Income Tax Act 1919

Legislation au C1919A00009 Not in force Act

Select Document

INCOME TAX.

No. 9 of 1919.

An Act to impose Taxes upon Incomes.

[Assented to 28th October, 1919.]

BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title.

1. This Act may be cited as the Income Tax Act 1919.

Incorporation.

2. The Income Tax Assessment Act 1915–1918 shall be incorporated and read as one with this Act.

Imposition of income tax.

3. Income tax is imposed at the rates and amounts declared in this Act.

Rates of income tax.

4.—(1.) The rate of the income tax in respect of income from personal exertion shall be as set out in the First Schedule to this Act.

(2.) The rate of the income tax in respect of income derived from property shall be as set out in the Second Schedule to this Act.

(3.) The rates of the income tax in respect of a total taxable income derived partly from personal exertion and partly from property shall be as set out in the Third Schedule to this Act.

(4.) Notwithstanding anything contained in the last three sub-sections the tax payable by any person who—

(a) is not married, has no dependants and is not an absentee; and

(b) has a gross income of not less than One hundred pounds, or, in the case of a person carrying on a business in Australia, has an income from the business which, after deducting from the gross income the deductions specified in paragraph (a) of sub-section (1.) of section eighteen of the Income Tax Assessment Act 1915–1918, amounts together with his income from all other sources in Australia to not less than One hundred pounds; and

shall be One pound.

(5.) The rates of the income tax in respect of the income of a company shall be as set out in the Fourth Schedule to this Act.

Additional tax.

5. In addition to the tax payable under the preceding provisions of this Act, there shall be payable, in the case of incomes in respect of which tax is calculated under the First, Second or Third Schedules, an additional tax equal to twenty-five per centum of the amount of the tax so calculated.

Super-tax.

6. In addition to any tax (including additional tax, if any payable under the preceding provisions of this Act other than subsections (4.) and (5.) of section four, there shall be payable a super-tax equal to thirty per centum of the total amount of the tax so payable.

Tax on cash prize in lotteries.

7. There shall be payable in respect of a cash prize in a lottery won after the thirtieth day of June One thousand nine hundred and nineteen income tax to the amount of thirteen per centum of the gross prize money.

Levy of income tax.

8.—(1.) Income tax shall be levied and paid for the financial year beginning on the first day of July One thousand nine hundred and nineteen.

(2.) This Act shall also apply to all assessments made for the financial year beginning on the first day of July One thousand nine hundred and twenty and made prior to the passing of the Act for the levying and payment of the income tax for the financial year beginning on the first day of July One thousand nine hundred and twenty.

THE SCHEDULES.

——

FIRST SCHEDULE.

Rate of Tax upon Income Derived from Personal Exertion.

For so much of the whole taxable income as does not exceed £7,600 the average rate of tax per pound sterling shall be threepence and three eight-hundredths of one penny Where the taxable income is One pound sterling, and shall increase uniformly with each increase of One pound sterling of the taxable income by three eight-hundredths of one penny.

The average rate of tax per pound sterling for so much of the taxable income as does not exceed £7,600 may be calculated from the following formula:—

R = average rate of tax in pence per pound sterling.

I = taxable income in pounds sterling.

For every pound sterling of taxable income in excess of £7,600 the rate of tax shall be sixty pence.

SECOND SCHEDULE.

Rate of Tax upon Income Derived from Property.

(a) For such part of the taxable income as does not exceed £546 the average rate of tax per pound sterling shall be that given by the following formula:—

R = average rate of tax in pence per pound sterling.

I = taxable income in pounds sterling.

(b) For such part of the taxable income as exceeds £546 but does not exceed £2,000 the additional tax for each additional pound of taxable income above £546 shall increase continuously with the increase of the taxable income in a curve of the second degree in such a manner that the increase of tax for one pound increase of taxable income shall be—

11.713 pence for the pound sterling between £545 10s. and £546 10s.

12.768 pence for the pound sterling between £599 10s. and £600 10s.

14.672 pence for the pound sterling between £699 10s. and £700 10s.

16.512 pence for the pound sterling between £799 10s. and £800 10s.

18.288 pence for the pound sterling between £899 10s. and £900 10s.

20.000 pence for the pound sterling between £999 10s. and £1,000 10s.

27.600 pence for the pound sterling between £1,499 10s. and £1,500 10s.

33.600 pence for the pound sterling between £1,999 10s. and £2,000 10s.

(c) For such part of the taxable income as exceeds £2,000 but does not exceed £6,500, the additional tax for each additional pound of taxable income above £2,000 shall increase continuously with the increase of the taxable income in a curve of the third degree in such a manner that the increase of tax for one pound increase of taxable income shall be—

33.600 pence for the pound sterling between £1,999 10s. and £2,000 10s.

40.000 pence for the pound sterling between £2,499 10s. and £2,500 10s.

45.300 pence for the pound sterling between £2,999 10s. and £3,000 10s.

49.600 pence for the pound sterling between £3,499 10s. and £3,500 10s.

53.000 pence for the pound sterling between £3,999 10s. and £4,000 10s.

55.600 pence for the pound sterling between £4,499 10s. and £4,500 10s.

