FACTS FOR INVESTORS.

Auckland Star, Volume LIX, Issue 226, 24 September 1928, Page 4

FACTS FOR INVESTORS.

AUSTRALIAN TAXATION. Messrs. J. B. Were and Son., Ltd., Melbourne, refer to the Federal Budget, which contained “at least one surprise,” namely, a proposal that life assurance companies instead of at present escaping Commonwealth income tax, shall be taxed on income derived from investment at the present rate of taxation applicable to companies, viz., 1/ in the £l. “As is very well known, the life offices are the chief providers of funds for municipalities and other local governing bodies and the inevitable effect of legislation of the proposed description will be to increase -the cost of loan money to these borrowers; also it may tend to advance the interest rates on mortgages, and generally it will have—for a time at least —a widespread disturbing and hardening influence on the money market.

“In addition to the above there will be a tightening up of the income tax regulations, but with the foregoing exceptions the scale of taxation will remain unchanged.

“As was generally expected, the Treasurer declared that the Government had definitely abandoned the proposal to tax income from overseas, the reason being that the revenue to be derived from, such taxation would not be worth the cost of collecting the same, and furthermore the present reciprocal taxation arrangements between Australia and Great Britain is working quite satisfactorily.”