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Wednesday, 30 May 1973
Page: 2836

Mr HEWSON (MCMILLAN, VICTORIA) - I preface my question which is directed to the Treasurer by referring to a report which appeared recently in the 'Australian Financial Review' that the Government intends to amend section 82H of the Income Tax Assessment Act. It was stated that as far as provisions relating to life assurance and superannuation deductions are concerned

Mr Martin - Mr Speaker, I rise to order. This is a matter which is at present before the House and it will be debated today.

Mr SPEAKER -I think the Treasurer may answer the question. The honourable member was in order in asking it.

Mr HEWSON - Thank you, Mr Speaker. It was stated that as far as provisions relating to life assurance and superannuation are concerned a taxation deduction will not be available for premiums paid on a policy which provides benefits other than upon death and which will mature within 10 years of issue, lt has been past practice that member offices of the Life Offices' Association for Australasia would issue policies of less than 10 years only when the proceds of these policies-

Mr SPEAKER -Order! I ask the honourable gentleman to complete his question. The preface is too long.

Mr HEWSON - I ask: Will the Minister please advise whether provision will be made in the amending legislation to enable a taxpayer who is endeavouring to provide for his retirement to effect life assurance or superannuation maturing between the ages of 60 and 65 with premiums allowable as a tax deduction under section 82H even if the policies are for a term of less than 10 years?

Mr CREAN - 1 would ask the honourable member to look closely at what was said in the second reading speech on the Bill which my colleague quite properly said is now before the House for debate. The purpose of the amendment basically is to close a loophole whereby what had been given as a tax concession for legitimate purposes was being abused. Basically the premiums on any policy which is taken out after 1 January 1973 for less than 10 years will not be allowed as a tax concession. This does not apply to superannuation fund payments. If the honourable member reads the second reading speech he "111 find that that is quite clearly set out.

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