Income Tax and Social Services Contribution Assessment Act (No. 2) 1962

Legislation au C1962A00098 Not in force Act

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INCOME TAX AND SOCIAL SERVICES CONTRIBUTION ASSESSMENT (No. 2).

 

 

No. 98 of 1962.

An Act to amend sections twenty-three, seventy-nine b and two hundred and sixty-five a of the Income Tax and Social Services Contribution Assessment Act 1936-1961, as amended by the Income Tax and Social Services Contribution Assessment Act 1962, in consequence of the enactment of the Repatriation (Special Overseas Service) Act 1962.

[Assented to 14th December, 1962.]

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 (No. 2) 1962.

(2.) The Income Tax and Social Services Contribution Assessment Act 1936-1961, as amended by the Income Tax and Social Services Contribution Assessment Act 1962, is in this Act referred to as the Principal Act.


(3.) Section one of the Income Tax and Social Services Contribution Assessment Act 1962 is amended by omitting sub-section (3.).

(4.) The Principal Act, as amended by this Act, may be cited as the Income Tax and Social Services Contribution Assessment Act 1936-1962.

Commencement.

2. This Act shall come into operation on the day on which the Repatriation (Special Overseas Service) Act 1962 comes into operation.

Exemptions.

3. Section twenty-three of the Principal Act is amended by omitting paragraph (k) and inserting in its stead the following paragraph:—

“(k) pensions and attendants’ allowances paid, and payments of a like nature made, under the Repatriation Act 1920-1962, the Repatriation (Far East Strategic Reserve) Act 1956-1962, the Repatriation (Special Overseas Service) Act 1962 or the Seamen’s War Pensions and Allowances Act 1940-1961:”.

Deductions for members of the Defence Force serving overseas.

4. Section seventy-nine b of the Principal Act is amended—

(a) by inserting in sub-section (1.), after the words “subject to”, the words “the succeeding provisions of this section and to”;

(b) by inserting after sub-section (1.) the following sub-sections:—

“(1a.) A taxpayer is not entitled to a deduction under this section in relation to service—

(a) as or under an attaché at an Australian Embassy or Legation in an overseas locality at a time as at which that locality was, or is deemed to have been, a specified locality for the purposes of this sub-section; or

(b) with the South-East Asia Treaty Organization Military Planning Office.

“(1b.) Where the Naval Board, the Military Board or the Air Board or a person authorized by one of those Boards to give certificates under this sub-section certifies, and the Treasurer is satisfied, that any service of a taxpayer in any locality was or will be performed in circumstances similar to those in which any service referred to in the last preceding sub-section is performed, the taxpayer is not entitled to a deduction under this section in relation to that service.”; and


(c) by inserting after sub-section (5.) the following sub-sections:—

“(5a.) The Treasurer may, by writing signed by him and deposited with the Commissioner, declare that an overseas locality specified in the declaration shall become, or be deemed to have become, on a specified date, or shall cease, or be deemed to have ceased, on a specified date, to be, a specified locality for the purposes of sub-section (1a.) of this section.

“(5b.) Nothing in section one hundred and seventy of this Act prevents the amendment of an assessment at any time for the purpose of allowing a deduction to which the taxpayer has become entitled under this section after the making of the assessment.”.

Release of liability of members of Defence Force on death.

5. Section two hundred and sixty-five a of the Principal Act is amended—

(a) by omitting from sub-section (3.) the words “Repatriation Act 1920-1956 or under the Repatriation (Far East Strategic Reserve) Act 1956” and inserting in their stead the words “Repatriation Act 1920-1962, the Repatriation (Far East Strategic Reserve) Act 1956—1962 or the Repatriation (Special Overseas Service) Act 1962”;

(b) by omitting from sub-section (4.) the words “Repatriation Act 1920-1956” and inserting in their stead the words “Repatriation Act 1920-1962”; and

(c) by omitting from sub-section (4.) the words “Repatriation (Far East Strategic Reserve) Act 1956” and inserting in their stead the words “Repatriation (Far East Strategic Reserve) Act 1956-1962 or the Repatriation (Special Overseas Service) Act 1962”.

Overview

The Income Tax and Social Services Contribution Assessment Act (No. 2) 1962 was enacted to amend certain sections of the Income Tax and Social Services Contribution Assessment Act 1936-1961, as amended, in response to the enactment of the Repatriation (Special Overseas Service) Act 1962. This Act was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, and it became effective on the same day as the Repatriation (Special Overseas Service) Act 1962. The amendments made by this Act primarily concern the taxation of pensions and allowances paid under the specified Acts, as well as deductions for members of the Defence Force serving overseas and the release of liability for members who die in service. The policy objective appears to be to align the Income Tax and Social Services Contribution Assessment Act with the new provisions in the Repatriation Acts to ensure consistency and proper application of taxation rules concerning repatriation benefits.

Scope and Application

The Income Tax and Social Services Contribution Assessment Act (No. 2) 1962 applies to taxpayers within the Commonwealth of Australia, as defined by the Income Tax and Social Services Contribution Assessment Act 1936-1962, which it amends. This Act primarily targets the adjustments necessary due to the enactment of the Repatriation (Special Overseas Service) Act 1962, affecting deductions for members of the Defence Force serving overseas and the release of liability for such members upon death. Specifically, it modifies the Principal Act by exempting certain pensions and allowances from income tax, and it excludes certain overseas services from the deductions available under section seventy-nine b of the Principal Act. Additionally, it updates references to align with the Repatriation (Special Overseas Service) Act 1962. The application of this Act is further regulated by the Treasurer, who can declare specific overseas localities as specified localities for the purposes of certain deductions. The Act does not contain explicit exclusions beyond those specified in the amended sections but does provide for the possibility of further amendments through subordinate instruments.

Key Provisions

The main operative sections of the Income Tax and Social Services Contribution Assessment (No. 2) 1962 (Act No. 98 of 1962) primarily focus on amendments to the Principal Act, specifically sections twenty-three, seventy-nine b, and two hundred and sixty-five a. Section 3 of the Act introduces exemptions by amending section twenty-three to exclude certain pensions and payments made under specific Acts from the definition of assessable income. Section 4 amends section seventy-nine b, introducing limitations on deductions for members of the Defence Force serving overseas in specified circumstances. Section 5 amends section two hundred and sixty-five a to update references to certain Acts, ensuring consistency in the context of liability releases for members of the Defence Force upon death. The Act imposes obligations on taxpayers, particularly those serving overseas as members of the Defence Force. Taxpayers are required to comply with the new exemptions and limitations on deductions as outlined in the amended sections. Additionally, the Act mandates that the Naval Board, the Military Board, or the Air Board, or an authorised person, certify service circumstances to determine eligibility for deductions, and the Treasurer must be satisfied with these certifications. The Act also places a responsibility on the Treasurer to declare specified overseas localities for the purposes of determining eligibility for deductions. Breach of the provisions in this Act can result in civil and criminal consequences. The Act does not explicitly state penalties for non-compliance, but it is understood that failure to adhere to the amended provisions could lead to reassessments and potential penalties under the Income Tax and Social Services Contribution Assessment Act 1936-1962. Taxpayers who improperly claim deductions or fail to report income as required may face financial penalties and interest on unpaid taxes, while more serious breaches may result in criminal charges. The specific penalties would be determined according to the prevailing tax laws at the time of the breach.

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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.