Income Tax (Rates) Amendment Act 1978 (Cth)

INCOME TAX (RATES) AMENDMENT ACT 1978

No. 124 of 1978

An Act to amend the law declaring certain rates of income tax.

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

Short title, &c.

1. (1) This Act may be cited as the Income Tax (Rates) Amendment Act 1978.

 

(2) The Income Tax (Rates) Act 1976 is in this Act referred to as the Principal Act.

Commencement

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

Heading to Part IV

3. The heading to Part IV of the Principal Act is omitted and the following heading substituted:

“PART IV—FINANCIAL YEAR COMMENCING ON 1 JULY 1978”.

4. Section 6d of the Principal Act is repealed and the following section substituted:

Application of Part IV

“6d. The rates of tax declared by this Part, and the notional rates declared by this Part for the purposes of section 156 of the Assessment Act, apply for the financial year that commenced on 1 July 1978.”.

Rates of tax and notional rates

5. Section 6e of the Principal Act is amended—

(a) by omitting sub-section (2) and substituting the following subsection:

 

“(2) The notional rates for the purposes of section 156 of the Assessment Act are as set out in Schedule 10.”;

 

(b) by omitting sub-sections (5) and (6) and substituting the following sub-sections:

 

“(5) The rate of further tax payable by a person in pursuance of sub-section 94 (9) of the Assessment Act is—

(a) in respect of the part of the taxable income of the person that is the relevant part of that taxable income for the purposes of sub-sections 94(10a) and (10b) of the Assessment

Act—the amount (if any) per dollar ascertained in accordance with the formula	a−b	,
	c

where—

a is an amount equal to one-half of the taxable income of the person;

b is the amount of tax (if any) that, but for this subsection and but for any rebate or credit to which the person is entitled, would be payable by the person in respect of his taxable income; and

c is the number of whole dollars in the taxable income of the person; and

(b) in respect of the part of the taxable income of the person that is the prescribed part of that taxable income for the purposes of sub-section 94(10b) of the Assessment Act— the

amount (if any) per dollar ascertained in accordance with the formula	a−b	, where—
	c

a is an amount equal to one-half of the taxable income of the person;

b is the amount of tax (if any) that, but for this subsection and but for any rebate or credit to which the person is entitled, would be payable by the person in respect of his taxable income if the notional rates declared by this Part for the purposes of section 156 of the Assessment Act were the rates of tax payable by that person on his taxable income; and

c is the number of whole dollars in the taxable income of the person.

 

“(6) The rate of further tax payable by a trustee in pursuance of sub-section 94(11) or (12) of the Assessment Act is—

(a) in respect of the part of the net income of the trust estate that is the relevant part of that net income for the purposes of sub-sections 94(12a) and (12b) of the Assessment Act—the

amount (if any) per dollar ascertained in accordance with the formula	a−b	, where—
	c

a is an amount equal to one-half of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 or 99 of the Assessment Act;

b is the amount of tax (if any) that, but for this subsection and but for any rebate or credit to which the trustee is entitled, would be payable by the trustee in respect of that net income; and

c is the number of whole dollars in that net income; and

 

(b) in respect of the part of the net income of the trust estate that is the prescribed part of that net income for the purposes of sub-section 94(12b) of the Assessment Act—the amount (if any)

per dollar ascertained in accordance with the formula	a−b	, where—
	c

a is an amount equal to one-half of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 or 99 of the Assessment Act;

b is the amount of tax (if any) that, but for this subsection and but for any rebate or credit to which the trustee is entitled, would be payable by the trustee in respect of that net income if the notional rates declared by this Part for the purposes of section 156 of the Assessment Act were the rates of tax payable by the trustee in respect of that net income; and

c is the number of whole dollars in that net income.”; and

 

(c) by omitting from sub-section (7) “60” and substituting “61.5”.

Limitation on tax payable by certain trustees

6. Section 6f of the Principal Act is amended—

(a) by omitting from sub-section (2) “$2,888” and substituting “$3,151”; and

(b) by omitting from sub-section (4) “$1,155” and substituting “$1,260”.

 

7. After Part IV of the Principal Act the following Part is inserted:

“PART IVa—FINANCIAL YEAR COMMENCING ON 1 JULY 1979

AND SUBSEQUENT FINANCIAL YEARS

Application of Part IVa

“6g. The rates of tax declared by this Part, and the notional rates declared by this Part for the purposes of section 156 of the Assessment Act, apply for the financial year commencing on 1 July 1979 and for all subsequent financial years.

