Income Tax (Rates and Assessment) Amendment Act 1979
No. 43 of 1979
An Act to amend the law relating to income tax.
BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:
Short title
1. This Act may be cited as the Income Tax (Rates and Assessment) Amendment Act 1979.
Commencement
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Indexation
3. Section 9 of the Income Tax (Rates) Act 1976 is amended—
(a) by omitting “and” at the end of sub-paragraph (i) of paragraph (c) of sub-section (5); and
(b) by inserting after sub-paragraph (ii) of paragraph (c) of sub-section (5) the following word and sub-paragraph:
“; and (iii) the increases in the price paid to manufacturers of stabilized crude petroleum oil in respect of part of the oil that was produced from crude petroleum oil obtained from fields in Australia, being increases that took effect on 17 August 1977 and 1 July 1978, to the extent to which the increases were designed to equate the price so paid for part of that oil to the import parity price.”.
Trading stock valuation adjustment
4. Section 82c of the Income Tax Assessment Act 1936 is amended by adding at the end thereof the following sub-section:
“(2) This subdivision does not apply in relation to the year of income commencing on 1 July 1979 or in relation to any subsequent year of income.”.
Operation of certain Income Tax Regulations
5. (1) Notwithstanding anything contained in the Income Tax Assessment Act 1936, the Income Tax (Individuals) Act 1978 or the Income Tax (Rates) Act 1976, the provisions of Subdivision A of Division 2 of Part VI of, and the Third Schedule to, the Income Tax Regulations, as in force immediately before the day on which this Act receives the Royal Assent, continue to have effect to and including 30 November 1979 or, if an earlier date is fixed by Proclamation, that earlier date.
(2) For the purposes of the provisions referred to in sub-section (1) as having effect by virtue of that sub-section, the Income Tax Assessment Act 1936 shall be deemed to have effect in relation to the year of income commencing on 1 July 1979 as if the amount substituted by section 159z of that Act in relation to that year of income for any relevant amount referred to in that section were the same as the amount that was substituted by that section for that relevant amount in relation to the year of income that commenced on 1 July 1978.
Overview
The Income Tax (Rates and Assessment) Amendment Act 1979 was enacted by the Commonwealth Parliament to revise the legislative framework governing income tax rates and assessment. This Act aimed to address issues and gaps in the existing tax legislation by amending the Income Tax (Rates) Act 1976 and the Income Tax Assessment Act 1936. The primary objective was to introduce adjustments to tax rates and assessment procedures to ensure they remained effective and relevant to the economic circumstances of the time, including specific measures to address the increases in the price of stabilized crude petroleum oil. By making these amendments, the Act sought to maintain the integrity and fairness of the tax system while responding to economic changes and ensuring that the tax burden was distributed appropriately.
Scope and Application
The Income Tax (Rates and Assessment) Amendment Act 1979 applies to the Commonwealth of Australia and is concerned with modifying the law relating to income tax rates and assessment. This Act applies to individuals, entities, and industries within Australia, impacting their tax obligations and the assessment of their income. The amendments primarily concern adjustments to tax rates and the valuation of trading stock, ensuring that certain tax provisions continue to operate effectively until a specified date. The Act specifies that the amendments apply to income tax rates and assessment for the year commencing on 1 July 1979 and subsequent years, directly affecting taxpayers by altering the conditions under which they must report and pay their taxes. There are no stated exclusions or exemptions within the text provided, and the Act's reach is limited to the Commonwealth jurisdiction. Subordinate instruments may further extend or restrict the application of this Act, as indicated by the provisions concerning the continuation of certain Income Tax Regulations up to a specified date.
Key Provisions
The Income Tax (Rates and Assessment) Amendment Act 1979 introduces several amendments to existing income tax legislation. Section 3 amends Section 9 of the Income Tax (Rates) Act 1976 to include specific increases in the price paid to manufacturers of stabilized crude petroleum oil, produced from Australian fields, to the extent these increases were designed to align with the import parity price. This adjustment took effect on 17 August 1977 and 1 July 1978. Section 4 modifies Section 82c of the Income Tax Assessment Act 1936 by adding a new sub-section (2) that specifies the provisions of this subdivision do not apply to the year of income starting on 1 July 1979 or any subsequent year of income. Section 5 ensures that certain provisions of the Income Tax Regulations continue to have effect until 30 November 1979, or an earlier date as may be fixed by proclamation.
The Act imposes obligations on taxpayers and manufacturers of stabilized crude petroleum oil to correctly account for the specified price increases in their tax assessments. Specifically, manufacturers must ensure that the adjustments to the price paid for part of their oil align with the import parity price and reflect these changes in their income tax calculations for the relevant years. For taxpayers, it is essential to be aware of the modifications to the trading stock valuation rules, ensuring they do not apply from 1 July 1979 onwards. Furthermore, the Act requires adherence to the continued effect of certain Income Tax Regulations provisions until the specified date.
Failure to comply with the requirements set out in this Act can result in various consequences. Non-compliance with the adjustments for the price increases in stabilized crude petroleum oil may lead to incorrect tax assessments and potential penalties for underpayment or overpayment of taxes. Similarly, disregarding the exclusion of the trading stock valuation rules from 1 July 1979 can result in inappropriate application of these rules, potentially leading to legal challenges and financial repercussions. Additionally, not adhering to the continued effect of certain Income Tax Regulations provisions until 30 November 1979 may lead to procedural errors in tax filings and subsequent penalties. Penalties for breaches of income tax laws can include fines and interest on unpaid taxes, with specific penalties varying based on the nature and severity of the breach.