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Wednesday, 10 December 1930


Senator McLACHLAN (South Australia) . - I move -

That the following new clause be inserted:- 1 a. Section 16 of the PrincipalAct is amended by inserting in the first proviso to paragraph (d), after the word " licence", first occurring, the words " or if that lease is a lease of land, in effecting any improvements on the leased land."

When Parliament passed section 16 of the principal act it omitted to take into consideration the case of a man who bought a lease and spent money on it in effecting improvements, which is capital expenditure. No provision was made for the deduction of that expenditure when a resale of the lease was effected. I understand that the Minister is prepared to accept an amendment in the form moved by me.

Proposed new clause agreed to.

Clause 2 -

Section twenty of the Principal Act is amended by inserting in sub-section (4.), after the word "tax" (first occurring), the words " for any financial year prior to that commencing on the first day of July One thousand nine hundred and twenty-three ".

Senator Sir GEORGEPEARCE (Western Australia) [4.18]. - Will the honorable Minister in charge of the bill explain to the committee exactly what is the effect of this amendment? Sub-section 4 of section 20 of the principal act reads -

Where a company has paid income tax on undistributed income and that income is in any year subsequent to that in which it was derived by the company distributed to the members or shareholders of the company, a member or shareholder who is a taxpayer shall be entitled to a rebate in his assessment of the lesser of the two following amounts: -

(a)   the part of the tax so paid by the company which bears the same proportion to the total tax so paid by the company as the amount so distributed to the member or shareholder bears to the total amount so distributed to the members or shareholders of the company; or

(b)   the part of the tax payable by the member or shareholder in his individual assessment which bears the same proportion to the tax payable by him on his income from property as the amount so distributed to him bears to his total income from property remaining after allowing all the deductions allowed by this act from that income, except the deduction under section 24 ".

The amending clause appears to me to make this section of the principal act retrospective to 1923. Is that so ? If so, what is the effect of that retrospectivity ? Will it cause to be brought up for reassessment, assessments made in the intervening years, which come under this category, or will it affect only future assessments? If it is not to be retrospective, why has the alteration been made?







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