Income Tax Assessment (No. 3)
No. 70 of 1968
An Act to amend the Law relating to Income Tax.
[Assented to 25 October 1968]
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 Assessment Act (No. 3) 1968.
(2.) The Income Tax Assessment Act 1936–1967, as amended by the Income Tax Assessment Act 1968† and by the Income Tax Assessment Act (No. 2) 1968, is in this Act referred to as the Principal Act.
(3.) Section 1 of the Income Tax Assessment Act (No. 2) 1968 is amended by omitting sub-section (4.).
(4.) The Principal Act, as amended by this Act, may be cited as the Income Tax Assessment Act 1936–1968.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Disposal of certain securities.
3.—(1.) Section 26c of the Principal Act is amended by omitting sub-sections (3.) and (3a.).
(2.) The provisions of the sub-sections omitted by the last preceding sub-section continue to apply in relation to securities issued in respect of moneys borrowed as from a date before the first day of November, One thousand nine hundred and sixty-eight.
Rebate in respect of loan interest.
4. Section 160ab of the Principal Act is amended—
(a) by omitting the words “A taxpayer” and inserting in their stead the words “Subject to the next succeeding sub-section, a taxpayer”; and
(b) by adding at the end thereof the following sub-section:—
“(2.) A taxpayer shall not be entitled under the last preceding sub-section to a rebate in respect of interest derived from bonds, debentures, stock or other securities issued in respect of moneys borrowed as from the first day of November, One thousand nine hundred and sixty-eight, or a later date, and, for the purposes of this sub-section, advance subscriptions made before that date and applied for the purposes of a loan opened to subscription on or after that date shall be deemed to have been borrowed as from the date on which they are so applied.”.
Overview
The Income Tax Assessment Act (No. 3) 1968 was enacted to amend the law relating to income tax. It was introduced by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. The Act seeks to address specific issues within the existing tax framework by amending the Income Tax Assessment Act 1936–1967 and its subsequent amendments. The primary objective of this legislation is to modify certain tax provisions concerning the disposal of securities and the rebate in respect of loan interest, ensuring that the tax law remains current and effective in reflecting economic changes and policy directions.
Scope and Application
The Income Tax Assessment (No. 3) Act 1968 amends the Income Tax Assessment Act 1936–1967, and it applies to all taxpayers subject to the provisions of the Income Tax Assessment Act. The Act specifically addresses the disposal of certain securities and modifies the eligibility criteria for rebate in respect of loan interest. It removes the applicability of certain subsections for securities issued from a date after 31 October 1968. The Act is applicable nationally across Australia, given its Commonwealth origin. Subordinate instruments may further define and extend the application of the Act, providing additional regulations and clarifications to ensure its proper implementation. The Act does not explicitly mention any exclusions or exemptions, but its detailed provisions imply that only certain types of financial transactions and securities issued after a specified date are affected.
Key Provisions
The Income Tax Assessment (No. 3) Act 1968 (referred to as the Act) contains several significant amendments to the Income Tax Assessment Act 1936–1967 (the Principal Act). The Act primarily modifies the tax treatment of certain securities and the rebate in respect of loan interest. Section 3 of the Act amends Section 26c of the Principal Act by removing subsections (3) and (3a), which previously applied to securities issued in respect of moneys borrowed as from a date before 1 November 1968. These removed subsections continue to apply only to securities issued before that date.
The Act imposes specific obligations on taxpayers regarding the disposal of certain securities and the rebate for loan interest. For instance, Section 4 amends Section 160ab of the Principal Act by altering the conditions under which a taxpayer can claim a rebate in respect of interest derived from bonds, debentures, stock, or other securities. A taxpayer will not be entitled to a rebate for interest derived from securities issued on or after 1 November 1968, unless explicitly allowed under the new provisions. This change affects taxpayers who have made advance subscriptions before this date but applied them for loans opened on or after this date, which are deemed to have been borrowed as from the date of application.
The Act does not explicitly state any new offences or penalties for breaches of its provisions. However, failure to comply with the amended provisions regarding the disposal of certain securities and the rebate in respect of loan interest could potentially result in the taxpayer being subject to the existing penalties under the Principal Act. These penalties could include fines, interest on unpaid taxes, and other civil or criminal consequences as prescribed by the existing tax laws. The maximum penalties would be those stipulated under the prevailing tax legislation at the time of any non-compliance.