Income Tax Act 1911 (NSW)

Act No. 24, 1911.

An Act to amend the law re la t ing to t he assess­ men t of and to impose an income t a x ; to amend the Land and Income Tax Assessment Act of 1895, t he Land and Income Tax (Amendment ) Act , 1897, t he Land and Income Tax (Declaratory) Act, 1898, t he Land and Income Tax (Amendment ) Act , 1904, t he Taxat ion Amend ing Act, 1905 ; to repeal t h e Income Tax Act of 1895, t he Income Tax Deduct ion Act, 1907, and the Taxat ion Amend ing Act, 1906; and for purposes consequent the reon or incidental there to . [27th December, 1911.]

Assembly of New South Wales in Parliament assembled, and by the the advice and consent of the Legislative Council and Legislative authority of the same, as follows :— BE it enacted by the King's Most Excellent Majesty, by and with

Preliminary.

1 .    This Act may be cited as the " Income Tax Act, 1 9 1 1 . "

2 . This Act shall be construed with the Land and Income Tax Assessment Act of 1895 , the Land and Income Tax (Amendment) Act, 1897, the Land and Income Tax (Declaratory) Act, 1898 , and the Land and Income Tax (Amendment) Act, 1904.

arising

3 . In this Act, unless the context requires another meaning,—
" Absentee " means person, other than a company, who during the
twelve months next preceding the day fixed for furnishing
returns for the purpose of the assessment of income tax has

resided or had his principal place of abode at some place out

of the Commonwealth of Australia.

" Income derived from personal exertion" means income, in respect of which any person is liable to taxation, arising or accruing to such person from any bonuses, fees, commission, salaries, wages, allowances (except travelling or forage allowances), pensions, superannuation or retiring allowances, or stipends earned in or derived from New South Wales, and all income

arising or accruing from any business, profession, trade, employment, or vocation carried on in New South Wales, whether the same be carried on by such person on his own behalf wholly, or in part by any other person.

" Income derived from the produce of property " means income, in respect of which any person is liable to taxation, arising or accruing in New South Wales to such person, wheresoever residing (whether such income has or has not been derived from the property of such person), not being income derived from personal exertion.

" Principal A c t " means Land and Income Tax Assessment Act

of 1895 .

Income derived from land.

4 . ( l) Paragraph four of section fifteen of the Principal Act is amended by omitting the words " except from land subject to land tax as hereinafter specifically excepted."

(2) Section seventeen of the same Act is amended by

omitting paragraphs seven and eight.

(3) Paragraph one of section twenty-eight of the same Act

is amended by inserting after the word " including " the words " com­

mission, discount, travelling expenses."

(4) Paragraph three of section twenty-eight of the same

Act is amended by inserting after " occupied for the purpose of business " the words " or producing income in respect of which income tax may be levied " ; and paragraph seven of the same section is amended by omitting the words " b u t shall not include ownership, use, or cultivation of land."

(5) Section one of the Land and Income Tax (Declaratory)

Act, 1 8 9 8 , is amended by omitting the words commencing "and in fixing such rules " to the end of the section.

(6) Section two of the Taxation Amending Act, 1905 , and

the whole of the Taxation Amending Act, 1906 , are repealed.

Exemptions and reductions.

5 . Section fifteen of the Principal Act is amended by omitting " exceeding two hundred pounds per annum " and inserting the words " of persons other than companies exceeding three hundred pounds per annum and all incomes of companies."

6 . Section sixteen of the same Act is amended as follows :—

(a) Omit " two hundred " insert " three hundred."

(b) A t end of section add the following :—

" There shall also be a reduction of fifty pounds for each
child who is wholly maintained by him, and who, at the

commencement of the year in respect of which the tax is levied,

is under the age of eighteen years. " A n y

" Any such reduction shall in the first place be made from so much of the income as is derived from personal exertion.

" But where the income so derived is less than the amount of the reduction authorized, the reduction shall be so made to the extent of such income ; and any part of the said amount not applied in such reduction shall be deducted from income derived from the produce of property.

" Where there is no income derived from personal
exertion, the amount of the reduction authorized shall be
deducted from income derived from the produce of property."

7 . Section three of the Taxation Amending Act, 1905 , is

amended as follows :—

(a)	Omit " the suspension aforesaid" where first occurring, insert " t h e suspension, in pursuance of sections one hundred and fifty and one hundred and fifty-one of the Local Government Act, 1906 , of the operation in a shire or municipality of the enactments mentioned in Schedule Three to that Act."
(b)	Omit "under the Local Government (Shires) Act, 1905,'' insert " a s owner under the Local Government Act, 1906 ."
(c)	Omit the last paragraph commencing with the words " In fixing " to the end of the section.

Rates of income tax.

8 . ( l) There shall be annually levied and paid under the provisions of the Principal Act and the Acts amending the same, and in the manner therein prescribed, income tax at the respective rates in this Act provided.

(2) The Income Tax Act of 1895 , and the Income Tax

Deduction Act, 1907 , are repealed.

