Income Tax Assessment Amendment Act (No. 2) 1978 (Cth)
INCOME TAX ASSESSMENT AMENDMENT ACT (No. 2) 1978
An Act to amend
the
BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:
(2) The
(a) by omitting sub-paragraph (ii) of paragraph (t);
(b) by omitting from sub-paragraph (ii) of paragraph (z) “or”; and
(c) by adding at the end of paragraph (z) the following word and sub-paragraph:
“; or (iv) income derived under a Post-graduate Award granted under the
Student Assistance Act 1973;”.
(2) The amendment made by paragraph (1)(a) applies to assessments in respect of income of the year of income that commenced on 1 July 1978 and to assessments in respect of income of all subsequent years of income.
(3) The amendments made by paragraphs (1)(b) and (c) apply to amounts paid on or after 1 November 1978.
(a) by omitting paragraph (d) and substituting the following paragraph:
“(d) 5% of the capital amount of any allowance, gratuity or compensation where that amount is paid (whether voluntarily, by agreement or by compulsion of law) in a lump sum in consequence of retirement from, or the termination of, any office or employment, not being—
(i) an amount that, under any provision of this Act, is deemed to be a dividend paid to the recipient; or
(ii) an amount to which section 26ac or 26ad applies;”; and
(b) by inserting in paragraph (e) “, which is an amount to which section 26ac or 26ad applies” after “preceding paragraph”.
“26ac. (1) This section applies to any amount paid after 15 August 1978 (whether voluntarily, by agreement or by compulsion of law) to a taxpayer in a lump sum in consequence of the retirement of the taxpayer after that date from any office or employment or in consequence of the termination after that date of any office or employment of the taxpayer, being an amount that is paid in respect of unused annual leave or in respect of unused annual leave and a bonus, loading or other additional payment relating to that leave.
“(2) Where an amount to which this section applies is paid to a taxpayer in a year of income, that amount shall be included in the assessable income of the taxpayer of the year of income.
“(3) The reference in sub-section (1) to the payment to a taxpayer in consequence of the retirement of the taxpayer from any office or employment or in consequence of the termination of any office or employment of the taxpayer of a lump sum in respect of unused annual leave shall be read as including a reference to the payment to the taxpayer in consequence of that retirement or termination, as the case may be, of an amount in respect of, or an amount calculated directly or indirectly by reference to, annual leave, or annual leave and a bonus, loading or other additional payment relating to annual leave, to which the taxpayer was not entitled immediately before that retirement or termination, as the case may be, but to which the taxpayer would have become entitled, or that would ordinarily have been granted to the taxpayer, at a later time if the taxpayer had continued in that office or employment for a period after the time of the retirement or termination, as the case may be.
“(4) In this section, ‘annual leave’ means—
(a) leave described as annual leave, recreation leave or annual holidays, being leave to which a person has an entitlement by virtue of a law of the Commonwealth or of a State or Territory, an award, determination or industrial agreement in force under any such law, a contract of employment or the terms of appointment to an office;
(b) leave described otherwise than as annual leave, recreation leave or annual holidays, being leave to which a person has an entitlement by virtue of such a law, award, determination, industrial agreement or contract or by virtue of the terms of appointment to an office and the entitlement to which is determined by reference to matters similar to matters by reference to which entitlement to leave referred to in paragraph (a) is ordinarily determined; or
(c) leave that may be made available to a person as a privilege, being leave the availability of which is ordinarily determined by reference to matters similar to matters by reference to which entitlement to leave referred to in paragraph (a) or (b) is ordinarily determined.
“26ad. (1) This section applies to any amount paid after 15 August 1978 (whether voluntarily, by agreement or by compulsion of law) to a taxpayer in a lump sum in consequence of the retirement of the taxpayer after that date from any office or employment or in consequence of the termination after that date of any office or employment of the taxpayer, being an amount that is paid in respect of unused long service leave.
“(2) Where—
(a) an amount to which this section applies is paid to a taxpayer in a year of income in respect of unused long service leave; and
(b) the eligible service period in relation to that unused long service leave commenced after 15 August 1978,
the assessable income of the taxpayer of the year of income shall include the amount of the payment.
“(3) Where—
(a) an amount to which this section applies (in this sub-section referred to as the ‘lump sum amount’) is paid to a taxpayer in a year of income in respect of unused long service leave;
(b) the eligible service period in relation to that unused long service leave commenced on or before 15 August 1978 and ended after that date; and
(c) the employment or service of the taxpayer was on a full-time basis during the whole of the eligible service period or was on a part-time basis during the whole of the eligible service period,
the assessable income of the taxpayer of the year of income shall include an amount ascertained in accordance with the formula
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where—
A is the lump sum amount;
B is the number of whole days of long service leave included in the unused long service leave in respect of which the lump sum amount was paid;
C is the number of whole days in the eligible service period that occurred after 15 August 1978;
D is the number of whole days of long service leave that accrued in respect of the eligible service period and were used by the taxpayer before the retirement date;
E is the number of whole days in the eligible service period; and
F is—(d) in a case where the number of whole days of long service leave that accrued in respect of the eligible service period and were used by the taxpayer after 15 August 1978 exceeds the number (in this paragraph referred to as the ‘relevant number’) that bears to the number of whole days of long service leave that accrued in respect of the eligible service period (including days of long service leave that were used by the taxpayer before the retirement date) the same proportion as the number of whole days in the eligible service period that occurred after 15 August 1978 bears to the number of whole days in the eligible service period—the relevant number; and
(e) in any other case—the number of whole days of long service leave that accrued in respect of the eligible service period and were used by the taxpayer after 15 August 1978.
