UNCLLISHED **

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at

are inadequate. To them I can only say that, given the prospect of another deficit in the coming year, any tax concessions this time should be regarded as generous.

90.

I propose to introduce these new concessions with effect from the year of assessment commencing on 1 April 1985. They will thus apply for the first time to Provisional Salaries Tax assessments for the fiscal year 1985-86 as well as Final Tax assessments for that year; and to 1985-86 Personal Assessments also. This represents a departure from precedent.

In the past, adjustments to tax thresholds have invariably been applied not

only to the forthcoming fiscal year, but to final tax

liabilities for the current year also. Given our present budgetary situation I believe that Members will agree that my proposals are sufficiently generous.

Their cost will be

$150 million in 1985-86 and $210 million in a full year (45).

91.

I have no further proposals on direct taxation. All

other measures relate to indirect taxes of one sort or another

mainly consumer based.

Indirect Taxation

-

Betting Duty

92.

I turn

for

first to the betting duty; and I acknowledge that this will

be the third successive year in which budgetary reasons this duty needs to be increased.

(45) If the proposed concessions are brought into law no less than 77,000

persons will benefit, i.e. -

17,000 taxpayers who were previously liable to Salaries Tax will now be exempt, and

20,000 persons who would have become liable to

Salaries Tax will be kept out of the tax net.

40,000 persons who elect to be personally assessed

will also benefit through reduced liability.

G.F. 316

UNCLASSIFIED AZ

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