Income Tax (Individuals) Act 1983

Legislation au C2004A02822 Not in force Act

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No. 105 of 1983

An Act to impose a tax upon incomes, other than incomes of companies, of corporate unit trusts, of superannuation funds and of 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 (Individuals) 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;

“superannuation fund” means a provident, benefit, superannuation or retirement fund.

(2) In this Act, a reference to taxable income shall be read as a reference to taxable income 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 relevant rates declared by the Income Tax (Rates) Act 1982.

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

(a) a company (other than a company in the capacity of a trustee);

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

(d) 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.

(3) This Act does not impose tax payable in accordance with section 121h, 126, 128b, 128n, 128t, 128v, 136a or 159c of the Assessment Act.

Adjustment where amount to be paid by, or refunded to, taxpayer would not exceed 49 cents

6. (1) This section applies for the purposes of the making of an assessment of tax (other than further tax payable in pursuance of sub-section 94 (9), (11) or (12) of the Assessment 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 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 sum of the amount that is to be so reduced and any amount of further tax payable by the taxpayer in respect of that year of income in pursuance of sub-section 94 (9), (11) or (12) of the Assessment Act.

(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 or provisional 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

7. The tax imposed by sub-section 5 (1) is levied, and shall be paid, for the financial year that commenced on 1 July 1983 and, until the Parliament otherwise provides, for the next succeeding financial year.

Provisional tax

8. 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 that commenced on 1 July 1983.

Act to be deemed to be the Act imposing income tax

9. 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 that commenced on 1 July 1983.

Overview

The Income Tax (Individuals) Act 1983 was enacted to establish the framework for imposing income tax on individuals, excluding certain entities such as companies, corporate unit trusts, superannuation funds, and trustees of specific trusts. This Act was passed by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia to address the need for a comprehensive tax system targeting individual income. It aims to ensure that individual taxpayers contribute to the national revenue through a structured tax regime while exempting certain entities as defined. The Act integrates with the Income Tax Assessment Act 1936, facilitating a cohesive approach to income tax regulation and enforcement. The policy objective is to provide a clear legislative foundation for the imposition of income tax on individuals, promoting equitable tax contributions and financial stability.

Scope and Application

The Income Tax (Individuals) Act 1983 applies to individuals who are subject to income tax, with exceptions for corporate entities, superannuation funds, corporate unit trusts, and certain trustees. The act imposes income tax on individual taxpayers, excluding companies, certain trustees of superannuation funds and corporate unit trusts, and other specified categories. It is applicable on a Commonwealth level, and its provisions are intended to regulate the imposition of income tax on individual taxpayers for the financial year starting on 1 July 1983. The act does not impose tax on certain categories of income as specified in sections 121h, 126, 128b, 128n, 128t, 128v, 136a, and 159c of the Income Tax Assessment Act 1936. The application and enforcement of the act can be further defined and extended through subordinate instruments or regulations.

Key Provisions

The Income Tax (Individuals) Act 1983 (the "Act") lays out the framework for imposing income tax on individuals, excluding certain entities like companies and superannuation funds. Section 5 establishes the imposition of income tax on individual incomes at the rates declared by the Income Tax (Rates) Act 1982, while Section 7 specifies that this tax is levied for the financial year commencing 1 July 1983 and subsequent years until Parliament specifies otherwise. The Act clarifies in Section 5(2) that it does not apply to companies (except when acting as a trustee), trustees of superannuation funds, trustees of corporate unit trusts, or trustees of trusts already liable to tax under the Income Tax Assessment Act 1936. Additionally, Section 5(3) exempts certain types of tax liabilities outlined in specific subsections of the Assessment Act. The Act imposes several obligations on taxpayers, including the requirement to declare their income and calculate their tax liability in accordance with the provisions set out in the Assessment Act, which is incorporated into this Act by Section 4. This means taxpayers must ensure that their income is accurately reported, and all applicable rebates and credits are claimed. Section 6 introduces a provision to adjust assessments where the net amount payable or receivable would be 49 cents or less, preventing administrative burdens for small discrepancies. Breaching the obligations imposed by this Act can lead to civil and criminal consequences. Under the Assessment Act, which governs the enforcement and penalties for non-compliance with the Income Tax (Individuals) Act 1983, penalties can include fines and imprisonment for serious or persistent non-compliance. The maximum penalties vary depending on the nature and severity of the breach, with potential fines reaching significant amounts for wilful neglect or fraud. Furthermore, the Act may deem certain actions, such as underreporting income or failing to report income correctly, as offences that can result in legal action against the taxpayer.

Area of Law: Taxation Law
Instrument: Act
Concepts: Definitions & Interpretation; Commencement Provisions; Imposition of income tax; Adjustment where amount to be paid by, or refunded to, taxpayer would not exceed 49 cents; Levy of tax; Provisional tax

Interactions

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.

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