INCOME
TAX.
No. 31 of 1939.
An Act
to impose a Tax upon Incomes.
[Assented
to 26th September, 1939.]
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 1939.
Commencement.
2. This Act shall come into operation on the day on which it receives
the Royal Assent.
Incorporation.
3. The Income Tax Assessment Act 1936–1938
shall be incorporated and read as one with this Act.
Imposition
of income tax.
4.Income tax is imposed at the rates declared in this
Act.
Rates
of income tax.
5.—(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 1936–1938
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 1936–1938 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.
6.—(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-nine.
(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-nine
made prior to the commencement 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 forty.
THE
SCHEDULES.
FIRST SCHEDULE. s. 5 (1.).
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 tax able income
shall be.........
|
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.........................................
| 87.09525 pence.
|
SECOND SCHEDULE. s. 5
(2.).
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 but does 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.....................................
| 102.465 pence.
|
THIRD SCHEDULE. s. 5
(3.).
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 by dividing 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. s. 5
(4.)
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 1936–1938 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.
(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. s.
5 (5.).
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 1936–1938, the rate of tax shall 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 1936–1938, 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. s. 5
(7.).
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 1936–1938, 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. s. 5
(8.).
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 24 pence.
(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