Income Tax Rates Act 1986

Pt III heading amended by No 36 of 2019, s 3 and Sch 1 item 2, by substituting " , certain other trusts and sovereign entities " for " and certain other trusts " , effective 1 July 2019.

S 23(1A) amended by No 143 of 2007, s 3 and Sch 7 item 84, by substituting " section 23A " for " sections 23A, 23B and 23C " , applicable to assessments for the 2007-08 income year and later income years.

S 23(1A) inserted by No 89 of 2000.

S 23(2) amended by No 41 of 2017 (as amended by No 134 of 2018), s 3 and Sch 1 item 45, by substituting " 25% " for " 26% " in para (a), effective 1 July 2021 and applicable to the 2021-22 year of income and later years of income.

S 23(2) amended by No 41 of 2017 (as amended by No 134 of 2018), s 3 and Sch 1 item 39, by substituting " 26% " for " 27.5% " in para (a), effective 1 July 2020 and applicable to the 2020-21 year of income and later years of income.

S 23(2) amended by No 41 of 2017, s 3 and Sch 1 item 8, by substituting " base rate entity " for " small business entity " in para (a), effective 1 July 2017 and applicable to the 2017-18 year of income and later years of income.

S 23(2) amended by No 41 of 2017, s 3 and Sch 1 item 1, by substituting " 27.5% " for " 28.5% " in para (a), effective 1 July 2016 and applicable to the 2016-17 year of income and later years of income.

S 23(2) substituted by No 66 of 2015, s 3 and Sch 1 item 1, applicable to assessments for years of income starting on or after 1 July 2015. S 23(2) formerly read:

23(2)
The rate of tax in respect of the taxable income of a company not being:

(a) a life insurance company; or

(b) an RSA provider; or

(ba) an FHSA provider; or

(c) a company to which subsection (4) or (5) applies;

is 30%.

S 23(2) amended by No 14 of 2009, s 3 and Sch 4 item 35, by substituting " subsection (4) or (5) " for " subsection (4C) or (4D) " in para (c), applicable to assessments for the 2007-08 income year and later income years.

S 23(2) amended by No 45 of 2008, s 3 and Sch 1 item 49, by inserting para (ba), effective 26 June 2008.

S 23(2) amended by No 143 of 2007, s 3 and Sch 7 items 85 and 86, by repealing paras (a) and (b) and relettering paras (c), (ca) and (d) as paras (a), (b) and (c), applicable to assessments for the 2007-08 income year and later income years. Paras (a) and (b) formerly read:

(a) a private company; or

(b) a registered organization; or

S 23(2) amended by No 89 of 2000, No 167 of 1999, No 62 of 1997, No 90 of 1995, No 18 of 1993, No 98 of 1992, No 106 of 1989, No 118 of 1988 and No 60 of 1987.

S 23(3) amended by No 41 of 2017 (as amended by No 134 of 2018), s 3 and Sch 1 item 46, by substituting " 25% " for " 26% " in para (b)(i), effective 1 July 2021 and applicable to the 2021-22 year of income and later years of income.

S 23(3) amended by No 41 of 2017 (as amended by No 134 of 2018), s 3 and Sch 1 item 40, by substituting " 26% " for " 27.5% " in para (b)(i), effective 1 July 2020 and applicable to the 2020-21 year of income and later years of income.

S 23(3) amended by No 41 of 2017, s 3 and Sch 1 item 9, by substituting " base rate entity " for " small business entity " in para (b)(i), effective 1 July 2017 and applicable to the 2017-18 year of income and later years of income.

S 23(3) amended by No 41 of 2017, s 3 and Sch 1 item 2, by substituting para (b), effective 1 July 2016 and applicable to the 2016-17 year of income and later years of income. Para (b) formerly read:

(b) in respect of the standard component - 30%.

S 23(3) amended by No 70 of 2015 (as amended by No 66 of 2015), s 3 and Sch 1 item 114, by repealing para (aa), effective 1 July 2015. Para (aa) formerly read:

(aa) in respect of the FHSA component (if any) - 15%; and

S 23(3) amended by No 45 of 2008, s 3 and Sch 1 item 50, by inserting para (aa), effective 26 June 2008.

