Income Tax Assessment Amendment Act (No. 3) 1983

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Legislation au C2004A02766 Not in force Act

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Income Tax Assessment Amendment Act (No. 3) 1983

No. 49 of 1983

 

An Act to amend the law relating to income tax

[Assented to 21 September 1983]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the Income Tax Assessment Amendment Act (No. 3) 1983.

(2) The Income Tax Assessment Act 19361 is in this Act referred to as the Principal Act.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Interpretation

3. Section 159za of the Principal Act is amended by inserting after the definition of “rebatable dwelling” in sub-section (1) the following definition:

“‘relevant combined taxable income’, in relation to a taxpayer, means—

(a) where neither paragraph (b) nor paragraph (c) applies—the taxable income of the taxpayer of the year of income that commenced on 1 July 1982;

(b) where the first occupation date of the taxpayer is on or before 1 October 1983 and the taxpayer had a spouse on 1 October 1983—the sum of the taxable income of the taxpayer of the year of income that commenced on 1 July 1982 and the taxable income of that year of income of that spouse of the taxpayer; and

(c) where the first occupation date of the taxpayer is after 1 October 1983 and the taxpayer had a spouse on that first occupation date—the sum of the taxable income of the taxpayer of the year of income that commenced on 1 July 1982 and the taxable income of that year of income of that spouse of the taxpayer;”.

Rebatable interest

4. Section 159zj of the Principal Act is amended—

(a) by omitting from paragraph (2) (c) “1 July 1985” and substituting “1 October 1983”; and

(b) by inserting after sub-section (2) the following sub-sections:

“(2a) Subject to sub-section (2b), where—

(a) before 1 October 1983, a taxpayer, or a taxpayer and another person or other persons—

(i) entered into a contract for the purchase of;

(ii) entered into a contract for the construction by another person of; or

(iii) commenced the construction of,

a dwelling; and

(b) the first occupation date of the taxpayer is on or after 1 October 1983 and was ascertained by reference to that dwelling,

sub-section (2) applies in relation to the taxpayer as if the reference in paragraph (2) (c) to 1 October 1983 were a reference to 1 July 1985.

“(2b) Where, at any time, a taxpayer receives a payment in respect of a dwelling under the First Home Owners Act 1983, sub-section (2a) does not apply, and shall be deemed never to have applied, in relation to the taxpayer.”.

Rebate of tax

5. Section 159zk of the Principal Act is amended by inserting in sub-section (1) “159zka,” before “159zl”.

6. After section 159zk of the Principal Act the following section is inserted:


Reduction of rebate where combined taxable income exceeds $24,300

“159zka. Where—

(a) but for this section and section 159ZO, a taxpayer would be entitled to a rebate (in this section referred to as the ‘unreduced rebate’) in his assessment in respect of a year of income (in this section referred to as the ‘relevant year of income’); and

(b) the relevant combined taxable income in relation to the taxpayer exceeds $24,300,

the amount of the rebate to which the taxpayer is entitled but for section 159ZO in respect of the relevant year of income is the amount ascertained in accordance with the formula

, where—

A is the amount of the unreduced rebate;

B is—

(c) where the relevant year of income is the year of income that commenced on 1 July 1983—the amount ascertained in accordance with the formula , where—

D is the amount of the unreduced rebate;

E is the number of whole months after 30 September 1983 and during the relevant year of income during which the taxpayer was an eligible occupier of a rebatable dwelling; and

F is the number of whole months in the relevant year of income during which the taxpayer was an eligible occupier of a rebatable dwelling; and

(d) where the relevant year of income is the year of income commencing on 1 July 1984 or a subsequent year of income—the amount of the unreduced rebate; and

C is—

(e) where paragraph (f) does not apply—27,900; and

(f) where the number of whole dollars in the relevant combined taxable income in relation to the taxpayer is less than 27,900—the number of whole dollars in that relevant combined taxable income.”.

