Social Services Contribution Act 1945

Legislation au C1945A00040 Not in force Act

Legislation content

SOCIAL SERVICES CONTRIBUTION.

 

No. 40 of 1945.

An Act to impose a Social Services Contribution.

[Assented to 11th October, 1945.]

BE it enacted by the King’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 Social Services Contribution Act 1945.

Commencement.

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Incorporation.

3. The Social Services Contribution Assessment Act 1945 shall be incorporated and read as one with this Act.

Imposition of social services contribution.

4. Social services contribution is imposed at the rates declared in this Act.


Rate of contribution.

5.—(1.) The rate of social services contribution payable in respect of the contributable income of a contributor other than a trustee shall, subject to this Act, be the rate set out in the First Schedule to this Act.

(2.) The rate of social services contribution payable by a trustee shall, subject to this Act, be the rate set out in the Second Schedule to this Act.

(3.) Where, apart from this sub-section, the amount of social services contribution payable under sub-section (1.) or (2.) of this section would be greater than fifty per centum of the amount by which the contributable income exceeds—

(a) in any case where the contributable income is less than Two hundred pounds and the contributor is a person who would, if income tax were levied under the Income Tax Assessment Act upon his taxable income of the year of income, be entitled to a rebate of tax in his income tax assessment by reference to paragraph (a), (aa), (ab), (b). (ba), (bb) or (c) of sub-section (2.) of section one hundred and sixty of that Act—One hundred and fifty-six pounds; or

(b) in any case where the contributable income is less than One hundred and thirteen pounds and the contributor would not be entitled to any such rebate—One hundred and four pounds,

the contribution payable in respect of that contributable income shall be fifty per centum of the amount of that excess.

(4.) Where, apart from this sub-section, the contribution which a person would be liable to pay under sub-section (1.), (2.) or (3.) of this section is less than Ten shillings, the amount of contribution payable by that person shall be Ten shillings.

(5.) Where, apart from this sub-section, the contribution which a person would be liable to pay under this section leaves an amount of pence remaining when expressed in pounds and shillings—

(a) if the remaining pence do not exceed six—the contribution payable by that person shall be the amount so expressed in pounds and shillings; or

(b) if the remaining pence exceed six—the contribution payable by that person shall be the amount so expressed in pounds and shillings plus One shilling.

Levy of social services contribution.

6.—(1.) The contribution imposed by the preceding provisions of this Act shall be levied and paid for the financial year ending on the thirtieth day of June, One thousand nine hundred and forty-six, and for the financial year commencing on the first day of July, One thousand nine hundred and forty-six, upon the contributable income derived during the year of income as defined by section five of the Social Services Contribution Assessment Act 1945.


(2.) Until the commencement of an Act for the levying and payment of social services contribution for a financial year subsequent to that beginning on the first day of July, One thousand nine hundred and forty-six, the provisions of this Act shall also apply for all financial years subsequent to that last-mentioned year.

(3.) Notwithstanding anything contained in this Act, the amount of contribution payable by a person for the financial year ending on the thirtieth day of June, One thousand nine hundred and forty-six, shall be one-half of the amount which would be payable by him apart from this sub-section.

Provisional contribution.

7. Provisional contribution is levied, and shall be payable, in accordance with the provisions of the Social Services Contribution Assessment Act 1945.

 

THE SCHEDULES.

—

FIRST SCHEDULE. Section 5 (1.).

Rate of Contribution Payable in Respect of the Contributable Income of a Contributor other than a Trustee.

For every pound of contributable income the rate of contribution shall be the lesser of the following:—

(1) The rate obtained by dividing by the amount of the contributable income an amount equal to the amount of income tax for which the contributor would be liable to be assessed for the year of contribution if—

(a) the rates of income tax payable for that year were the rates of tax declared in the Income Tax Act 1945, prior to any amendment of that Act, reduced by twelve and one-half per centum; and

(b) the rate of tax to be applied for the purpose of ascertaining the amount of any rebate were the rate ascertained in accordance with the provisions of the Income Tax Assessment Act 1936, as amended up to and including the commencement of the Income Tax Assessment Act (No. 2) 1944: or

(2) The rate of eighteen pence.

 

SECOND SCHEDULE. Section 5 (2.).

Rate of Contribution Payable by a Trustee.

For every pound of the contributable income in respect of which a trustee is liable, pursuant to either section ninety-eight or section ninety-nine of the Income Tax Assessment Act, as applied by the Social Services Contribution Assessment Art 1945, to be assessed and to pay contribution, the rate of contribution shall be the rate which would be payable if one individual were liable to be assessed and to pay contribution on that contributable income.

Overview

The Social Services Contribution Act 1945 was enacted by the Parliament of Australia to introduce a social services contribution aimed at funding social services during and after World War II. The Act was assented to on 11 October 1945, and it incorporated the Social Services Contribution Assessment Act 1945, which outlined the assessment rules for the contribution. The primary purpose of this legislation was to impose a tax to support social services, aligning with the broader policy objective of providing financial resources for social welfare programs. The Act specifies the rates of contribution for different categories of contributors and includes provisions for provisional contributions and the payment periods. It was designed to be effective from the date of Royal Assent and to apply to subsequent financial years until a new Act was enacted.

Scope and Application

The Social Services Contribution Act 1945 applies to all contributors, including individuals and trustees, who have contributable income as defined by the Social Services Contribution Assessment Act 1945. The Act imposes a social services contribution on the contributable income of contributors, with the rates specified in the schedules attached to the Act. The contribution is levied for the financial years ending on 30 June 1946 and commencing on 1 July 1946, and continues to apply to subsequent financial years until a new Act is enacted. The Act includes provisions to limit the maximum contribution payable by a contributor to 50% of the excess of contributable income over a specified amount, depending on the contributor's entitlement to a tax rebate. The Act also includes provisions for rounding the contribution amount and setting a minimum contribution of 10 shillings. The Act extends its application through the Social Services Contribution Assessment Act 1945, which is incorporated into this Act.

Key Provisions

The Social Services Contribution Act 1945 (sections 4 and 5) establishes the imposition of a social services contribution on contributable income, with rates set out in the First and Second Schedules. For contributors who are not trustees, the contribution rate is the lesser of two specified rates (sections 5(1) and (2)). For trustees, the contribution rate is determined based on the contributable income subject to assessment and payment under the Income Tax Assessment Act (section 5(2)). The contribution rates are subject to certain limits and adjustments, including a cap at 50% of the income above specified thresholds (section 5(3)) and a minimum contribution of ten shillings (section 5(4)). Additionally, the contribution amount is rounded to the nearest shilling, with any remaining pence above six resulting in an additional shilling being added (section 5(5)). Under the Act, contributors and trustees are obligated to calculate and pay the social services contribution based on the specified rates and provisions. This includes ensuring that the contributable income is correctly assessed and that the appropriate rate is applied, as outlined in the First and Second Schedules. Contributors must ensure that their contributions are made for the relevant financial year, as stipulated in section 6 of the Act. Breaches of the Act may result in penalties and consequences. Although the specific penalties are not detailed within the provided text, generally, failure to comply with the requirements to calculate, assess, and pay the social services contribution could result in financial penalties or other legal actions. The Act mandates that the contribution for the financial year ending on 30 June 1946 be half of what would otherwise be payable, as per section 6(3). Further legal consequences may include civil or criminal penalties as prescribed by other relevant legislation or administrative actions taken by the relevant authorities.

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Area of Law
Taxation Law
Instrument
Act
Concepts
Commencement Provisions
Imposition of social services contribution
Rate of contribution

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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.