INCOME TAX AND SOCIAL SERVICES CONTRIBUTION ASSESSMENT.
No. 4 of 1952.
An Act to amend the Income Tax and Social Services Contribution Assessment Act 1936–1951.
[Assented to 13th March, 1952.]
BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.) This Act may be cited as the Income Tax and Social Services Contribution Assessment Act 1952.
(2.) The Income Tax and Social Services Contribution Assessment Act 1936–1951 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Income Tax and Social Services Contribution Assessment Act 1936–1952.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Exemptions.
3. Section twenty-three of the Principal Act is amended by inserting after paragraph (a) the following paragraph:—
“(aa) an allowance paid under section six or seven of the Ministers of State Act 1952 or under sub-section (2.) of section four, five, six, seven or eight of the Parliamentary Allowances Act 1952;”.
4. After section eighty-one of the Principal Act the following section is inserted:—
Certain deductions not allowable to members of Parliament receiving exempt allowances.
“81a.—(1.) This section applies to a taxpayer who, in the year of income, derives assessable income consisting of or including salary or allowance paid under the Ministers of State Act 1952 or the Parliamentary Allowances Act 1952 and income which is exempt from income tax by virtue of paragraph (aa) of section twenty-three of this Act.
“(2.) In the assessment of a taxpayer to whom this section applies, there shall not, subject to the next succeeding sub-section, be allowable as a deduction—
(a) a loss or outgoing to the extent to which it is incurred in producing assessable income being salary or allowance referred to in the last preceding sub-section; or
(b) depreciation of property used for the purpose of producing assessable income being salary or allowance so referred to.
“(3.) Where property to which paragraph (b) of the last preceding sub-section applies is used for the purpose of producing assessable income other than salary or allowance referred to in sub-section (1.) of this section, there shall be allowable a deduction for depreciation of that property of such amount as the Commissioner considers reasonable having regard to the extent to which that property is used for the purpose of producing that other assessable income.”.
Application of amendments.
5. The amendments effected by this Act apply to all assessments of income of the year of income which commenced on the first day of July, One thousand nine hundred and fifty-one, and all subsequent years, but the amendment effected by the last preceding section does not apply in relation to losses, outgoings or depreciation incurred before the first day of January, One thousand nine hundred and fifty-two.
Overview
The Income Tax and Social Services Contribution Assessment Act 1952 was enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia to amend the existing Income Tax and Social Services Contribution Assessment Act 1936–1951. The Act aims to address specific issues related to exemptions and deductions for members of Parliament. Upon receiving Royal Assent on 13th March 1952, the Act came into operation immediately. It modifies the Principal Act by introducing new exemptions and restrictions on deductions for those who receive certain allowances that are exempt from income tax, ensuring that the legislative framework keeps pace with changes in parliamentary allowances and contributions.
Scope and Application
The Income Tax and Social Services Contribution Assessment Act 1952 amends the Income Tax and Social Services Contribution Assessment Act 1936–1951 to modify tax treatment for certain allowances received by members of Parliament. This Act applies to taxpayers, specifically those who derive assessable income from salaries or allowances under the Ministers of State Act 1952 or the Parliamentary Allowances Act 1952, and whose income is exempt from income tax by virtue of specified sections. The changes introduced by this Act are applicable to all income assessments from the year that commenced on the first day of July, 1951, and subsequent years. Notably, the amendment regarding certain deductions does not apply to losses, outgoings, or depreciation incurred before the first day of January, 1952. The Act extends its application to the whole Commonwealth of Australia, encompassing all territories and states under federal jurisdiction.
Key Provisions
The Income Tax and Social Services Contribution Assessment Act 1952 introduces several amendments to the existing Income Tax and Social Services Contribution Assessment Act 1936–1951. Section 3 of the new Act inserts an exemption under section 23 of the Principal Act, adding allowances paid under the Ministers of State Act 1952 or the Parliamentary Allowances Act 1952 as exempt from income tax. Additionally, section 4 introduces a new section 81a to the Principal Act, specifying that certain deductions are not allowable to taxpayers who receive exempt allowances. This new section applies to taxpayers deriving assessable income from salary or allowance under the Ministers of State Act 1952 or the Parliamentary Allowances Act 1952.
The obligations imposed by this Act on taxpayers include the necessity to accurately report their income and the types of allowances they receive. Specifically, taxpayers must declare any salary or allowance from the Ministers of State Act 1952 or the Parliamentary Allowances Act 1952, and they must adhere to the restrictions on allowable deductions as outlined in section 81a. The Act requires taxpayers to ensure that any losses, outgoings, or depreciation claimed are appropriately justified and not related to the exempt allowances they receive.
Failure to comply with the provisions of this Act can result in significant consequences. While the Act does not explicitly outline specific offences, penalties, or criminal consequences, it is implicit that non-compliance with tax laws can lead to legal repercussions. The penalties for tax evasion or incorrect reporting can include fines and potential imprisonment, as governed by the broader tax legislation in Australia. Additionally, taxpayers who fail to adhere to the allowable deductions stipulated in section 81a may face audits and additional assessments by the tax authorities, leading to financial penalties and interest on unpaid taxes.