STATUTORY RULES.
1931. No. 154.
REGULATION UNDER THE FINANCIAL EMERGENCY ACTS 1931.
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following regulation under the Financial Emergency Acts 1931, to come into operation forthwith.
Dated this eleventh day of December, 1931.
ISAAC A. ISAACS
Governor-General.
By His Excellency’s Command,
EDWARD G. THEODORE
Treasurer.
Amendment of Financial Emergency (State Taxation) Regulations.
(Statutory Rules. 1931, No. 138.)
Regulation 3 of the Financial Emergency (State Taxation) Regulations is amended by adding at the end thereof the following proviso and sub-regulation:—
“Provided that in the case of a taxpayer who—
(i) is not a returned soldier within the meaning of the definition contained in section twenty-two of the Australian Soldiers’ Repatriation Act 1920–1931; and
(ii) was, on the last day of the period for which the income is calculated for the purposes of the State law, an unmarried person of the age of twenty-one years or upwards, a male divorced person who had not re-married and had no children, a widower without children,
the maximum amount, rate, percentage or extent of such taxation to which the remuneration of the taxpayer shall be subject shall be as follows:—
(d) Where the taxpayer’s total taxable amount of income does not exceed One thousand pounds, the maximum rate of tax per pound of the taxpayer’s remuneration shall be Twenty-seven pence.
(e) Where the taxpayer’s total taxable amount of income exceeds One thousand pounds but does not exceed Seven thousand pounds, the maximum rate of tax per pound of the taxpayer’s remuneration shall be Twenty-seven pence and six one-thousandths of a penny where the total taxable amount of income is One thousand and one pounds, and shall increase uniformly with cash increase of One pound in excess of One thousand and one pounds of the total taxable amount of income by Six one-thousandths, of a penny.
3754.—Price 3d.
(f) Where the taxpayer’s total taxable amount of income exceeds Seven thousand pounds, the maximum rate of tax per pound, of the taxpayer’s remuneration shall be Sixty-three pence per pound.
(2.) Notwithstanding anything contained in this regulation, if the amount of tax payable at the rate prescribed by the preceding provisions of this regulation in respect of the remuneration any taxpayer would be less than One pound, the maximum amount of tax payable in respect of that remuneration shall be One pound.”
By Authority: H. J. Green, Government Printer, Canberra.
Overview
The Statutory Rules of 1931, No. 154, enacted under the Financial Emergency Acts 1931, was introduced by the Governor-General, acting on advice from the Federal Executive Council, to address financial challenges arising from the global economic crisis. This regulation was designed to modify existing state taxation laws by introducing specific tax rates for certain categories of taxpayers, particularly those who do not qualify for certain exemptions, such as returned soldiers. The regulation sets out maximum tax rates for individuals based on their income levels, providing a structured approach to taxation during a period of economic hardship. The underlying policy objective appears to be the equitable distribution of the tax burden, ensuring that certain groups, such as those without family responsibilities, are taxed appropriately while providing relief to others in line with the broader economic context of the time.
Scope and Application
This statutory rule, enacted under the Financial Emergency Acts 1931, serves to amend the Financial Emergency (State Taxation) Regulations by introducing specific tax provisions for certain categories of taxpayers. It applies to individuals who are not returned soldiers as defined in the Australian Soldiers’ Repatriation Act 1920–1931 and who meet particular personal circumstances, such as being unmarried and over 21 years of age, a divorced male with no children, or a widower without children. The regulation delineates different tax rates based on the total taxable income of the taxpayer, with the maximum tax rates varying from 27 pence per pound for incomes up to £1,000, to 63 pence per pound for incomes exceeding £7,000. Notably, the rule ensures that no taxpayer's tax liability is less than £1, even if the computed tax amount would otherwise be lower. This amendment is effective across the Commonwealth of Australia, aligning state taxation practices during the financial emergency period.
Key Provisions
The Financial Emergency (State Taxation) Regulations (Statutory Rules 1931, No. 154) amend Regulation 3 by adding a new proviso and sub-regulation (3(1)). This amendment specifies the maximum tax rates for certain categories of taxpayers based on their total taxable income. Specifically, for taxpayers who do not qualify as returned soldiers under the Australian Soldiers’ Repatriation Act 1920-1931 and fall into certain marital and age categories, the regulation outlines the maximum tax rates they must pay. For incomes up to £1,000, the maximum tax rate is 27 pence per pound (3(1)(d)). For incomes between £1,000 and £7,000, the rate starts at 27.00625 pence per pound and increases by 0.00625 pence for each pound over £1,000 (3(1)(e)). For incomes exceeding £7,000, the maximum tax rate is 63 pence per pound (3(1)(f)).
The regulations impose clear obligations on the relevant taxpayers, requiring them to adhere to the specified maximum tax rates based on their income levels. The obligation extends to ensuring that their tax calculations comply with these provisions, which are designed to provide a fair and structured approach to taxation during the financial emergency.
Non-compliance with these regulations could potentially lead to legal consequences. Although the statutory rules themselves do not explicitly mention offences or penalties, it is implied that any deviation from the prescribed tax rates could result in legal scrutiny. In such cases, taxpayers may face civil or criminal penalties, depending on the severity and intent of the breach. The precise nature and extent of these penalties would be determined by the courts based on the specific circumstances of each case. Given the historical context of financial emergency regulations, penalties could be significant, reflecting the importance of adhering to such statutory measures during times of economic distress.