“(4) Where—
(a) an amount to which this section applies is paid to a taxpayer in a year of income in respect of unused long service leave;
(b) the eligible service period in relation to that unused long service leave commenced on or before 15 August 1978 and ended after that date; and
(c) the employment or service of the taxpayer during the eligible service period was partly on a full-time basis and partly on a part-time basis,
the assessable income of the taxpayer of the year of income shall include an amount equal to the sum of—
(d) the amount that would be calculated in accordance with the formula in sub-section (3) if—
(i) the reference in that sub-section to the lump sum amount were a reference to so much of the lump sum amount as was paid in respect of unused long service leave that accrued in respect of the employment or service of the taxpayer on a full-time basis;
(ii) a reference in that sub-section to whole days of long service leave were a reference to whole days of long service leave that accrued in respect of the employment or service of the taxpayer on a full-time basis; and
(iii) a reference in that sub-section to whole days in the eligible service period were a reference to whole days in the eligible service period during which the employment or service of the taxpayer was on a full-time basis; and
(e) the amount that would be calculated in accordance with the formula in sub-section (3) if—
(i) the reference in that sub-section to the lump sum amount were a reference to so much of the lump sum amount as was paid in respect of unused long service leave that accrued in respect of the employment or service of the taxpayer on a part-time basis;
(ii) a reference in that sub-section to whole days of long service leave were a reference to whole days of long service leave that accrued in respect of the employment or service of the taxpayer on a part-time basis; and
(iii) a reference in that sub-section to whole days in the eligible service period were a reference to whole days in the eligible service period during which the employment or service of the taxpayer was on a part-time basis.
“(5) Where—
(a) an amount to which this section applies (in this sub-section referred to as the ‘lump sum amount’) is paid to a taxpayer in a year of income in respect of unused long service leave; and
(b) the eligible service period in relation to that unused long service leave commenced on or before 15 August 1978,
the assessable income of the taxpayer of the year of income shall include, in addition to any amount included in that assessable income by the application of sub-section (3) or (4) in relation to the lump sum amount, an amount equal to 5% of the amount remaining after deducting from the lump sum amount any amount included in that assessable income by the application of sub-section (3) or (4) in relation to the lump sum amount.
“(6) A reference in this section to the payment to a taxpayer in consequence of the retirement of the taxpayer from any office or employment or in consequence of the termination of any office or employment of the taxpayer of a lump sum in respect of unused long service leave shall be read as including a reference to the payment to the taxpayer in consequence of that retirement or termination, as the case may be, of an amount in respect of, or an amount calculated directly or indirectly by reference to, long service leave (in this sub-section referred to as the ‘relevant long service leave’) to which the taxpayer was not entitled immediately before that retirement or termination, as the case may be, but to which the taxpayer would have become entitled, or that would ordinarily have been granted to the taxpayer, at a later time if the taxpayer had continued in that office or employment for a period after the time of the retirement or termination, as the case may be, and, for the purposes of the application of this section in relation to the taxpayer, a reference to the number of whole days of long service leave that accrued in respect of the eligible service period shall be read as a reference to the sum of the number of whole days of long service leave that actually accrued in respect of the eligible service period and the number of whole days included in the relevant long service leave.
“(7) For the purposes of the application of this section in relation to an amount (in this sub-section referred to as the ‘lump sum amount’) paid to a taxpayer in consequence of the retirement of the taxpayer from any office or employment or in consequence of the termination of any office or employment of the taxpayer, being an amount paid in respect of unused long service leave—
‘eligible service period’ means—
(a) where the taxpayer had not, before the retirement date, used any long service leave to which he became entitled in respect of any office or employment in respect of which the lump sum amount was paid—the period by reference to which the lump sum amount was determined; and
(b) where the taxpayer had, before the retirement date, used long service leave to which he became entitled in respect of any office or employment in respect of which the lump sum amount was paid—the period by reference to which—
(i) the entitlement of the taxpayer to the long service leave that was so used by the taxpayer; and
(ii) the lump sum amount,
was determined;
‘retirement date’ means the date on which the taxpayer retired from the office or employment or on which the office or employment of the taxpayer was terminated, as the case may be.
“(8) In this section, ‘long service leave’ means—
(a) long service leave, long leave, furlough, extended leave, or leave of a similar kind (however described) to which a person has an entitlement by virtue of a law of the Commonwealth or of a State or Territory, an award, determination or industrial agreement in force under any such law, a contract of employment or the terms of appointment to an office;
(b) leave (other than leave that is annual leave for the purposes of section 26ac) to which a person has an entitlement by virtue of a scheme or arrangement by reason of the existence and nature of which the employer of the person has secured exemption from obligations to comply with a law of the Commonwealth or of a State or Territory relating to long service, long leave, furlough, extended leave or leave of a similar kind (however described); or
(c) leave that may be made available to a person as a privilege, being leave the availability of which is determined by reference to matters similar to matters by reference to which entitlement to leave referred to in paragraphs (a) and (b) is ordinarily determined.
