INCOME TAX.
No. 18 of 1937.
An Act to impose a Tax upon Incomes.
[Assented to 13th September, 1937.]
BE it enacted by the King’s Most Excellent
Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia,
as follows:—
Short
title.
1. This Act may be cited as the Income
Tax Act 1937.
Incorporation.
2.The
Income Tax Assessment Act 1936–1937
shall be incorporated and read as one with this Act.
Imposition
of income tax.
3.Income
tax is imposed at the rates declared in this Act.
Rates
of income tax.
4.—(1.) The rate of income tax in respect of a
taxable income derived from personal exertion shall be as set out in the First
Schedule to this Act.
(2.) The rate of income tax in respect of a taxable
income derived from property shall be as set out in the Second Schedule to this
Act.
(3.) The rates of income tax in respect of a
taxable income derived partly from personal exertion and partly from property
shall be as set out in the Third Schedule to this Act.
(4.) The rate or rates of income tax in respect of
a taxable income to which Division 16 of Part III. of the Income Tax Assessment Act 1936–1937 applies shall be as set out in
the Fourth Schedule to this Act.
(5.) The rate or rates of income tax in respect of
a taxable income in any case where sub-section (1.) of section eighty-six of
the Income Tax Assessment Act 1936–1937
applies shall be as set out in the Fifth Schedule to this Act.
(6.) Notwithstanding anything contained in the last
five preceding sub-sections, where the amount of income tax which a person
would, apart from this sub-section, be liable to pay is less than Ten
shillings, the income tax payable by that person shall be Ten shillings.
(7.) The rate or rates of income tax payable by a
trustee shall be as set out in the Sixth Schedule to this Act.
(8.) Subject to sub-section (7.) of this section,
the rates of income tax payable by a company shall be as set out in the Seventh
Schedule to this Act.
Levy
of income tax.
5.—(1.) Income tax shall be levied and paid for the
financial year beginning on the first day of July, One thousand nine hundred
and thirty-seven.
(2.) This Act shall also apply to all assessments
for financial years subsequent to that beginning on the first day of July, One
thousand nine hundred and thirty-seven made prior to the passing of the Act for
the levying and payment of income tax for the financial year beginning on the
first day of July, One thousand nine hundred and thirty-eight.
THE SCHEDULES.
FIRST SCHEDULE.
Rate of Tax in Respect of Taxable Income Derived from
Personal Exertion.
For the purposes of
this Schedule T =taxable income in
pounds.
If the taxable income
does not exceed £6,900, the rate of tax for every pound of taxable income
shall be............................
|
The Schedules—continued.
If the taxable income exceeds £6,900, the rate of tax for every
pound of taxable income up to and including £6,900 shall be.......................... |
and |
the rate of tax for every pound of taxable income in excess of
£6,900 shall be.......................................................................................... | 68.85 pence. |
SECOND
SCHEDULE.
Rate of Tax in Respect of Taxable Income Derived from
Property.
For the purposes of this Schedule—T = taxable
income in pounds.
If the taxable income does not exceed £500, the rate of tax for
every pound of taxable income shall be.......................................................
|
If the taxable income exceeds £500 butdoes not exceed £1,500, the rate of tax for every pound of
taxable income shall be............................
|
If the taxable income exceeds £1,500 but does not exceed £3,700,
the rate of tax for every pound of taxable income shall be............................
|
If the taxable income exceeds £3,700, the rate of tax for every
pound of taxable income up to and including £3,700 shall be.............................
|
and |
the rate of tax for every pound of taxable income in excess of
£3,700 shall be..........................
| 81 pence. |
THIRD SCHEDULE.
Rates of Tax in Respect
of Taxable Income Derived Partly from Personal Exertion and Partly from
Property.
(a)For every pound of taxable income derived from personal exertion, the rate
of tax shall be ascertained by dividing the total amount of the tax that would
be payable under the First Schedule if the total taxable income of the taxpayer
were derived exclusively from personal exertion, by the amount of the total
taxable income.
(b) For every pound of taxable income
derived from property, the rate of tax shall be ascertained bydividing the total amount of the tax
that would be payable under the Second Schedule if the total taxable income of
the taxpayer were derived exclusively from property, by the amount of the total
taxable income.
FOURTH SCHEDULE.
Rates of Tax by
reference to an Average Income.
(a) For every pound of the taxable income
derived from personal exertion by a taxpayer to whose income Division 16 of
Part III. of the Income Tax Assessment
Act 1936–1937 is applied, the rate of tax shall be ascertained by dividing
the tax that would be payable under the First Schedule upon a taxable income
from personal exertion equal to his average income, by that average income.
The Schedules—continued.
(b) For every pound of taxable income
derived by him from property the rate of tax shall be ascertained by dividing
the tax that would be payable under the Second Schedule upon a taxable income
from property equal to his average income, by that average income.
FIFTH
SCHEDULE.
Rate of Tax by
reference to a Notional Income.
(a)For every pound of the actual taxable income from personal exertion of a
taxpayer deriving a notional income, as specified by sub-section (1.) of
section eighty-six of the Income Tax
Assessment Act 1936–1937 the rate of tax shell be the amount obtained by
dividing the tax that would be payable under the First Schedule upon a taxable
income from personal exertion equal to his notional income, by that notional
income.
(b)For every pound of the actual taxable income from property of a taxpayer
deriving a notional income, as specified by sub-section (1.) of section
eighty-six of the Income Tax Assessment
Act 1936–1937, the rate of tax shall be the amount obtained by dividing the
tax that would be payable under the Second Schedule upon a taxable income from
property equal to his notional income, by that notional income.
SIXTH
SCHEDULE.
Rates of Tax Payable by
a Trustee.
For
every pound of the taxable income in respect of which a trustee is liable,
pursuant to either section ninety-eight or section ninety-nine of the Income Tax Assessment Act 1936–1937, to
be assessed and to pay tax, the rate of tax shall be the rate which would be
payable under the First, Second, Third, Fourth or Fifth Schedules, as the case
requires, if one individual were liable to be assessed and to pay tax on that
taxable income.
SEVENTH
SCHEDULE.
Rates of Tax Payable by
a Company.
(a)
Subject to the last preceding Schedule, for every pound of the taxable income
of a company the rate of tax shall be One shilling.
(b)
For every pound of interest in respect of which a company is liable, pursuant
to sub-section (1.) of section one hundred and twenty-five of the Income Tax Assessment Act 1936