Rates of tax and notional rates

“6h. (1) Except as otherwise provided by this Part, the rates of tax are as set out in Schedule 13.

“(2) The notional rates for the purposes of section 156 of the Assessment Act are as set out in Schedule 14.

 

“(3) The rate of tax in respect of a taxable income in any case where section 59ab, 86 or 158d of the Assessment Act applies is as set out in Schedule 15.

“(4) The rates of tax payable by a trustee in pursuance of section 98 or 99 of the Assessment Act are as set out in Schedule 16.

“(5) The rate of further tax payable by a person in pursuance of sub-section 94(9) of the Assessment Act is—

(a) in respect of the part of the taxable income of the person that is the relevant part of that taxable income for the purposes of subsections 94(10a) and (10b) of the Assessment Act—the

amount (if any) per dollar ascertained in accordance with the formula	a−b	, where—
	c

a is an amount equal to one-half of the taxable income of the person;

b is the amount of tax (if any) that, but for this sub-section and but for any rebate or credit to which the person is entitled, would be payable by the person in respect of his taxable income; and

c is the number of whole dollars in the taxable income of the person; and

 

(b) in respect of the part of the taxable income of the person that is the prescribed part of that taxable income for the purposes of sub-section 94(10b) of the Assessment Act—the amount (if

any) per dollar ascertained in accordance with the formula	a—b,	where—
	c

a is an amount equal to one-half of the taxable income of the person;

b is the amount of tax (if any) that, but for this sub-section and but for any rebate or credit to which the person is entitled, would be payable by the person in respect of his taxable income if the notional rates declared by this Part for the purposes of section 156 of the Assessment Act were the rates of tax payable by that person on his taxable income; and

c is the number of whole dollars in the taxable income of the person.

“(6) The rate of further tax payable by a trustee in pursuance of sub-section 94(11) or (12) of the Assessment Act is—

(a) in respect of the part of the net income of the trust estate that is the relevant part of that net income for the purposes of subsections 94(12a) and (12b) of the Assessment Act—the amount

(if any) per dollar ascertained in accordance with the formula	a−b	, where—
	c

a is an amount equal to one-half of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 or 99 of the Assessment Act;

b is the amount of tax (if any) that, but for this sub-section and but for any rebate or credit to which the trustee is entitled, would be payable by the trustee in respect of that net income; and

c is the number of whole dollars in that net income; and

 

(b) in respect of the part of the net income of the trust estate that is the prescribed part of that net income for the purposes of subsection 94(12b) of the Assessment Act—the amount (if any)

per dollar ascertained in accordance with the formula	a−b	, where—
	c

a is an amount equal to one-half of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 or 99 of the Assessment Act;

b is the amount of tax (if any) that, but for this sub-section and but for any rebate or credit to which the trustee is entitled, would be payable by the trustee in respect of that net income if the notional rates declared by this Part for the purposes of section 156 of the Assessment Act were the rates of tax payable by the trustee in respect of that net income; and

c is the number of whole dollars in that net income.

 

“(7) The rate of tax payable by a trustee in respect of the net income of the trust estate in respect of which the trustee is liable, in pursuance of section 99a of the Assessment Act, to be assessed and to pay tax is 60%.

Limitation on tax payable by certain trustees

“6j. (1) Subject to section 7a, where—

(a) the trustee of a trust estate (other than the estate of a deceased person) is liable to be assessed under section 98 of the Assessment Act in respect of a share of the net income of the trust estate to which a beneficiary under the age of 16 years on the last day of the year of income is presently entitled; and

(b) the amount of that share of the net income does not exceed $1,040,

no tax is payable under sub-section 6h(4) in respect of that share of the net income.

 

“(2) Subject to section 7a, where—

(a) the trustee of a trust estate (other than the estate of a deceased person) is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of a share of the net income of the trust estate to which a beneficiary under the age of 16 years on the last day of the year of income is presently entitled; and

(b) the amount of that share of the net income exceeds $1,040 but does not exceed $2,888,

 

the amount of tax payable by the trustee under sub-section 6h(4) in respect of that share of the net income shall not exceed 50% of the amount by which the amount of that share exceeds $1,040, less any rebate or credit to which the trustee is entitled.

