INCOME
TAX (No. 2).
No. 89 of 1940.
An
Act to impose a Tax upon Incomes.
[Assented to 17th
December, 1940.]
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 (No. 2)
1940.
Commencement.
2.This Act shall come into operation on the day on which
it receives the Royal Assent.
Repeal.
3. The Income Tax
Act 1940 is repealed.
Incorporation.
4. The Income Tax
Assessment Act 1936-1940 shall be incorporated and read as one with this
Act.
Imposition
of Income Tax.
5.Income Tax is imposed at the rates declared in this
Act.
Rates
of income tax.
6.—(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 1936-1940 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 1936-1940
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.
Super-tax.
7.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
(other than a company to which section fourteen of the War-time (Company) Tax Act 1940 provides that that Act
shall not apply) a super-tax at the rate of twelve pence for every pound by
which that taxable income exceeds Five thousand pounds:
Provided that this section shall
not apply to the assessment of a company as a trustee.
Levy
of income tax.
8.—(1.) Income tax shall be levied and paid for the
financial year beginning on the first day of July, One thousand nine hundred
and forty.
(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-one, this Act shall also apply
for all financial years subsequent to that beginning on the first day of July,
One thousand nine hundred and forty.
THE SCHEDULES.
—
FIRST
SCHEDULE. s.
6 (1.).
Rate of Tax is Respect of Taxable Income Derived from
Personal Exertion.
If the taxable income
does not exceed Four hundred pounds, the rate of tax for every pound of taxable
income shall be sixteen pence.
If the taxable income
exceeds Four hundred pounds but does not exceed One thousand and five hundred
pounds, the rate of tax for every pound of taxable income shall be sixteen
pence and one twenty-fifth of a penny increasing uniformly by one twenty-fifth of
a penny for every pound by which the taxable income exceeds Four hundred and
one pounds.
and
If the taxable income
exceeds One thousand and five hundred pounds, the rate of tax for every pound
of taxable income up to and including One thousand and five hundred pounds
shall be sixty pence, and the rate of tax for every pound of taxable income in excess
of One thousand and five hundred pounds shall be one hundred and twenty pence.
SECOND
SCHEDULE. s.
6 (2.).
Rate of Tax in Respect of Taxable Income Derived from
Property.
If the taxable income
does not exceed Four hundred pounds, the rate of tax for every pound of taxable
income shall be twenty pence.
If the taxable income
exceeds Four hundred pounds but does not exceed One thousand and two hundred
pounds, the rate of tax for every pound of taxable income shall be twenty pence
and one-twentieth of a penny increasing uniformly by one-twentieth of a penny
for every pound by which the taxable income exceeds Four hundred and one
pounds.
and
If the taxable income
exceeds One thousand and two hundred pounds, the rate of tax for every pound of
taxable income up to and including One thousand and two hundred pounds shall be
sixty pence, and the rate of tax for every pound of taxable income in excess of
One thousand and two hundred pounds shall be one hundred and twenty pence.
THIRD
SCHEDULE. s.
6 (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.
6 (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 1936-1940
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 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.
6 (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 1936-1940, 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 1936-1940, 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.
6 (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 1936-1940, 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.
6 (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 twenty-four pence.
(b) Subject to the last preceding Schedule, for every pound of that
portion of the taxable income of a company which has not been distributed as
dividends on which the company is liable, pursuant to Part IIIa. of the Income Tax Assessment Act 1936-1940, to pay further tax, the rate
of tax shall be twenty-four pence.
(c) 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