Income Tax (Rates) Amendment Act (No. 2) 1977 (Cth)
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
“PART I—PRELIMINARY”.
“PART II—FINANCIAL YEAR COMMENCING ON 1 JULY 1976”.
“4a. The rates of tax declared by this Part apply for the financial year that commenced on 1 July 1976.”.
“PART III—FINANCIAL YEAR COMMENCING ON 1 JULY 1977
“6a. The rates of tax declared by this Part apply for the financial year that commenced on 1 July 1977.
“6b. (1) Except as otherwise provided by this Part, the rates of tax are the rates of tax set out in Part I, and the rates of tax set out in Part II, of Schedule 5.
“(2) The rates of tax in respect of a taxable income to which Division 16 of Part III of the Assessment Act applies are as set out in Schedule 6.
“(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 7.
“(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 8.
“(5) The rate of further tax payable by a person in pursuance of sub-section 94(9) of the Assessment Act is such amount (if any) per dollar as is ascertained by dividing an amount equal to one-half of the taxable income of the person, less the amount of tax (if any) that, but for this sub-section and but for any rebate or credit to which the person is entitled, would be payable by the person, by a number equal to the number of whole dollars in that taxable income.
“(6) The rate of further tax payable by a trustee in pursuance of sub-section 94(11) or (12) of the Assessment Act is such amount (if any) per dollar as is ascertained by dividing 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 that Act, less 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, by a number equal to 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 54.17 per centum.
“6c. (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 6b(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 $3,124,
the amount of tax payable by the trustee under sub-section 6b(4) in respect of that share of the net income shall not exceed 20 per centum 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 6b (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 $832,
the amount of tax payable by the trustee under sub-section 6b(4) in respect of that net income or that part of the net income shall not exceed 50 per centum 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.
“PART IV—FINANCIAL YEAR COMMENCING ON 1 JULY 1978 AND SUBSEQUENT FINANCIAL YEARS
“6d. The rates of tax declared by this Part apply for the financial year commencing on 1 July 1978 and for all subsequent financial years.
“6e. (1) Except as otherwise provided by this Part, the rates of tax are as set out in Schedule 9.
“(2) The rates of tax in respect of a taxable income to which Division 16 of Part III of the Assessment Act applies are as set out in Schedule 10.
“(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 11.
“(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 12.
“(5) The rate of further tax payable by a person in pursuance of sub-section 94(9) of the Assessment Act is such amount (if any) per dollar as is ascertained by dividing an amount equal to one-half of the taxable income of the person, less the amount of tax (if any) that, but for this sub-section and but for any rebate or credit to which the person is entitled, would be payable by the person, by a number equal to the number of whole dollars in that taxable income.
“(6) The rate of further tax payable by a trustee in pursuance of sub-section 94(11) or (12) of the Assessment Act is such amount (if any) per dollar as is ascertained by dividing 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 that Act, less 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, by a number equal to 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 per centum.
“6f. (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 6e(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 6e(4) in respect of that share of the net income shall not exceed 50 per centum 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 6e(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 6e(4) in respect of that net income or that part of the net income shall not exceed 50 per centum 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.”
“PART V—MISCELLANEOUS”.
“7a. (1) Subject to sub-section (2) of this section, sub-section 6c(1) or (2) or sub-section 6f(1) or (2) does not apply in relation to a trustee of a trust estate who is liable to be assessed and to pay tax in pursuance of section 98 of the Assessment Act in respect of the share of the net income to which a beneficiary under the age of 16 years on the last day of the year of income is presently entitled if—
(a) the beneficiary was presently entitled to a share of the net income of the year of income of one or more other trust estates of the kind referred to in paragraph (a) of that sub-section; and
(b) the sum of the amounts of the shares of the beneficiary of the net incomes of the first-mentioned trust estate and that other trust estate or those other trust estates exceeds $1,040.
“(2) Sub-section (1) does not apply in relation to a share of the net income of a trust estate to which a beneficiary under the age of 16 years on the last day of the year of income is presently entitled if the Commissioner is of the opinion that it would be unreasonable that that sub-section should apply in relation to that share of the net income.
