Income Tax Act (No. 2) 1965 (Cth)

Income Tax (No. 2)

No. 116 of 1965

An Act to amend the Income Tax Act 1965.

[Assented to 18 December, 1965]

BE it enacted by the Queen’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) 1965.

(2.) The Income Tax Act 1965 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the Income Tax Acts 1965.

Commencement.

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

Imposition of income tax.

3. Section 5 of the Principal Act is amended by omitting sub-section (3.) and inserting in its stead the following sub-sections:—

“(3.) Notwithstanding anything contained in this Act, but subject to the next succeeding sub-section, tax (other than further tax payable in accordance with section 94 of the Assessment Act) is not imposed upon a taxable income that does not exceed Two hundred and eight pounds derived by—

(a) a person other than a company;

(b) a company in the capacity of a trustee; or

(c) a non-profit company.

“(4.) The last preceding sub-section does not apply in relation to—

(a) a taxable income to which section 99a of the Assessment Act applies; or

(b) a taxable income of a superannuation fund to which section 121ca, section 121cb or section 121da of the Assessment Act applies.”.

Rates of tax payable by persons other than companies.

4.Section 6 of the Principal Act is amended by omitting sub-sections (4.) to (6.), inclusive, and inserting in their stead the following sub-sections:—

 

“(4.) The rate of further tax payable by a person in pursuance of sub-section (9.) of section 94 of the Assessment Act is as set out in the Fourth Schedule to this Act.

“(5.) Except as provided by the next three succeeding sub-sections, the rate of tax payable by a trustee is as set out in the Fifth Schedule to this Act.

“(6.) The rate of further tax payable by a trustee in pursuance of sub-section (11.) or sub-section (12.) of section 94 of the Assessment Act is as set out in the Fourth Schedule to this Act.

“(7.) The rate of tax payable by a trustee in respect of a taxable income to which section 99a of the Assessment Act applies is as set out in the Sixth Schedule to this Act.

“(8.) The rates of tax payable by a trustee of a superannuation fund are as set out in the Seventh Schedule to this Act.

“(9.) In this section, ‘tax’ does not include tax imposed in accordance with section 9 of this Act.”.

Amount of tax where taxable income does not exceed £214.

5. Section 7 of the Principal Act is amended by omitting the figure “(4.)” and inserting in its stead the figure “(5.)”.

Additional tax payable by persons other than companies.

6. Section 9 of the Principal Act is amended by omitting from sub-section (1.) the figure “(4.)” and inserting in its stead the figure “(5.)”.

Rates of tax payable by a company.

7. Section 11 of the Principal Act is amended by omitting from sub-section (1.) the word “Sixth” and inserting in its stead the word “Eighth”.

Elimination of small amounts.

8. Section 12 of the Principal Act is amended by omitting sub-section (1.) and inserting in its stead the following sub-section:—

“(1.) The provisions of this section apply in relation to—

(a) the amount of the tax (other than the further tax referred to in sub-sections (4.) and (6.) of section 6 of this Act) that a person would be liable to pay under the preceding provisions of this Act, before deducting any rebate or credit to which he is entitled; and

(b) the amount of the further tax that a person would be liable to pay in accordance with sub-section (4.) or sub-section (6.) of section 6 of this Act.”.

Fourth and Fifth Schedules.

9. The Fourth and Fifth Schedules to the Principal Act are repealed and the following Schedules inserted in their stead:—

 

“FOURTH SCHEDULE Section 6(4.), (6.).

Rate of Further Tax Payable in Pursuance of Sub-section (9.), (11.) or (12.) of Section 94 of the Assessment Act

The rate of further tax payable by a person in pursuance of sub-section (9.), (11.) or (12.) of section 94 of the Assessment Act is such rate per centum, if any, as is ascertained by dividing an amount equal to one-half of the taxable income of the person, less the amount of tax, if any, that, but for sub-sections (4.) and (6.) of section 6 and section 8 of this Act and but for any rebate or credit to which he is entitled, would be payable by him, by an amount equal to one-hundredth of the amount of the taxable income of the person.

 

“FIFTH SCHEDULE Section 6(5.).

Rate of Tax Payable by a Trustee in Pursuance of Section 98 or Section 99 of the Assessment Act

The rate of tax in respect of the taxable income in respect of which a trustee is liable, in pursuance of either section 98 or section 99 of the Assessment Act, to be assessed and to pay tax is the rate that would be payable under the First, Second or Third Schedule, as the case requires, if one individual were liable to be assessed and to pay tax on that taxable income.

 

“SIXTH SCHEDULE Section 6(7.).

Rate of Tax Payable by a Trustee in Pursuance of Section 99a of the Assessment Act

The rate of tax in respect of the taxable income in respect of which a trustee is liable, in pursuance of section 99a of the Assessment Act, to be assessed and to pay tax is fifty per centum.

 

“SEVENTH SCHEDULE Section 6(8.).

Rates of Tax Payable by a Trustee of a Superannuation Fund

1. The rate of tax in respect of the taxable income of a superannuation fund in respect of which the trustee of the fund is liable, in pursuance of either section 121ca, section 121cb or section 121da of the Assessment Act, to be assessed and to pay tax is fifty per centum.

2. The rates of tax in respect of investment income of a superannuation fund of the year of income in respect of which the trustee of the fund is liable, in pursuance of section 121d of the Assessment Act, to be assessed and to pay tax are—

(a) for so much of that investment income as does not exceed Five thousand pounds —twenty-seven and one-half per centum; and

(b) for the remainder of that investment income—thirty-seven and one-half per centum.”.

Sixth Schedule.

10.