INCOME TAX.
No.
31 of 1946.
An
Act to impose a Tax upon Incomes.
[Assented
to 14th August, 1946.]
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 1946.
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 1936-1946 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 1936-1946 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 1936-1946
applies shall be as set out in the Fifth Schedule to this Act.
(6.) The rate or rates of income tax payable by a trustee shall be as
set out in the Sixth Schedule to this Act.
(7.) Subject to the last preceding sub-section, the
rates of income tax payable by a company shall be as set out in the Seventh
Schedule to this Act.
(8.) Where, apart from this sub-section, the income
tax which a person would be liable to pay under this section, before deducting
any rebate to which he is entitled in his assessment, leaves an amount of pence
remaining when expressed in pounds and shillings—
(a)if the remaining pence do not exceed six—the income tax payable by that
person shall be the amount so expressed in pounds and shillings; or
(b) if the remaining pence exceed six—the
income tax payable by that person shall be the amount so expressed in pounds
and shillings plus One shilling.
Super-tax
on certain companies.
6.In addition to any income tax payable under the
preceding provisions of this Act, there shall be payable upon the taxable
income in excess of Five thousand pounds derived by a company a super-tax at
the rate of Twelve pence for every pound of that excess:
Provided that this section shall
not apply—
(a) to the assessment of a company as a
trustee;
(b) to the income of a company to which section fourteen of the War-time (Company) Tax Assessment Act 1940-1946
provides that that Act shall not apply; or
(c) to the mutual income, as defined in
sub-section (1a.) of section one
hundred and sixty c of the Income Tax Assessment Act 1936-1946, of
a life assurance company.
Levy
of income tax.
7.—(1.) The tax imposed by the preceding provisions of
this Act shall be levied and paid for the financial year which commenced on the
first day of July, One thousand nine hundred and forty-six, upon the taxable
income derived during the year of income as defined by section six of the Income Tax Assessment Act 1936-1946.
(2.) Until 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-seven, the preceding
provisions of this Act shall also apply for all financial years subsequent to
that which commenced on the first day of July, One thousand nine hundred and
forty-six.
Provisional
tax.
8. Provisional tax is imposed, and shall be payable in accordance
with the provisions of the Income Tax
Assessment Act 1936-1946, in respect of the income of the year of income
ending on the thirtieth day of June, One thousand nine hundred and forty-seven.
THE SCHEDULES.
FIRST
SCHEDULE.s.
5(1.).
Rate of Tax in respect
of a Taxable Income derived
from Personal Exertion.
(a) If the taxable income does not exceed £300 the rate of tax for
every £1 of taxable income up to and including £200 shall be nil and the rate
of tax for every £1 of taxable income in excess of £200 shall be 36.06 pence
increasing uniformly by .06 of one penny for every £1 by which the taxable
income exceeds £201.
(b) If the taxable income exceeds £300 but does not exceed £1,000
the rate of tax for every £1 of taxable income up to and including £300 shall
be 14 pence and the rate of tax for every £1 of taxable income in excess of
£300 shall be 48.02 pence increasing uniformly by .02 of one penny for every £1
by which the taxable income exceeds £301.
(c) If the taxable income exceeds £1,000 but does not exceed £2,000
the rate of tax for every £1 of taxable income up to and including £1,000 shall
be 47.6 pence and the rate of tax for every £1 of taxable income in excess of
£1,000 shall be 76.025 pence increasing uniformly by .025 of one penny for
every £1 by which the taxable income exceeds £1,001.
(d) If the taxable income exceeds £2,000 but does not exceed £3,000
the rate of tax for every £1 of taxable income up to and including £2,000 shall
be 74.3 pence and the rate of tax for every £1 of taxable income in excess of
£2,000 shall be 126.014 pence increasing uniformly by .014 of one penny for
every £1 by which the taxable income exceeds £2,001.
(e) If the taxable income exceeds £3,000 but does not exceed £5,000
the rate of tax for every £1 of taxable income up to and including £3,000 shall
be 96.2 pence and the rate of tax for every £1 of taxable income in excess of
£3,000 shall be 154.005 pence increasing uniformly by .005 of one penny for
every £1 by which the taxable income exceeds £3,001.
