Income Tax (Companies and Superannuation Funds) Act 1977

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INCOME TAX (COMPANIES AND SUPERANNUATION FUNDS) ACT 1977

No. 130 of 1977

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 1977.

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 or 136a 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 non-profit 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 46 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—46 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 41 per centum.

(5) Where the taxable income of a non-profit company other than a friendly society dispensary does not exceed $2,542, 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 $2,311, 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 the taxable income of the fund in respect of which the trustee is liable, in pursuance of section 121ca or 121cb of the Assessment Act, to be assessed and to pay tax is 50 per centum.

(2) 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 46 per centum.

(3) 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 121da of the Assessment Act, to be assessed and to pay tax is 54.17 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. (1) The tax imposed by this Act is levied, and shall be paid, for the financial year that commenced on 1 July 1977.

(2) Until the Parliament otherwise provides, the tax imposed by this Act is also levied, and shall be paid, for the financial year commencing on 1 July 1978.

(3) For the purposes of its application in accordance with subsection (2), this Act has effect as if the reference in sub-section 7(3) to 54.17 per centum were a reference to 60 per centum.

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 1977.

Instalments of tax

11. Instalments of tax are payable by a company, in accordance with the provisions of Division 1a of Part VI of the Assessment Act, in respect of the year of income that commenced on 1 July 1977.

 

Overview

The Income Tax (Companies and Superannuation Funds) Act 1977 was enacted to impose income tax on the incomes of companies and superannuation funds. This Act, which came into operation upon receiving Royal Assent, aims to fill the legislative gap in taxing corporate entities and superannuation funds specifically. Enacted by the Queen, in accordance with the Senate and House of Representatives of the Commonwealth of Australia, the primary objective of the Act is to ensure that companies and superannuation funds contribute to the national revenue through income tax, at rates distinct from those applied to individual taxpayers. The Act incorporates the Income Tax Assessment Act 1936, thereby integrating and streamlining tax imposition and assessment processes for the specified entities, while exempting natural persons and companies acting as trustees of superannuation funds, except in their capacity as trustees, from its tax impositions.

Scope and Application

The Income Tax (Companies and Superannuation Funds) Act 1977 applies to the imposition of income tax on the incomes of companies and superannuation funds, with specific rates and conditions for various categories of companies and funds. This Act does not apply to natural persons, except when they act as trustees of superannuation funds, nor does it apply to companies in the capacity of trustees unless they are trustees of superannuation funds. Notably, non-profit companies are subject to taxation only if their taxable income exceeds $416. The Act sets specific tax rates for different types of companies, including those that are private, non-profit, or friendly society dispensaries, as well as for trustees of superannuation funds, depending on the nature of the fund's income. Additionally, the Act provides for adjustments in tax assessments where the amount payable or receivable would be 49 cents or less, and it includes provisions for the levy and payment of tax for specific financial years. The scope of the Act is broad, applying nationally across Australia, and its provisions are incorporated with the Income Tax Assessment Act 1936.

Key Provisions

The Income Tax (Companies and Superannuation Funds) Act 1977 primarily concerns the imposition and rates of income tax on companies and superannuation funds (ss 1–11). It specifies the rates of income tax applicable to different types of entities, including companies (s 6), non-profit companies (s 6), and trustees of superannuation funds (s 7). It also provides for an adjustment to tax assessments where the net amount payable or receivable would otherwise be less than 49 cents (s 8). The Act further outlines the levy of tax for specific financial years and the instalments of tax (ss 9–11). The Act imposes several obligations on the entities it governs. Companies are required to pay income tax at specified rates, depending on whether they are private companies, non-profit companies, or other types of companies (s 6). Trustees of superannuation funds must also pay income tax at specified rates, depending on the nature of the income (s 7). Additionally, the Act mandates the payment of instalments of tax for companies, in accordance with the Assessment Act (s 11). Breaches of the provisions of this Act can lead to various civil and criminal consequences. Although the specific offences, penalties, and consequences are not detailed in the provided excerpt, it is common under Australian tax legislation for penalties to include fines and imprisonment for serious or repeated breaches. The penalties may vary depending on the nature and severity of the breach, but typically, the maximum penalties for tax evasion or fraudulent behaviour can be substantial, including significant fines and imprisonment terms.

Legal classification tags

Area of Law
Taxation Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Offence Provisions
Rates of Tax
Adjustment of Tax Amounts
Levy of Tax

Interactions

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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.