INCOME TAX (INDIVIDUALS) ACT 1976
No. 58 of 1976
An Act to impose a tax upon Incomes, other than Incomes of Companies and of 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 (Individuals) Act 1976.
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 1936-1976;
“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 net income or taxable income shall be read as a reference to 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 by the Income Tax (Rates) Act 1976.
(2) This Act does not impose tax payable by—
(a) a company (other than a company in the capacity of a trustee); or
(b) a person in the capacity of a trustee of a superannuation fund.
(3) This Act does not impose tax payable in accordance with section 128b of the Assessment Act.
(4) This Act does not impose tax (other than further tax payable in pursuance of sub-section 94(9), (11) or (12) of the Assessment Act)—
(a) upon—
(i) a taxable income derived by a person; or
(ii) the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 of the Assessment Act, where that income does not exceed $1,040; or
(b) upon the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 99 of the Assessment Act, where that income does not exceed $416.
Levy of tax.
6. The tax imposed by the preceding provisions of this Act is levied, and shall be paid, for the financial year commencing on 1 July 1976 and, until the Parliament otherwise provides, for the next succeeding financial year.
Provisional tax.
7. Provisional tax is imposed and is payable, in accordance with the provisions of the Assessment Act, in respect of the income of the year of income commencing on 1 July 1976.
Act to be deemed to be the Act imposing income tax.
8. For the purposes of sub-section 221yb(3) of the Assessment Act, this Act shall be deemed to be the Act imposing income tax upon taxable income of the financial year commencing on 1 July 1976.
Overview
The Income Tax (Individuals) Act 1976 was enacted to impose a tax on individual incomes, excluding those of companies and superannuation funds. This Act was brought into force to fill the gap in taxation laws that specifically targeted the income tax obligations of individuals, distinct from corporate entities and superannuation funds. The Act was enacted by the Parliament of Australia, with a clear objective to delineate and enforce income tax liabilities for individuals in a structured manner. It incorporates the Income Tax Assessment Act 1936-1976, ensuring that the provisions of both Acts are read and applied together. This legislation ensures that income tax is levied according to the rates specified in the Income Tax (Rates) Act 1976, thereby providing a clear framework for taxing individual incomes.
Scope and Application
The Income Tax (Individuals) Act 1976 applies to individuals, excluding companies and trustees of superannuation funds, who derive taxable income within the Commonwealth of Australia. This legislation imposes income tax at rates declared by the Income Tax (Rates) Act 1976, with the tax being levied for the financial year commencing on 1 July 1976. The Act incorporates the provisions of the Income Tax Assessment Act 1936-1976, ensuring a cohesive framework for tax imposition and assessment. Notably, the Act exempts certain low-income trusts and specific types of income, such as those exceeding $1,040 or $416, depending on the context, from tax liability. The application of the Act can be extended or restricted through subordinate instruments as necessary to adapt to changes in economic conditions or tax policy.
Key Provisions
The Income Tax (Individuals) Act 1976 (sections 5 and 6) imposes income tax on individuals at rates declared in the Income Tax (Rates) Act 1976, for the financial year commencing on 1 July 1976. This Act does not apply to companies or superannuation funds, except where a company acts as a trustee or in specific circumstances involving trust estates with incomes below certain thresholds (section 5(2)-(4)). The tax is levied and must be paid for the specified financial year and the subsequent year unless otherwise directed by Parliament (section 6).
Entities and individuals governed by this Act must comply with its provisions, including declaring their income and paying the imposed tax. Individuals and trustees of certain trust estates are required to ensure that their taxable income and net income do not exceed the specified thresholds to avoid tax liability under this Act (section 5). Additionally, provisional tax must be paid in accordance with the Assessment Act for income starting from 1 July 1976 (section 7).
Breach of the obligations under this Act can lead to significant consequences. Individuals or entities failing to declare income or pay tax as required may face civil or criminal penalties. While the specific penalties are not detailed in this Act, they would generally include fines or imprisonment, in accordance with the broader tax legislation and applicable laws governing tax offenses in Australia.