Income Tax (Companies and Superannuation Funds) Act 1976

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INCOME TAX (COMPANIES AND SUPERANNUATION FUNDS) ACT 1976

No. 208 of 1976

An Act to impose a Tax upon Incomes of Companies and Superannuation Funds.

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

Short title.

1. This Act may be cited as the Income Tax (Companies and Superannuation Funds) Act 1976.

Commencement.

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

Interpretation.

3. (1) In this Act, unless the contrary intention appears—

“Assessment Act” means the Income Tax Assessment Act 1936;

“friendly society dispensary” means a friendly society dispensary to which Division 9a of Part III of the Assessment Act applies;

“investment income” has the same meaning as in Division 9b of Part III of the Assessment Act;

“non-profit company” means—

(a) a company that is not carried on for the purposes of profit or gain to its individual members and is, by the terms of the company’s constituent document, prohibited from making any distribution, whether in money, property or otherwise, to its members; or

(b) a friendly society dispensary;

“superannuation fund” means a provident, benefit, superannuation or retirement fund;

“tax” means income tax referred to in sub-section 5(1).

(2) In this Act, a reference to investment income or taxable income shall be read as a reference to investment income or taxable income, as the case may be, of the year of income.

Incorporation.

4. The Assessment Act is incorporated, and shall be read as one, with this Act.

Imposition of income tax.

5. (1) Income tax is imposed in accordance with this Act and at the rates declared in this Act.

(2) This Act does not impose tax payable in accordance with section 128b of the Assessment Act.

(3) This Act does not impose tax payable by—

(a) a natural person (other than a person in the capacity of a trustee of a superannuation fund); or

(b) a company in the capacity of a trustee (other than a company in the capacity of a trustee of a superannuation fund).

(4) This Act does not impose tax upon the taxable income of a nonprofit company where that taxable income does not exceed $416.

Rates of tax payable by companies.

6. (1) The rates of tax payable by a company, other than a company in the capacity of a trustee, are as set out in the following provisions of this section.

(2) The rate of tax in respect of the taxable income of a company not being—

(a) a private company; or

(b) a non-profit company that is a friendly society dispensary, is 42.5 per centum.

(3) In the case of a company that is a private company, the rates of tax are—

(a) in respect of the taxable income—42.5 per centum; and


(b) in respect of the undistributed amount in respect of which the company is liable under section 104 of the Assessment Act to pay additional tax—50 per centum.

(4) The rate of tax in respect of the taxable income of a non-profit company that is a friendly society dispensary is 37.5 per centum.

(5) Where the taxable income of a non-profit company other than a friendly society dispensary does not exceed $1,830, the amount of tax payable by the company shall not exceed 55 per centum of the amount by which the taxable income exceeds $416 less any rebate or credit to which the company is entitled.

(6) Where the taxable income of a non-profit company that is a friendly society dispensary does not exceed $1,664, the amount of tax payable by the company shall not exceed 50 per centum of the amount by which the taxable income exceeds $416 less any rebate or credit to which the company is entitled.

Rates of tax payable by trustees of superannuation funds.

7. (1) The rate of tax payable by a trustee of a superannuation fund in respect of investment income of the fund in respect of which the trustee is liable, in pursuance of section 121d of the Assessment Act, to be assessed and to pay tax is 42.5 per centum.

(2) The rate of tax payable by a trustee of a superannuation fund in respect of the taxable income of the fund in respect of which the trustee is liable, in pursuance of section 121ca, 121cb or 121da of the Assessment Act, to be assessed and to pay tax is 50 per centum.

Adjustment where amount to be paid by, or refunded to, taxpayer would not exceed 49 cents.

8. (1) This section applies for the purposes of the making of an assessment of tax under this Act in respect of the income of a taxpayer of a year of income where, upon the making of the assessment and the serving of notice of the assessment upon the taxpayer, there would, but for this section, be a net amount of not more than 49 cents payable by the Commissioner to the taxpayer, or by the taxpayer to the Commissioner, under the law relating to income tax, after taking into account all liabilities of the taxpayer, and all rebates and credits allowable to the taxpayer, under that law.

(2) Where this section applies in relation to the making of an assessment—

(a) if the amount of not more than 49 cents would be an amount payable to the taxpayer—additional tax equal to that amount is imposed by this Act in respect of the income of the taxpayer of the year of income; and

(b) if the amount of not more than 49 cents would be an amount payable to the Commissioner—the amount that, but for this section, would be the amount of income tax imposed by this Act in respect of the income of the taxpayer of the year of income, before the allowance of any rebates to which the taxpayer is entitled, is reduced by so much of that amount of not more than 49 cents as does not exceed the amount calculated by deducting the amount of any such rebates from the amount that is to be so reduced.

