Income Tax Act 1936 (NSW)
INCOME TAX ACT.
Act No. 46, 1936.
An Act to impose an Income Tax; to make pro- vision for the application of a single scale of rate of tax for individuals; and for purposes connected therewith. [Assented to, 16th November, 1936.]
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, 1936," and shall be construed with the Income Tax (Management) Act, 1936, in this Act hereinafter referred to as the Principal Act.
income tax at the respective rates in this Act provided. 2. In respect of the taxable income which has been derived by any person during the year of income ended on the thirtieth day of June, one thousand nine hundred and thirty-six, or such other period as may be accepted by the Commissioner in lieu thereof, and during- each subsequent year of income, there shall be annually charged, levied, collected and paid under the provisions of the Principal Act and in the manner therein prescribed,
3. (1) I n the case of any person other t han a company or a p r i m a r y producer to whom the provis ions of Division 18 of P a r t III of the P r inc ipa l Act apply, then subject to section four of this Act—
(a)
the rate of income tax in respect of income derived from p rope r ty shall be as set out in the
F i r s t Schedule to this Ac t ; (b)
the rate of income tax in respect of income der ived from personal exert ion shall be as set out in the Second Schedule to this A c t ;
(c)
the rate of income tax in respect of a total tax able income, p a r t being income derived from personal exert ion and the remainder being" income der ived from proper ty , shall be as set out in the Th i rd Schedule to this A c t :
| P rov ided tha t where it is necessary for the purposes of section ninety-seven, section ninety-eight or section one hundred and ten of the Pr inc ipa l Act to ascer ta in the r a t e of t ax applicable to a taxable income equal to an amount other t han the actual taxable income tha t ra te shall be ascer ta ined by dividing the r a t e applicable unde r this Ac t in respect of a taxable income from p rope r ty of tha t amoun t (if the amount is wholly income derived from p rope r ty ) or in respect of the appropr i a t e remainder of a taxable income of tha t amount (if the amount is only in p a r t income derived from p rope r ty ) by the actual taxable income and then mult iplying the resul t by the ac tua l taxable income (where the same is wholly income derived from p r o p e r t y ) or by an amount obtained by reducing the actual taxable income (where the same is only | in p a r t income derived from p rope r ty ) by one-fifth of the | |
| p a r t of the actual taxable income which is income from | ||
| personal exert ion or by nine hundred pounds, whichever is the less. | ||
| (2) Subject to section four of this Act the r a t e of income t ax payable by a p r i m a r y producer to whom the provis ions of Division 18 of P a r t III of the Pr inc ipa l Act apply shall be as set out in the F o u r t h Schedule to | ||
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| income t ax payable by a t rus tee shall be as set out in | ||
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(4) Notwi ths tanding any th ing contained in the pre ceding provis ions of this section where any person other than a company would, a p a r t f rom this subsection, be liable to p a y income t ax of an amount less t h a n ten shillings the t ax payable by t ha t person shall be ten shillings.
(5) Subject to subsection three of this section t h e r a t e s of income t ax payable by a company shall be as set out in t he Sixth Schedule to this Act.
4. I n respect of the taxable income which has been derived by any person other t han a company, the r a t e of income t ax fixed by the F i r s t Schedule to this Act shall be reduced by fifteen pe r centum and the provisions of the Second, Thi rd , F o u r t h and F i f th Schedules to th i s Act shall be appl ied having r e g a r d to such reduction.
S C H E D U L E S .
F I R S T SCHEDULE.
Bate of Tax upon Income Derived from Property.
1. If the taxable income does not exceed five thousand five hundred pounds, the rate of tax per pound of the taxable income shall be nine- pence plus as many times three five-hundreths of one penny as there are pounds in the taxable income.
2. If the taxable income exceeds five thousand five hundred pounds the rate of tax per pound of the taxable income shall be ascertained by calculating the total amount of tax which would be payable upon the taxable income at a rate of forty-two pence on every pound of the first five thousand five hundred pounds and at a rate of sixty pence on every pound of the taxable income in excess of five thousand five
hundred pounds and dividing that total by the amount of the taxable income. SECOND SCHEDULE. Bate of Tax upon Income Derived from Personal Exertion.
The taxable income shall be reduced by an amount equal to one- fifth of the taxable income or by nine hundred pounds whichever is the less and the rate of tax on each pound of the remainder of the taxable income shall be the rate which would be payable under the First Schedule to this Act in respect of a taxable income derived from property equal to that remainder.
THIRD
T H I R D SCHEDULE.
Hate of Tax Payable in Respect of a Total Taxable Income, part being Income Derived from Personal Exertion and the remainder being Income Derived from Property.
The taxable income shall be reduced by an amount equal to one- fifth of the part of the taxable income which is income derived from personal exertion or by nine hundred pounds whichever is the less and the rate of tax on each pound of the remainder of the taxable income shall be the rate which would be payable under the First Schedule to this Act in respect of a taxable income derived from property equal to that remainder.
FOURTH SCHEDULE.
Hate of Tax upon Income Derived by a Primary Producer to whom the
provisions of Division 18 of Part III of the Principal Act apply.
The taxable income shall bo reduced by an amount equal to one- fifth of the part of the taxable income which is income derived from personal exertion or one-fifth of the whole of the taxable income if it is all so derived or by the amount of nine hundred pounds which ever is the less and the rate of tax on each pound of the remainder of the taxable income shall be the rate which would under the First Schedule to this Act be payable in respect of a taxable income from property equal to the amount which would be the average income of the taxpayer if for each average year the part of the taxable income derived in that year which is income from personal exertion (or the whole of the taxable income if it is all income from personal exertion), or the excess of allowable deductions over assessable income brought into account in arriving at the average income were reduced by one- fifth or by nine hundred pounds whichever is the less.
F I F T H SCHEDULE. Bale of Tax Payable by a Trustee.
For every pound of the taxable income in respect of which a trustee is liable to be separately assessed and to pay tax, the rate of tax shall be the rate which would be payable—
(a)
where the trustee qua trustee is not a primary producer to whom the provisions of Division 18 of Par t I I I of the Principal Act apply—under the First, Second or Third Schedule to this Act, as the case requires; and
(b)
(b)
where the trustee qua trustee is a primary producer to whom the provisions of Division 18 of Par t I I I of the Principal Act apply—under the Fourth Schedule to this Act,
if one individual were liable to be separately assessed and to pay tax
on that taxable income.
S IXTH SCHEDULE. Rates of Tax Payable by a Company.
1. The rate of tax per pound of the taxable income of a company shall, except as is hereinafter specifically provided, be twenty-seven pence.
2. The rate of tax per pound of the taxable income of every'mutual life assurance company shall be eighteen pence.
3. The rate of tax per pound of the taxable income of a company (other than a mutual life assurance company) carrying on the busi- ness of life assurance in this State shall be as follows:—
(a) On so much of that part of the taxable income of the com- pany which has been derived from its life assurance business as bears the same proportion to such part of the taxable income as the amount of the profits divided for the same year of income amongst the life assurance policy holders of the company bears to the total profits of the company's life assurance business for the same year of income, the rate of tax per pound of the taxable income shall be eighteen pence. (b) On the remainder of the taxable income of the company the rate of tax per pound shall be twenty-seven pence.
4. For every pound of the taxable income of a company as is assessed under the provisions of subsection one of section one hundred and sixty-eight of the Principal Act the rate of tax shall be eighteen pence.
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