Income Tax (Companies and Superannuation Funds) Act 1979

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Income Tax (Companies and Superannuation Funds) Act 1979

No. 152 of 1979

An Act to impose a tax upon income 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 1979.

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, 128t, 128v 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%.

(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%; 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%.

(4) The rate of tax in respect of the taxable income of a non-profit company that is a friendly society dispensary is 41%.

(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% 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% 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%.

(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%.

(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 61.07%.


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 1979.

(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 1980.

(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 61.07% were a reference to 60%.

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 1979.

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 1979.

Overview

The Income Tax (Companies and Superannuation Funds) Act 1979 was enacted by the Queen, with the concurrence of the Senate and House of Representatives of the Commonwealth of Australia, to impose income tax on companies and superannuation funds. The primary objective of this Act is to clarify and consolidate the tax obligations of companies and superannuation funds, providing a specific legislative framework for their taxation. The Act delineates the rates of income tax applicable to different types of companies, including private companies, non-profit companies, and friendly society dispensaries, as well as to trustees of superannuation funds. It incorporates the Income Tax Assessment Act 1936, ensuring a unified approach to the interpretation and application of tax laws in these areas. The Act aims to streamline the tax processes for these entities, ensuring compliance with the established tax rates and providing clear guidelines for tax assessments and payments.

Scope and Application

The Income Tax (Companies and Superannuation Funds) Act 1979 applies to companies and superannuation funds, imposing a tax on their income. The Act does not apply to the income of natural persons, except when they act in the capacity of a trustee of a superannuation fund, nor does it apply to companies acting in that capacity. The tax is levied at various rates depending on the type of entity and its income. For companies that are not private or non-profit companies (which are further defined in the Act), the tax rate is 46%. For private companies, the tax rate is also 46% on taxable income, with an additional 50% tax on undistributed amounts. Non-profit companies, excluding friendly society dispensaries, face a maximum tax rate of 55% on income exceeding a specified threshold, while friendly society dispensaries have a maximum tax rate of 50% on income over the same threshold. Trustees of superannuation funds are subject to different rates depending on the type of income they manage, with rates ranging from 46% to 61.07%. The Act also incorporates the Income Tax Assessment Act 1936 and specifies that the tax is levied for financial years starting from 1 July 1979, with an additional year at a different rate specified in the Act. The Act extends to the Commonwealth of Australia and includes provisions for adjustments to tax liabilities where the amount would be 49 cents or less.

Key Provisions

The Income Tax (Companies and Superannuation Funds) Act 1979 (sections 1-11) primarily imposes income tax on the taxable income of companies and superannuation funds. This Act does not apply to natural persons (unless they are trustees of a superannuation fund) or companies in the capacity of a trustee, unless they are trustees of a superannuation fund. Section 4 incorporates the Income Tax Assessment Act 1936 into this Act, ensuring that both Acts are read as one. The Act outlines specific tax rates for various types of companies and superannuation funds. For instance, companies (other than those acting as trustees) are taxed at 46% unless they are private companies or non-profit companies that are friendly society dispensaries, in which case the rates differ (section 6). Trustees of superannuation funds face different tax rates depending on the type of income: 50% for taxable income, 46% for investment income, and 61.07% for certain other income (section 7). The Act also includes provisions for adjusting assessments where the net amount payable would be 49 cents or less (section 8), and it specifies the levy of tax for financial years starting from 1 July 1979 (section 9). Additionally, it deems itself as the Act declaring the rates of income tax for the financial year starting on 1 July 1979 (section 10) and mandates instalments of tax for companies for the year starting on 1 July 1979 (section 11). The Act imposes several obligations on the entities it governs. Companies and superannuation funds must calculate their taxable income according to the definitions and rates provided in the Act and the Assessment Act. They must ensure that they comply with the specified tax rates for their type and nature of income. Companies and superannuation funds are required to file their tax assessments and pay their taxes in accordance with the provisions of the Assessment Act. Trustees of superannuation funds must also ensure that they are correctly categorising the types of income they hold and applying the appropriate tax rates as outlined in section 7. Further, the Act requires that any net amount payable or receivable by the Commissioner or taxpayer, which would otherwise be 49 cents or less, is adjusted to avoid such a small amount being due (section 8). Breaching the provisions of the Income Tax (Companies and Superannuation Funds) Act 1979 can lead to various penalties and consequences. While the Act does not explicitly detail offences or penalties, breaches of tax laws generally result in civil or criminal penalties under the Assessment Act. Civil penalties may include fines and interest on unpaid taxes, while criminal penalties may include fines and imprisonment for serious or repeated breaches. The exact penalties would depend on the nature and severity of the breach, as outlined in the Assessment Act. The Act's incorporation of the Assessment Act implies that the latter's provisions on penalties and enforcement apply equally to the entities governed by this Act.

Legal classification tags

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

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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.