Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon. Phillip Lynch, M.P.)INCOME TAX (COMPANIES AND SUPERANNUATION FUNDS) BILL 1976
The purpose of this Bill is to impose income tax for the 1976-77 financial year, at the rates declared in the Bill, on the 1975-76 incomes of companies and the 1976-77 incomes of superannuation funds.
Other rates of income tax payable for the 1976-77 financial year - by individuals and trustees - were declared and imposed earlier this year, on the introduction of indexation of personal income tax, by the Income Tax (Rates) Act 1976 and the Income Tax (Individuals) Act 1976.
While some drafting changes have been necessary in consequence of the departure from the previous practice of declaring all rates of income tax for a financial year in the one measure, the practical effect of this Bill is the same as that of the corresponding provisions of the Income Tax Act 1975 which declared and imposed the rates of income tax payable by companies and superannuation funds for the 1975-76 financial year.
The rates of income tax declared by this Bill are the same as those declared for the 1975-76 financial year. These are:
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- general company tax rate: 42 1/2 per cent
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- rate of tax payable by a friendly society dispensary: 37 1/2 per cent
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- rate of additional tax payable by a private company on amount by which dividends paid fall short of a sufficient distribution: 50 per cent
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- rate of tax payable on investment income of a superannuation fund that does not invest a sufficient proportion of its assets in public securities: 42 1/2 per cent
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- special "anti-avoidance" rate of tax on certain income of superannuation funds to which section 121CA, 121CB, or 121DA of the Assessment Act applies: 50 per cent