“(9) A reference in sub-section (3), in relation to a taxpayer, to a number of whole days of long service leave shall be read as a reference to a number of whole days of long service leave in respect of which the taxpayer was paid or was entitled to be paid full or ordinary pay.
“(10) For the purposes of sub-section (3) as affected by sub-section (9), where a taxpayer used a number (in this sub-section referred to as the ‘relevant number’) of days of long service leave and was paid or entitled to be paid in respect of that long service leave at a rate (in this subsection referred to as the ‘reduced rate’) of pay that was less than the rate (in this sub-section referred to as the ‘ordinary rate’) of full or ordinary pay, the taxpayer shall be deemed to have used a number (disregarding fractions) of days of long service leave that bears to the relevant number the same proportion as the reduced rate bears to the ordinary rate and to have been paid full or ordinary pay in respect of the days of long service leave deemed to have been used.
“(11) Where—
(a) an amount to which this section applies is paid to a taxpayer in respect of unused long service leave; and
(b) in consequence of an alteration to the basis on which the entitlement of the taxpayer to long service leave is determined, the period of service or employment of the taxpayer by reference to which the entitlement of the taxpayer to long service leave was determined was shorter than the period (in this subsection referred to as the ‘full period’) by reference to which the entitlement of the taxpayer to long service leave would have been determined but for that alteration,
the eligible service period in relation to the payment to the taxpayer of that amount shall be deemed to be the full period.”.
“; (xlvii) the World Wildlife Fund Australia,”.
(2) The amendment made by sub-section (1) applies to gifts made to the World Wildlife Fund Australia at any time, including gifts made before the commencement of this Act.
(3) Nothing in section 170 of the
“82kbb. A deduction is not allowable under this Subdivision in respect of—
(a) an amount paid by a taxpayer by way of or on account of interest to the extent that the interest accrued or will accrue after 31 October 1978; or
(b) an amount paid by a taxpayer by way of interest, being an amount paid on or after 1 July 1979.”.
(a) by omitting sub-section (9) and substituting the following sub-section:
“(9) Where the assessable income of a taxpayer, other than a taxpayer in the capacity of a trustee, includes income to which this section applies, the taxpayer shall be assessed and is liable to pay further tax, in accordance with sub-section (10a) or (10b), upon the portion (in this section referred to as the ‘eligible portion’) of his taxable income that is derived from income to which this section applies.”;
(b) by omitting sub-sections (11) and (12) and substituting the following sub-sections:
“(10a) Where a taxpayer is not entitled to a rebate of tax under section 156 in his assessment in respect of income of the year of income, the taxpayer is liable to pay further tax upon the eligible portion of his taxable income at the rate declared by the Parliament to be the rate of further tax payable in pursuance of sub-section (9) in respect of the relevant part of the taxable income.
“(10b) Where a taxpayer is entitled to a rebate of tax under section 156 in his assessment in respect of income of the year of income, the taxpayer is liable to pay further tax upon the relevant part of the eligible portion of his taxable income at the rate declared by the Parliament to be the rate of further tax payable in pursuance of sub-section (9) in respect of the relevant part of the taxable income and is, in addition, liable to pay further tax upon the prescribed part of the eligible portion of his taxable income at the rate declared by the Parliament to be the rate of further tax payable in pursuance of sub-section (9) in respect of the prescribed part of the taxable income.
“(10c) For the purposes of sub-sections (10a) and (10b)—
(a) the prescribed part of the eligible portion of the taxable income of a taxpayer of a year of income is—
(i) in a case to which sub-paragraph (ii) does not apply—the sum of—
(a) the amount ascertained by deducting from so much of the assessable primary production income of the taxpayer as is also income to which this section applies so much of the deductions allowable in his assessment as constitutes relevant primary production deductions and is also deductible in accordance with sub-section (10) from income to which this section applies; and
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a is the amount of the notional taxable income from primary production of the taxpayer of the year of income;
b is the number of whole dollars in the amount ascertained by deducting from the eligible portion the amount calculated in accordance with clause (a); and
c is the number of whole dollars in the amount ascertained by deducting from the taxable income of the taxpayer of the year of income the actual taxable income from primary production of the taxpayer of the year of income; and(ii) in a case where the aggregate of the relevant primary production deductions of the taxpayer of the year of income exceeds the assessable primary production income of the taxpayer of
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where—
a is the amount of the notional taxable income from primary production of the taxpayer of the year of income;
b is the number of whole dollars in the eligible portion;
c is the number of whole dollars in the taxable income of the taxpayer of the year of income; and
d is the number of whole dollars in the amount ascertained by deducting from the aggregate of the relevant primary production deductions of the taxpayer of the year of income the amount of the assessable primary production income of the taxpayer of the year of income; and(b) the relevant part of the eligible portion of the taxable income of the taxpayer is the amount ascertained by deducting from the amount of that eligible portion so much of that eligible portion as is the prescribed part of that eligible portion.
“(11) Where—
(a) section 98 applies in relation to the net income of a trust estate or a share of that net income; and
(b) this section applies to a portion (in this sub-section referred to as the ‘relevant portion’) of that net income or of that share of that net income, as the case may be,
the trustee of the trust estate shall be assessed and is liable to pay further tax, in accordance with sub-section (12a) or (12b), upon an amount (in this section referred to as the ‘eligible trust portion’) ascertained by deducting from the relevant portion of that net income or of that share of that net income, as the case may be, an amount equal to so much of the sum of the concessional deductions that are taken into account for the purposes of section 98 in relation to that net income or that share of that net income as bears to that sum the same proportion as the relevant portion of that net income or of that share of that net income bears to that net income or that share of that net income, as the case may be.
