Income Tax Assessment Act (No. 2) 1915

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INCOME TAX ASSESSMENT (No. 2).

No. 47 of 1915.

An Act to amend the Income Tax Assessment Act 1915.

[Assented to 15th November, 1915.]

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 and citation.

1.—(1.) This Act may be cited as the Income Tax Assessment Act (No. 2) 1915.

(2.) The Income Tax Assessment Act 1915 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 Assessment Acts 1915.

Amendment of s.11.

2. Section eleven of the Principal Act is amended—

(a) by omitting the word “and” between paragraphs (f) and (g); and

(b) by adding at the end thereof the following paragraph—

“and (h) the official salaries of foreign consuls and the trade commissioners of any part of the British Dominions.”

Amendment of s. 14.

3. Section fourteen of the Principal Act is amended—

(a) by inserting in paragraph (b) thereof after the words “debenture-holder of a company” the words “which derives income from a source in Australia or of a company which is a shareholder in a company which derives income from a source in Australia”;

(b) by omitting from the proviso to paragraph (b) thereof the words “commencement of this Act” and inserting in their stead the words “first day of July One thousand nine hundred and fourteen”; and

“Provided further that where a company derives income from a source in Australia and from a source outside Australia a taxpayer shall only be taxable on so much of the dividend as bears to the whole dividend the same proportion that the profits derived by the company from a source in Australia bears to the total profits of the company.

“Provided also that amounts carried forward by a company to the credit of the profit and loss account shall not be deemed to be accumulated income.”

Amendment of s.15.

4. Section fifteen of the Principal Act is amended—

(a) by adding at the end of sub-section (2.) thereof the words “to the extent of the tax payable on goods sold by him after the thirtieth day of June One thousand nine hundred and fifteen”; and

(b) by adding at the end thereof the following sub-section:—

“(3.) Goods shall be deemed to be sold in Australia on account of a person not resident in Australia, or on account of a company not registered in Australia, if any person in Australia receives a commission in respect of the sale of the goods or is paid a salary for obtaining orders for or for influencing the sale of the goods.”

5. After section seventeen of the Principal Act the following section is inserted :—

Fire insurance companies.

“17a. Where a fire insurance company carrying on business in Australia re-insures risks with a fire insurance company not carrying on business in Australia the income received by the company not carrying on business in Australia in respect of the re-insurances shall be deemed to be derived from a source in Australia, and the company carrying on business in Australia shall be deemed to be the agent of the company not carrying on business in Australia, so far as may be necessary for the purposes of this Act.”

Amendment of s. 18.

6. Section eighteen of the Principal Act is amended—

(a) by inserting in paragraph (a) after the word “outgoings” the words “not being in the nature of losses and outgoings of capital”;

(b) by inserting in paragraph (b) after the word “paid” the words “in Australia”;

(d) by inserting in paragraph (i) after the words “on the shares of a company” the words “carrying on operations in Australia”;

(e) by inserting in paragraph (i) after the words “mining company” the words “carrying on operations in Australia”;

(f) by adding after paragraph (j) the following new paragraphs:—

“(k) The sum of Thirteen pounds in respect of each child, who is under the age of sixteen years at the beginning of the financial year in which the income was received, wholly maintained by any taxpayer who is not an absentee”; and

“(l) Sums paid by way of commission for collecting income.”

(g) by adding thereto the following sub-section:—

“(2.) The deductions specified in paragraph (b) of sub-section (1.) of this section, or being sums expended for repairs to or on any property from which rent is received shall be made from the income from property, and all other deductions allowed by this section shall be made from the income from personal exertion:

“Provided that if the income from either source does not amount to the sum to be deducted from that source, the balance of the sum to be deducted may be deducted from the income from the other source.”

Amendment of s. 19.

7. Section nineteen of the Principal Act is amended—

(a) by omitting the proviso to paragraph (b) and inserting in its stead the following proviso:—

“Provided that where the total of the sums so calculated to be deducted under paragraphs (a) and (b) of this section exceeds One hundred and fifty-six pounds, each of those sums shall be reduced by one-half of the excess.”

(b) by omitting therefrom paragraph (c); and

Amendment of s. 27.

8. Section twenty-seven of the Principal Act is amended—

(a) by adding at the end of sub-section (1.) thereof the following proviso:—

“Provided that in the assessment of a partnership entered into before the commencement of this Act there shall be deducted from the total tax assessable to the partnership so much of the total tax as bears to the total tax the proportion which that part (if any) of the whole income which is distributed to the partners bears to the whole income.”

(b) by adding after sub-section (2.) thereof the following sub-section :—

“(2a.) For the purposes of sub-section (2.) of this section income shall be deemed to be distributed if, in the opinion of the Commissioner, it is held by the trustee for the benefit of a beneficiary, who is a minor, or for the reasonable expenditure of the trust estate.”

(c) by omitting from sub-section (3.) thereof the words “to such of the beneficiaries as are taxpayers”, and inserting in their stead the words “to the beneficiaries”.

Amendment of s. 28.

