Income Tax Act 1928 (NSW)

INCOME TAX ACT.

Act No. 42, 1928.

An Act to impose an Income Tax: to make pro- vision for the application of rates ofj tax different from those applied by the Income Tax Act, 1927; to repeal the Income Tax (Amendment) Act, 1925; to amend certain other Acts; and for purposes connected therewith. [Assented to, 26th December, 1928.]

lative Council and Legislative Assembly of New South BE it enacted by the King's Most Excellent Majesty, by and with the advice and consent of the Legis-

Wales in Parliament assembled, and by the authority of the same, as follows :—

1. This Act may be cited as the " Income Tax Act, 1928," and shall be construed with the Income Tax (Management) Act, 1928.

2 . I n respect of the taxable income which has been derived by any person during the year ended on the thirtieth day of June , one thousand nine hundred and twenty-eight, or such other period as may be accepted by the Commissioner in lieu thereof, and during each subsequent income year, there shall be annually levied and paid under the provisions of the Income Tax (Management) Act, 1928, and in the manner therein prescribed, income tax at the respective rates in this Act provided.

the respective dates of the enactments hereby repealed. and such repeal shall take effect retrospectively from

3 . The Income Tax (Amendment) Act, 1925, and section five of the Income Tax Act, 1924, as inserted therein by that Act and section five of the Income Tax Act, 1927, and subsection two of section two of the Income Tax (Companies) Act, 1927, are hereby repealed,

4 .     (1) In the ease of a person other than a company—

(a)	the rate of income tax in respect of income derived from personal exertion shall be as set out in the First Schedule to this Ac t ;
(b)	the rate of income tax in respect of income derived from property shall be as set out in the Second Schedule to this Ac t ;
(c)	the rates of income tax in respect of a total taxable income, part being income derived from personal exertion and the remainder being income derived from property, shall be as set out in the Third Schedule to this Act.

(2) Notwithstanding anything contained in the last preceding subsection, where a person would, apart from this subsection, be liable to pay income tax of an amount less than ten shillings the tax payable by that person shall be ten shillings.

(3) The rates of income tax payable by a trustee shall be as set out in the Fourth Schedule to this Act.

(4) Subject to the last preceding subsection, the rates of income tax payable by a company shall be as set out in the Fifth Schedule to this Act.

5. In addition to the income tax payable by a com- pany under subsection four of section four of this Act, there shall be payable by every company in respect of its taxable income derived during the year ended on the thirtieth day of June, one thousand nine hundred and twenty-eight, or such other period as may be accepted

by the Commissioner in lieu thereof, as and by way of income tax, a super tax of threepence in each and	every pound sterling of the taxable income of the com­
pany, except taxable income referred to in the Fourth Schedule, in paragraph two, subparagraph (a) of para­ graph three, and in paragraph four of the Fifth Schedule to this Act.

SCHEDULES.

SCHEDULES.

F I R S T S C H E D U L E .

RATE oF TAX UPON INCOME DERIVED FROM PERSONAL EXERTION.
1. If the t axab le income does no t exceed seven thousand pounds,

the ra te of t ax per pound s ter l ing of the taxable income shall be seven- pence plus as many t imes one two-hundred-and-fiftieth of one penny as the re are pounds ster l ing in the t axab le income.

2. If the t axab le income exceeds seven thousand pounds, the ra te of t ax on every pound ster l ing of t he first seven thousand pounds thereof shall be thirty-five pence, and the r a t e of t ax on every pound ster l ing of the t axab le income in excess of seven thousand pounds shall be

s ixty pence.

S E C O N D S C H E D U L E .

RATE OF TAX UPON INCOME DERIVED FROM PROPERTY.

1. If the taxable income does not exceed five thousand five hundred pounds , the ra te of t a x pe r pound ster l ing of the taxable income shall be ninepence plus as many times three five-hundredths of one penny as the re are pounds s ter l ing in t he taxable income.

2. If t h e taxable income exceeds five thousand five hundred pounds t he ra te of tax on every pound s ter l ing of the first five thousand five hundred pounds thereof shall be forty-two pence, and t h e ra te of t a x on every pound ster l ing of the taxable income in excess of five thousand five hundred pounds shall be s ixty pence.

T H I R D S C H E D U L E

RATES OF TAX PAYABLE IN RESPECT OF TAXABLE INCOME, PART BEING INCOME DERIVED FROM PERSONAL EXERTION AND THE REMAINDER

BEING INCOME DERIVED FROM PROPERTY.