S 23(3) renumbered from 23(4BA) and amended by No 143 of 2007, s 3 and Sch 7 items 88 and 89, by omitting " or a registered organization " after " than a life insurance company " , applicable to assessments for the 2007-08 income year and later income years.

Former s 23(4BA) amended by No 89 of 2000, No 167 of 1999, No 41 of 1999, inserted by No 62 of 1997.

Former s 23(3) repealed by No 143 of 2007, s 3 and Sch 7 item 87, applicable to assessments for the 2007-08 income year and later income years. S 23(3) formerly read:

23(3)
In the case of a company that is a private company and is neither a life insurance company nor a company to which subsection (4C) or (4D) applies, the rates of tax are:

(a) in respect of the taxable income - 30%; and

(b) in respect of the undistributed amount in respect of which the company is liable under section 104 of the Assessment Act to pay additional tax - 50%.

Former s 23(3) amended by No 89 of 2000, No 167 of 1999, No 90 of 1995, No 18 of 1993, No 98 of 1992, No 106 of 1989, No 118 of 1988 and No 60 of 1987.

S 23(3A) repealed by No 70 of 2015, s 3 and Sch 1 item 115, effective 1 July 2015. S 23(3A) formerly read:

23(3A)
The rates of tax in respect of the taxable income of a company that is an ADI and an FHSA provider (but not an RSA provider) are:

(a) in respect of the FHSA component - 15%; and

(b) in respect of the standard component - 30%.

S 23(3A) inserted by No 45 of 2008, s 3 and Sch 1 item 51, effective 26 June 2008.

S 23(4) amended by No 41 of 2017 (as amended by No 134 of 2018), s 3 and Sch 1 item 47, by substituting " 25% " for " 26% " in para (c)(i), effective 1 July 2021 and applicable to the 2021-22 year of income and later years of income.

S 23(4) amended by No 41 of 2017 (as amended by No 134 of 2018), s 3 and Sch 1 item 41, by substituting " 26% " for " 27.5% " in para (c)(i), effective 1 July 2020 and applicable to the 2020-21 year of income and later years of income.

S 23(4) amended by No 41 of 2017, s 3 and Sch 1 item 10, by substituting " base rate entity " for " small business entity " in para (c)(i), effective 1 July 2017 and applicable to the 2017-18 year of income and later years of income.

S 23(4) amended by No 41 of 2017, s 3 and Sch 1 item 3, by substituting para (c), effective 1 July 2016 and applicable to the 2016-17 year of income and later years of income. Para (c) formerly read:

(c) in respect of so much of the taxable income as exceeds the PDF component - 30%.

S 23(4) renumbered from s 23(4C) by No 143 of 2007, s 3 and Sch 7 item 89, applicable to assessments for the 2007-08 income year and later income years.

Former s 23(4C) amended by No 167 of 1999, No 90 of 1995, substituted by No 181 of 1994, amended by No 18 of 1993 and inserted by No 98 of 1992.

Former s 23(4) repealed by No 143 of 2007, s 3 and Sch 7 item 87, applicable to assessments for the 2007-08 income year and later income years. S 23(4) formerly read:

23(4)
The rates of tax in respect of the taxable income of a company that is a registered organization are:

(a) in respect of the CS/RA component - 15%; and

(b) in respect of the EIB component - 39%; and

(ba) in respect of the RSA category A component of the RSA combined component - 15%; and

(bb) in respect of the RSA category B component of the RSA combined component - 30%; and

(c) in respect of the NCS component - 45%.

Former s 23(4) amended by No 55 of 2006 , s 3 and Sch 1 item 15, by substituting " 45% " for " 47% " in para (c), applicable to assessments for the 2006-2007 year of income and later years of income.

Former s 23(4) amended by No 167 of 1999, No 41 of 1999, No 55 of 1993, s 18 (as amended by: No 94 of 1995; No 174 of 1997; and No 58 of 2000), No 106 of 1989.