“(12) Where—
(a) section 99 applies in relation to the net income of a trust estate or a part of that net income; and
(b) this section applies to a portion (in this section referred to as the ‘eligible trust portion’) of that net income or of that part of that net income, as the case may be,
the trustee of the trust estate shall be assessed and is liable to pay further tax, in accordance with sub-section (12a) or (12b), upon the eligible trust portion.
“(12a) Where a trustee of a trust estate is not entitled to a rebate of tax under section 156 in his assessment in respect of the net income of the trust estate of which the eligible trust portion is a portion, the trustee is liable to pay further tax upon the eligible trust portion at the rate declared by the Parliament to be the rate of further tax payable in pursuance of sub-section (11) or (12) in respect of the relevant part of the net income of a trust estate.
“(12b) Where a trustee of a trust estate is entitled to a rebate of tax under section 156 in his assessment in respect of the net income of the trust estate of which the eligible trust portion is a portion, the trustee is liable to pay further tax upon the relevant part of the eligible trust portion at the rate declared by the Parliament to be the rate of further tax payable in pursuance of sub-section (11) or (12) in respect of the relevant part of the net income of a trust estate and is, in addition, liable to pay further tax upon the prescribed part of the eligible trust portion at the rate declared by the Parliament to be the rate of further tax payable in pursuance of sub-section (11) or (12) in respect of the prescribed part of the net income of a trust estate.
“(12c) For the purposes of sub-sections (12a) and (12b)—
(a) the prescribed part of the eligible trust portion in relation to a trust estate in relation to a year of income is—
(i) in a case to which sub-paragraph (ii) does not apply—the sum of—
(a) the amount ascertained by deducting from so much of the assessable primary production income of the trust estate of the year of income as is also income that was taken into account in determining the amount of the eligible trust portion so much of the deductions allowable in the assessment of the trustee of the trust estate as constitutes relevant primary production deductions and was also deductible in accordance with sub-section (5) in determining the amount of the eligible trust portion; and
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a is the amount of the notional net income from primary production of the trust estate of the year of income;
b is the number of whole dollars in the amount ascertained by deducting from the eligible trust portion the amount calculated in accordance with clause (a); and
c is the number of whole dollars in the amount ascertained by deducting from the net income of the trust estate of which the eligible trust portion is a portion the actual net income from primary production of the trust estate of the year of income; and(ii) in a case where the aggregate of the relevant primary production deductions allowable in calculating the net income of the trust estate of the year of income exceeds the assessable primary production income of the trust estate of the year of income—the amount
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a is the amount of the notional net income from primary production of the trust estate of the year of income;
b is the number of whole dollars in the eligible trust portion;
c is the number of whole dollars in the net income of the trust estate of which the eligible trust portion is a portion; and
d is the number of whole dollars in the amount by which the net income of the trust estate of which the eligible trust portion is a portion would have been increased if the aggregate of the relevant primary production deductions allowable in calculating the net income of the trust estate of the year of income had been equal to the assessable primary production income of the trust estate of the year of income; and(b) the relevant part of the eligible trust portion in relation to a trust estate is the amount ascertained by deducting from that eligible trust portion so much of that eligible trust portion as is the prescribed part of that eligible trust portion.”; and
(c) by adding at the end thereof the following sub-section:
“(14) In this section, ‘actual net income from primary production’, ‘actual taxable income from primary production’, ‘assessable primary production income’, ‘notional net income from primary production’, ‘notional taxable income from primary production’ and ‘relevant primary production deductions’ have the same respective meanings as in section 156.”.
(2) The amendments made by sub-section (1) apply to assessments in respect of income of the year of income that commenced on 1 July 1978 and to assessments in respect of income of all subsequent years of income.
“(2) Sub-section (1) does not apply in relation to an amount received by the trustee of the estate of a deceased person to the extent to which, if it had been received by the deceased person during his lifetime, it would have been included in the assessable income of that person by virtue of section 26ac or 26ad.”.
(a) by omitting from sub-section (1) “purpose of making the first calculation of the rate of tax under this Division” and substituting “purposes of the first application of this Division in determining the tax payable by a taxpayer”;
(b) by omitting from sub-section (1) “on any calculation of the rate of tax” and substituting “for the purposes of any application of this Division in determining the tax payable by a taxpayer”; and
(c) by omitting from sub-section (2)” in making the first calculation of the rate of tax under this Division” and substituting “for the purposes of the first application of this Division in determining the tax payable by a taxpayer”.
(2) The amendments made by sub-section (1) apply to assessments in respect of income of the year of income that commenced on 1 July 1978 and to assessments in respect of income of all subsequent years of income.