(3) A reference in this section to a liability of the taxpayer shall be read as including a reference to a liability in respect of income tax notified to the taxpayer by the Commissioner, notwithstanding that the amount of the liability has not become due and payable.

(4) For the purposes of any calculation under the law relating to income tax that depends upon the amount of tax paid or payable by, or assessed in respect of the income of, a taxpayer, the tax assessed and payable under an assessment in relation to which this section applies shall be deemed to be the tax that would have been so assessed and payable if this section had not applied.

Levy of tax.

9. The tax imposed by the preceding provisions of this Act is levied, and shall be paid, for the financial year that commenced on 1 July 1976 and, until the Parliament otherwise provides, for the next succeeding financial year.

Act to be deemed to be the Act declaring rates of income tax.

10. For the purposes of sub-section 104(1) of the Assessment Act, this Act shall be deemed to be the Act declaring the rates of income tax payable for the financial year that commenced on 1 July 1976.

Overview

The Income Tax (Companies and Superannuation Funds) Act 1976 was enacted by the Parliament of Australia to impose income tax on the incomes of companies and superannuation funds. The Act sets out the tax rates and the manner in which these taxes are to be levied. It specifically excludes natural persons, except those acting in the capacity of trustees of superannuation funds, from its scope of taxation. The Act also delineates different tax rates for various types of companies, including non-profit companies and friendly society dispensaries, as well as trustees of superannuation funds. The policy objective of the Act is to ensure that income derived from corporate entities and superannuation funds is appropriately taxed, contributing to the revenue necessary for public services and infrastructure.

Scope and Application

The Income Tax (Companies and Superannuation Funds) Act 1976 applies to the imposition of income tax on the taxable income of companies, non-profit companies, and superannuation funds, while expressly excluding natural persons unless they are in the capacity of a trustee of a superannuation fund. This Act operates within the Commonwealth jurisdiction, impacting entities such as companies and trustees of superannuation funds across Australia. It does not apply to income tax liabilities of natural persons unless they are acting in the capacity of a trustee of a superannuation fund. The Act delineates specific tax rates for different categories of companies, including general companies, private companies, and non-profit companies, as well as trustees of superannuation funds. Notably, it exempts non-profit companies from tax if their taxable income does not exceed $416. The Act also incorporates the Income Tax Assessment Act 1936, ensuring a cohesive framework for tax imposition and assessment. Through its provisions, this Act establishes a structured approach to taxing companies and superannuation funds, ensuring that tax liabilities are managed and levied according to the specified rates and conditions outlined within the legislation.

Key Provisions

The main operative sections of the Income Tax (Companies and Superannuation Funds) Act 1976 (the "Act") define the scope of the tax imposed on incomes of companies and superannuation funds. Section 5 imposes income tax in accordance with the Act, specifying the rates of tax and the entities subject to tax. For instance, section 5(1) imposes income tax at the rates declared in the Act, while section 5(2) and (3) clarify that the Act does not impose tax on natural persons (other than trustees of superannuation funds) or companies in the capacity of trustees. Section 6 details the rates of tax payable by companies, which vary depending on whether the company is a private company, a non-profit company, or a friendly society dispensary. Similarly, section 7 specifies the rates of tax payable by trustees of superannuation funds for different types of income. Section 8 addresses the situation where the amount of tax payable would be less than 49 cents, imposing or reducing the tax accordingly. The Act imposes several obligations on the parties it governs. Companies and superannuation fund trustees must calculate their taxable income and determine the applicable tax rate, as outlined in sections 5, 6, and 7. They must then remit the appropriate tax to the Commissioner of Taxation. For example, a private company must pay tax at a rate of 42.5% on its taxable income and an additional 50% tax on any undistributed income subject to section 104 of the Assessment Act. Trustees of superannuation funds must pay tax at 42.5% on investment income and 50% on other taxable income of the fund. Furthermore, section 9 specifies the financial year for which the tax is levied, and section 10 clarifies that the Act serves as the declaration of income tax rates for the specified financial year. The Act also sets out various offences, penalties, or civil and criminal consequences for breaches. While the specific penalties are not detailed in the provided excerpt, breaches of tax laws generally result in penalties under the Income Tax Assessment Act 1936, which is incorporated by reference in section 4 of the Act. These penalties can include fines, interest on unpaid tax, and in severe cases, criminal prosecution. For instance, wilful failure to comply with tax obligations may result in criminal charges under section 285 of the Income Tax Assessment Act 1936, potentially leading to imprisonment. Additionally, section 8 ensures that minimal tax amounts are collected by imposing additional tax or reducing the tax where the amount would otherwise be less than 49 cents.

Legal classification tags

Area of Law
Taxation Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Imposition of income tax
Rates of tax payable by companies
Rates of tax payable by trustees of superannuation funds

Interactions

Authorises

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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.