Income Tax (Salaries) Assessment Act 1930

Overview

The Income Tax (Salaries) Assessment Act 1930 was enacted to address the need for a specific tax regime for salaries paid by the Commonwealth or authorities under the Commonwealth. This Act was designed to complement the broader framework established by the Income Tax (Salaries) Act 1930, focusing specifically on the imposition, assessment, and collection of income tax on salaries. Enacted by the Parliament of Australia, the Act aims to ensure that income tax on salaries is levied and paid in accordance with its provisions, starting from the first day of December 1930. The Act defines terms such as "salary" and "taxpayer" to clarify the scope of its application, and it excludes certain payments from its purview, such as those related to leave without pay or pre-December 1930 periods. Additionally, it ensures that the salary tax does not overlap with other tax laws, either federal or state, by explicitly stating that the taxed salary is not considered income under other tax laws.

Scope and Application

The Income Tax (Salaries) Assessment Act 1930 applies to the imposition, assessment, and collection of tax on certain incomes being salaries payable by the Commonwealth or by an authority under the Commonwealth. The Act applies to taxpayers who are senators or members of the House of Representatives, or to persons employed by the Commonwealth or by an authority under the Commonwealth whose annual salary exceeds seven hundred and twenty-five pounds and is paid from the Commonwealth Public Account or the North Australia Commission Fund. The Act excludes from taxation salaries that relate to periods prior to the first periodic payment on or after 1 December 1930, as well as the salary of any person required to take leave without pay for the purposes of economy. The Act also provides that the salary of a taxpayer, to the extent of any tax payable under this Act, shall not be income or salary of that taxpayer for the purposes of any other law of the Commonwealth or of a State relating to taxation. The Governor-General may make regulations not inconsistent with this Act to prescribe matters necessary or convenient for carrying out or giving effect to this Act.

Key Provisions

The Income Tax (Salaries) Assessment Act 1930 (referred to as the Act) lays out the provisions for the imposition, assessment, and collection of a tax on certain incomes being salaries payable by the Commonwealth or an authority under the Commonwealth. This Act applies to taxpayers defined in section 2, primarily those who are officers or employees of the Commonwealth, including senators and members of the House of Representatives, and those earning an annual salary exceeding £725 paid from the Commonwealth Public Account or the North Australia Commission Fund. The Act requires that the income tax imposed by the Income Tax (Salaries) Act 1930 be levied and paid in respect of each payment of salary to every taxpayer on or after 1 December 1930, as stated in section 3. It also mandates that the amount of tax payable by a taxpayer in respect of any periodical payment of salary shall be deducted from the salary and paid into the Consolidated Revenue Fund, as per section 6. Additionally, any tax deductions required by this Act must be made in priority to any other deductions required by any other Commonwealth law, as outlined in section 7. Section 4 of the Act provides exemptions for certain salary payments. Specifically, it exempts any salary paid on or after 1 December 1930 that relates to a period prior to that to which the first periodical payment of salary on or after that date relates. It also exempts the salary of any person required to take leave without pay in pursuance of an arrangement made for the purposes of economy. Furthermore, section 5 clarifies that the salary of any taxpayer, to the extent of any tax payable by him under this Act on that salary, shall not be income or salary for the purposes of any other Commonwealth or State law relating to taxation. The Act further authorises the Governor-General to make regulations, not inconsistent with this Act, for carrying out or giving effect to this Act, as stated in section 8. However, the Act does not explicitly state any specific offences, penalties, or civil/criminal consequences for breach. The consequences of non-compliance would likely be determined by other relevant legislation or regulations, as the Act primarily focuses on the procedural and substantive aspects of tax imposition, assessment, and collection.