Income Tax Compensatory Export Incentive Allowance Act 1977

This commentary item was published in Public Information Bulletin Volume 89, January 1977

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Compensatory Export Concession

Moves to help exporters sustain their sales in the wake of Australia's devaluation of the dollar were recently announced by the Prime Minister the Rt Hon RD Muldoon. The following additional tax concessions for exporters will be available -

• 1977 Income Year
• • A special deduction from taxable income will be allowed at the rate of 9 percent of one-third of total qualifying export sales for the 1977 income year, or corresponding accounting year. This will give a flat rate deduction equivalent to 3 percent of total qualifying export sales for this year.
• 1978 Income Year
• • The rate of deduction for the 1978 income year or corresponding accounting year will be a flat 3 percent of total qualifying export sales for that year. The additional incentive will expire after the end of the income year 31 March 1978 or corresponding accounting year.

Qualifying Export Sales

The above concessions will apply to export sales of the same type that qualify for the increased export taxation incentive.

1977 Provisional Tax

If exporters wish to receive a more immediate benefit from the concession in respect of the 1977 income year, they may take into account the extra deduction when working out their final instalment of 1977 provisional tax.

A special form for claiming the incentive will be available when completing annual returns of income.