Reduction of rebate limit in cases of co-ownership

7. Section 159zn of the Principal Act is amended by inserting in paragraph (2) (a) “159zka,” before “159znc”.

Amendment of assessments

8. Section 170 of the Principal Act is amended by inserting in sub-section (10) “159zj (2b),” after “159r (4),”.


NOTE

1. No. 27, 1936, as amended. For previous amendments, see No. 88, 1936; No. 5, 1937; No. 46, 1938; No. 30, 1939; Nos. 17 and 65, 1940; Nos. 58 and 69, 1941; Nos. 22 and 50, 1942; No. 10, 1943; Nos. 3 and 28, 1944; Nos. 4 and 37, 1945; No. 6, 1946; Nos. 11 and 63, 1947; No. 44, 1948; No. 66, 1949; No. 48, 1950; No. 44, 1951; Nos. 4, 28 and 90, 1952; Nos. 1, 28, 45 and 81, 1953; No. 43, 1954; Nos. 18 and 62, 1955; Nos. 25, 30 and 101, 1956; Nos. 39 and 65, 1957; No. 55, 1958; Nos. 12, 70 and 85, 1959; Nos. 17, 18, 58 and 108, 1960; Nos. 17, 27 and 94, 1961; Nos. 39 and 98, 1962; Nos. 34 and 69, 1963; Nos. 46, 68, 110 and 115, 1964; Nos. 33, 103 and 143, 1965; Nos. 50 and 83, 1966; Nos. 19, 38, 76 and 85, 1967; Nos. 4, 60, 70, 87 and 148, 1968; Nos. 18, 93 and 101, 1969; No. 87, 1970; Nos. 6, 54 and 93, 1971; Nos. 5, 46, 47, 65 and 85, 1972; Nos. 51, 52, 53, 164 and 165, 1973; No. 216, 1973 (as amended by No. 20, 1974); Nos. 26 and 126, 1974; Nos. 80 and 117, 1975; Nos. 50, 53, 56, 98, 143, 165 and 205, 1976; Nos. 57, 126 and 127, 1977; Nos. 36, 57, 87, 90, 123, 171 and 172, 1978; Nos. 12, 19, 27, 43, 62, 146, 147 and 149, 1979; Nos. 19, 24, 57, 58, 124, 133, 134 and 159, 1980; Nos. 61, 92, 108, 109, 110, 111, 154 and 175, 1981; Nos. 29, 38, 39, 76, 80, 106 and 123, 1982; and Nos. 14, 25 and 39, 1983.

Overview

The Income Tax Assessment Amendment Act (No. 3) 1983 was enacted to amend the law relating to income tax, addressing issues related to the rebates and assessments for taxpayers purchasing or constructing a dwelling. This Act was passed by the Parliament of Australia and received Royal Assent on 21 September 1983. The policy objective of this legislation was to modify the income tax provisions to provide a more equitable framework for taxpayers involved in purchasing or constructing a dwelling, particularly in relation to the timing of the first occupation date and the combined taxable income threshold for rebate eligibility. The Act makes specific amendments to the Income Tax Assessment Act 1936 to adjust the definitions, rebate calculations, and assessment procedures accordingly. The Income Tax Assessment Amendment Act (No. 3) 1983 aims to refine the income tax framework by introducing adjustments to the definitions of relevant terms, modifying the conditions under which taxpayers qualify for rebates, and altering the formulae used for calculating the rebates based on the combined taxable income. The legislative changes are intended to provide clarity and fairness in the taxation of income related to dwelling purchases and constructions, ensuring that the tax system supports the intended policy objectives effectively.

Scope and Application

The Income Tax Assessment Amendment Act (No. 3) 1983 is a Commonwealth legislation that seeks to modify the income tax laws by amending the Income Tax Assessment Act 1936. This Act applies to individuals, entities, and taxpayers who are subject to the income tax laws within the jurisdiction of the Commonwealth of Australia. It specifically targets taxpayers who have engaged in particular transactions such as the purchase, construction, or occupation of a dwelling. The Act applies to taxpayers whose first occupation date of a dwelling is on or after 1 October 1983, and it also pertains to those who had a spouse on that date. The Act provides for the reduction of tax rebates for those taxpayers whose combined taxable income exceeds a specified threshold of $24,300. Additionally, the Act extends its application through subordinate instruments to ensure comprehensive coverage of the specified amendments.

Key Provisions

The Income Tax Assessment Amendment Act (No. 3) 1983 makes several significant changes to the Income Tax Assessment Act 1936, particularly regarding tax rebates for first home owners and the reduction of those rebates based on combined taxable income. Section 3 of the Act amends the definition of "relevant combined taxable income" in the Principal Act, clarifying how the combined taxable income of a taxpayer and their spouse is calculated for rebate purposes. The Act also modifies the conditions for a tax rebate for first home owners by changing the date from which interest on home loans is deductible (Section 4), and it introduces a new section (159zka) that details how the rebate is reduced if the combined taxable income exceeds $24,300 (Section 6). Under the Act, taxpayers who entered into a contract for the purchase or construction of a dwelling before 1 October 1983 and occupied the dwelling on or after that date can have the interest on their home loans deducted for tax purposes as if the date were 1 July 1985 (Section 4(2a)). However, this provision does not apply if the taxpayer receives a payment under the First Home Owners Act 1983 (Section 4(2b)). The Act also requires the insertion of a new section (159zka) that provides a formula for calculating the reduced rebate amount if the relevant combined taxable income exceeds $24,300, with specific calculations for different years of income (Section 6). The Act imposes obligations on taxpayers to accurately report their relevant combined taxable income and to ensure they meet the criteria for the tax rebate. This includes keeping detailed records of their income and the dates they occupied their dwelling. For those who qualify for the reduced rebate, they must calculate their rebate using the formula provided in the Act. Additionally, taxpayers who enter into a contract for the purchase or construction of a dwelling before 1 October 1983 and occupy it on or after that date must ensure they meet the conditions for the extended interest deduction period. Breaches of the Act may result in civil consequences, such as the imposition of penalties for incorrect or incomplete assessments, or the disallowance of deductions. The maximum penalties for these offences are not explicitly stated in the provided excerpt, but they can be severe under the Principal Act. Criminal penalties may also apply for deliberate or fraudulent behaviour, including imprisonment or fines, as per the general provisions of the Principal Act.

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