Income Tax (Partnerships and Trusts) Act 1967

Legislation au C1967A00078 Not in force Act

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Income Tax (Partnerships and Trusts)

No. 78 of 1967

An Act to impose a Tax upon certain Income derived from Partnerships and Trusts.

[Assented to 6 November 1967]

BE it enacted by the Queen’s Most Excellent Majesty, 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 (Partnerships and Trusts) Act 1967.

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—

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

“tax” means income tax referred to in section 5 of this Act;


“the Assessment Act” means the Income Tax Assessment Act 1936–1967.

(2.) A reference in this Act 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. Income tax is imposed in accordance with this Act, and at the rates, declared in this Act, upon—

(a) the taxable income of a person in respect of which the person is liable, in pursuance of sub-section (9.) of section 94 of the Assessment Act, to pay further tax;

(b) the net income of a trust estate in respect of which the trustee is liable, in pursuance of sub-section (11.) or sub-section (12.) of section 94 of the Assessment Act, to pay further tax;

(c) the net income of a trust estate in respect of which the trustee is liable, in pursuance of section 99a of the Assessment Act, to be assessed and to pay tax; and

(d) the taxable income of a superannuation fund in respect of which the trustee of the fund is liable, in pursuance of section 121ca, section 121cb or section 121da of the Assessment Act, to be assessed and to pay tax.

Rates of tax.

6.—(1.) The rate of further tax payable by a person in pursuance of sub-section (9.) of section 94 of the Assessment Act is such amount, if any per dollar as is ascertained by dividing an amount equal to one-half of the taxable income of the person, less the amount of income tax, if any, that, but for this Act and but for any rebate or credit to which the person is entitled, would be payable by the person, by a number equal to the number of whole dollars in that taxable income.

(2.) The rate of further tax payable by a trustee in pursuance of sub-section (11.) or sub-section (12.) of section 94 of the Assessment Act is such amount, if any, per dollar as is ascertained by dividing an amount equal to one-half of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 or section 99 of that Act, less the amount of income tax, if any, that, but for this Act and but for any rebate or credit to which the trustee is entitled, would be payable by the trustee in respect of that net income, by a number equal to the number of whole dollars in that net income.

(3.) The rate of tax payable by a trustee in respect of the net income of the trust estate in respect of which the trustee is liable, in pursuance of section 99a of the Assessment Act, to be assessed and to pay tax is fifty per centum.

(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 121ca, section 121cb or section 121da of the Assessment Act, to be assessed and to pay tax is fifty per centum.


Further tax under section 94 of Assessment Act not payable by certain aged persons.

7.—(1.) This section applies to a taxpayer who—

(a) being a man, has attained the age of sixty-five years, or, being a woman, has attained the age of sixty years, on or before the last day of the year of income; and

(b) is a resident of Australia during the whole of the year of income, but does not apply to a taxpayer in the capacity of a trustee.

(2.) Where the taxable income of a taxpayer to whom this section applies does not exceed One thousand four hundred and fifty-one dollars, no further tax is payable by him in pursuance of sub-section (9.) of section 94 of the Assessment Act.

(3.) Where the taxable income of a taxpayer to whom this section applies does not exceed Three thousand two hundred and eighty-seven dollars and during the year of income the taxpayer contributes to the maintenance of his spouse, being a person who is a resident of Australia during the whole of the year of income, no further tax is payable by the taxpayer in pursuance of sub-section (9.) of section 94 of the Assessment Act.

(4.) In this section, “resident of Australia” includes a person who is a resident of the Territory of Papua and New Guinea, of Norfolk Island, of the Territory of Cocos (Keeling) Islands, of the Territory of Christmas Island or of the Territory of Nauru.

Levy of tax.

8. The tax imposed by this Act is levied, and shall be paid, for the financial year that commenced on the first day of July, One thousand nine hundred and sixty-seven, and, until the Parliament otherwise provides, for the next succeeding financial year.