“(3) In forming an opinion for the purposes of sub-section (2) in relation to the share of the net income of a trust estate to which a beneficiary under the age of 16 years on the last day of the year of income is presently entitled—
(a) the Commissioner shall have regard to the circumstances in which and the conditions (if any) upon which, at any time, property (including money) was acquired by or lent to the trust estate, income was derived by the trust estate, benefits were conferred on the trust estate or special rights or privileges were conferred on or attached to property of the trust estate, whether or not the rights or privileges have been exercised;
(b) if a person who has, at any time, directly or indirectly—
(i) transferred or lent any property (including money) to, or conferred any benefits on, the trust estate; or
(ii) conferred or attached any special right or privilege, or done any act or thing, either alone or together with another person or other persons, that has resulted in the conferring or attaching of any special right or privilege, on or to property of the trust estate, whether or not the right or privilege has been exercised,
has not, at any time, directly or indirectly—
(iii) transferred or lent any property (including money) to, or conferred any benefits on, another trust estate being a trust estate in which the beneficiary is or was a beneficiary; or
(iv) conferred or attached any special right or privilege, or done any act or thing, either alone or together with another person or other persons, that has resulted in the conferring or attaching of any special right or privilege on or to property of another trust estate, being a trust estate in which the beneficiary is or was a beneficiary, whether or not the right or privilege has been exercised,
the Commissioner shall have regard to that fact;
(c) if, in relation to the year of income, the Commissioner has formed the opinion mentioned in sub-section (2) in relation to a share of the net income of another trust estate to which the beneficiary is presently entitled, the Commissioner shall have regard to the fact that he formed that opinion; and
(d) the Commissioner shall have regard to such other matters (if any) as he thinks fit.
(a) by omitting “Schedule 1” from the definition of “relevant amount” in sub-section (1) and substituting “the table in Schedule 9 and the amount of $3,750 specified in sub-paragraph 3(a)(i) and in sub-paragraph 3(a)(ii), of Part II of Schedule 10”;
(b) by omitting “1977” from the definition of “relevant year of income” in sub-section (1) and substituting “1978”; and
(c) by adding at the end thereof the following sub-sections:
“(8) For the purposes of any application of sub-section (2) in relation to the year of income commencing on 1 July 1978, the multiplier to be used shall be—
(a) if a factor has not been prescribed in relation to that year of income by regulations made under sub-section (4) or (10)—the number (calculated to 3 decimal places) ascertained by increasing by 1 the factor ascertained in accordance with sub-section (3) in relation to that year of income and dividing the result by 2;
(b) if a factor has been prescribed in relation to that year of income by regulations made under sub-section (4) but a factor has not been prescribed in relation to that year of income by regulations made under sub-section (10)—the number (calculated to 3 decimal places) ascertained by increasing by 1 that factor prescribed by regulations made under sub-section (4) and dividing the result by 2; or
(c) if a factor has been prescribed in relation to that year of income by regulations made under sub-section (10)—the factor so prescribed.
“(9) Where the factor ascertained in accordance with paragraph (8)(a) or (8)(b) would, if it were calculated to 4 decimal places, end with a number greater than 4, the factor ascertained in accordance with that paragraph shall be taken to be the factor calculated to 3 decimal places in accordance with that paragraph and increased by 0.001.
“(10) The Governor-General may make regulations prescribing, in relation to the year of income commencing on 1 July 1978, a factor which exceeds the number applicable in accordance with paragraph (8)(a) or (8)(b) as the case requires, but which does not exceed the factor ascertained in accordance with sub-section (3) or, where a lesser factor is prescribed by regulations made under sub-section (4) in relation to that year of income, that lesser factor.”.
SCHEDULE 5 Sub-section 6b(1)
GENERAL RATES OF TAX—FINANCIAL YEAR 1977-78
PART I—PRIMARY RATE
The rate of tax in respect of each part of the taxable income specified in column 1 of the following table is 41.7 per centum of—
(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— | ||
| 32 | Nil |
| 32 | 14 |
| 32 | 28 |
PART II—ADDITIONAL RATE
In addition to the rate applicable under Part I in respect of the parts of the taxable income referred to in that Part, the rate of tax in respect of each part of the taxable income specified in column 1 of the following table is 58.3 per centum of the rate per centum set out in column 2 of that table opposite to the reference to that part of the taxable income:
Column 1 | Column 2 |
Parts of Taxable Income | Rate per centum |
The part of the taxable income that— | |
| 46.313 |
| 27 |
| 35 |
| 45 |
| 55 |
|
60 | |
| 65 |
SCHEDULE 6 Sub-section 6b (2)
RATES OF TAX BY REFERENCE TO AN AVERAGE INCOME—
FINANCIAL YEAR 1977-78
PART I—NORMAL RATES
1. This Part applies to the income of a taxpayer 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 rates of tax in respect of income to which this Part applies are the rates set out in clauses 3, 4 and 5.
3. The rate of tax for every $1 of the taxable income is—
(a) the amount ascertained by determining the tax that would be payable if the rates set out in Part I of Schedule 5 were applied to a taxable income equal to the amount that would be the average income of the taxpayer if the amendments to the Assessment Act made by sections 12 and 13 of the
Income Tax Assessment Amendment Act (No. 2) 1977 had been in force and had applied to assessments in respect of income of the year of income that commenced on 1 July 1977 and dividing the resultant amount by a number equal to the number of whole dollars in that average income; or(b) the amount ascertained by determining the tax that would be payable if the rates set out in Part I of Schedule 5 were applied to the taxable income of the taxpayer and dividing the resultant amount by a number equal to the number of whole dollars in that taxable income,
whichever is the less.
