Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Amendment Act 1983
No. 17 of 1983
An Act to amend the Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 1982
[Assented to 14 June 1983]
BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:
Short title, &c.
1. (1) This Act may be cited as the Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Amendment Act 1983.
(2) The Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 19821 is in this Act referred to as the Principal Act.
Commencement
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Imposition of income tax
3. Section 5 of the Principal Act is amended by omitting sub-section (3) and substituting the following sub-section:
“(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. After section 8 of the Principal Act the following section is inserted:
Rate of tax payable by trustee to whom sub-section 98 (3) of Assessment Act applies
“8a. 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%.”.
NOTE
1. No. 102, 1982.
Overview
The Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Amendment Act 1983 was enacted by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia to amend the Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 1982. The primary problem this legislation aimed to address was the need to clarify and adjust the imposition of income tax on certain trustees, particularly those of superannuation funds, corporate unit trusts, and trust estates. By amending the Principal Act, this legislation sought to ensure that income tax is imposed appropriately on trustees in specific capacities while exempting natural persons and companies in other capacities from such tax obligations. The policy objective was to provide a clear and precise framework for the taxation of these entities, reflecting the legislative intent to maintain fiscal responsibility and fairness in the taxation system.
Scope and Application
The Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Amendment Act 1983 applies specifically to the imposition of income tax on entities such as companies, corporate unit trusts, and superannuation funds, as well as individuals acting in their capacity as trustees of these entities. The Act amends the Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 1982 by clarifying that it does not impose tax on natural persons or companies, except when they act as trustees of superannuation funds, corporate unit trusts, or trust estates liable to be assessed and taxed under the Assessment Act 1936. This amendment ensures that the tax obligations are limited to trustees in specific capacities, exempting ordinary individuals and companies not involved in such trustee roles. The Act has a Commonwealth reach, governing tax imposition and rates across Australia, and it commenced upon receiving Royal Assent. The Act also introduces a specific tax rate of 46% for trustees of trust estates subject to certain tax liabilities under the Assessment Act.
Key Provisions
The main operative sections of the Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Amendment Act 1983 (Act) amend the Income Tax (Companies, Corporate Unit Trusts and Superannuation Funds) Act 1982 (Principal Act) to modify the imposition of income tax. Specifically, section 3 of the Act changes the sub-section (3) of section 5 of the Principal Act to clarify that the Act does not impose tax payable by natural persons or companies in the capacity of a trustee, except for certain trustees of superannuation funds, corporate unit trusts, and trust estates. The Act also introduces section 8a, which sets the rate of tax at 46% for trustees of trust estates who are liable to be assessed and to pay tax under sub-section 98 (3) of the Assessment Act.
The Act imposes several obligations and requirements on the parties it governs. Trustees of superannuation funds, corporate unit trusts, and trust estates that are liable to be assessed and to pay tax under sub-section 98 (3) of the Assessment Act must now comply with the specified tax rate of 46% as per section 8a of the Principal Act, as amended. This amendment ensures that these trustees are subject to a distinct tax rate that differentiates them from other natural persons or companies who might be trustees.
Breaches of the provisions contained within this Act could lead to civil or criminal consequences. While the Act does not explicitly detail penalties for non-compliance, failure to adhere to the specified tax rates or obligations could result in penalties under the broader tax laws of Australia, including the Income Tax Assessment Act 1997. The penalties for non-compliance with tax laws can include fines and, in severe cases, imprisonment, depending on the nature and extent of the breach. The specific penalties would be determined according to the general tax legislation, which may impose fines or imprisonment terms commensurate with the seriousness of the offence.