“156. (1) In this section—
‘actual taxable income from primary production’, in relation to a taxpayer in relation to a year of income, means the amount (if any) remaining after deducting from the assessable primary production income of the taxpayer of the year of income so much of the aggregate of the relevant primary production deductions of the taxpayer of the year of income as does not exceed that assessable income;
‘assessable primary production income’, in relation to a taxpayer in relation to a year of income, means so much of the assessable income of the taxpayer of the year of income as was derived from the carrying on of a business of primary production by the taxpayer or was included in the assessable income of the taxpayer of the year of income in consequence of the carrying on of a business of primary production by the taxpayer;
‘deemed taxable income from primary production’, in relation to a taxpayer in relation to a year of income, means—
(a) if the taxpayer did not have a non-primary production profit in relation to the year of income—the taxable income of the taxpayer; and
(b) in any other case—the sum of the actual taxable income from primary production of the taxpayer of the year of income and the notional taxable income from primary production of the taxpayer of the year of income;
‘notional taxable income from primary production’, in relation to a taxpayer in relation to a year of income, being a taxpayer who had a non-primary production profit in relation to the year of income, means—
(a) where the taxpayer did not incur a primary production loss in relation to the year of income—
(i) in a case to which sub-paragraph (ii) does not apply—the amount ascertained by deducting from the taxable income of the taxpayer of the year of income the actual taxable income from primary production of the taxpayer of the year of income; and
(ii) where the taxable income of the taxpayer of the year of income exceeds the actual taxable income from primary production of the taxpayer of the year of income and that excess is greater than $5,000—$5,000 reduced by $1 for each whole dollar by which the amount of that excess exceeds $5,000; and
(b) where the taxpayer incurred a primary production loss in relation to the year of income—
(i) in a case where the sum of the taxable income of the taxpayer of the year of income and the amount of the primary production loss is less than or equal to $5,000—the taxable income of the taxpayer of the year of income; and
(ii) in a case where the sum of the taxable income of the taxpayer of the year of income and the amount of the primary production loss (which sum is in this sub-paragraph referred to as the ‘non-farm income’) exceeds $5,000—an amount ascertained by deducting from $5,000 one dollar for each whole dollar by which so much of the non-farm income as does not exceed $10,000 exceeds $5,000 and deducting from the resultant amount so much (if any) of the amount of the primary production loss as does not exceed that resultant amount;
‘relevant primary production deductions’, in relation to a taxpayer in relation to a year of income, means—
(a) any deductions allowed or allowable in his assessment in respect of income of the year of income that relate exclusively to assessable primary production income of the taxpayer of a year of income;
(b) so much of any other deductions (other than apportionable deductions) allowed or allowable in his assessment in respect of income of the year of income as, in the opinion of the Commissioner, may appropriately be related to assessable primary production income of the taxpayer of a year of income; and
(c) the amount that bears to the apportionable deductions allowed or allowable in his assessment the same proportion as the amount ascertained by deducting from the assessable primary production income of the taxpayer of the year of income any deductions allowable from that assessable income in accordance with paragraphs (a) and (b) bears to the sum of the taxable income of the taxpayer of the year of income and the apportionable deductions.
“(2) For the purposes of sub-section (1), a taxpayer shall be taken to have a non-primary production profit in relation to a year of income if the assessable income of the taxpayer of the year of income other than assessable primary production income exceeds the aggregate of the deductions (other than relevant primary production deductions) allowable to the taxpayer in respect of the year of income.
“(3) For the purposes of sub-section (1), a taxpayer shall be taken to have incurred a primary production loss in relation to a year of income if the aggregate of the relevant primary production deductions in relation to the year of income exceeds the assessable primary production income of the taxpayer of the year of income, and the amount of that loss shall be taken to be the amount of the excess.
“(4) Where—
(a) this Division applies to the income of a taxpayer of a year of income, not being income in respect of which the taxpayer is liable to be assessed and to pay tax in the capacity of a trustee of a trust estate; and
(b) the amount of tax that would, apart from this section and section 94 and but for any rebate or credit to which the taxpayer is entitled, be payable by the taxpayer in respect of his taxable income of the year of income exceeds the amount of tax that would, apart from this section and section 94 and but for any rebate or credit to which the taxpayer is entitled, be payable by the taxpayer in respect of that taxable income if the notional rates declared by the Parliament for the purposes of this section were the rates of tax payable by the taxpayer in respect of that taxable income,
the taxpayer is entitled, in his assessment in respect of income of the year of income, to a rebate of tax
of an amount ascertained in accordance with the formula | ,where— | |
A is the deemed taxable income from primary production of the taxpayer of the year of income;
B is the number of whole dollars in the excess referred to in paragraph (b); and
C is the number of whole dollars in the taxable income of the taxpayer of the year of income.
“(5) Where—
(a) this Division applies to a share of the net income of a trust estate of a year of income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or to the net income or a part of the net income of a trust estate of a year of income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 99 (which share, net income or part, as the case may be, is in this sub-section referred to as the ‘eligible net income’); and
(b) the amount of tax that would, apart from this section and section 94 and but for any rebate or credit to which the trustee is entitled, be payable by the trustee in respect of the eligible net income exceeds the amount of tax that would, apart from this section and section 94 and but for any rebate or credit to which the trustee is entitled, be payable by the trustee in respect of the eligible net income if the notional rates declared by the Parliament for the purposes of this section were the rates of tax payable by the trustee in respect of the eligible net income,
the trustee is entitled, in his assessment in respect of the eligible net income, to a rebate of tax of an
amount ascertained in accordance with the formula | where— | |
A is the amount of the deemed net income from primary production;
B is the number of whole dollars in the excess referred to in paragraph (b); andC is the number of whole dollars in the eligible net income.