9. Section twenty-eight of the Principal Act is amended by omitting sub-section (1.) thereof and inserting in its stead the following sub-section:—

“28.—(1.) For the purpose of assessment and levy of Income Tax every person who derived income from sources in Australia during the year beginning on the first day of July One thousand nine hundred and fourteen, and ending the thirtieth day of June One thousand nine hundred and fifteen, and during each successive year beginning on the first day of July shall, when called upon by the Commissioner by notice published in the Gazette, furnish to the Commissioner in the prescribed manner a return setting forth a full and complete statement of the income derived by him when—

(a) in the case of a person not an absentee, the total income from all sources in Australia exceeds the sum of One hundred and fifty-six pounds.

(b) in the case of an absentee, the total income from all sources in Australia exceeds the sum of One pound.”

Taxpayer dying before furnishing return.

10. After section forty-six of the Principal Act the following section is inserted:—

“46a.—(1.) Where a taxpayer dies on or after the first day of July in any year, and before furnishing a return of his income for the preceding year, his executors or administrators shall furnish a return of the income derived by such deceased taxpayer during the said preceding year and shall be assessable in respect thereof and shall be chargeable with and pay tax thereon.

(2.) Where the executors or administrators are unable or fail so to furnish a return of such income the Commissioner may estimate same at and may make an assessment of the amount of which in his judgment tax ought to be charged.”

Commencement of Act.

11. This Act shall be deemed to have commenced on the same day as the Principal Act.

Overview

The Income Tax Assessment (No. 2) Act 1915 was enacted by the Parliament of Australia to amend the Income Tax Assessment Act 1915, addressing specific issues and gaps identified in the original legislation. The act introduces various amendments to refine and expand the scope of income tax assessment, ensuring that income derived from certain sources and activities within Australia is appropriately taxed. These amendments include adjustments to taxable income, specific deductions, and the treatment of income derived from foreign sources, with a policy objective to ensure comprehensive and equitable taxation. The act also addresses the taxation of income for deceased taxpayers and their executors, ensuring that tax liabilities are met even in the absence of the taxpayer. The Income Tax Assessment (No. 2) Act 1915, enacted by the Parliament of Australia, aims to enhance the existing tax framework by making several key amendments to the Income Tax Assessment Act 1915. These amendments include the clarification and expansion of income sources subject to tax, adjustments to allowable deductions, and specific provisions for the taxation of income derived from foreign sources within Australia. The act also addresses the taxation of deceased taxpayers, requiring their executors to furnish returns and pay any outstanding tax liabilities. This legislative effort reflects a commitment to refining the tax system to ensure it is fair, comprehensive, and capable of meeting the fiscal needs of the Commonwealth.

Scope and Application

The Income Tax Assessment (No. 2) Act 1915 amends the Income Tax Assessment Act 1915, which is referred to as the Principal Act within this legislation. The amendments cover various sections of the Principal Act, including provisions regarding the taxation of specific income sources, such as the salaries of foreign consuls and trade commissioners, dividends from companies deriving income from Australian sources, and reinsurance income received by non-resident fire insurance companies. The Act also adjusts deductions and exemptions, modifies the taxation of partnerships, and updates the rules for filing tax returns, including provisions for taxpayers who die before filing. The amendments apply to individuals and entities deriving income from sources within Australia, and they impose certain thresholds for the filing of tax returns based on the amount of income derived from Australian sources. The Act does not explicitly provide for any exclusions or exemptions beyond those specified within the amendments themselves. The jurisdictional reach of the Act is national, as it pertains to the Commonwealth of Australia.

Key Provisions

The Income Tax Assessment Act (No. 2) 1915 amends the Income Tax Assessment Act 1915, referred to as the Principal Act. This amendment Act introduces various changes to the Principal Act, primarily focusing on the income tax provisions. Section 2 of the Act amends Section 11 of the Principal Act by adding a new category to the list of taxable incomes, including the official salaries of foreign consuls and trade commissioners of any part of the British Dominions. In Section 3, the Act amends Section 14 to modify the taxation of dividends received by debenture-holders and shareholders of companies deriving income from Australian sources, and clarifies the treatment of amounts carried forward in a company's profit and loss account. Section 4 further amends Section 15, detailing the taxation of goods sold by a person or company not resident or registered in Australia. The Act imposes various obligations on taxpayers and companies. It requires taxpayers to furnish a return of their income to the Commissioner if their income from Australian sources exceeds a specified threshold. For individuals, this threshold is One hundred and fifty-six pounds, while for absentees, it is One pound (Section 28(1)). Companies deriving income from Australian sources and foreign companies re-insuring risks with Australian companies are also subject to specific tax provisions (Sections 14 and 17a). The Act further details the deductions allowable from income, distinguishing between those from property and personal exertion (Section 18). Breach of the provisions of this Act can lead to various consequences. While specific offences and penalties are not detailed in the Act, it is implied that failure to comply with the requirements, such as not furnishing a return of income or incorrectly claiming deductions, could result in civil or criminal penalties under the general tax laws. The penalties could include fines or other financial penalties, reflecting the seriousness with which tax obligations are treated under Australian law.

Area of Law: Taxation Law
Instrument: Act
Concepts: Definitions & Interpretation; Repeal & Amendment; Offence Provisions

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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.

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