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Thursday, 22 May 1980
Page: 3151


Mr Hayden asked the Treasurer, upon notice, on 2 April 1980:

What taxation revenue was forgone as a result of special deductions for expenditure on exploration and development of mineral resources (excepting petroleum in (1) 1975-76, (2) 1976-77, (3) 1977-78 and (4) 1978-79.


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

The income tax revenue forgone in the financial years 1975-76 to 1978-79 as a result of the special deductions for expenditure on exploration and development of mineral resources (excepting petroleum) under Division 10 of the Income Tax Assessment Act has been estimated as follows: 1975-76, $23m; 1976-77, $18m; 1977-78, $40m; 1978-79, $52m.

These amounts relate to the deduction of capital expenditure allowable under the special mining provisions, but not the ordinary provisions, of the income tax law. There was an additional, but unquantifiable, cost to revenue to the extent that certain deductions for expenditure on plant were allowed over shorter periods of time than would have been the case if the plant had been subject to depreciation at normal rates. As indicated in the parts of the statements attached to the Budget Speeches that relate to Industry Assistance through the Taxation System, concessions that accelerate tax allowances in this way, while conferring no greater total deduction over the life of plant than would otherwise be available, permit a deferment of tax which entails a cost to the Budget.







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