 

“(3) Where—

(a) the trustee of a trust estate is liable to be assessed under section 99 of the Assessment Act in respect of the net income or a part of the net income of the trust estate;

(b) in the case of a trust estate of a deceased person, the deceased person died not less than 3 years before the end of the year of income; and

(c) the net income or that part of the net income of the trust estate does not exceed $416,

no tax is payable under sub-section 6h(4) in respect of that net income or that part of the net income, as the case may be.

 

“(4) Where—

(a) the trustee of a trust estate is liable to be assessed and to pay tax under section 99 of the Assessment Act in respect of the net income or a part of the net income of the trust estate;

(b) in the case of a trust estate of a deceased person, the deceased person died not less than 3 years before the end of the year of income; and

(c) the net income or that part of the net income of the trust estate exceeds $416 but does not exceed $1,155,

the amount of tax payable by the trustee under sub-section 6h(4) in respect of that net income or that part of the net income shall not exceed 50% of the amount by which that net income or that part of the net income, as the case may be, exceeds $416, less any rebate or credit to which the trustee is entitled.”.

Operation of sections 6c, 6f and 6j

8. Section 7a of the Principal Act is amended by omitting from sub-section (1) “or sub-section 6f(1) or (2)” and substituting “, sub-section 6f(1) or (2) or sub-section 6j(1) or (2)”.

Indexation

9. Section 9 of the Principal Act is amended—

(a) by omitting from sub-section (1) the definition of “relevant amount” and substituting the following definition:

“‘relevant amount’ means any of the amounts specified in column 1 of the table in Schedule 13 and the amount of $3,893 specified in paragraph 3(a) and in paragraph 3(b), of Part II of Schedule 14;”;

(b) by omitting from the definition of “relevant year of income” in sub-section (1) “1978” and substituting “1979”; and

(c) by omitting sub-sections (8), (9) and (10).

Repeal of Schedules 9 and 10

10. Schedules 9 and 10 to the Principal Act are repealed and the following Schedules substituted:

“SCHEDULE 9 Sub-section 6e(1)

GENERAL RATES OF TAX-FINANCIAL YEAR 1978-79

The rate of tax in respect of each part of the taxable income specified in column 1 of the following table is—

(a) if a rate is set out in column 2 of that table opposite to the reference to that part of the taxable income but a rate is not set out in column 3 of that table opposite to that reference—the rate so set out in column 2; and

(b) in any other case—the sum of the rate set out in column 2 and the rate set out in column 3 of that table opposite to the reference to that part of the taxable income:

Column 1	Column 2	Column 3
Parts of Taxable Income	Rate per centum (standard rate)	Rate per centum (surcharge)
The part of the taxable income that—
exceeds $3,893 but does not exceed $16,608............................	33.5	Nil
exceeds $16,608 but does not exceed $33,216..........................	33.5	14
exceeds $33,216.........................................................................	33.5	28

“SCHEDULE 10 Sub-section 6e(2)

NOTIONAL RATES FOR THE PURPOSES OF SECTION 156 OF THE ASSESSMENT ACT—FINANCIAL YEAR 1978-79

PART I—NORMAL NOTIONAL RATE

1. This Part applies to the income of a taxpayer, other than income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act, if—

(a) Division 16 of Part III of the Assessment Act applies in relation to that income; and

(b) Part II of this Schedule does not apply to that income.

2. The notional rate in respect of income to which this Part applies is, for every $1 of the taxable income, the amount ascertained by determining the tax that would be payable if the rates set out in Schedule 9 were applied to a taxable income equal to his average income and dividing the resultant amount by a number equal to the number of whole dollars in that average income.

PART II—ALTERNATIVE NOTIONAL RATE FOR CERTAIN TAXPAYERS

1. This Part applies to the income of a taxpayer, other than income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act, if—

(a) Division 16 of Part III of the Assessment Act applies in relation to that income;

(b) Division 16 of Part III of the Assessment Act applied to the taxpayer for the purposes of tax upon his taxable income of the year of income that commenced on 1 July 1976 and of the subsequent year of income, or would have so applied if he had had a taxable income in each of those years of income;

(c) the notional amount in relation to the year of income that commenced on 1 July 1977 was not more than the prescribed amount in relation to that year of income; and

(d) the notional amount in relation to the year of income that commenced on 1 July 1978 is less than the prescribed amount in relation to that year of income.