4. The rate of tax for every $1 of the part of the taxable income that does not exceed $16,000 is, in addition to the rate applicable under clause 3, 58.3 per centum of the amount ascertained by determining the tax that would be payable if the rates set out in column 2 of the following table opposite to the references to the relevant parts of the taxable income were applied to a taxable income equal to the average income of the taxpayer and dividing the resultant amount by a number equal to the number of whole dollars in the average income:
Column 1 | Column 2 |
Parts of Taxable Income | Rate per centum |
The part of the taxable income that— | |
| 20 |
| 27 |
| 35 |
| 45 |
| 55 |
| 60 |
| 65 |
5. The rate of tax for every $1 of the part of the taxable income that exceeds $16,000 is in addition to the rate applicable under clause 3, 58.3 per centum of the amount ascertained by deducting $5,270.10 from the amount of tax that would be payable if the rates set out in column 2 of the following table opposite to the references to the relevant parts of the taxable income were applied to the whole of the taxable income and dividing the resultant amount by a number equal to the number of whole dollars in the part of the taxable income that exceeds $16,000:
Column 1 | Column 2 |
Parts of Taxable Income | Rate per centum |
The part of the taxable income that— | |
| 20 |
| 27 |
| 35 |
| 45 |
| 55 |
| 60 |
| 65 |
PART II—ALTERNATIVE RATES FOR CERTAIN TAXPAYERS
1. This Part applies to the income of a taxpayer 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, or would have so applied if he had had a taxable income in that year of income; and
(c) the amount of tax that would be payable in respect of the taxable income of the taxpayer if the rates set out in clauses 3, 4 and 5 were applied to that taxable income is less than the amount of tax that would be payable in respect of that taxable income if the rates set out in Part I were applied to that taxable income.
2. The rates of tax in respect of income to which this Part applies are the rates set out in clauses 3, 4 and 5.
3. The rate of tax for every $1 of the taxable income is an amount equal to —
(a) the amount ascertained by dividing the sum of—
| , where— | |
a is the number of whole dollars in the part of the taxable income that does not exceed $16,000;
b is an amount equal to 13.344 per centum of the amount (if any) by which the average income exceeds $3,750; and
c is the number of whole dollars in the average income; and(ii) the amount (if any) by which the amount of tax that would be payable if the rates set out in Part I of Schedule 5 were applied to the whole of taxable income exceeds $1,634.64,
by a number equal to the number of whole dollars in the taxable income; or
(b) the amount ascertained by determining the tax that would be payable if the rates set out in Part I of Schedule 5 were applied to the taxable income and dividing the resultant amount by a number equal to the number of whole dollars in the taxable income,
whichever is the less.
4. The rate of tax for every $1 of so much of the taxable income as does not exceed $16,000 is, in addition to the rate applicable under clause 3, the amount that would be applicable under clause 4 of Part I if that clause applied to that part of the taxable income.
5. The rate of tax for every $1 of the part of the taxable income that exceeds $16,000 is, in addition to the rate applicable under clause 3, the amount that would be applicable under clause 5 of Part I if that clause applied in relation to that part of the taxable income.
SCHEDULE 7 Sub-section 6b(3)
RATE OF TAX BY REFERENCE TO A NOTIONAL INCOME—
FINANCIAL YEAR 1977-78
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 sum of—
(a) the amount of tax that would be payable if the rates set out in Part I of Schedule 5 were applied to a taxable income equal to his notional income; and
(b) 58.3 per centum of the amount of tax that would be payable if the rates set out in the table in clause 4 of Part I of Schedule 6 were applied to a taxable income equal to his notional income,
by a number equal to the number of whole dollars in that notional income.
SCHEDULE 8 Sub-section 6b(4)
RATES OF TAX PAYABLE BY A TRUSTEE IN PURSUANCE OF SECTION 98 OR 99 OF THE ASSESSMENT ACT—FINANCIAL YEAR 1977-78
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 part of the net income is the rate that would be payable under Schedule 5, 6 or 7, 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 of the Assessment Act in respect of a share of the net income of a trust estate (not being the estate of a deceased person) to which a beneficiary under the age of 16 years on the last day of the year of income is presently entitled, the rate of tax is the rate that would be payable under Schedule 5, 6 or 7, as the case requires, if—
(a) one individual were liable to be assessed and to pay tax on that income;
(b) the reference in the table in Part I of Schedule 5 to the part of the taxable income that exceeds $3,750 but does not exceed $16,000 were a reference to the part of the taxable income that does not exceed $16,000; and
(c) the amount ascertained in accordance with the formula in sub-paragraph 3(a)(i) of Part II of Schedule 6 were an amount equal to 13.344 per centum of so much of the net income as does not exceed $16,000.