9 . The income tax payable by any company shall be one

shilling and twopence in the pound on the amount of the income

chargeable of such company. 1 0 . (1 ) The income tax payable by any person other than a	company shall be as follows :—
(a)	Where the income chargeable does not exceed seven hundred pounds, the tax shall be sixpence in the pound on the amount of such income, with the addition of one-third where such person is an absentee and an addition or further addition in any case of one-third of sixpence, on such of the income as is derived from the produce of property.
(b)	When the income chargeable exceeds seven hundred pounds, the tax shall be according to the scale set out in the Schedule to this Act.

(2) In computing the amount of income tax payable in

accordance with the said Schedule, income derived from personal

exertion shall first be taken into account. Assessments.

Assessments.

1 1 . (1) Paragraph six of section twenty-seven of the Principal Act is amended by omitting " taxable income arising or accruing to any person from all sources" and inserting the words "income arising, accruing, or derived from any of the sources mentioned in section fifteen."

(2) Subsection two of section three of the Land and Income

Tax (Amendment) Act, 1904 , is amended by omitting "taxable income from all sources " whore first occurring in that subsection, and inserting the words " income arising, accruing, or derived from any of the sources mentioned in section fifteen of the Principal Act."

(3) The above amendments shall only apply to the income

tax for the year one thousand nine hundred and twelve and subsequent
years.

1 2 . Paragraph four of section twenty-nine of the Principal Act is repealed and the following is inserted in its place :—

(iv)  Rates and taxes other than those imposed by Acts of the Parliament of New South Wales, or by any authority constituted by or under any such Act.

1 3 . Subsection three of section thirty-one of the Principal Act is amended by inserting after " prescribed " and before the proviso the words " Such books shall be prepared for each year, commencing with the year one thousand nine hundred and twelve, and each such book shall remain in force until the whole of the income tax payable for the year to which it relates has been paid. Such books or copies thereof shall be deposited and shall remain in the office of the Commis­ sioners."
1 4 . Paragraph two of section thirty-two of the Principal Act is amended by inserting after " alter" the word " increase."
1 5 . The Commissioners may, in their discretion from time to

time, exercise in the assessment of income tax any of the powers

conferred on them by sections thirty-two and thirty-nine of the
Principal Act in respect of any taxpayer without requiring such

taxpayer to make any further or fuller return.

Collection of tax.

16.      (l) The Commissioners shall give notice to every taxpayer

of any entry in the assessment book relating to the assessment of his income, and every taxpayer so notified shall be entitled to a copy of such entry certified by or on behalf of the Commissioners.
Such notice shall fix a day upon which any tax upon the income
in respect of which the notice is given shall be due and payable, and

such tax shall thereupon become due and payable upon the day so fixed.

(2)

(2) Section forty-one of the Principal Act and so much

of sections forty-two and forty-seven of the same Act, and of section six of the Land and Income Tax (Amendment) Act, 1897 , as relates to income tax are repealed.

1 7 . Sections forty-eight and fifty of the Principal Act are

respectively amended by omitting "s ixty "and inserting "twenty-one."

SCHEDULE.

Amount of income chargeable. Amount of tax per pound of income.

So much of the income as does not Sixpence, with the addition of one-third where the person liable to taxation is an absentee, and an addition or further addition in any case of one-third of sixpence, on such of the income as is derived from the produce of property.

exceed seven hundred pounds.

So much of the income as exceeds seven Sevenpence, with the addition of one-third an addition or further addition in any case of one-third of sevenpence, on such of the income as is derived from the produce of property.

hundred and does not exceed one	where the said person is an absentee, and
thousand seven hundred pounds.

So much of the income as exceeds one Eightpence, with the addition of one-third

thousand seven hundred and does	where the said person is an absentee, and
not exceed two thousand seven	an addition or further addition in any case
hundred pounds.	of one-third of eightpence, on such of the income as is derived from the produce of property.

So much of the income as exceeds two Ninepence, with the addition of one-third

thousand seven hundred and does	where the said person is an absentee, and
not exceed four thousand seven	an addition or further addition in any
hundred pounds.	case of one-third of ninepence, on such of
the income as is derived from the produce
of property.

So much of the income as exceeds four Tenpence, with the addition of one-third where

thousand seven hundred and does	the said person is an absentee, and an
not exceed six thousand seven	addition or further addition in any case of
hundred pounds.	one-third of tenpence, on such of the income as is derived from the produce of property.

So much of the income as exceeds six Elevenpence, with the addition of one-third

thousand seven hundred and does	where the said person is an absentee, and
not exceed nine thousand seven	an addition or further addition in any case
hundred pounds.	of one-third of elevenpence, on such of the income as is derived from the produce of property.

So much of the income as exceeds nine One shilling, with the addition of one-third where the said person is an absentee, and an addition or further addition in any case of one-third of one shilling, on such of the income as is derived from the produce of property.

thousand seven hundred pounds.

Act