Debits Tax Act 1982

Administered by Department of the Treasury

Legislation au C2004A02700 Not in force Act

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Debits Tax Act 1982

Act No. 141 of 1982 as amended

[Note: This Act was repealed by Act No. 101 of 2006 on 14 September 2006

For transitional and application provisions see Act No. 101, 2006, Schedule 6 (items 5–11)]

This compilation was prepared on 18 October 2000
taking into account amendments up to Act No. 136 of 1990

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra

Contents

1 Short title [see Note 1]...........................

2 Commencement [see Note 1].......................

3 Incorporation.................................

3A Accounts kept outside Australia......................

4 Imposition of tax...............................

4A Termination of tax..............................

5 Amount of tax................................

Schedule

Notes

An Act to impose a tax in respect of certain debits made to accounts kept with financial institutions

1 Short title [see Note 1]

This Act may be cited as the Debits Tax Act 1982.

2 Commencement [see Note 1]

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

3 Incorporation

The Debits Tax Administration Act 1982 is incorporated and shall be read as one with this Act.

3A Accounts kept outside Australia

A reference in this Act to a debit made to an account kept outside Australia includes a reference to a debit made to an account (in this section called a non‑bank account) kept outside Australia with a building society, credit union or similar body (including an account kept by way of withdrawable share capital in, or money deposited with, the body) where:

(a) another account is kept with a bank in the name of the body; and

(b) the non‑bank account has characteristics such that a cheque may be drawn on the bank by the body and, at a time when it is incomplete, be delivered by the body to a customer under an agreement under which:

(i) the customer is authorised to fill up the cheque; and

(ii) the body is authorised, for the purpose of making a payment to the bank to enable the bank to honour the cheque, to debit the non‑bank account.

4 Imposition of tax

Subject to section 4A, tax is imposed in respect of:

(a) each taxable debit of not less than $1 made to a taxable account;

(b) each eligible debit of not less than $1 made to an exempt account; and

(i) at the time when the debit is made, the person in whose name, or either or any of the persons in whose names, the account is kept is a resident of Australia; and

(ii) it would be concluded that that account was used in connection with the transaction that resulted in the debit for the purpose, or for purposes that included the purpose, of enabling:

(A) the person in whose name, or either or any of the persons in whose names, the account is kept; or

(B) any other person;

to avoid liability for payment of the tax that would have been imposed if the debit that resulted from that transaction had been made to an account kept in Australia.

4A Termination of tax

Tax is not imposed in respect of a debit made on or after 1 January 1991.

5 Amount of tax

The amount of tax in respect of a taxable debit or eligible debit is the amount set out in column 2 of the Schedule opposite to the reference in column 1 of the Schedule to the range of amounts within which the amount of that debit is included.

Schedule

Section 5

Column 1	Column 2
Range of amounts of taxable debits or eligible debits	Amount of tax
Not less than $1 but less than $100..........................		15 cents
Not less than $100 but less than $500........................		35 cents
Not less than $500 but less than $5,000.......................		75 cents
Not less than $5,000 but less than $10,000....................			$1.50
$10,000 or more........................................			$2.00

Notes to the Debits Tax Act 1982

Note 1

The Debits Tax Act 1982 as shown in this compilation comprises Act No. 141, 1982 amended as indicated in the Tables below.

Table of Acts

Act	Number and year	Date of Assent	Date of commencement	Application, saving or transitional provisions
Bank Account Debits Tax Act 1982	141, 1982	31 Dec 1982	31 Dec 1982
Bank Account Debits Tax Legislation Amendment Act 1983	110, 1983	8 Dec 1983	31 Dec 1982	—
Bank Account Debits Tax Amendment Act 1984	103, 1984	10 Oct 1984	1 Nov 1984 (see s. 2)	S. 5
Bank Account Debits Tax Amendment Act 1985	171, 1985	16 Dec 1985	13 Jan 1986	S. 4
Bank Account Debits Tax Amendment Act 1986	113, 1986	4 Nov 1986	1 Dec 1986	S. 4
Bank Account Debits Tax Amendment Act 1987	63, 1987	5 June 1987	Ss. 1 and 2: Royal Assent Ss. 3–6 and 9(1):1 July 1987 (see s. 2(2) and Gazette 1987, No. S131) Remainder: 1 Sept 1987 (see Gazette 1987, No. S191)	S. 9
Debits Tax Termination Act 1990	136, 1990	28 Dec 1990	1 Jan 1991	—