3. In the case of a trustee who is liable to be assessed and to pay tax in pursuance of section 99 of the Assessment Act in respect of the net income of a trust estate, other than a trust estate mentioned in paragraph 1 (b), the rate of tax is the rate of tax that would be payable under Schedule 5, 6 or 7, as the case requires, if—
(a) one individual were liable to be assessed and to pay tax on that income;
(b) the reference in the table in Part I of Schedule 5 to the part of the taxable income that exceeds $3,750 but does not exceed $16,000 were a reference to the part of the taxable income that does not exceed $ 16,000;
(c) the amount ascertained in accordance with the formula in sub-paragraph 3(a)(i) of Part II of Schedule 6 were an amount equal to 13.344 per centum of so much of the net income as does not exceed $16,000; and
(d) the following table were substituted for the table in Part II of Schedule 5:
Column 1 | Column 2 |
Parts of Taxable Income | Rate per centum |
The part of the taxable income that— | |
| 20 |
| 27 |
| 35 |
| 45 |
| 55 |
| 60 |
| 65 |
SCHEDULE 9 Sub-section 6e(1)
GENERAL RATES OF TAX—
FINANCIAL YEAR 1978-79 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 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— | ||
| 32 | Nil |
| 32 | 14 |
| 32 | 28 |
SCHEDULE 10 Sub-section 6e(2)
RATE OF TAX BY REFERENCE TO AN AVERAGE INCOME—
FINANCIAL YEAR 1978-79 AND SUBSEQUENT FINANCIAL
YEARS
PART I—NORMAL RATE
1. This Part applies to the income of a taxpayer 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 rate of tax in respect of income to which this Part applies is, for every $1 of the taxable income—
(a) 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; or
(b) the amount ascertained by determining the tax that would be payable if the rates set out in Schedule 9 were applied to his taxable income and dividing the resultant amount by a number equal to the number of whole dollars in that taxable income,
whichever is the less.
PART II—ALTERNATIVE RATE FOR CERTAIN TAXPAYERS
1. This Part applies to the income of a taxpayer in relation to a year of income (in this Part referred to as the “relevant year of income”), being a year of income not earlier than the year of income commencing on 1 July 1978 and not later than 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 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 each year of income that commenced on or after 1 July 1977 and preceded the relevant year of income was not more than the prescribed amount in relation to that preceding year of income; and
(d) 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 rate of tax in respect of income to which this Part applies is the rate set out in clause 3.
3. The rate of tax for every $1 of the taxable income is an amount equal to—
(a) the amount ascertained by dividing the sum of—
| , where— | |
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 per centum 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 theIncome Tax Assessment Amendment Act (No. 2) 1977 had not been made exceeds $3,750; 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 theIncome Tax Assessment Amendment Act (No. 2) 1977 had not been made; and(ii) 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 an amount equal to 32 per centum of the amount by which $16,000 exceeds $3,750,
by a number equal to the number of whole dollars in the taxable income; or
(b) the amount ascertained by determining the tax that would be payable if the rates set out in Schedule 9 were applied to the taxable income and dividing the resultant amount by a number equal to the number of whole dollars in that taxable income,
whichever is the less.
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 a subsequent year of income—the amount of tax that would be payable in respect of the taxable income of that year of income if the rate set out in clause 3 of this Part were applied to 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 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 rate set out in Part I of this Schedule were applied to that taxable income.
SCHEDULE 11 Sub-section 6e(3)
RATE OF TAX BY REFERENCE TO A NOTIONAL INCOME—FINANCIAL YEAR 1978-79 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 9 upon a taxable income equal to his notional income by a number equal to the number of whole dollars in that notional income.
SCHEDULE 12 Sub-section 6e(4)
RATES OF TAX PAYABLE BY A TRUSTEE IN PURSUANCE OF SECTION 98 OR 99 OF THE ASSESSMENT ACT—FINANCIAL YEAR 1978-79 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 part of the net income is the rate that would be payable under Schedule 9, 10 or 11, 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 9, 10 or 11, 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;
(b) the reference in column 1 of the table in Schedule 9 to the part of the taxable income that exceeds $3,750 but does not exceed $16,000 were a reference to the part of the taxable income that does not exceed $16,000;
(c) the amount ascertained in accordance with the formula in sub-paragraph 3(a)(i) of Part II of Schedule 10 were an amount equal to 32 per centum of so much of the net income as does not exceed $16,000; and
(d) the reference in sub-paragraph 3(a)(ii) of Part II of Schedule 10 to an amount equal to 32 per centum of the amount by which $16,000 exceeds $3,750 were a reference to $5,120.
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