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Thursday, 22 May 1980
Page: 3228

Dr Klugman asked the Treasurer, upon notice, on 16 April 1980:

(   1 ) Did the Mathews Committee on Inflation and Taxation in its report presented to the House on 26 May 1975 recommend that the maximum allowable deduction for superannuation contributions and life assurance premiums be indexed.

(2   ) Was the sum involved $ 1,200 in 1975-76; if so, is it still the same.

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

(   1 ) In para 6.8 of the Report which it submitted to the previous Government, the Mathews Committee said that if the Government wished to reduce the real values of the life insurance and superannuation and education expenses concessions, it should do so explicitly, rather than let them be reduced through inflation. The Committee went on to say that after setting them at their appropriate real values, it would then be logical to maintain the real values and indexation was a way of doing this.

It is of course relevant that in its immediately following Budget the then Government effected a major change in the basis of the personal income tax system as a result of which, inter alia, most of the concessional deductions (including that relating to superannuation contributions and life assurance) became, effectively, inoperative for the large majority of taxpayers.

(2)   Yes.

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