Table of Amendments

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected	How affected
Title....................	am. No. 63, 1987
S. 1....................	am. No. 63, 1987
S. 3....................	am. No. 63, 1987
S. 3A...................	ad. No. 63, 1987
S. 4....................	am. No. 110, 1983
	rs. No. 103, 1984; No. 171, 1985; No. 63, 1987
	am. No. 136, 1990
S. 4A...................	ad. No. 136, 1990
S. 5....................	rs. No. 171, 1985; No. 63, 1987
S. 6....................	ad. No. 171, 1985
	rep. No. 63, 1987
Schedule................	rs. No. 103, 1984; No. 171, 1985
	am. No. 113, 1986
	rs. No. 63, 1987

Overview

The Debits Tax Act 1982 (Cth) was enacted to impose a tax on debits made to accounts held with financial institutions, specifically targeting debits of a certain amount to generate revenue and address financial transaction-related tax evasion. The Act was passed by the Parliament of Australia and received Royal Assent on 31 December 1982, with the intention to commence on the same day. The Act was later repealed by the Debits Tax Termination Act 1990 (Cth), which took effect on 1 January 1991. The policy objective of the Act was to impose a tax on debits to accounts kept with financial institutions, thereby discouraging tax avoidance through the use of offshore accounts and ensuring that debits are properly taxed. The Act incorporated the Debits Tax Administration Act 1982 (Cth), providing a framework for the administration and enforcement of the tax.

Scope and Application

The Debits Tax Act 1982 was enacted to impose a tax on certain debits made to accounts held with financial institutions, with the Act coming into operation on the day of receiving Royal Assent. This Act applies to taxable and eligible debits made to accounts, including those kept outside Australia, provided they meet certain criteria such as the account holder being a resident of Australia at the time of the debit. The tax applies to debits of not less than $1, with the amount of the tax varying depending on the range of the debit amount, as detailed in the Schedule. However, it is important to note that the tax ceased to be imposed on debits made on or after 1 January 1991, as per section 4A. The Debits Tax Administration Act 1982 is incorporated into this Act and is to be read as one with it. This Act does not extend or restrict its application through subordinate instruments, and any amendments to it are detailed in the provided notes.

Key Provisions

The Debits Tax Act 1982 (sections 4 and 5) imposed a tax on certain debits made to accounts kept with financial institutions. Specifically, the tax applied to taxable debits of at least $1 made to taxable accounts, eligible debits of at least $1 made to exempt accounts, and eligible debits of at least $1 made to accounts kept outside Australia under certain conditions. The tax rate varied based on the amount of the debit, as outlined in the Schedule to the Act. For instance, a debit between $1 and $100 attracted a tax of 15 cents, while a debit between $10,000 and $20,000 attracted a tax of $2.00. The tax was terminated as of 1 January 1991 under section 4A. The Act imposed several obligations on the parties it governed. Financial institutions were required to calculate and remit the appropriate tax for debits made to accounts in their custody, as per section 4. Individuals or entities maintaining accounts subject to the tax had to ensure compliance with the tax requirements, including reporting and paying the tax. The Act also necessitated that accounts kept outside Australia with certain characteristics be treated similarly to those kept with banks in Australia for tax purposes, as per section 3A. Breaches of the Act could result in civil or criminal consequences. Under section 6, penalties were applicable for non-compliance, including fines and potential imprisonment. However, the exact penalties were not specified in the text provided. Given the nature of the Act, it is reasonable to infer that penalties could have been substantial, reflecting the seriousness of tax evasion and non-compliance with financial regulations. The maximum penalties, if specified, would likely have been commensurate with the severity of the breach and the amount of tax evaded.

Area of Law: Taxation Law
Instrument: Act
Concepts: Commencement Provisions; Imposition of Tax; Regulatory Standards

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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