2. The notional rate in respect of income to which this Part applies is the rate set out in clause 3.

 

3. The notional rate for every $ 1 of the taxable income is the amount ascertained by dividing the sum of—

(a) the amount ascertained in accordance with the formula	ab	, where—
	c

a is the number of whole dollars in that part of the taxable income that does not exceed $16,000;

b is the amount equal to 33.5% of the amount (if any) by which the amount that would be the average income if the amendments made by sections 12 and 13 of the Income Tax Assessment Amendment Act (No. 2) 1977 had not been made exceeds $3,893; and

c is the number equal to the number of whole dollars in the amount that would be the average income if the amendments made by sections 12 and 13 of the Income Tax Assessment Amendment Act (No. 2) 1977 had not been made; and

 

(b) the amount (if any) by which the amount of tax that would be payable if the rates set out in Schedule 9 were applied to the whole of the taxable income exceeds $4,055.84,

by a number equal to the number of whole dollars in the taxable income..

 

4. For the purposes of this Part—

 

(a) the notional amount in relation to a year of income is—

(i) in the case of the year of income that commenced on 1 July 1977—the amount of tax that would be payable in respect of the taxable income of that year of income if the rates set out in Part II of Schedule 6 were applied to that taxable income; and

(ii) in the case of the year of income that commenced on 1 July 1978—the amount of tax that would be payable in respect of the taxable income of that year of income if the notional rate set out in clause 3 of this Part were the rate of tax payable on that taxable income; and

 

(b) the prescribed amount in relation to a year of income is—

 

(i) in the case of the year of income that commenced on 1 July 1977—the amount of tax that would be payable in respect of the taxable income of that year of income if the rates set out in Part I of Schedule 6 were applied to that taxable income; and

(ii) in the case of the year of income that commenced on 1 July 1978—the amount of tax that would be payable in respect of the taxable income of the year of income if the rate set out in Part I of this Schedule were the rate of tax payable on that taxable income.

PART III—NOTIONAL RATES IN RESPECT OF CERTAIN TRUST INCOME

1. This Part applies to a share of the net income of a trust estate or to the net income or a part of the net income of a trust estate if—

(a) the trustee of the trust estate is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act in respect of that share, or is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act in respect of that net income or that part of that net income of the trust estate, as the case may be; and

 

(b) Division 16 of Part III of the Assessment Act applies in relation to that share, or in relation to that net income or that part of that net income, as the case may be.

 

2. The notional rate in respect of income to which this Part applies is—

 

(a) in a case where the income is—

(i) a share of the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act, being—

(A) a share of the net income of the estate of a deceased person; or

(B) a share of the net income of a trust estate (other than the estate of a deceased person) to which a beneficiary who is not less than 16 years of age on the last day of the year of income is presently entitled; or

   

(ii) the net income or a part of the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act, being net income or a part of the net income of the estate of a deceased person who died less than 3 years before the end of the year of income,

 

the rate that would be calculated in accordance with Part I or Part II, as the case requires, if that income were the taxable income of one individual and were not income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act; and

(b) in any other case—the rate that would be calculated under Part I in respect of a taxable income equal to the net income if—

 

(i) that income were the taxable income of one individual and were not income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act; and

(ii) the reference in column 1 of the Table in Schedule 9 to the part of the taxable income that exceeds $3,893 but does not exceed $16,608 were a reference to the part of the taxable income that does not exceed $16,608.”.

Heading to Schedule 11

11. The heading to Schedule 11 to the Principal Act is amended by omitting “AND SUBSEQUENT FINANCIAL YEARS”.

Schedule 12

12. Schedule 12 to the Principal Act is amended—

(a) by omitting from the heading “AND SUBSEQUENT FINANCIAL YEARS”;

(b) by omitting “, 10” (wherever occurring); and

(c) by omitting paragraphs 2(b), (c) and (d) and substituting the following word and paragraph:

“and (b) the reference in column 1 of the table in Schedule 9 to the part of the taxable income that exceeds $3,893 but does not exceed $16,608 were a reference to the part of the taxable income that does not exceed $16,608.”.

