Income Tax (Partnerships and Trusts) Act 1969

Legislation au C1969A00074 Not in force Act

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Income Tax (Partnerships and Trusts)

No. 74 of 1969

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

[Assented to 26 September 1969]

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 1969.

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 1936–1969.

(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 Two thousand two hundred and seventy-five 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 Four thousand one hundred and twenty-one 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 or of the Territory of Christmas Island.

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-nine, and, until the Parliament otherwise provides, for the next succeeding financial year.

 

Overview

The Income Tax (Partnerships and Trusts) Act 1969 was enacted to address the need for a structured tax framework specifically targeting income derived from partnerships and trusts. This Act, assented to by the Queen on 26 September 1969, was introduced by the Parliament of Australia to impose income tax on certain types of income that would otherwise not be comprehensively covered under the general tax provisions. The policy objective of the Act is to ensure that income from partnerships and trusts is subject to appropriate taxation, thereby contributing to the national revenue while maintaining fairness and compliance with tax laws. The Act incorporates the Income Tax Assessment Act 1936-1969, ensuring a unified approach to tax imposition and administration across different forms of income.

Scope and Application

The Income Tax (Partnerships and Trusts) Act 1969 applies to partnerships, trusts, and superannuation funds, imposing income tax on their net income or taxable income. Specifically, the Act targets individuals who are liable to pay further tax as per the Income Tax Assessment Act 1936–1969, trustees of trust estates who are liable to pay further tax, and trustees of superannuation funds who are liable to be assessed and pay tax. The geographic reach of this Act is national, applying throughout the Commonwealth of Australia. The Act includes provisions for reduced tax rates for certain aged individuals who meet residency and income criteria, providing exemptions from further tax for those who have attained a specific age and whose income does not exceed certain thresholds. Additionally, the Act incorporates the Income Tax Assessment Act 1936–1969, and its application may be extended or restricted through subordinate instruments.

Key Provisions

The Income Tax (Partnerships and Trusts) Act 1969 (Act) establishes the framework for imposing income tax on certain incomes derived from partnerships and trusts. Section 1 allows the Act to be cited as the Income Tax (Partnerships and Trusts) Act 1969, while Section 2 stipulates that the Act comes into operation on the day it receives Royal Assent. Section 5 delineates the imposition of income tax on taxable incomes of individuals and entities, including the taxable income of a person liable for further tax under certain subsections of the Income Tax Assessment Act 1936–1969, the net income of a trust estate under specific conditions, and the taxable income of a superannuation fund. The obligations imposed by the Act require trustees and individuals to calculate and pay income tax at prescribed rates. For instance, Section 6 sets forth the rates of tax for various scenarios: the rate of further tax for individuals is calculated by dividing one-half of their taxable income, less any income tax that would otherwise be payable, by the number of whole dollars in that taxable income. For trustees, the rate of tax is fixed at fifty per centum for certain trust estates and superannuation funds. Additionally, Section 7 provides exemptions from further tax for certain aged individuals who meet specific residency and income criteria. In terms of penalties and consequences for breaches, the Act does not explicitly detail offences, penalties, or civil/criminal consequences for non-compliance. However, under the broader framework of the Income Tax Assessment Act 1936–1969, failure to comply with tax obligations can lead to significant penalties, including fines and potential imprisonment for serious or repeated offences. The precise penalties would depend on the nature and severity of the breach, as outlined in the relevant sections of the broader tax legislation.

Legal classification tags

Area of Law
Taxation Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Imposition of income tax
Offence Provisions
Rates of tax
Levy of tax

Interactions

Authorises

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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.