“(6) For the purposes of the application of this section in relation to a share of the net income of a trust estate of a year of income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or in relation to the net income or a part of the net income of a trust estate of a year of income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 99 (which share, net income or part, as the case may be, is in this sub-section referred to as the ‘eligible net income’)—
‘actual net income from primary production’ means so much of the net income from primary production of the trust estate as is included in the eligible net income;
‘assessable primary production income’ means so much of the assessable income of the trust estate of the year of income as was derived from the carrying on of a business of primary production by the trustee or was included in the assessable income of the trust estate of the year of income in consequence of the carrying on of a business of primary production by the trustee;
‘deemed net income from primary production’ means—
(a) if the trust estate did not have a non-primary production profit in relation to the year of income—the eligible net income; and
(b) in any other case—the sum of the actual net income from primary production of the trust estate of the year of income and the notional net income from primary production of the trust estate of the year of income;
‘eligible part of the primary production loss’, in relation to a primary production loss incurred by the trust estate in the year of income, means so much of the primary production loss as is equal to the amount by which the eligible net income would have been increased if the aggregate of the relevant primary production deductions allowable in calculating the amount of the net income of the trust estate of the year of income had been equal to the assessable primary production income of the trust estate of the year of income;
‘net income from primary production’ means the amount (if any) remaining after deducting from the assessable primary production income of the trust estate of the year of income so much of the aggregate of the relevant primary production deductions allowable in calculating the net income of the trust estate as does not exceed that assessable primary production income;
‘notional net income from primary production’ means—
(a) where the trust estate had a non-primary production profit in relation to the year of income and did not incur a primary production loss in relation to the year of income—
(i) in a case to which sub-paragraph (ii) does not apply—the amount ascertained by deducting from the eligible net income the actual net income from primary production (if any); and
(ii) where the eligible net income exceeds the actual net income from primary production in relation to the year of income and that excess is greater than $5,000—$5,000 reduced by $1 for each whole dollar by which the amount of that excess exceeds $5,000; and
(b) where the trust estate had a non-primary production profit in relation to the year of income and incurred a primary production loss in relation to the year of income—
(i) in a case where the sum of the eligible net income and the eligible part of the primary production loss is less than or equal to $5,000—the eligible net income; and
(ii) in a case where the sum of the eligible net income and the eligible part of the primary production loss (which sum is in this sub-paragraph referred to as the ‘non-farm income’) exceeds $5,000—an amount ascertained by deducting from $5,000 one dollar for each whole dollar by which so much of the non-farm income as does not exceed $10,000 exceeds $5,000 and deducting from the resultant amount so much (if any) of the eligible part of the primary production loss as does not exceed that resultant amount;
‘relevant primary production deductions’ means—
(a) any deductions allowed or allowable in calculating the amount of the net income of the trust estate of the year of income that relate exclusively to assessable primary production income of a year of income;
(b) so much of any other deductions (other than apportionable deductions) allowed or allowable in calculating the amount of that net income as, in the opinion of the Commissioner, may appropriately be related to assessable primary production income of the trust estate of a year of income; and
(c) the amount that bears to the apportionable deductions allowed or allowable in calculating the amount of that net income the same proportion as the amount ascertained by deducting from the assessable primary production income of the trust estate of the year of income any deductions allowable from that assessable primary production income in accordance with paragraphs (a) and (b) bears to the sum of the net income of the trust estate and the apportionable deductions.
“(7) For the purposes of sub-section (6), a trust estate shall be taken to have incurred a primary production loss in relation to a year of income if the aggregate of the relevant primary production deductions allowable in calculating the amount of the net income of the trust estate of the year of income exceeds the assessable primary production income of the trust estate of the year of income, and the amount of that loss shall be taken to be the amount of the excess.
“(8) For the purposes of sub-section (6), a trust estate shall be taken to have a non-primary production profit in relation to a year of income if the assessable income of the trust estate of the year of income other than assessable primary production income exceeds the aggregate of the deductions (other than relevant primary production deductions) allowable in calculating the amount of the net income of the trust estate of the year of income.”.
(2) The amendment made by sub-section (1) applies to assessments in respect of income of the year of income that commenced on 1 July 1978 and to assessments in respect of income of all subsequent years of income.
(a) by inserting in sub-section (1) “and that person is a resident” after “sub-section (2)”; and
(b) by inserting after paragraph (a) of sub-section (3) the following paragraph:
“(aa) a dependant is a resident during part only of the year of income;”.
(2) Subject to sub-section (3), the amendments made by sub-section (1) apply to assessments in respect of income of the year of income that commenced on 1 July 1978 and in respect of income of all subsequent years of income.
(3) For the purposes of the application of section 159j of the
“160aa. (1) Where—
(a) an amount is included in the assessable income of the taxpayer of the year of income under section 26ac or sub-section (2), (3) or (4) of section 26ad;
(b) the taxable income of the taxpayer of the year of income exceeds $16,608;
(c) the relevant tax amount in relation to the taxpayer in relation to the year of income exceeds the notional tax amount in relation to the taxpayer in relation to the year of income; and
(d) the additional tax amount in relation to the taxpayer in relation to the year of income exceeds 32% of the relevant income amount in relation to the taxpayer in relation to the year of income,
the taxpayer shall be entitled in his assessment to a rebate of tax of an amount equal to the excess referred to in paragraph (d).
