Income Tax (Rates) Amendment Act 1977 (Cth)

INCOME TAX (RATES) AMENDMENT ACT1977

No. 42 of 1977

An Act to amend the Income Tax (Rates) Act 1976.

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:—

Short title.

1. This Act may be cited as the Income Tax (Rates) Amendment Act 1977.

Commencement.

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

Indexation.

3. Section 9 of the Income Tax (Rates) Act 1976 is amended—

(a) by omitting from sub-section (1) the definition of “index number” and substituting the following definition:—

“‘index number’, in relation to a quarter, means the All Groups Consumer Price Index number, being the weighted average of the 6 State capital cities, published by the Australian Statistician in respect of that quarter;

(b) by omitting from sub-section (3) the words “number ascertained” and substituting the words “number (calculated to 3decimal places) ascertained, as at the date on which the index number for the March quarter immediately preceding that relevant year of income was first published,”;

(c) by inserting after sub-section (3) the following sub-sections:—

“(3a) Subject to sub-section (3b), if at any time, whether before or after the commencement of this sub-section, the Australian Statistician has published or publishes an index number in respect of a quarter in substitution for an index number previously published by him in respect of that quarter, the publication of the later index number shall be disregarded for the purposes of this section.

“(3b) If at any time, whether before or after the commencement of this sub-section, the Australian Statistician has changed or changes the reference base for the Consumer Price Index, then, for the purposes of the application of this section after the change took place or takes place, regard shall be had only to index numbers published in terms of the new reference base.

“(3c) Where the factor ascertained in accordance with sub-section (3) in relation to a relevant year of income would, if it were calculated to 4 decimal places, end with a number greater than 4, the factor ascertained in accordance with that sub-section in relation to that relevant year of income shall be taken to be the factor calculated to 3 decimal places in accordance with that sub-section and increased by 0.001.”;

(d) by omitting the word “and” from the end of paragraph (a) of sub-section (5); and

(e) by adding at the end of sub-section (5) the following word and paragraph: —

“; and (c) the extent (if any) that the factor ascertained in accordance with sub-section (3) in relation to that relevant year of income was greater than it would have been but for the effects on the index number in relation to any quarter of—

(i) the imposition of the health insurance levy, and the increase in the cost of health insurance, in the quarter that ended on 31 December 1976; and

(ii) the adjustment to the trade weighted value of the Australian dollar announced on 28 November 1976 and subsequent adjustments to that value made after that date and not later than 31 December 1976.”.