le
94.
Examples of the effects of the personal taxation Concessions upon various categories of taxpayers, together with comparative tables, are set out in an Appendix to the printed version of this speech (46).
Profits tax
95.
ital
As to profits tax, I propose a reduction in the rate
"per can't por cent of tax on corporate profits from 188 to 17. The cost of the
reduction proposed is $370 million in 1988-89 and, for a full
pay cent year, $760 million.
The new corporate rate of 178 will apply to
provisional and final assessments for 1988-89.
We are
96.
Some have argued that a stimulus should be provided to
the manufacturing sector through an increase in capital
allowances for expenditure incurred on the provision of plant
and machinery. As I said earlier, in 1987 there was no
reluctance on the part of manufacturers to invest. seeing more and more effort being made to increase capacity, improve productivity and enhance profitability. I do not believe that the selective inducement of an increase in capital
allowances is what is needed at this time. Instead, I consider
that the
the proposed reduction in the rate of tax on corporate
profits will provide appropriate and proper encouragement to all
those in business.
(46) Appendix F(3).
44
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/Property