Income Tax and Social Services Contribution Assessment Act 1963

Legislation au C1963A00034 Not in force Act

Legislation content

INCOME TAX AND SOCIAL SERVICES CONTRIBUTION ASSESSMENT.

 

No. 34 of 1963.

An Act relating to Income Tax.

[Assented to 31st May, 1963.]

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 1963.


(2.) The Income Tax and Social Services Contribution Assessment Act 1936-1962 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 1936-1963.

Commencement.

2.—(1.) Subject to this section, this Act shall come into operation on the day on which it receives the Royal Assent.

(2.) Section four of this Act shall be deemed to have come into operation on the thirteenth day of July, One thousand nine hundred and sixty-two.

(3.) Section five of this Act shall be deemed to have come into operation on the first day of July, One thousand nine hundred and sixty-two.

(4.) Section eight of this Act shall be deemed to have come into operation on the first day of January, One thousand nine hundred and sixty-three.

Exemptions.

3. Section twenty-three of the Principal Act is amended—

(a) by omitting from sub-paragraph (vii) of paragraph (c) the words “the Director of the Division of Industrial Development of the Department of National Development, or a person authorized in writing by the Director” and inserting in their stead the words “the Secretary to the Department of Trade, or a person authorized in writing by him”; and

(b) by inserting after paragraph (y) the following paragraph:—

“(ya) income derived by way of a scholarship, bursary or other educational allowance


(being a scholarship, bursary or allowance provided by the Commonwealth) by a person who—

(i) is pursuing in Australia a course of study or training; and

(ii) is in Australia for the sole purpose of pursuing that course;”.

Disposal of certain securities.

4. Section twenty-six c of the Principal Act is amended—

(a) by omitting from sub-sections (1.) and (2.) the word “seasonal” (wherever occurring) and inserting in its stead the word “prescribed”; and

(b) by omitting sub-section (4.) and inserting in its stead the following sub-section:—

“(4.) In this section—

‘prescribed security’ means—

(a) a seasonal security as defined by section four of the Loan (Short-term Borrowings) Act 1959; or

(b) any stock or other security issued by the Commonwealth that does not bear interest,

and includes an interest in any such seasonal security, stock or other security;

‘stock’ means Commonwealth Government Inscribed Stock or Australian Consolidated Inscribed Stock.”.

Dividends.

5. Section forty-four of the Principal Act is amended—

(a) by inserting after sub-section (2.) the following subsections:—

“(2a.) Where—

(a) a company has, whether before or after the commencement of this sub-section, received income consisting of dividends of the kind referred to in sub-paragraph (ii) of paragraph (a), in sub-paragraph (ii) of


paragraph (c) or in sub-paragraph (ii) of paragraph (d) of the last preceding subsection; and

(b) dividends are, after the commencement of this sub-section, paid by the company to another company wholly and exclusively out of the amount remaining after deducting from that income all losses and outgoings incurred in gaining or producing that income that would have been allowable deductions if that income had been assessable income,

the dividends received by the other company, shall, for the purposes of the last preceding sub-section, be deemed to be dividends of the kind referred to in that sub-paragraph.

“(2b.) The reference in paragraph (a) of the last preceding sub-section to dividends of a particular kind shall be read as including a reference to dividends that, by virtue of that sub-section, are to be deemed to be dividends of that kind.”; and

(b) by omitting from sub-section (3.) the words “the last preceding sub-section” and inserting in their stead the words “sub-section (2.) of this section”.

Export market development allowance.

6. Section fifty-one ac of the Principal Act is amended by omitting from sub-section (3.) the words “One thousand nine hundred and sixty-four” and inserting in their stead the words “One thousand nine hundred and sixty-eight”.

Gifts, calls on mining shares, pensions, &c.

7. Section seventy-eight of the Principal Act is amended by omitting sub-section (3.) and inserting in its stead the following sub-sections:—

“(3.) A gift to the authority specified in sub-paragraph (xi) or (xxxii) of paragraph (a) of sub-section (1.) of this section is not an allowable deduction under this section unless the gift was made before the first day of July, One thousand nine hundred and sixty-three.

“(4.) A gift to the authority specified in sub-paragraph (xxxviii) of paragraph (a) of sub-section (1.) of this section is not an allowable deduction under this section unless the gift was made before the first day of July, One thousand nine hundred and sixty-four.”.


Exemption of certain dividends.

8. Section one hundred and seven of the Principal Act is amended by omitting from paragraph (a) the words “One thousand nine hundred and sixty-three” and inserting in their stead the words “One thousand nine hundred and sixty-five”.

Rebate of tax payable by visiting industrial experts.

9. Section one hundred and sixty aba of the Principal Act is amended by omitting from paragraph (b) of sub-section (2.) the words “the Director of the Division of Industrial Development of the Department of National Development, or a person authorized in writing by the Director” and inserting in their stead the words “the Secretary to the Department of Trade, or a person authorized in writing by him”.

