SOCIAL SERVICES CONTRIBUTION.
No. 51 of 1948.
An Act to amend the Social Services Contribution Act 1945-1947.
[Assented to 25th November, 1948.]
[Date of commencement, 23rd December, 1948.]
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 and citation.
1.—(1.) This Act may be cited as the Social Services Contribution Act 1948.
(2.) The Social Services Contribution Act 1945-1947 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Social Services Contribution Act 1945-1948.
2. After section five of the Principal Act the following section is inserted:—
Contribution where amount to be collected or refunded would not exceed Two shillings.
“5a.—(1.) Notwithstanding anything contained in the last preceding section, where a person has, in accordance with section two hundred and twenty-one h of the Income Tax Assessment Act, forwarded to the Commissioner any tax stamps sheet or group certificate issued to him in respect of deductions made in a year from his salary or wages, and the difference between the available deductions and the contribution which would, apart from this sub-section, be payable by that person in respect of the contributable income derived by him in that year is not more than Two shillings, the contribution payable by that person in respect of that contributable income shall be an amount equal to the available deductions.
“(2.) The last preceding sub-section shall not apply—
(a) in relation to a person who is liable to pay provisional contribution in respect of his income of the year immediately succeeding the year referred to in that sub-section; or
(b) in any case in which the amount of contribution which would, apart from this section, be payable is Ten shillings and the available deductions are more than Ten shillings.
“(3.) In this section, ‘the available deductions’ means the amount by which the sum of the amount represented by the face value of the tax stamps duly affixed to any tax stamps sheet referred to in sub-section (1.) of this section and the amount of the deductions specified in any group certificate so referred to exceeds the income tax (if any) which the person so referred to is liable to pay in respect of income derived in the year so referred to.”.
The First Schedule.
3. The First Schedule to the Principal Act is amended—
(a) by omitting from paragraph (1.) the word “one-tenth” and inserting in its stead the word “three-fiftieths”; and
(b) by omitting from sub-paragraph (b) of paragraph (2.) the words “Two hundred and fifty” and inserting in their stead the words “Three hundred and fifty,”,
Application of amendments.
4.—(1.) The amendment effected by section two of this Act shall apply to all assessments for the financial year which commenced on the first day of July, One thousand nine hundred and forty-seven, and all subsequent years.
(2.) The amendments effected by section three of this Act shall not apply to assessments for a financial year prior to that which commenced on the first day of July, One thousand nine hundred and forty-eight.
Overview
The Social Services Contribution Act 1948, enacted by the Commonwealth Parliament, amends the Social Services Contribution Act 1945-1947 to introduce a new section addressing the issue of small discrepancies in social security contributions arising from tax stamp deductions. The 1948 Act aims to streamline the contribution process by allowing the Commissioner to adjust contributions when the difference between available deductions and the payable contribution is minimal, specifically where the difference does not exceed two shillings. This adjustment prevents unnecessary administrative burden and ensures that individuals are not overcharged or undercharged for their social security contributions.
The policy objective of this amendment is to enhance the efficiency and fairness of the social security contribution system by providing a practical solution for minor discrepancies. The changes made by the 1948 Act apply to assessments from the financial year commencing 1 July 1947 onwards, with certain amendments retroactively affecting contributions from the financial year starting 1 July 1948.
Scope and Application
The Social Services Contribution Act 1948, an amendment to the Social Services Contribution Act 1945-1947, primarily applies to individuals who have forwarded tax stamps sheets or group certificates to the Commissioner in accordance with section 221h of the Income Tax Assessment Act. The Act specifically addresses the contribution payable by these individuals when the difference between available deductions and the contribution, which would otherwise be payable, does not exceed two shillings. The Act introduces a provision that allows the contribution payable to be equal to the available deductions under certain conditions, such as when the person is not liable to pay provisional contribution for the succeeding year or when the available deductions do not exceed ten shillings. The amendments introduced by this Act apply to assessments for financial years commencing on or after 1 July 1948 and extend to changes in the First Schedule, altering the contribution rates and thresholds.
Geographically, the Act operates within the Commonwealth of Australia and affects all entities and individuals subject to the Social Services Contribution Act 1945-1947. The application of the Act is not restricted by state or territory boundaries, ensuring a uniform approach across the nation. However, the Act does not specify exclusions, exemptions, or thresholds beyond those mentioned in the text, and it does not extend its application through subordinate instruments. The amendments made by this Act are intended to clarify and adjust the contribution mechanisms and rates, thereby ensuring that the social services contributions are collected in a manner that is fair and reflective of the individuals' tax positions.
Key Provisions
The Social Services Contribution Act 1948 (C1948A00051) amends the Social Services Contribution Act 1945-1947, introducing new provisions that adjust the calculation of social services contributions for certain individuals. Specifically, Section 5a of the Act (section 2) introduces a new rule where, if a person has forwarded any tax stamps or group certificates to the Commissioner under section 221h of the Income Tax Assessment Act, and the difference between their available deductions and the contribution payable is two shillings or less, the contribution payable shall be equal to the available deductions. This rule does not apply if the person is liable to pay provisional contribution for the next year or if the contribution amount is ten shillings and the available deductions exceed ten shillings (section 5a(2)).
In terms of obligations, the Act requires individuals who meet the specified criteria to forward any tax stamps or group certificates to the Commissioner. This ensures that the Commissioner has the necessary information to calculate the appropriate contribution based on the new rules set out in the Act. Additionally, Section 3 of the Act makes amendments to the First Schedule of the Principal Act, including adjusting the contribution rate from one-tenth to three-fiftieths and increasing the threshold for certain contributions from two hundred and fifty to three hundred and fifty.
The Act also specifies the application of these amendments. According to Section 4, the amendment introduced by Section 2 applies to all assessments from the financial year commencing 1 July 1947 onwards. Conversely, the amendments made by Section 3 apply only to assessments from the financial year commencing 1 July 1948 onwards.
Regarding consequences for non-compliance, the Act does not explicitly state offences, penalties, or civil/criminal consequences for breaches. However, it is reasonable to infer that failure to comply with the requirements to forward tax stamps or group certificates could result in incorrect calculation of social services contributions, potentially leading to financial discrepancies or penalties under other applicable tax laws.