STATUTORY RULES.
1959. No. 25.
REGULATION UNDER THE INCOME TAX AND SOCIAL SERVICES CONTRIBUTION ASSESSMENT ACT 1936-1958.*
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 Income Tax and Social Services Contribution Assessment Act 1936-1958.
Dated this ninth day of April, 1959.
W. J. Slim
Governor-General.
By His Excellency’s Command,
Treasurer.
Amendment of the Income Tax and Social Services Contribution Regulations.†
Regulation 4a of the Income Tax and Social Services Contribution Regulations is repealed and the following regulation inserted in its stead:—
Prescribed Life Tables for purposes of section 26aa.
“4a. For the purposes of paragraph (a) of sub-section (2.) of section 26aa of the Act—
(a) in the case of an annuity which first commenced to be derived before the first day July, 1958—the Australian Life Tables, 1946-1948, published by the Commonwealth Statistician; or
(b) in the case of an annuity which first commenced or commences to be derived on or after that day—the Australian Life Tables, 1953-1955, published by the Commonwealth Statistician,
are the prescribed Life Tables.”.
* Notified in the Commonwealth Gazette on 16th April, 1959.
† Statutory Rules 1936, No. 94, as amended by Statutory Rules 1939, Nos. 6 and 42; 1940, Nos. 138 and 289; 1941, Nos. 120 and 327; 1942, Nos. 339 and 553; 1943, Nos. 80, 127 and 151; 1944, Nos. 90 and 124; 1945, Nos. 12, 85, 169 and 192; 1946, No. 135; 1947, Nos. 77 and 173; 1948, Nos. 115 and 162; 1949, Nos. 25 and 50; 1950, Nos. 63 and 101; 1951, Nos. 136 and 157; 1952, Nos. 89, 90 and 102; 1953, Nos. 55 and 88; 1954, Nos. 11, 99 and 112; 1955, No. 23; 1956, Nos. 34, 35 and 96; 1957, Nos. 39 and74; and 1958, No. 27 and 70.
By Authority: A. J. Arthur, Commonwealth Government Printer, Canberra.
1156/59.—Price 3d. 9/11.2.1959.
Overview
The Income Tax and Social Services Contribution Assessment Regulations 1959 were made under the Income Tax and Social Services Contribution Assessment Act 1936-1958 by the Governor-General, acting on the advice of the Federal Executive Council. These regulations were introduced to address the need for updated life tables in determining the taxation of annuities, reflecting changes in life expectancy and ensuring the accuracy of assessments. The primary objective of this legislative instrument is to provide the necessary framework for the accurate assessment of income tax and social services contributions, thereby ensuring the correct application of the law in relation to annuity payments.
Scope and Application
The Statutory Rules of 1959, No. 25, under the Income Tax and Social Services Contribution Assessment Act 1936-1958, pertain to the regulation of income tax and social services contributions, applying across the Commonwealth of Australia. This regulation specifically amends Regulation 4a of the Income Tax and Social Services Contribution Regulations, establishing prescribed life tables for the purposes of section 26aa of the Act. These life tables are used to determine the value of annuities for taxation purposes, with the Australian Life Tables, 1946-1948, applicable for annuities commencing before 1 July 1958, and the Australian Life Tables, 1953-1955, for those commencing on or after that date. The regulation does not specify exclusions or thresholds but is implemented through subordinate instruments which may further extend or restrict its application.
Key Provisions
This regulation amends the Income Tax and Social Services Contribution Regulations by replacing Regulation 4a with a new regulation that specifies the prescribed Life Tables for determining the value of an annuity for income tax purposes under section 26aa of the Income Tax and Social Services Contribution Assessment Act 1936-1958. Regulation 4a(a) provides that for an annuity that first commenced before July 1, 1958, the Australian Life Tables, 1946-1948, published by the Commonwealth Statistician, should be used. Conversely, for annuities commencing on or after July 1, 1958, Regulation 4a(b) mandates the use of the Australian Life Tables, 1953-1955, also published by the Commonwealth Statistician. These regulations ensure that taxpayers and their advisers use the correct life expectancy tables when valuing annuities for tax purposes.
The Act and these regulations impose certain obligations on taxpayers, their advisers, and the Commissioner of Taxation. Taxpayers and their advisers must use the prescribed Life Tables to calculate the value of an annuity when claiming deductions or offsets under the Act. The Commissioner of Taxation is required to accept these calculations as valid unless proven otherwise. This regulatory framework ensures consistency and accuracy in the valuation of annuities for income tax purposes.
Breaching the requirements of this regulation can have legal consequences. While specific penalties are not detailed in the provided text, violations of the Income Tax and Social Services Contribution Assessment Act 1936-1958 can result in substantial penalties. For instance, under section 28A of the principal Act, taxpayers can be fined up to $22,200 for serious tax non-compliance. Additionally, section 28D imposes penalties for providing false or misleading statements, which can also attract fines and imprisonment. The exact penalties depend on the nature and severity of the breach, and they are intended to deter non-compliance and ensure accurate tax reporting.