Treatment of convicted offenders.

10. Section two hundred and forty-seven of the Principal Act is amended by adding at the end thereof the following subsection:—

“(2.) Where the Court makes an order committing the offender to gaol, the Court may, at any time before the offender is imprisoned in pursuance of the order, allow the offender a specified time for payment of the penalty or allow him to pay the penalty by specified instalments and, in that case—

(a) the order committing the offender to gaol shall not be executed unless the offender fails to pay the penalty within that time or fails to pay any instalment at the time when it is payable, as the case may be;

(b) if the person pays the penalty within that time or pays all the instalments, as the case may be—the order committing the person to gaol shall be deemed to have been discharged; and

(c) if the person is imprisoned in pursuance of the order but, before being so imprisoned, has paid part of the penalty—the next succeeding section shall apply in relation to him as if the amount of the penalty were that part of the penalty remaining unpaid immediately before his being so imprisoned.”.

Application.

11. The amendment made by paragraph (b) of section three of this Act applies to assessments in respect of income of the year of income that commenced on the first day of July, One thousand nine hundred and sixty-two, and in respect of income of all subsequent years.

Overview

The Income Tax and Social Services Contribution Assessment Act 1963 was enacted by the Parliament of Australia to make amendments to the existing Income Tax and Social Services Contribution Assessment Act 1936-1962. This Act sought to address various issues and gaps in the existing tax framework, including updating exemptions, adjusting the treatment of certain securities and dividends, extending allowances, and modifying the treatment of gifts, calls on mining shares, pensions, and other related provisions. The Act introduces changes to align with contemporary economic and social policies, ensuring that the tax system remains fair and effective. The amendments introduced by this Act apply to assessments in respect of income starting from the year that commenced on the first day of July 1962, thereby ensuring that the new provisions are implemented prospectively.

Scope and Application

The Income Tax and Social Services Contribution Assessment Act 1963 applies to individuals and entities liable to income tax and social services contributions in Australia. It amends the Principal Act to introduce several modifications and updates to the tax regime, including changes in exemptions, allowances, and the treatment of specific types of income and transactions. The Act has a Commonwealth jurisdictional reach, governing taxation matters across Australia. Certain exclusions and amendments are detailed, such as the exemption of income derived from specific educational allowances and the modification of allowable deductions for gifts to specified authorities. The Act also provides for the rebate of tax payable by visiting industrial experts and introduces provisions for the payment of penalties by convicted offenders in instalments. The amendments made by the Act apply to assessments for the income year commencing on 1 July 1962 and all subsequent years. The Act may extend or restrict its application through subordinate instruments, which are not explicitly detailed in the provided text.

Key Provisions

The Income Tax and Social Services Contribution Assessment Act 1963 (referred to as the Act) amends the Principal Act, which is now called the Income Tax and Social Services Contribution Assessment Act 1936-1963. The Act introduces several significant changes to the Principal Act, including amendments to exemptions, disposal of securities, dividends, export market development allowance, gifts, pensions, certain dividends, rebates for visiting industrial experts, and treatment of convicted offenders. Most sections of the Act come into operation on the date of Royal Assent, with some provisions having earlier deemed commencement dates. The Act imposes several obligations on the parties it governs. For example, it amends the exemptions from tax under section twenty-three of the Principal Act by replacing the Director of the Division of Industrial Development with the Secretary to the Department of Trade and includes new exemptions for educational allowances provided by the Commonwealth. It also modifies the definition of "prescribed security" in section twenty-six c of the Principal Act, expanding the scope to include Commonwealth-issued securities that do not bear interest. Furthermore, the Act alters the treatment of dividends in section forty-four, making certain dividends paid by a company to another company taxable in a specific manner. Additionally, it introduces new conditions for allowable deductions for gifts made to certain authorities, effective from specific dates. Failure to comply with the provisions of the Act may result in various penalties and consequences. For example, gifts to specified authorities must be made before certain dates to be allowable deductions, or they will not qualify for tax relief. Non-compliance with these conditions may lead to the disallowance of deductions, potentially increasing the taxable income of the donor. Additionally, the Act specifies that if a court orders a convicted offender to pay a penalty and allows time for payment or instalments, failure to adhere to these terms can result in imprisonment. These provisions underscore the importance of strict compliance with the Act's requirements to avoid adverse legal consequences. Under the Act, certain breaches may incur financial penalties. For instance, if a taxpayer fails to comply with the new rules regarding allowable deductions for gifts or fails to adhere to the amended provisions on dividends, they may face increased tax liabilities or fines. The Act also provides for the discharge of court orders if penalties are paid within the specified time, highlighting the importance of timely compliance. These financial and legal repercussions underscore the necessity for taxpayers and other affected parties to adhere closely to the provisions of the Act.

Legal classification tags

Area of Law
Taxation Law
Instrument
Act
Concepts
Commencement Provisions
Offence Provisions
Exemptions & Exclusions

Interactions

Authorises

All Versions

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.