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Tuesday, 9 December 1930


Senator BARNES (Victoria) (Assistant Minister) . - In the case of a Minister, the President of the Senate, or the Speaker of the House of Representatives, the amount of tax will be 15 per cent. of his total salary. In the case of the Chairman of Committees in either House, the amount of tax will be 12½ per cent. of the total salary payment.


Senator Sir George Pearce - Will the rate of tax be 15 per cent. or 12½ per cent., as the case may be, on the total salary received as a member of Parliament and as a Minister or presiding officer?


Senator BARNES - Yes. It will not be a tax at the rate of 10 per cent. on the £1,000 a year received as a member of Parliament and then 15 per cent. or 12½ per cent., as the case may he, on the further amount received as a Minister or a presiding officer. The tax will be 15 per cent. or 12½ per cent. on the total remuneration.

Senator Sir GEORGEPEARCE (Western Australia) [8.36]. - The clause might be intended to operate as the Acting Minister has said it will, but I doubt whether it actually will do so. Each of the presiding officers receives a certain sum per annum in addition to his parliamentary allowance. My interpretation of the clause is that he will pay a tax at the rate of 10 per cent. on the amount which he receives as a member of Parliament, and 15 per cent. on the further amount received as President or Speaker. The same rule would apply to Ministers. In the case of the Chairman of Committees the 12½ per cent. tax would apply only to the amount received for services rendered in that capacity. The tax is a. tax on the amount received as a presiding officer or as Chairman of Committees; the higher rate does not apply to the £1,000 or £800, as the case may be, received asa member of Parliament. I suggest that, whatever the legal interpretation, such an arrangement would only be fair. Let us see how the clause would work if that were not so. I understand that the Chairman of Committees in either House receives £700 in addition to his £800 a year as a member of Parliament. If the clause operates, as stated by the Minister, he would pay a total tax of £187. 10s. a year. Allowing £80 as the tax on his first £800, then £85 is the amount payable on the additional £700 received as Chairman of Committees. That is equal to a tax of 15½ per cent. on the amount received as Chairman of Committees.







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