Income Tax Rates Amendment Act 1989 (Cth)

Income Tax Rates Amendment Act 1989

No. 98 of 1989

An Act to amend the Income Tax Rates Act 1986, and for related purposes

[Assented to 30 June 1989]

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

Short title etc.

1. (1) This Act may be cited as the Income Tax Rates Amendment Act 1989.

(2) In this Act, “Principal Act” means the Income Tax Rates Act 19861.

Commencement

2. This Act commences on the day on which it receives the Royal Assent.

Interpretation

3. Section 3 of the Principal Act is amended:

(a) by omitting from subsection (1) the definitions of “approved deposit fund”, “ineligible approved deposit fund”, “investment income” and “superannuation fund”;

(b) by inserting in subsection (1) the following definitions:

“ ‘complying ADF’ has the same meaning as in Part IX of the Assessment Act;

‘complying superannuation fund’ has the same meaning as in Part IX of the Assessment Act;

‘eligible ADF’ has the same meaning as in Part IX of the Assessment Act;

‘eligible superannuation fund’ has the same meaning as in Part IX of the Assessment Act;

‘non-complying ADF’ has the same meaning as in Part IX of the Assessment Act;

‘non-complying superannuation fund’ has the same meaning as in Part IX of the Assessment Act;

‘pooled superannuation trust’ has the same meaning as in Part IX of the Assessment Act;

‘special component’ has the same meaning as in Part IX of the Assessment Act;

‘standard component’ has the same meaning as in Part IX of the Assessment Act;”;

(c) by omitting from paragraph (2) (a) “investment income,” (wherever occurring).

Interpretation

4. Section 5 of the Principal Act is amended:

(a) by omitting from subparagraphs (a) (i) and (b) (i) “a superannuation fund” and substituting “an eligible superannuation fund”;

(b) by omitting from subparagraphs (a) (iii) and (b) (iii) “approved deposit fund” and substituting “eligible ADF”;

(c) by omitting “or” from the end of subparagraphs (a) (iii) and (b) (iii);

(d) by inserting after subparagraph (a) (iii) the following subparagraph:

“(iiia) a person in the capacity of a trustee of a pooled superannuation trust; or”;

(e) by inserting after subparagraph (b) (iii) the following subparagraph:

“(iiia) a company in the capacity of a trustee of a pooled superannuation trust; or”.

5. Sections 26 and 27 of the Principal Act are repealed and the following sections are substituted:

Rates of tax payable by trustees of superannuation funds

“26. (1) The rates of tax payable by a trustee of a complying superannuation fund in respect of the taxable income of the fund are:

(a) in respect of the standard component—15%; and

(b) in respect of the special component—49%.

“(2) The rate of tax payable by a trustee of a non-complying superannuation fund in respect of the taxable income of the fund is 49%.

Rates of tax payable by trustees of approved deposit funds

“27. (1) The rates of tax payable by a trustee of a complying ADF in respect of the taxable income of the fund are:

(a) in respect of the standard component—15%; and

(b) in respect of the special component—49%.

“(2) The rate of tax payable by a trustee of a non-complying ADF in respect of the taxable income of the fund is 49%.

Rates of tax payable by trustees of pooled superannuation trusts

“27a. The rates of tax payable by a trustee of a pooled superannuation trust in respect of the taxable income of the trust are:

(a) in respect of the standard component—15%; and

(b) in respect of the special component—49%.”.

Application of amendments

6. The amendments made by this Act apply for the year of income in which 1 July 1988 occurred and for all subsequent years of income.

Transitional

7. Notwithstanding the amendments made by this Act, the Principal Act continues to apply in relation to the repealed Division 9b of Part III of the Assessment Act (in its application by virtue of section 14 of the Taxation Laws Amendment Act (No. 2) 1989) as if those amendments had not been made.

NOTE

1. No. 107, 1986, as amended. For previous amendments, see Nos. 60 and 138, 1987; and Nos. 11, 78 and 118, 1988.

[Minister’s second reading speech made in—

House of Representatives on 30 November 1988

Senate on 23 May 1989