Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 1984

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Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 1984

No. 100 of 1984

 

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

[Assented to 10 October 1984]

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 1984.

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;

“ineligible approved deposit fund” means an ineligible approved deposit fund within the meaning of Division 9b 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;

“registered organization” means a registered organization within the meaning of Division 8a of Part III of the Assessment Act;

“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;

(iii) a person in the capacity of a trustee of an ineligible approved deposit fund; or

(iv) 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;

(iii) a company in the capacity of a trustee of an ineligible approved deposit fund; or


(iv) 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, not being a registered organization, 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 registered organization,

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 company that is a registered organization is 20%.

(5) Where the taxable income of a non-profit company, not being a registered organization, 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 121ca 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 30%.


(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%.

(4) 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 121dab of the Assessment Act, to be assessed and to pay tax is 46%.

Rate of tax payable by trustees of ineligible approved deposit funds

9. The rate of tax payable by a trustee of an ineligible approved deposit fund in respect of the taxable income of the fund in respect of which the trustee is liable, in pursuance of section 121daa of the Assessment Act, to be assessed and to pay tax is 46%.

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

10. 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

11. (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

12. (1) The tax imposed by this Act is levied, and shall be paid, for the financial year that commenced on 1 July 1984.

(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 1985.

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

13. 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 1984.

Instalments of tax

14. 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 1984.

Overview

The Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 1984 was enacted to impose a tax upon the incomes of companies, corporate unit trusts, and superannuation funds, as well as certain other trusts. This legislation was introduced to address the need for a specific tax regime that applies to these entities, distinct from the general provisions under the Income Tax Assessment Act 1936. Enacted by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia, the Act was designed to ensure that these entities are appropriately taxed according to their respective income structures and types. The policy objective of this Act is to provide clear and specific tax rates for the income of companies, corporate unit trusts, superannuation funds, and other specified entities, thereby creating a more streamlined and effective taxation system for these specific types of income.

Scope and Application

The Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 1984 applies to income taxes of companies, corporate unit trusts, superannuation funds, and certain other trusts, specifically excluding natural persons unless they are in the capacity of a trustee of a superannuation fund, corporate unit trust, ineligible approved deposit fund, or trust estate liable to be assessed and to pay tax under sub-section 98 (3) of the Income Tax Assessment Act 1936. The Act imposes income tax on these entities according to the rates specified within its provisions, with particular tax rates set for companies, private companies, registered organizations, trustees of corporate unit trusts, and trustees of superannuation funds, as well as trustees of ineligible approved deposit funds. Notably, the Act excludes non-profit companies, not being registered organisations, from tax if their taxable income does not exceed $416. The Act is incorporated with the Income Tax Assessment Act 1936, and its provisions apply nationally within the Commonwealth of Australia. The Act's application may be extended or restricted through subordinate instruments as provided by Parliament.

Key Provisions

The main operative sections of the Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 1984 (the "Act") are sections 5 to 14, which detail the imposition of income tax, the rates of tax payable by various entities, and the levy of tax. Section 5 imposes income tax in accordance with the Act at rates declared within it, but excludes certain natural persons and companies from its scope. Sections 6 to 10 detail the specific rates of tax payable by companies, trustees of corporate unit trusts, trustees of superannuation funds, and trustees of ineligible approved deposit funds. Section 11 adjusts the tax payable where the net amount is 49 cents or less. Section 12 specifies the financial year for which the tax is levied and paid, and section 13 provides that the Act is considered the Act declaring the rates of income tax for the specified financial year. Section 14 details the instalments of tax payable by companies and trustees of corporate unit trusts. The Act imposes several obligations on the entities it governs. Companies, corporate unit trusts, superannuation funds, and ineligible approved deposit funds are required to pay income tax at the rates specified in sections 6 to 10 of the Act. Trustees of these entities must ensure that the appropriate amount of tax is calculated and paid in accordance with the rates specified. The Act also mandates that companies and trustees of corporate unit trusts make instalments of tax as required by Division 1a of Part VI of the Income Tax Assessment Act 1936. The Act includes provisions for offences, penalties, and civil or criminal consequences for breaches. While the Act itself does not explicitly state penalties for non-compliance, the Income Tax Assessment Act 1936 (the "Assessment Act") includes various penalties for breaches of tax laws. For example, section 286 of the Assessment Act provides for penalties for failing to lodge a tax return, with a penalty of 5% of the tax payable for each month the return is late, up to a maximum of 20%. Section 287 imposes a penalty of 50% of the amount of tax that remains unpaid for each month the tax is not paid, up to a maximum of 25%. Additionally, section 284 of the Assessment Act allows the Commissioner of Taxation to issue a notice of assessment, and failure to pay the tax assessed can lead to enforcement actions, including garnishee notices, seizure of assets, and prosecution for serious breaches.

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

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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.