Schedules 13, 14, 15 and 16

13. The Principal Act is amended by adding at the end thereof the following Schedules:

“SCHEDULE 13 Sub-section 6h(1)

GENERAL RATES OF TAX—FINANCIAL YEAR 1979-80 AND SUBSEQUENT FINANCIAL YEARS

The rate of tax in respect of each part of the taxable income specified in column 1 of the following table is—

(a) if a rate is set out in column 2 of that table opposite to the reference to that part of the taxable income but a rate is not set out in column 3 of that table opposite to that reference—the rate so set out in column 2; and

(b) in any other case—the sum of the rate set out in column 2 and the rate set out in column 3 of that table opposite to the reference to that part of the taxable income:

Column 1	Column 2	Column 3
Parts of Taxable Income	Rate per centum (standard rate)	Rate per centum (surcharge)
The part of the taxable income that—
exceeds $3,893 but does not exceed $16,608............................	32	Nil
exceeds $16,608 but does not exceed $33,216..........................	32	14
exceeds $33,216.........................................................................	32	28

“SCHEDULE 14 Sub-section 6h(2)

NOTIONAL RATES FOR THE PURPOSES OF SECTION 156 OF THE

ASSESSMENT ACT—FINANCIAL YEAR 1979-80 AND SUBSEQUENT

 FINANCIAL YEARS

PART I-NORMAL NOTIONAL RATE

1. This Part applies to the income of a taxpayer, other than income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act, if—

(a) Division 16 of Part III of the Assessment Act applies in relation to that income; and

(b) Part II of this Schedule does not apply to that income.

2. The notional rate in respect of income to which this Part applies is, for every $1 of the taxable income, the amount ascertained by determining the tax that would be payable if the rates set out in Schedule 13 were applied to a taxable income equal to his average income and dividing the resultant amount by a number equal to the number of whole dollars in that average income.

PART II—ALTERNATIVE NOTIONAL RATE FOR CERTAIN TAXPAYERS

1. This Part applies to the income of a taxpayer, other than income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act, in relation to a year of income (in this Part referred to as the ‘relevant year of income’), being the year of income commencing on 1 July 1979 or the year of income commencing on 1 July 1980, if—

(a) Division 16 of Part III of the Assessment Act applies in relation to income of the relevant year of income;

(b) Division 16 of Part III of the Assessment Act applied to the taxpayer for the purposes of tax upon his taxable income of the year of income that commenced on 1 July 1976 and for each subsequent year of income to and including the year of income immediately preceding the relevant year of income, or would have so applied if he had had a taxable income in each of those years of income;

(c) the notional amount in relation to the year of income that commenced on 1 July 1977 was not more than the prescribed amount in relation to that year of income;

(d) the notional amount in relation to each year of income (in this paragraph referred to as the ‘preceding year of income’) that—

(i) commenced on or after 1 July 1978;

(ii) preceded the relevant year of income; and

(iii) was a year of income in relation to the income of which the taxpayer was entitled to a rebate of tax in his assessment under section 156 of the Assessment Act,

was not more than the prescribed amount in relation to that preceding year of income; and

(e) the notional amount in relation to the relevant year of income is less than the prescribed amount in relation to the relevant year of income.

2. The notional rate in respect of income to which this Part applies is the rate set out in clause 3.

3. The notional rate for every $1 of the taxable income is the amount ascertained by dividing the sum of—

(a) the amount ascertained in accordance with the formula	ab	where—
	c

a is the number of whole dollars in that part of the taxable income that does not exceed $16,000;

b is the amount equal to 32% of the amount (if any) by which the amount that would be the average income if the amendments made by sections 12 and 13 of the Income Tax Assessment Amendment Act (No. 2) 1977 had not been made exceeds $3,893; and

c is the number equal to the number of whole dollars in the amount that would be the average income if the amendments made by sections 12 and 13 of the Income Tax Assessment Amendment Act (No. 2)1977 had not been made; and

(b) the amount (if any) by which the amount of tax that would be payable if the rates set out in Schedule 13 were applied to the whole of the taxable income exceeds an amount equal to 32% of the amount by which $16,000 exceeds $3,893,

 

by a number equal to the number of whole dollars in the taxable income.

