37
WEDNESDAY, FEBRUARY 23, 1983
TWO TAX CONCESSIONS PROPOSED
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THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE, PROPOSED TWO TAX CONCESSIONS - ONE ON BUSINESS TAXATION AND THE OTHER ON PERSONAL TAXATION.
THE FIRST CONCESSION MAKES ONCE AND FOR ALL PAYMENTS FOR THE ACQUISITION OF PATENT RIGHTS FOR USE IN THE PRODUCTION OF PROFITS CHARGEABLE TO PROFITS TAX DEDUCTIBLE EXPENDITURES.
MR BREMRIDGE SAID THIS TREATMENT WAS NOT INCONSISTENT WITH THAT ALREADY ACCORDED TO EXPENDITURE ON SCIENTIFIC RESEARCH, WITH WHICH THE ACQUISITION OF PATENTS MIGHT BE SAID TO BE SIMILAR.
HE ADDED THAT A DEDUCTION WOULD THEREFORE BE GRANTED IN THE YEAR IN WHICH THE EXPENDITURE ON ACQUISITION WAS INCURRED.
IT WOULD APPLY TO BOTH FINAL PROFITS TAX ASSESSMENTS FOR 1982-83 AND PROVISIONAL PROFITS TAX ASSESSMENTS FOR 1983-84.
THE COST TO THE REVENUE OF THIS PROPOSAL WILL BE ABOUT $8 MILLION IN 1983-84 AND $5 MILLION IN A FULL YEAR.
THE SECOND CONCESSION IS BY WAY OF INTRODUCING A NEW ADDITIONAL DEPENDENT PARENT ALLOWANCE OF $2 000 IN RESPECT OF EACH DEPENDENT PARENT ACTUALLY LIVING WITH THE TAXPAYER THROUGHOUT
THE YEAR. THIS WILL RAISE THE DEPENDENT PARENT ALLOWANCE TO
$10 000 FOR EACH QUALIFIED DEPENDENT PARENT.
THE NEW ALLOWANCE WILL APPLY TO BOTH FINAL SALARIES TAX ASSESSMENTS FOR 1982-83 AND PROVISIONAL SALARIES TAX FOR 1983-84. THE COST TO THE REVENUE IN 1983-84 WILL BE $16 MILLION AND $9.5 MILLION IN A FULL YEAR AT PRESENT LEVELS OF CHARGEABLE INCOME.
MR BREMRIDGE ESTIMATED THAT SOME 20 000 TAXPAYERS OR ABOUT 70 PER CENT OF THOSE CURRENTLY CLAIMING DEPENDENT PARENT ALLOWANCES WOULD BENEFIT FROM THE NEW ADDITIONAL ALLOWANCE.
SIGNIFICANT GROWTH FOR CD MARKET
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THERE WILL BE A LIMITED SPECIFICATION OF LOCAL CERTIFICATES OF DEPOSIT AS LIQUID ASSETS, STARTING FROM APRIL 1 THIS YEAR, THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE, SAID IN THE LEGISLATIVE COUNCIL TODAY.
THIS MOVE RECOGNISES THE GROWING MATURITY OF THE CD MARKET WITHOUT THREATENING ANY SIGNIFICANT DIMINUTION IN THE OVERALL QUALITY OF THE LIQUIDITY HELD BY BANKS AND DEPOSIT-TAKING COMPANIES, MR BREMRIDGE SAID IN HIS BUDGET SPEECH.
/+I INTEND