Income Tax Act (No. 2) 1945 (Cth)

INCOME TAX (No. 2).

No. 38 of 1945.

An Act to amend the Income Tax Act 1945.

[Assented to 11th October, 1945.]

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 and citation.

1.—(1.) This Act may be cited as the Income Tax Act (No. 2) 1945.

(2.) The Income Tax Act 1945, as amended by this Act, may be cited as the Income Tax Acts 1945.

Commencement.

2.This Act shall come into operation on the day on which it receives the Royal Assent.

 

Rates of income tax.

3.Section four of the Income Tax Act 1945 is amended—

(a)by omitting sub-sections. (1.) and (2.) and inserting in their stead the following sub-sections:—

“(1.) The rate of income tax in respect of a taxable income derived from personal exertion shall be half the sum of the rates which would be applicable if Parts I. and II. of the First Schedule to this Act both applied in respect of that taxable income.

“(2.) The rate of income tax in respect of a taxable income derived from property shall be half the sum of the rates which would be applicable if Parts I. and II. of the Second Schedule to this Act both applied in respect of that taxable income.”; and

(b) by omitting from sub-section (9.) the word “Ten” (twice occurring) and inserting in its stead the word “Five”.

Levy of income tax.

4.Section six of the Income Tax Act 1945 is amended by adding at the end of sub-section (2.) the following words:—

“except that—

(a)the rate of income tax in respect of a taxable income derived from personal exertion shall be as set out in Part II. of the First Schedule to this Act; and

(b) the rate of income tax in respect of a taxable income derived from property shall be as set out in Part II. of the Second Schedule to this Act.”.

The First Schedule.

5. The First Schedule to the Income Tax Act 1945 is amended—

(a)by inserting immediately under the second heading the sub-heading “Part I.”; and

(b)by adding at the end thereof the following Part:—

“Part II.

If the taxable income does not exceed £200, the rate of tax shall be nil.

If the taxable income exceeds £200 but does not exceed £300, the rate of tax for every pound of taxable income up to and including £200 shall be 3 pence, and the rate of tax for every pound of taxable income in excess of £200 shall be 36.15 pence increasing uniformly by .15 of one penny for every pound by which the taxable income exceeds £201.

If the taxable income exceeds £300 but does not exceed £1,000 the rate of tax for every pound of taxable income up to and including £300 shall be 19 pence and the rate of tax for every pound of taxable income in excess of £300 shall be 66.01 pence increasing uniformly by .01 of one penny for every pound by which the taxable income exceeds £301.

If the taxable income exceeds £1,000 but does not exceed £2,000 the rate of tax for every pound of taxable income up to and including £1.000 shall be 56.8 pence and the rate of tax for every pound of taxable income in excess of £1,000 shall be 80.03 pence increasing uniformly by .03 of one penny for every pound by which the taxable income exceeds £1,001.

If the taxable income exceeds £2,000 but does not exceed £3,000 the rate of tax for every pound of taxable income up to and including £2,000 shall be 83.4 pence and the rate of tax for every pound of taxable income in excess of £2,000 shall be 140.013 pence increasing uniformly by .013 of one penny for every pound by which the taxable income exceeds £2,001.

 

If the taxable income exceeds £3,000 but does not exceed £5,000 the rate of tax for every pound of taxable income up to and including £3,000 shall be 106.6 pence and the rate of tax for every pound of taxable income in excess of £3,000 shall be 166.004 pence increasing uniformly by .004 of one penny for every pound by which the taxable income exceeds £3,001.

If the taxable income exceeds £5,000 the rate of tax for every pound of taxable income up to and including £5,000 shall be 133.56 pence and the rate of tax for every pound of taxable income in excess of £5,000 shall be 182 pence.”.

The Second Schedule.

6. The Second Schedule to the Income Tax Act 1945 is amended—

(a)by inserting immediately under the second heading the subheading “Part I.”; and

(b) by adding at the end thereof the following Part:—

“Part II.

If the taxable income does not exceed £200, the rate of tax shall be nil.

If the taxable income exceeds £200 but does not exceed £300 the rate of tax for every pound of taxable income up to and including £200 shall be 3 pence and the rate of tax for every pound of taxable income in excess of £200 shall be 48.21 pence increasing uniformly by .21 of one penny for every pound by which the taxable income exceeds £201.

If the taxable income exceeds £300 but does not exceed £1,000 the rate of tax for every pound of taxable income up to and including £300 shall be 25 pence and the rate of tax for every pound of taxable income in excess of £300 shall be 90.01 pence increasing uniformly by .01 of one penny for every pound by which the taxable income exceeds £301.

If the taxable income exceeds £1,000 but does not exceed £2,000 the rate of tax for every pound of taxable income up to and including £1,000 shall be 75.4 pence and the rate of tax for every pound of taxable income in excess of £1,000 shall be 104.03075 pence increasing uniformly by .03075 of one penny for every pound by which the taxable income exceeds £1,001.

If the taxable income exceeds £2,000 but does not exceed £5,000 the rate of tax for every pound of taxable income up to and including £2,000 shall be 105.075 pence and the rate of tax for every pound of taxable income in excess of £2,000 shall be 165.50275 pence increasing uniformly by .00275 of one penny for every pound by which the taxable income exceeds £2,001.

If the taxable income exceeds £5,000 the rate of tax for every pound of taxable income up to and including £5,000 shall be 146.28 pence and the rate of tax for every pound of taxable income in excess of £5,000 shall be 182 pence.”.

The Third Schedule.

7. The Third Schedule to the Income Tax Act 1945 is amended—

(a) by omitting from paragraph (a)the words “under the First Schedule” and inserting in their stead the words “,at the rate which would be applicable under this Act,”;and

(b) by omitting from paragraph (b)the words “under the Second Schedule” and inserting in their stead the words “, at the rate which would be applicable under this Act,”.

The Fourth Schedule.

8. The Fourth Schedule to the Income Tax Act 1945 is amended—

(a) by omitting from paragraph (a)the words “under the First Schedule” and inserting in their stead the words “,at the rate which would be applicable under this Act,”; and

(b) by omitting from paragraph (b)the words “under the Second Schedule” and inserting in their stead the words “,at the rate which would be applicable under this Act,”.

The Fifth Schedule.

9.The Fifth Schedule to the Income Tax Act 1945 is amended—

(a) by omitting from paragraph (a)the words “under the First Schedule” and inserting in their stead the words at the rate which would be applicable under this Act,”; and

(b) by omitting from paragraph (b) the words “under the Second Schedule” and inserting in their stead the words “, at the rate which would be applicable under this Act,”.

The Sixth Schedule.

10. The Sixth Schedule to the Income Tax Act 1945