“(2) For the purposes of the application of this section in relation to a taxpayer in relation to a year of income—
‘additional tax amount’ means the amount remaining after deducting from the relevant tax amount the notional tax amount;
‘notional tax amount’ means the amount of the tax that would be payable by the taxpayer in respect of income of the year of income, apart from this section and apart from any rebates or credits (other than a rebate under section 156 calculated by reference to the amount that would have been the taxable income of the taxpayer if no amount had been included in the assessable income of the taxpayer of the year of income under section 26ac or sub-section (2), (3) or (4) of section 26ad) to which the taxpayer is entitled, if no amount had been included in the assessable income of the taxpayer of the year of income under section 26ac or sub-section (2), (3) or (4) of section 26ad;
‘relevant income amount’ means—
(a) if the taxable income of the taxpayer of the year of income exceeds the sum of—
(i) $3,893; and
(ii) the amount that was included in the assessable income of the taxpayer of the year of income by virtue of section 26ac or sub-sections (2), (3) and (4) of section 26ad or, if 2 or more amounts were included in the assessable income of the taxpayer of the year of income by virtue of section 26ac and sub-sections (2), (3) and (4) of section 26ad, the aggregate of the amounts so included,
the amount that was so included, or the aggregate of the amounts that were so included, as the case may be; and
(b) if the taxable income of the taxpayer exceeds $3,893 but does not exceed the sum referred to in paragraph (a)—so much of that taxable income as exceeds $3,893;
‘relevant tax amount’ means the amount of the tax that would be payable by the taxpayer in respect of income of the year of income apart from this section and apart from any rebates or credits (other than a rebate under section 156) to which the taxpayer is entitled.
“(3) If the factor ascertained in accordance with sub-section (3)
of section 9 of the
(a) in a case to which paragraph (b) does not apply—the relevant amount; or
(b) if, by virtue of another application or other applications of this section, this section had effect in relation to a year of income or years of income preceding that relevant year of income as if another amount or other amounts were substituted for the relevant amount—the substituted amount or the last substituted amount, as the case may be,
by that factor
or, where a lesser factor is prescribed by regulations made for the purposes of
section 9 of the
“(4) Where, but for this sub-section, this section would, by virtue of sub-section (3), have effect in relation to a relevant year of income as if for a relevant amount there were substituted another amount that consists of a number of whole dollars and a number of cents (in this subsection referred to as the ‘relevant number of cents’)—
(a) in the case where the relevant number of cents is less than 50—the other amount shall be reduced by the relevant number of cents; or
(b) in any other case—the other amount shall be increased by the amount by which the relevant number of cents is less than $1.
“(5) In this section—
‘relevant amount’ means any of the following amounts:
(a) the amount of $16,608 specified in sub-section (1);
(b) an amount of $3,893 specified in sub-section (2);
‘relevant year of income’ means the year of income commencing on 1 July 1979 or a subsequent year of income.”.
(2) For the purposes of the application of section 160aa of the
(a) by inserting “, any payments of amounts to which section 26ac applies, any payments of amounts that are assessable retirement amounts for the purposes of this definition” after “section 23ad” in the definition of “salary or wages” in sub-section (1);
(b) by omitting from paragraph (h) of that definition “or”;
(c) by inserting after paragraph (j) of that definition the following word and paragraph:
“; or (k) by way of living allowance under a Post-graduate Award, being a living allowance paid in pursuance of paragraph (b) of section 15 of the
Student Assistance Act 1973,”; and(d) by adding at the end thereof the following sub-section:
“(2) Where an amount to which section 26ad applies is paid to a person, an amount equal to the amount, or the sum of the amounts, that will, by the application of that section in relation to the payment, be included in the assessable income of the person to whom the payment is made shall be taken to be an assessable retirement amount for the purposes of the definition of ‘salary or wages’ in sub-section (1) of this section.”.
(2) The amendments made by paragraphs (1)(a), (b) and (c) apply in relation to payments made on or after 1 November 1978.
(a) by inserting after sub-section (1aa) the following sub-section:
“(1ab) Regulations made for the purposes of sub-section (1) may prescribe rates of deductions in respect of payments of amounts to which section 26ac applies and amounts that are assessable retirement amounts for the purposes of the definition of ‘salary or wages’ in sub-section (1) of section 221a that are different from the rates of deductions that are prescribed in respect of payments of other salary or wages.”; and
(b) by inserting after sub-section (2) the following sub-section:
“(2a) For the purposes of this section and of the regulations made for the purposes of this section, where an employee receives from an employer salary or wages, being an amount to which section 26ac applies or an amount that is an assessable retirement amount for the purposes of the definition of ‘salary or wages’ in sub-section (1) of section 221a, the employee shall be deemed to have received the salary or wages in respect of a week.”.