57.500 pence for the pound sterling between £4,999 10s. and £5,000 10s.

58.800 pence for the pound sterling between £5,499 10s. and £5,500 10s.

59.600 pence for the pound sterling between £5,999 10s. and £6,000 10s.

60.000 pence for the pound sterling between £6,499 10s. and £6,500 10s.

(d) For every pound sterling of taxable income in excess of £6,500 the rate of tax shall be sixty pence.

THIRD SCHEDULE.

Rates of Tax in respect of Taxable Income Derived Partly from Personal Exertion and Partly from Property.

(a) For every pound sterling of taxable income derived from personal exertion, the rate of tax shall be ascertained by dividing the total amount of the tax that would be payable under the First Schedule if the total taxable income of the taxpayer were derived exclusively from personal exertion by the amount of the total taxable income.

(b) For every pound sterling of taxable income derived from property the rate of tax shall be ascertained by dividing the total amount of the tax that would be payable under the Second Schedule if the total taxable income of the taxpayer were derived exclusively from property by the amount of the total taxable income.

FOURTH SCHEDULE.

Rates of Tax upon the Income of a Company.

(a) For every pound sterling of the taxable income of a Company which has not been distributed to the members or shareholders of the Company the rate of tax shall be two shillings and sixpence.

(b) For every pound sterling of the income of a Company distributed to the members shareholders or stockholders of the Company who are absentees and of interest paid or credited by the Company to any person who is an absentee in respect of debentures of the Company or on money lodged at interest with the Company by such person the rate of tax shall be eightpence.

Overview

The Income Tax Act 1919 was enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia to impose taxes on incomes. This Act was designed to address the need for a structured and systematic approach to collecting income taxes to fund the war efforts during and after World War I. The Act incorporates the Income Tax Assessment Act 1915–1918, establishing a comprehensive framework for assessing and collecting income tax. The primary policy objective is to levy income tax on various forms of income, including income from personal exertion, property, and companies, as well as additional taxes and super-tax to ensure equitable contributions from all income earners. This legislative measure was crucial in establishing a foundational tax system in Australia, facilitating the government's ability to generate revenue to support national expenses and post-war recovery initiatives.

Scope and Application

The Income Tax Act 1919 applies to individuals, companies, and entities generating income within Australia, encompassing income from personal exertion, property, and business activities. The legislation imposes a progressive tax on income, with specific rates outlined in the First, Second, Third, and Fourth Schedules for personal income, income derived from property, mixed income, and corporate income respectively. The Act also imposes an additional tax, a super-tax, and a tax on cash prizes from lotteries. The Act’s jurisdictional reach is Commonwealth-wide, applying to all financial years beginning on the first day of July 1919 and subsequent years until amended or repealed. The Act does not explicitly mention any exclusions, exemptions, or thresholds other than those specified in the schedules and sections, though the scope of subordinate instruments may further define application details.

Key Provisions

The Income Tax Act 1919 imposes income tax on various types of income as outlined in the Act. Section 3 establishes the imposition of income tax at rates declared in this Act. Section 4 sets forth the rates of income tax, specifying different rates for income from personal exertion, income from property, total taxable income derived partly from personal exertion and partly from property, and income of a company. These rates are detailed in the First, Second, Third, and Fourth Schedules respectively. Section 5 mandates an additional tax of twenty-five percent on the tax calculated under the First, Second, or Third Schedules. Section 6 imposes a super-tax of thirty percent on the total amount of tax payable, excluding the additional tax under section 5. Section 7 requires the payment of income tax on cash prizes won in lotteries, at a rate of thirteen percent of the gross prize money. Section 8 establishes the levy of income tax for the financial year beginning on the first day of July 1919, and specifies that the Act applies to assessments made prior to the passing of the Act for the financial year beginning on the first day of July 1920. The Act imposes several obligations on taxpayers and entities subject to its provisions. Taxpayers must calculate their income tax based on the rates specified in the Act and the applicable schedules. They must also ensure that additional tax and super-tax, as applicable, are included in their tax calculations. For individuals, section 4(4) provides a specific rate for those who meet certain criteria, such as being unmarried, having no dependants, and having a gross income of at least One hundred pounds. For companies, section 4(5) sets the tax rates for undistributed income and for income distributed to absentees. Additionally, section 7 imposes a tax on cash prizes from lotteries. Breach of the obligations and requirements set forth in the Income Tax Act 1919 may result in various civil and criminal consequences. Although specific offences and penalties are not detailed in the text provided, generally, non-compliance with tax laws can lead to penalties, interest on unpaid taxes, and in severe cases, prosecution. For instance, wilful failure to lodge a tax return or provide correct information can result in fines and imprisonment under other provisions of the Income Tax Assessment Act 1936 and subsequent amendments. The specific penalties for breaches of the Act would be found in the relevant assessment legislation and could vary based on the nature and severity of the breach.

Area of Law: Taxation Law
Instrument: Act
Concepts: Definitions & Interpretation; Offence Provisions; Licensing & Registration; Reporting & Disclosure Obligations

Interactions

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.

Legislation content

Overview

Scope and Application

Key Provisions

Legal classification tags

Interactions

Authorises

All Versions