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Thursday, 16 September 1971
Page: 1507

Dr Everingham asked the Treasurer, upon notice:

(1)   Will he take steps to amend the capital gains exemptions provisions in the income tax law so that a rural lands developer will no longer earn several times the value of each of his properties by re-sales over a period of years tax free while submitting tax returns as a primary producer showing nc net earnings each year.

(2)   Will he lake steps to abolish the distinction in the law between a person who acquires property for the dominant purpose of profit-making by sale and one who acquires it for the purpose of profit-making by primary production but makes no net income on the property as a primary producer and by virtue of ploughing back production profits in tax free development works sells the property for several times the original value, and repeats the process with a series of properties so that he earns hundreds of thousands of dollars tax free within less than a decade.

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

(1)   and (2) The income tax law neither contains capital gains exemptions provisions' as suggested in the first part of the honourable member's question nor draws distinctions of the kind referred to in the second part. As to the general drift of the question, I refer the honourable member to the answer given to an earlier question by him on the same matter (Question No. 3093, Hansard 6 May 1971).

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