(f)If the taxable income
exceeds £5,000 the rate of tax for every £1 of taxable income up to and
including £5,000 shall be 123.32 pence and the rate of tax for every £1 of
taxable income in excess of £5,000 shall be 174 pence.
SECOND
SCHEDULE. s.
5 (2.).
Rate
of Tax in Respect of a Taxable Income derived from Property.
(a)If the taxable income
does not exceed £300 the rate of tax for every £1 of taxable income up to and
including £200 shall be nil and the rate of tax for every £1 of taxable income
in excess of £200 shall be 47.1 pence increasing uniformly by 1 of one penny
for every £1 by which the taxable income exceeds £201.
(b) If the taxable income exceeds £300 but does not exceed £1,000
the rate of tax for every £1 of taxable income up to and including £300 shall
be 19 pence and the rate of tax for every £1 of taxable income in excess of
£300 shall be 67.02 pence increasing uniformly by .02 of one penny for every £1
by which the taxable income exceeds £301.
(c)If the taxable income
exceeds £1,000 but does not exceed £2,000 the rate of tax for every £1 of
taxable income up to and including £1,000 shall be 62.4 pence and the rate of
tax for every £1 of taxable income in excess of £1,000 shall be 95.029 pence
increasing uniformly by .029 of one penny for every £1 by which the taxable
income exceeds £1,001.
(d)If the taxable income
exceeds £2,000 but does not exceed £5,000 the rate of tax for every £1 of
taxable income up to and including £2,000 shall be 93.2 pence and the rate of
tax for every £1 of taxable income in excess of £2,000 shall be 153.0035 pence
increasing uniformly by .0035 of one penny for every £1 by which the taxable
income exceeds £2,001.
(e) If the taxable income exceeds £5,000 the rate of tax for every
£1 of taxable income up to and including £5,000 shall be 135.38 pence and the
rate of tax for every £1 of taxable income in excess of £5,000 shall be 174
pence.
THIRD
SCHEDULE. s.
5 (3.).
Rates of Tax in Respect of a Taxable Income derived
partly from
Personal Exertion and partly from
Property.
(a) For every £1 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.
Third Schedule—continued.
(b) For every £1 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 £1 of
taxable income derived from personal exertion by a taxpayer to whose income
Division 16 of Part III. of the Income Tax Assessment Act 1936-1946 applies, 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 £1 of taxable income derived from
property by such a taxpayer, 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.).
Rates
of Tax by Reference to a Notional Income.
(a) For every £1 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 1936-1946, 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 notional
income by that notional income.
(b) For every £1 of the actual taxable income from
property of such a taxpayer, 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 notional income by that notional income.
SIXTH
SCHEDULE. s.
5 (6.).
Rates
of Tax payable by a Trustee.
For every £1 of the taxable income in respect of which a trustee is
liable, in pursuance of either section ninety-eight or section ninety-nine of
the Income Tax Assessment Act 1936-1946, to be assessed and to pay
tax, the rate of tax shall be the rate that would be payable under the First,
Second, Third, Fourth or Fifth Schedule as the case requires, if one individual
were liable to be assessed and to pay tax on that taxable income.
SEVENTH
SCHEDULE. s.
5 (7.).
Rates
ofTax payable by a Company, other
than a Company in the Capacity of Trustee.
(a) For every £1 of the taxable income the rate of tax
shall be—
(i) in the case of a company which
is not a life assurance company—Seventy-two pence;
(ii) in the case of a company which
is a mutual life assurance company—Sixty pence; or
(iii) in the case of a life
assurance company, other than a mutual life assurance company—
(1) in respect of the mutual income
of the company as defined in sub-section (1a.)
of section one hundred and sixty c
of the Income Tax Assessment Act 1936-1946—Sixty pence; and
(2) in respect of the remainder of
the taxable income of the company Seventy-two pence.
(b)
For every £1 of that portion of the taxable income
which has not been distributed as dividends, on which the company is liable, in
pursuance of Part IIIa. of the Income Tax Assessment Act 1936-1946, to pay further tax, the rate
of further tax shall be Twenty-four pence.
(c) For every £1 of interest in respect of which a company is liable, in
pursuance of sub-section (1.) of
section one hundred and twenty-five of the Income
Tax Assessment Act 1936