Income Tax (Partnerships and Trusts) Act 1970

Legislation au C1970A00089 Not in force Act

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Income Tax (Partnerships and Trusts)

No. 89 of 1970

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

[Assented to 27 October 1970]

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 1970.

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—1970.

(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-three 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 two 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 seventy, and, until the Parliament otherwise provides, for the next succeeding financial year.

Overview

The Income Tax (Partnerships and Trusts) Act 1970 was enacted by the Parliament of Australia to address the need for specific tax regulations on income derived from partnerships and trusts. This Act was designed to ensure that income from these sources is appropriately taxed, complementing the broader framework provided by the Income Tax Assessment Act 1936–1970. By incorporating the Assessment Act, this legislation aimed to streamline tax imposition on partnerships, trusts, and superannuation funds. The policy objective was to create a coherent and unified tax system that would accurately reflect the income derived from these entities and ensure equitable tax distribution. This Act was introduced to address gaps in the existing tax laws, particularly concerning the taxation of partnership and trust incomes, which were not fully covered under the general provisions of the Income Tax Assessment Act. By specifically targeting these income sources, the Act aimed to provide clarity and precision in tax obligations, thereby enhancing the efficiency and fairness of the tax system.

Scope and Application

The Income Tax (Partnerships and Trusts) Act 1970 applies to individuals and entities involved in partnerships and trusts, imposing income tax on the taxable income of persons, net income of trust estates, and taxable income of superannuation funds. The Act incorporates the Income Tax Assessment Act 1936–1970, effectively expanding its application to include these specific income types. It establishes rates of further tax payable by individuals and trustees, with certain exemptions for aged residents. The Act operates nationally within Australia, including territories like Papua and New Guinea, Norfolk Island, the Cocos (Keeling) Islands, and Christmas Island, as defined within its provisions. The Act's scope can be further extended or restricted through subordinate instruments, although the primary legislation itself does not specify these details.

Key Provisions

The Income Tax (Partnerships and Trusts) Act 1970, as enacted, introduces specific tax provisions for partnerships, trusts, and superannuation funds. Under section 5, income tax is imposed on the taxable income of individuals (subsection 5(a)), the net income of trust estates (subsection 5(b) and (c)), and the taxable income of superannuation funds (subsection 5(d)). These provisions are calculated and charged according to the rates specified in section 6 of the Act. For individuals, the rate of further tax is determined by dividing one-half of the taxable income by the total taxable income (subsection 6(1)). For trustees of trusts, the rate of further tax is determined by dividing one-half of the net income of the trust by the total net income (subsection 6(2)). In the case of superannuation funds, the rate is fixed at fifty percent (subsection 6(3) and (4)). The obligations imposed by the Act require trustees and individuals to calculate and remit tax based on the specified rates and conditions. Trustees of trust estates and superannuation funds are mandated to ensure that tax is assessed and paid in accordance with the rates outlined in sections 5 and 6. Similarly, individuals must calculate their taxable income and remit the appropriate amount of tax as per the provisions in section 5(a) and the calculation method in section 6(1). This includes reporting and paying any additional tax due under the conditions specified in section 7. Failure to comply with the tax obligations outlined in the Act may result in civil or criminal consequences. Breaches of the Act could potentially lead to penalties for non-compliance, including fines and interest on unpaid taxes. Although specific penalties are not detailed in the provided sections, such breaches are generally subject to the provisions of the Income Tax Assessment Act 1936 and may include substantial financial penalties, as well as possible criminal charges for willful neglect or fraud.

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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.