INCOME
TAX.
No.
45 of 1948.
An Act to impose a Tax upon Incomes.
[Assented
to 24th November, 1948.]
[Date
of commencement, 22nd December, 1948.]
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 1948.
Incorporation.
2. The Income Tax Assessment Act 1936-1948
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 1936-1948 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 1936-1948
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.
5.—(1.) In addition to any income tax payable under
the preceding provisions of this Act, there shall be payable, subject to this
section, 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.
(2.) The last preceding sub-section shall not
apply to—
(a)
the assessment of a company as a trustee;
(b) a
private company as defined in section one hundred and three of the Income Tax Assessment Act 1936-1948;
(c) a
co-operative company as defined in section one hundred and seventeen of the Income Tax Assessment Act 1936-1948;
(d)a mutual life assurance company, as
defined in sub-section (1a.) of
section one hundred and sixty c of
the Income Tax Assessment Act 1936-1948,
or the mutual income, as defined in that sub-section, of a life assurance
company.
Levy
of income tax.
6.—(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-eight, upon the taxable
income derived during the year of income as defined by section six of the Income Tax Assessment Act 1936-1948.
(2.) Until the commencement of the Act for the
levying and payment of income tax for the financial year commencing on the
first day of July, One thousand nine hundred and forty-nine, 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-eight.
Provisional
tax.
7. Provisional
tax is imposed, and shall be payable in accordance with the provisions of the Income Tax Assessment Act 1936-1948, in
respect of the income of the year of income ending on the thirtieth day of
June, One thousand nine hundred and forty-nine.
THE
SCHEDULES.
—
FIRST
SCHEDULE. s.
4 (1.).
Rate of Tax in respect of a Taxable Income debited
from Personal
Exertion,
1. If the
taxable income does not exceed £1,000 the rate of tax for every £1 of taxable
income up to and including £350 shall be nil and the rate of tax for every £1
of taxable income in excess of £350 shall be 21.03 pence increasing uniformly
by .03 of one penny for every £1 by which the taxable income exceeds £351.
2. 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 26.325 pence and
the rate of tax for every £1 of taxable income in excess of £1,000 shall be
60.02 pence increasing uniformly by .02 of one penny for every £1 by which the
taxable income exceeds £1,001.
3. 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 53.1625 pence
and the rate of tax for every £1 of taxable income in excess of £2,000 shall be
100.009 pence increasing uniformly by .009 of one penny for every £1 by which
the taxable income exceeds £2,001.
4. If the
taxable income exceeds £5,000 but does not exceed £9,000 the rate of tax for
every £1 of taxable income up to and including £5,000 shall be 97.465 pence and
the rate of tax for every £1 of taxable income in excess of £5,000 shall be
154.001 pence increasing uniformly by .001 of one penny for every £1 by which
the taxable income exceeds £5,001.
5. If the
taxable income exceeds £9,000 the rate of tax for every £1 of taxable income up
to and including £9,000 shall be 124.3694 pence and the rate of tax for every
£1 of taxable income in excess of £9,000 shall be 162 pence.
SECOND
SCHEDULE. s.
4 (2.).
Rate of Tax in Respect of a Taxable Income derived
from Property.
1. If the
taxable income does not exceed £500 the rate of tax for every £1 of taxable
income up to and including £350 shall be nil and the rate of tax for every £1
of taxable income in excess of £350 shall be 30.06 pence increasing uniformly
by .06 of one penny for every £1 by which the taxable income exceeds £351.
2. If the
taxable income exceeds £500 but does not exceed £1,000 the rate of tax for
every £1 of taxable income up to and including £500 shall be 11.7 pence and the
rate of tax for every £1 of taxable income in excess of £500 shall be 48.03
pence increasing uniformly by .03 of one penny for every £1 by which the
taxable income exceeds £501.
3. 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 37.35 pence and
the rate of tax for every £1 of taxable income in excess of £1,000 shall be
78.021 pence increasing uniformly by .021 of one penny for every £1 by which
the taxable income exceeds £1,001.
4. 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 68.175 pence and
the rate of tax for every £1 of taxable income in excess of £2,000 shall be
120.007 pence increasing uniformly by .007 of one penny for every £1 by which
the taxable income exceeds £2,001.
5. 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 111.87 pence and the rate of tax for every £1
of taxable income in excess of £5,000 shall be 162 pence.
third schedule. s.
4 (3.).
Rates of Tax in Respect
of a Taxable Income derived partly from Personal Exertion and partly from Property.
1. 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.
2. 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.
4 (4.).
Rates of Tax by
Reference to an Average Income.
1. 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 1936-1948
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.
2. 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.
4 (5.).
Rates of Tax by
Reference to a Notional Income.
1. 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 1936-1948, 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.
2. 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.
4 (6.).
Rates of Tax payable by
a Trustee.
For
every £1 of 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 1936-1948, 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.
4 (7.).
Rates of Tax payable by
a Company, other than a Company in the capacity of Trustee.
1. In the
case of a company which is not a life assurance company, the rates of tax shall
be—
(a)
for every £1 of so much of the taxable income as does not exceed Five thousand
pounds—Sixty pence; and
(b)
for every £1 of the remainder of the taxable income—Seventy-two pence.
2. In the
case of a mutual life assurance company, the rates of tax shall be—
(a)for every £1 of so much of the taxable
income as does not exceed Five thousand pounds—Forty-eight pence; and
(b)
for every £1 of the remainder of the taxable income—Sixty pence.
3. In the
case of a life assurance company other than a mutual life assurance company,
the rates of tax shall be—
(a)
for every £1 of so much 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 1936-1948, as
does not exceed Five thousand pounds—Forty-eight pence;
(b)
for every £1 of the remainder of the mutual income of the company, as so
defined—Sixty pence;
(c)
for every £1 of so much of the taxable income of the company, other than mutual
income as so defined, as does not exceed the amount by which the mutual income
of the company, as so defined, is less than Five thousand pounds—Sixty pence;
and
(d)
for every £1 of that part of the taxable income to which none of the preceding
sub-paragraphs of this paragraph applies—Seventy-two pence.
4. 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 1936-1948, to pay further tax, the rate
of further tax shall be Twenty-four pence.
5. 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