1. For every pound s ter l ing of t axab le income derived from personal exer t ion t he r a t e of t ax shall be ascer ta ined by dividing the to ta l

amoun t of t he t ax t h a t would be payable under t he F i r s t Schedule if t h e total t axab le income of the t axpaye r were derived exclusively from personal exer t ion by the amoun t of the to ta l t axab le income.

2. Fo r every pound ster l ing of taxable income derived from proper ty , t h e ra te of t ax shall be ascertained by dividing the to ta l amount of t he t a x t h a t would be payable unde r the Second Schedule if the to ta l t axab le income of the taxpayer were derived exclusively from proper ty by the a m o u n t of the total t axable income.

F O U R T H

F O U R T H S C H E D U L E .

RATES OP TAX PAYABLE BY A TRUSTEE

Fo r every pound ster l ing of the taxable income in respect of which a t rus tee is liable to be separately assessed and to pay t ax , the r a t e of t a x shall be the r a t e which would be payable unde r t he F i r s t , Second or Th i rd Schedules, as the case requires , if one individual were l iable to be separately assessed and to pay t a x on t h a t taxable income.

F I F T H S C H E D U L E ,

RATES OF TAX PAYABLE BY A COMPANY;

The rates of income t ax in respect of t he incomes of companies shall be as follows : —

(1) On the taxable income of every New South Wales company if the taxable income of t he company does not exceed six thousand pounds, t he ra te of t a x per pound ster l ing of the taxable income of the company shall , except as is hereinafter specifically provided, be according to the following scale, t h a t is to say :—

The rate of tax per pound sterling

If the taxable income of the company—	of the taxable income shall be—
Does not exceed five hundred pounds . . .	Two shillings.
Exceeds five hundred and does not
exceed one thousand pounds.	Two shillings and one penny.

Exceeds one thousand and does not

exceed one thousand five hundred	Two shillings and twopence.
pounds.

Exceeds one thousand five hundred

pounds and does no t exceed two	Two shillings and threepence.
thousand pounds.

Exceeds two thousand and does not

exceed two thousand five hundred	Two shillings and fourpence.
pounds.

Exceeds two thousand five hundred and Two shillings and fivepence.

does not exceed three thousand

pounds.

Exceeds three thousand and does not

exceed three thousand five hundred	Two shillings and sixpence.
pounds .

Exceeds three thousand five hundred

and does not exceed four thousand	Two shillings and sevenpence.
pounds.

F I F T H

F I F T H S C H E D U L E — c o n t i n u e d .

If the taxable income of the company- T h e f rate of tax P e r pound sterling

of the taxable income shall be—

Exceeds four thousand and does not Two shill ings and eightpence.

exceed four thousand five hundred

pounds.

Exceeds four thousand five hundred and Two shillings and ninepence.

does not exceed five thousand pounds.

Exceeds five thousand and does not Two shillings and tenpenee

exceed five thousand five hundred

pounds.

Exceeds five thousand five hundred Two shillings and eleven­

and does not exceed six thousand	pence.
pounds.

(2) On the t axab le income of every mutua l life assurance com- pany the ra te of t ax per pound ster l ing of the taxable income of the company shall be twenty-four pence.

(3) On the t axab le income of a company (other t h a n a mutua l

life assurance company) carrying on the business of life assur-

ance

in the S ta t e , t he ra tes of income tax shall be as follows:—

(a)

on so much of that part of the taxable income, of the com- pany which has been derived from i ts life assurance business as bears t he same proport ion to such p a r t of the taxable income as the amoun t of the profits divided for the same income year amongst the life assurance policy holders of the company bears to t he total profits of the company's life assurance business for t he same income year t he ra te of income t ax shall be twenty-four pence per pound s ter l ing ;

(b)

on the remainder of the taxable income of the company the r a t e of income t ax shall be thir ty-six pence per pound ster l ing.

(4) Fo r every pound ster l ing of the taxable income of a

company as is assessed u r d e r the provisions of pa rag raph (a) of

section seventeen of t he Income Tax (Managemen t ) Act , 1928,

t h e r a t e of t ax shall be e ighteen pence in each and every pound
s ter l ing of such taxable income.

(5) Excep t as hereinbefore in this Schedule specifically pro­ vided, on t he taxable income of every New South Wales company and on the t axab le income of every foreign company the r a t e of t ax shall be th i r ty-s ix pence for every pound ster l ing of t h e

t axab l e income.

PUBLIC