 

Overview

The Income Tax (Partnerships and Trusts) Act 1967 was enacted by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia to address the need for a specific legislative framework governing the imposition of income tax on partnerships and trusts. This Act, which came into operation on the day it received Royal Assent, integrates with the Income Tax Assessment Act 1936–1967, ensuring a cohesive approach to tax regulation across different forms of income. The primary objective of this Act is to establish clear guidelines for the imposition and rates of income tax on the taxable income of individuals, trustees of trust estates, and trustees of superannuation funds. It aims to ensure that tax liabilities are accurately assessed and collected in accordance with the provisions set forth within the Act. The Income Tax (Partnerships and Trusts) Act 1967 also provides exemptions for certain aged taxpayers, stipulating that further tax under section 94 of the Assessment Act is not payable by individuals who meet specific age and residency criteria, as well as conditions related to their taxable income and contributions to their spouse's maintenance. This Act ensures that the tax system is fair and considers the unique circumstances of various taxpayers, including those managing partnerships and trusts.

Scope and Application

The Income Tax (Partnerships and Trusts) Act 1967 applies to certain entities and individuals, specifically targeting the taxable income of persons, net income of trust estates, and taxable income of superannuation funds. This Act imposes further income tax upon these entities and individuals, aligning with the rates declared within the Act. The application is governed by the Income Tax Assessment Act 1936–1967, which is incorporated into this Act, treating them as a single entity. The Act operates at a Commonwealth level, imposing tax at rates determined by the provisions outlined in the Act, which includes specific tax rates for superannuation funds and certain trusts. Exemptions and thresholds are outlined within the Act, such as the exemption from further tax for aged persons under certain income thresholds. The Act extends its application through subordinate instruments, allowing for adjustments and further clarifications as needed to ensure compliance and effectiveness in taxing the specified incomes.

Key Provisions

The Income Tax (Partnerships and Trusts) Act 1967 (the Act) imposes income tax on certain types of income derived from partnerships and trusts. The Act specifically targets the taxable income of individuals and entities in certain circumstances, as outlined in sections 5 and 6. For example, section 5(a) imposes tax on the taxable income of a person who is liable to pay further tax under subsection (9) of section 94 of the Income Tax Assessment Act 1936-1967. Similarly, section 5(b) imposes tax on the net income of a trust estate where the trustee is liable to pay further tax under subsections (11) or (12) of section 94 of the same Assessment Act. The Act also imposes specific obligations on taxpayers, trustees, and superannuation fund trustees. For instance, section 5 mandates that income tax is to be imposed at the rates declared in the Act on the taxable income of individuals, the net income of trust estates, and the taxable income of superannuation funds under certain conditions. Section 6 provides detailed rates for these taxes, with different rates applying depending on the entity involved and the specific circumstances of the income. Additionally, section 7 exempts certain aged individuals from paying further tax if their income falls below specified thresholds, provided they meet residency requirements. Failure to comply with the obligations and requirements set out in the Act may result in civil or criminal penalties. While the Act does not explicitly outline specific penalties, breaches of income tax laws generally attract penalties under the Income Tax Assessment Act 1936, which could include fines, imprisonment, or both. For example, wilful neglect or reckless disregard in the preparation of tax returns could lead to fines of up to $1,950 or imprisonment for up to six months, or both. Furthermore, penalties for fraudulent behaviour or tax evasion could be significantly more severe, potentially involving substantial fines and lengthy prison sentences. In summary, the Income Tax (Partnerships and Trusts) Act 1967 imposes income tax on specific types of income derived from partnerships and trusts, with particular rates and exemptions outlined in the Act. It mandates certain obligations on individuals, trustees, and fund trustees, and failure to comply could result in penalties under related tax legislation.

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Area of Law
Taxation Law
Instrument
Act
Concepts
Definitions & Interpretation
Imposition of income tax
Rates 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.