(a) by inserting in sub-section (1) “or within such further time as the Commissioner may allow,” after “whichever is the later,”;
(b) by omitting sub-paragraphs (ii) and (iii) of paragraph (d) of sub-section (1) and substituting the following sub-paragraphs:
“(ii) income derived from the carrying on of business of primary production; and
“(iii) other income;”;
(c) by omitting from paragraph (e) of sub-section (1) “section 221c” and substituting “sections 221c and 221d”;
(d) by omitting from sub-paragraph (i) of paragraph (a) of sub-section (2) “and of income other than salary or wages” and substituting “, of income derived from the carrying on of a business of primary production and of other income”;
(e) by omitting from paragraph (b) of sub-section (2) “section 221c” and substituting “sections 221c and 221d”;
(f) by inserting after sub-section (2) the following sub-section:
“(2a) For the purposes of section 207, where, in pursuance of sub-section (1) of this section, the Commissioner has allowed a further time for the furnishing by a taxpayer of a statement under that sub-section in relation to income of a year of income, the provisional tax that becomes due and payable by the taxpayer in respect of income of the year of income shall be deemed to have become due and payable by the taxpayer on the date specified in paragraph (a) of sub-section (1) or on the date specified in paragraph (b) of sub-section (1), whichever is the later.”; and
(g) by omitting from sub-section (5) “or income other than salary or wages shall not be greater than the amount of the salary or wages or the income other than salary or wages” and substituting “, of income derived from the carrying on of a business of primary production or of other income shall not be greater than the amount of the salary or wages, the income derived from the carrying on of a business of primary production or the other income”.
(2) The amendments made by sub-section (1) apply in relation to the ascertainment of provisional tax payable in respect of income of the year of income that commenced on 1 July 1978 and in respect of income of all subsequent years of income.
(a) by omitting sub-sections (1), (1a) and (1b) and substituting the following sub-sections:
“(1) Where, in respect of a year of income, the amount of the estimated taxable income of the taxpayer reduced by the amount (if any) representing salary or wages that is included in that estimated taxable income is less than 90% of the amount remaining after deducting from the taxable income of the taxpayer the amount of any assessable income of the taxpayer that consists of salary or wages, the taxpayer is liable to pay to the Commissioner, by way of additional tax, an amount equal to 10% of—
(a) the amount by which the tax payable in respect of the taxable income exceeds the amount of provisional tax payable in respect of the estimated taxable income; or
(b) the amount by which the provisional tax that would, but for section 221yda, be payable in respect of the taxable income exceeds the amount of provisional tax payable in respect of the estimated taxable income,
whichever is the less.
“(1a) In the application of sub-section (1)—
(a) the reference in paragraph (a) of that sub-section to the amount of tax payable in respect of the taxable income shall, if the Commissioner is required by section 203 to apply part of a payment made by a State to the Commonwealth in partial discharge of the liability of that taxpayer for income tax in respect of income of the year of income, be read as a reference to the amount of tax payable in respect of the taxable income reduced by the amount that the Commissioner is so required to apply in partial discharge of the liability of the taxpayer for that tax; and
(b) the reference in paragraph (a) of that sub-section to the amount of provisional tax payable in respect of the estimated taxable income shall be read, in the case of a taxpayer whose income for the year of income includes salary or wages, as a reference to an amount equal to the sum of that provisional tax and the amount of the deductions made from that salary or wages in accordance with sections 221c and 221d, a State income tax law or section 78 of the
Income Tax (Arrangements with the States) Act 1978.”;(b) by omitting from sub-section (4) “a penalty” and substituting “additional tax”; and
(c) by omitting from sub-section (4) “the penalty or a part of the penalty” and substituting “the additional tax or a part of the additional tax”.
(2) The amendments made by sub-section (1) apply in relation to the ascertainment of provisional tax payable in respect of income of the year of income that commenced on 1 July 1978 and in respect of income of all subsequent years of income.
(a) by omitting from sub-section (1) the definition of “privately insured person” and substituting the following definition:
“‘privately insured person’ has the same meaning as in the
Health Insurance Act 1973 as amended and in force on 1 July 1978;”; and(b) by adding at the end thereof the following sub-section:
“(8) In determining for the purposes of this Part and of any Act imposing levy whether a person was, or but for sub-section (2) of section 251v would have been, or was not, a prescribed person during the whole or a part of the year of income that commenced on 1 July 1978, that year of income shall be deemed to be constituted by the period commencing on 1 July 1978 and ending on 31 October 1978.”.
(a) if paragraph (a) of that sub-section applies to the taxpayer—the amount of provisional tax payable by him in respect of the income of that year of income by virtue of that paragraph is the amount ascertained by deducting from the sum of—
(i) the income tax assessed in respect of his taxable income of the year next preceding that year of income; and
(ii) an amount equal to 1.5% of so much of that taxable income as exceeds $3,402,
an amount equal to two-thirds of the amount (if any) that was payable as health insurance levy in respect of his taxable income of that next preceding year; and
(b) if paragraph (b) of that sub-section applies to the taxpayer—the amount of provisional tax payable by him in respect of the income of that year of income by virtue of that paragraph is the amount ascertained by deducting from the sum of—
(i) the income tax that would have been assessed in respect of his taxable income of the year next preceding that year of income if his taxable income of that next preceding year had been equal to his provisional income; and
(ii) 1.5% of so much of his provisional income as exceeds $3,402,
an amount equal to two-thirds of the amount (if any) that would have been payable as health insurance levy in respect of his taxable income of that next preceding year if his taxable income of that next preceding year had been equal to his provisional income.
(2) For the purposes of the application of sub-section 221yc(1b)
of the
(3) For the purposes of the application of sub-section 221yc(1c)
of the
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