-71 income year for education expenses was approximately $83m. (2), (3) and (4) See first paragraph of answer to parts (2) and (3) of Question No. 5952.

For taxable individuals with annual incomes equivalent to the national minimum wage or less in 1970-71 the average concessional deduction allowed for education expenses, in respect of taxpayers who were allowed such deductions, was $115 per taxpayer.

The tax saving in respect of the 1970-71 income year restilting from a deduction of $115 to a taxpayer earning an annual income equivalent to the national minimum wage (assuming that he had no other deductions) amounted to $22.98. The loss to revenue that would have resulted from allowing taxpayers a standard reduction in tax payable, equal to $22.89 per dependant for whom concessional deductions of any amount for education expenses were allowed, is estimated at S60m for the 1970-71 income year.







Suggest corrections