Income Tax (Rates) Amendment Act (No. 2) 1983
No. 104 of 1983
An Act to amend the Income Tax (Rates) Act 1982
[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, &c.
1. (1) This Act may be cited as the Income Tax (Rates) Amendment Act (No. 2) 1983.
(2) The Income Tax (Rates) Act 19821 is in this Act referred to as the Principal Act.
Commencement
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Rates of tax and notional rates
3. Section 13 of the Principal Act is amended—
(a) by inserting after sub-section (2) the following sub-sections:
“(2a) For every dollar of so much of the taxable income of a taxpayer as is equal to the deemed taxable income from primary production, the rate of complementary tax for the purposes of sub-section 156 (4a) of the Assessment Act is the amount ascertained by dividing the amount of the excess referred to in paragraph (b) of that sub-section by the number of whole dollars in the taxable income of the taxpayer.
“(2b) For every dollar of so much of the net income of a trust estate as is equal to the deemed net income from primary production, the rate of complementary tax for the purposes of sub-section 156 (5a) of the Assessment Act is the amount ascertained by dividing the amount of the excess referred to in paragraph (b) of that sub-section by the number of whole dollars in the eligible net income of the trust estate.”;
(b) by inserting in the definition of component b in paragraph (5) (a) “sub-section (2a) and” before “this sub-section”;
(c) by inserting in the definition of component b in paragraph (5) (b) “sub-section (2a) and” before “this sub-section”;
(d) by inserting in the definition of component b in paragraph (6) (a) “sub-section (2b) and” before “this sub-section”; and
(e) by inserting in the definition of component b in paragraph (6) (b) “sub-section (2b) and” before “this sub-section”.
Rates of tax where Division 6aa of Part III of the Assessment Act applies
4. Section 14 of the Principal Act is amended—
(a) by omitting “$1,040” (wherever occurring) and substituting “$416”; and
(b) by omitting “$3,432” (wherever occurring) and substituting “$1,372”.
Rates of tax where Division 6aa of Part III of the Assessment Act applies
5. Section 16 of the Principal Act is amended—
(a) by omitting “$1,040” (wherever occurring) and substituting “$416”;
(b) by omitting “$1,872” (wherever occurring) and substituting “$748”; and
(c) by omitting “$312” (wherever occurring) and substituting “$124.80”.
Schedule 11
6. Schedule 11 to the Principal Act is amended by omitting “$1,040” and substituting “$416”.
NOTE
1. No. 105, 1982, as amended. For previous amendments, see No. 15, 1983.
Overview
The Income Tax (Rates) Amendment Act (No. 2) 1983 was enacted to address specific gaps in the taxation framework by amending the Income Tax (Rates) Act 1982. This legislation was introduced by the Queen, in accordance with the authority of the Senate and the House of Representatives of the Commonwealth of Australia, to modify the rates of complementary tax for income from primary production and to adjust the rates of tax where Division 6AA of Part III of the Assessment Act applies. The primary policy objective of this Act was to ensure that the tax rates are adjusted to reflect changes in economic conditions and to provide an equitable tax structure for primary producers and trust estates. The Act came into operation on the day it received Royal Assent.
Scope and Application
The Income Tax (Rates) Amendment Act (No. 2) 1983 amends the Income Tax (Rates) Act 1982 to adjust various tax rates and provisions concerning primary production income. This Act applies to taxpayers, including individuals, companies, and trustees of trust estates, by modifying their tax liabilities and the calculation of complementary tax for primary production income. The adjustments to the rates of tax are specified to apply nationally across the Commonwealth of Australia, impacting all taxpayers within its jurisdiction. The Act does not explicitly mention any exclusions or exemptions, implying that the amended provisions apply broadly to all eligible taxpayers unless otherwise specified by subordinate legislation. The Act comes into operation on the day it receives the Royal Assent, with further detail provided through amendments to sections and definitions within the Principal Act.
Key Provisions
The Income Tax (Rates) Amendment Act (No. 2) 1983 (referred to as the Act) amends the Income Tax (Rates) Act 1982. Section 3 of the Act amends section 13 of the Principal Act to introduce new sub-sections (2a) and (2b) concerning the rates of complementary tax for taxable income and net income from primary production. This amendment specifies the calculation of the complementary tax rate by dividing the excess amount by the number of whole dollars in the taxpayer's income. The Act also modifies the definitions in paragraphs (5) and (6) of the Principal Act to include references to sub-sections (2a) and (2b).
The Act imposes specific obligations on taxpayers and trustees of trust estates. For taxpayers, it mandates the calculation of complementary tax rates for income from primary production as per the new sub-sections. Trustees of trust estates must similarly compute the complementary tax for net income derived from primary production. These calculations are integral to ensuring that the appropriate tax rates are applied, thereby complying with the amended provisions of the Principal Act.
Failure to comply with the provisions of the Act can lead to legal consequences. While the Act does not explicitly state the penalties for non-compliance, breaches of tax laws generally attract penalties under the Income Tax Assessment Act 1936, which could include fines and imprisonment for serious or willful breaches. The specific penalties would depend on the nature and extent of the non-compliance, but they can be severe, reflecting the importance of adhering to tax laws.