Income Tax (Reduction of Additional Tax)
No. 12 of 1972
An Act to amend sections 8 and 12 of the Income Tax Act 1971.
[Assented to 17 April 1972]
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 and citation.
1.—(1.) This Act may be cited as the Income Tax (Reduction of Additional Tax) Act 1972.
(2.) The Income Tax Act 1971 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Income Tax Act 1971–1972.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Additional tax payable by certain persons other than companies.
3. Section 8 of the Principal Act is amended by omitting the word “five” and inserting in its stead the figures “4.375”.
Levy of tax.
4. Section 12 of the Principal Act is amended—
(a) by omitting all the words after the word “seventy-one”; and
(b) by adding at the end thereof the following sub-section:—
“(2.) Until the Parliament otherwise provides, the tax imposed by the preceding provisions of this Act is also levied, and shall be paid, for the financial year commencing on the first day of July, One thousand nine hundred and seventy-two, except that, in the application of section 8 of this Act for the purposes of this subsection, the reference in that section to 4.375 per centum shall be read as a reference to 2.5 per centum.”.
Overview
The Income Tax (Reduction of Additional Tax) Act 1972 was enacted to address the issue of reducing the additional tax imposed on certain individuals. Assented to on 17 April 1972, this Act was brought into force by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. The primary objective of this legislation was to amend sections 8 and 12 of the Income Tax Act 1971 by reducing the percentage rate of the additional tax from five to 4.375 for certain taxpayers, while also adjusting the tax levy for the specified financial year to 2.5 per centum until otherwise provided by Parliament.
Scope and Application
The Income Tax (Reduction of Additional Tax) Act 1972 amends certain provisions of the Income Tax Act 1971, specifically targeting the reduction of additional tax imposed on certain individuals. This Act applies to individuals, excluding companies, and is intended to modify the rate of additional tax they are liable to pay. Geographically, the Act operates within the jurisdiction of the Commonwealth of Australia, influencing tax obligations across the nation. The Act introduces a new tax rate of 4.375% for certain individuals, replacing the previous rate of 5%, and mandates that this new rate applies to income earned from the financial year commencing 1 July 1972. Moreover, it temporarily reduces the tax rate to 2.5% for the specific financial year mentioned, until otherwise stipulated by Parliament. The Act does not explicitly state any exclusions or thresholds, but it is understood that its provisions are applicable to those subject to additional tax under section 8 of the Principal Act. The scope of the Act may be further defined or extended through subordinate instruments issued by the relevant authorities.
Key Provisions
The Income Tax (Reduction of Additional Tax) Act 1972 primarily modifies sections 8 and 12 of the Income Tax Act 1971 (Principal Act) (sections 3 and 4). Section 8 of the Principal Act is amended by reducing the rate of additional tax payable from five percent to 4.375 percent. Section 12 of the Principal Act is amended by limiting the levy of tax to the financial year commencing on the first day of July 1972 and reducing the tax rate to 2.5 percent for this period. These changes are designed to provide temporary relief from additional tax for certain taxpayers.
The Act imposes specific obligations on taxpayers who are subject to the reduced rates of additional tax. For the financial year commencing on 1 July 1972, taxpayers must calculate their tax liability according to the amended rates specified in section 8 and section 12(2) of the Principal Act. These taxpayers must ensure they comply with the new tax rates when lodging their tax returns and making any required payments to the Australian Taxation Office.
Breaches of the obligations imposed by this Act may lead to civil or criminal consequences. While the Act does not explicitly state the penalties for non-compliance, general provisions within the Income Tax Act 1971 apply. These could include fines, interest on unpaid taxes, and in severe cases, prosecution leading to imprisonment. The specific penalties would depend on the nature and extent of the non-compliance, as outlined in other sections of the Income Tax Act 1971.