4. For the purposes of this Part—

(a) the notional amount in relation to a year of income is—

(i) in the case of the year of income that commenced on 1 July 1977—the amount of tax that would be payable in respect of the taxable income of that year of income if the rates set out in Part II of Schedule 6 were applied to that taxable income;

(ii) in the case of the year of income that commenced on 1 July 1978—the amount of tax that would be payable in respect of the taxable income of that year of income if the notional rate set out in clause 3 of Part II of Schedule 10 were the rate of tax payable on that taxable income; and

(iii) in the case of a subsequent year of income—the amount of tax that would be payable in respect of the taxable income of the year of income if the notional rate set out in clause 3 of this Part were the rate of tax payable on that taxable income; and

(b) the prescribed amount in relation to a year of income is—

(i) in the case of the year of income that commenced on 1 July 1977—the amount of tax that would be payable in respect of the taxable income of that year of income if the rates set out in Part I of Schedule 6 were applied to that taxable income;

(ii) in the case of the year of income that commenced on 1 July 1978—the amount of tax that would be payable in respect of the taxable income of that year of income if the notional rate set out in Part I of Schedule 10 were the rate of tax payable on that taxable income; and

(iii) in the case of a subsequent year of income—the amount of tax that would be payable in respect of the taxable income of the year of income if the notional

rate set out in Part I of this Schedule were the rate of tax payable on that taxable income.

PART III—NOTIONAL RATES IN RESPECT OF CERTAIN TRUST INCOME

1. This Part applies to a share of the net income of a trust estate or to the net income or a part of the net income of a trust estate if—

(a) the trustee of the trust estate is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act in respect of that share, or is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act in respect of that net income or that part of that net income of the trust estate, as the case may be; and

(b) Division 16 of Part III of the Assessment Act applies in relation to that share, or in relation to that net income or that part of that net income, as the case may be.

2. The notional rate in respect of income to which this Part applies is—

(a) in a case where the income is—

(i) a share of the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act, being—

(a) a share of the net income of the estate of a deceased person; or

(b) a share of the net income of a trust estate (other than the estate of a deceased person) to which a beneficiary who is not less than 16 years of age on the last day of the year of income is presently entitled; or

(ii) the net income or a part of the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act, being net income or a part of the net income of the estate of a deceased person who died less than 3 years before the end of the year of income,

the rate that would be calculated in accordance with Part I or Part II, as the case requires, if that income were the taxable income of one individual and were not income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act; and

(b) in any other case—the rate that would be calculated under Part I in respect of a taxable income equal to the net income if—

(i) that income were the taxable income of one individual and were not income in respect of which a trustee is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act; and

 

(ii) the reference in column 1 of the Table in Schedule 13 to the part of the taxable income that exceeds $3,893 but does not exceed $16,608 were a reference to the part of the taxable income that does not exceed $ 16,608.

“SCHEDULE 15 Sub-section 6h(3)

RATE OF TAX BY REFERENCE TO A NOTIONAL INCOME—FINANCIAL YEAR

1979-80 AND SUBSEQUENT FINANCIAL YEARS

For every $1 of the taxable income of a taxpayer deriving a notional income, as specified by section 59ab, 86 or 158d of the Assessment Act, the rate of tax is the amount ascertained by dividing the amount of the tax that would be payable under Schedule 13 upon a taxable income equal to his notional income by a number equal to the number of whole dollars in that notional income.

“SCHEDULE 16 Sub-section 6h(4)

RATES OF TAX PAYABLE BY A TRUSTEE IN PURSUANCE OF SECTION 98

OR 99 OF THE ASSESSMENT ACT—FINANCIAL YEAR 1979-80 AND

SUBSEQUENT FINANCIAL YEARS

1. In the case of a trustee who is liable to be assessed and to pay tax—

(a) in pursuance of section 98 of the Assessment Act—

(i) in respect of a share of the net income of the estate of a deceased person; or (ii) in respect of a share of the net income of a trust estate, other than the estate of a deceased person, to which a beneficiary not less than. 16 years of age on the last day of the year of income is presently entitled; or

(b) in pursuance of section 99 of the Assessment Act in respect of the net income or a part of the net income of the estate of a deceased person who died less than 3 years before the end of the year of income,

the rate of tax in respect of that share of the net income or that net income or that part of that net income is the rate that would be payable under Schedule 13 or 15, as the case requires, if one individual were liable to be assessed and to pay tax on that income as his taxable income.

2. In the case of a trustee who is liable to be assessed and to pay tax in pursuance of section 98 or 99 of the Assessment Act in respect of the net income of a trust estate, other than income to which clause 1 applies, the rate of tax is the rate that would be payable under Schedule 13 or 15, as the case requires, in respect of a taxable income equal to the net income if—

(a) one individual were liable to be assessed and to pay tax on that income; and

(b) the reference in column 1 of the table in Schedule 13 to the part of the taxable income that exceeds $3,893 but does not exceed $16,608 were a reference to the part of the taxable income that does not exceed $16,608.”.