Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 1983

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Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 1983

No. 106 of 1983

 

An Act to impose a tax upon incomes of companies, corporate unit trusts, superannuation funds and certain other trusts

[Assented to 23 November 1983]

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

Short title

1. This Act may be cited as the Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 1983.

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;

“corporate unit trust” means a unit trust that is a corporate unit trust within the meaning of Division 6b of Part III of the Assessment Act;


“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, net income or taxable income shall be read as a reference to investment income, net 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 121h, 126, 128b, 128n, 128t, 128v, 136a or 159c of the Assessment Act.

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

(a) a natural person, other than—

(i) a person in the capacity of a trustee of a superannuation fund;

(ii) a person in the capacity of a trustee of a corporate unit trust; or

(iii) a person in the capacity of a trustee of a trust estate, being a person who is liable to be assessed and to pay tax under sub-section 98 (3) of the Assessment Act; or

(b) a company in the capacity of a trustee, other than—

(i) a company in the capacity of a trustee of a superannuation fund;

(ii) a company in the capacity of a trustee of a corporate unit trust; or

(iii) a company in the capacity of a trustee of a trust estate, being a company that is liable to be assessed and to pay tax under sub-section 98 (3) of the Assessment Act.

(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 other than a private company 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) Where the taxable income of a non-profit company 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.

Rates of tax payable by trustees of corporate unit trusts

7. The rate of tax payable by a trustee of a corporate unit trust in respect of the net income of the corporate unit trust in respect of which the trustee is liable, in pursuance of section 102k of the Assessment Act, to be assessed and to pay tax is 46%.

Rates of tax payable by trustees of superannuation funds

8. (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 60%.

Rate of tax payable by trustee to whom sub-section 98 (3) of Assessment Act applies

9. The rate of tax payable by a trustee of a trust estate in respect of a share of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax in pursuance of sub-section 98 (3) of the Assessment Act is 46%.


Adjustment where amount payable does not exceed 49 cents

10. (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 rebate 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

11. (1) The tax imposed by this Act is levied, and shall be paid, for the financial year that commenced on 1 July 1983.

(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 1984.

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

12. 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 1983.


Instalments of tax

13. Instalments of tax are payable by a company, and by a trustee of a corporate unit trust, 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 1983.

Overview

The Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 1983 was enacted by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia to establish a framework for the imposition of income tax on companies, corporate unit trusts, and superannuation funds. The Act came into effect on the day it received Royal Assent and is designed to complement the Income Tax Assessment Act 1936. It delineates specific tax rates for different types of entities, including non-profit companies, corporate unit trusts, and superannuation funds, with certain exemptions for lower income brackets. The policy objective of this Act is to ensure that these entities contribute to the national revenue in a structured and equitable manner, aligning with broader fiscal policies of the time.

Scope and Application

The Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 1983 applies to the imposition of income tax on the incomes of companies, corporate unit trusts, superannuation funds, and certain other trusts, as defined in the Act. This Act does not apply to natural persons, except those acting as trustees of superannuation funds, corporate unit trusts, or trust estates that are liable for tax under sub-section 98 (3) of the Income Tax Assessment Act 1936. Similarly, it does not apply to companies unless they are acting as trustees of the aforementioned trusts. Notably, the Act does not impose tax on the taxable income of a non-profit company if that income does not exceed $416. The geographic reach of the Act is Commonwealth-wide, meaning it applies across Australia. The Act incorporates the Income Tax Assessment Act 1936 and sets out specific tax rates for different entities. It also includes provisions for adjustments and instalments of tax, and it is deemed to be the Act declaring the rates of income tax for the financial year commencing on 1 July 1983.

Key Provisions

The Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 1983 (C2004A02823) lays down the provisions for the imposition of income tax on companies, corporate unit trusts, and superannuation funds. According to Section 5(1), income tax is imposed under this Act at rates specified within it, while Sections 5(2) and 5(3) clarify that this Act does not apply to the income tax obligations of natural persons or companies that are not acting as trustees of superannuation funds, corporate unit trusts, or trust estates. Instead, those specific entities and capacities are subject to the Income Tax Assessment Act 1936 (Assessment Act). The Act imposes obligations on companies, corporate unit trusts, and superannuation funds, including the payment of income tax at specified rates. For instance, Section 6 outlines that companies, other than those acting as trustees, are subject to a tax rate of 46% on their taxable income. Similarly, trustees of corporate unit trusts (Section 7) and superannuation funds (Section 8) are required to pay tax at rates of 46% and varying rates between 50% and 60%, depending on the type of income being taxed. In addition to the tax rates, the Act includes provisions for the adjustment of tax liabilities where the net amount payable or receivable is less than 49 cents. Section 10 provides that in such cases, additional tax may be imposed or the tax liability may be reduced to ensure that no net amount less than 49 cents is involved. The Act also mandates the levy and payment of tax for specified financial years, as outlined in Sections 11 and 12, and requires the payment of tax instalments for the year commencing on 1 July 1983, as per Section 13. The Act further delineates the consequences for non-compliance. While the Act itself does not explicitly state penalties for breach, non-compliance with the tax obligations outlined in the Act could result in penalties under the Assessment Act, which includes provisions for both civil and criminal penalties. Civil penalties can include fines and interest on unpaid tax, while criminal penalties may involve imprisonment, depending on the severity and intent of the breach. The specific penalties and consequences would be governed by the Assessment Act and other relevant legislation.

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
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.