Income Tax (Individuals) Act 1984

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Income Tax (Individuals) Act 1984

No. 99 of 1984

 

An Act to impose a tax upon incomes, other than 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 (Individuals) 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;


“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;

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

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

(e) 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 1984 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 1984.

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 1984.

 

Overview

The Income Tax (Individuals) Act 1984 was enacted to impose income tax on individuals, excluding entities such as companies, corporate unit trusts, superannuation funds, and certain other trusts. The Act was assented to on 10 October 1984 and was enacted by the Queen, with the Senate and House of Representatives of the Commonwealth of Australia. The primary policy objective of this legislation is to ensure that individual taxpayers contribute to the national revenue through income tax, with the intention of funding public services and infrastructure. The Act incorporates the Income Tax Assessment Act 1936, thereby providing a comprehensive framework for the assessment and collection of income tax from individuals. It aims to address the gap in tax legislation specifically targeting individual taxpayers, ensuring a consistent and systematic approach to income taxation within the broader tax system.

Scope and Application

The Income Tax (Individuals) Act 1984 applies to individuals who are liable to pay income tax on their taxable income, excluding those who are taxed under other specific acts such as companies, corporate unit trusts, superannuation funds, and certain other trusts. This Act imposes income tax on individuals in accordance with the rates declared by the Income Tax (Rates) Act 1982, but it excludes individuals acting in certain capacities, such as trustees of superannuation funds, corporate unit trusts, and ineligible approved deposit funds. Additionally, the Act does not impose tax under specific sections of the Income Tax Assessment Act 1936. Geographically, the Act operates within the Commonwealth of Australia, imposing income tax for the financial year commencing on 1 July 1984, and any subsequent years until the Parliament otherwise provides. The Act also includes a provision to adjust tax assessments where the net amount payable would be 49 cents or less, and it incorporates the Income Tax Assessment Act 1936 to ensure comprehensive coverage of tax liabilities and obligations.

Key Provisions

The Income Tax (Individuals) Act 1984 (the "Act") primarily serves to impose income tax on individuals, with certain exclusions. Section 5(1) of the Act states that income tax is imposed in accordance with the Act at the rates declared by the Income Tax (Rates) Act 1982. Notably, Section 5(2) excludes from this tax companies (except when acting as trustees), trustees of superannuation funds, trustees of corporate unit trusts, trustees of ineligible approved deposit funds, and trustees of other trust estates who are already liable for tax under the Assessment Act. The Act also outlines specific instances where it does not impose tax, such as under certain sections of the Assessment Act mentioned in Section 5(3). Under Section 6, the Act provides for an adjustment where the amount to be paid by or refunded to the taxpayer would not exceed 49 cents. This means that if, after all calculations, the amount due is less than 50 cents, the taxpayer will either be charged an additional tax of 49 cents (if the taxpayer owes money) or the tax due will be reduced by up to 49 cents (if the taxpayer is owed a refund). This ensures that small amounts do not go uncollected or unrefunded. The obligations imposed by the Act on taxpayers primarily revolve around the accurate reporting and payment of income tax. Taxpayers must ensure that their income is correctly reported in their tax returns, and any provisional tax obligations are met as per the Assessment Act. The Act also mandates the payment of tax for the financial year that commenced on 1 July 1984, as outlined in Section 7. Additionally, taxpayers must adhere to the provisional tax provisions detailed in Section 8. For breaches of the Act, the consequences can include both civil and criminal penalties. While specific penalties are not detailed in the sections provided, the Assessment Act, which is incorporated by reference, typically includes provisions for penalties for late or incorrect tax returns, failure to pay tax, and other breaches. These penalties can range from fines to more severe legal consequences, depending on the nature and severity of the breach. The maximum penalties are generally outlined in the Assessment Act, which is incorporated into this Act as per Section 4.

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Area of Law
Taxation Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Offence Provisions
Imposition of Tax

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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.