S 23(4A) repealed by No 143 of 2007, s 3 and Sch 7 item 87, applicable to assessments for the 2007-08 income year and later income years. S 23(4A) formerly read:

23(4A)
The rates of tax in respect of the taxable income of a life insurance company are:

(a) in respect of the CS/RA component - 15%;

(b) in respect of the AD/RLA component - 39%;

(ba) in respect of the RSA component of the general fund component - 15%;

(c) in respect of the standard component of the general fund component:

(i) if the company is a mutual life assurance company at the end of the year of income - 39%; or

(ii) in any other case - 30%; and

(d) in respect of the NCS component - 45%.

S 23(4A) amended by No 55 of 2006 , s 3 and Sch 1 item 15, by substituting " 45% " for " 47% " in para (d), applicable to assessments for the 2006-2007 year of income and later years of income.

S 23(4A) amended by No 101 of 2004, No 89 of 2000, No 167 of 1999, No 62 of 1997, No 90 of 1995, No 18 of 1993 and No 106 of 1989.

S 23(4B) repealed by No 143 of 2007, s 3 and Sch 7 item 87, applicable to assessments for the 2007-08 income year and later income years. S 23(4B) formerly read:

23(4B)
For a life insurance company that is a private company, the rate of tax in respect of the undistributed amount in respect of which the company is liable under section 104 of the Assessment Act to pay additional tax is 50%.

S 23(4B) amended by No 89 of 2000, No 106 of 1989.

S 23(5) renumbered from s 23(4D) by No 143 of 2007, s 3 and Sch 7 item 89, applicable to assessments for the 2007-08 income year and later income years.

S 23(4D) substituted by No 181 of 1994, amended by No 18 of 1993 and inserted by No 98 of 1992.

S 23(6) amended by No 41 of 2017 (as amended by No 134 of 2018), s 3 and Sch 1 item 48, by substituting " $762 " for " $788 " in para (b)(i), effective 1 July 2021 and applicable to the 2021-22 year of income and later years of income.

S 23(6) amended by No 41 of 2017 (as amended by No 134 of 2018), s 3 and Sch 1 item 42, by substituting " $788 " for " $832 " in para (b)(i), effective 1 July 2020 and applicable to the 2020-21 year of income and later years of income.

S 23(6) amended by No 41 of 2017, s 3 and Sch 1 item 11, by substituting " base rate entity " for " small business entity " in para (b)(i), effective 1 July 2017 and applicable to the 2017-18 year of income and later years of income.

S 23(6) amended by No 41 of 2017.

S 23(6) substituted by No 66 of 2015, s 3 and Sch 1 item 2, applicable to assessments for years of income starting on or after 1 July 2015. S 23(6) formerly read:

23(6)
Where the taxable income of a non-profit company does not exceed $915, the amount of tax payable by the company shall not exceed 55% of the amount by which the taxable income exceeds $416 less any rebate, credit or other tax offset (as defined in the Income Tax Assessment Act 1997 ) to which the company is entitled.

S 23(6) renumbered from s 23(5) and amended by No 143 of 2007, s 3 and Sch 7 items 89 and 90, by omitting " , not being a registered organization, " after " a non-profit company " , applicable to assessments for the 2007-08 income year and later income years.

S 23(5) amended by No 101 of 2004, No 167 of 1999, No 90 of 1995, No 18 of 1993, No 118 of 1988 and No 60 of 1987.

S 23(7) amended by No 41 of 2017 (as amended by No 134 of 2018), s 3 and Sch 1 item 49, by substituting " 37.5% " for " 39% " in para (a), effective 1 July 2021 and applicable to the 2021-22 year of income and later years of income.

S 23(7) amended by No 41 of 2017 (as amended by No 134 of 2018), s 3 and Sch 1 item 43, by substituting " 39% " for " 41.25% " in para (a), effective 1 July 2020 and applicable to the 2020-21 year of income and later years of income.

S 23(7) amended by No 41 of 2017, s 3 and Sch 1 item 12, by substituting " base rate entity " for " small business entity " in para (a), effective 1 July 2017 and applicable to the 2017-18 year of income and later years of income.

S 23(7) amended by No 41 of 2017, s 3 and Sch 1 item 5, by substituting " 41.25% " for " 42.75% " in para (a), effective 1 July 2016 and applicable to the 2016-17 year of income and later years of income.

S 23(7) substituted by No 66 of 2015, s 3 and Sch 1 item 2, applicable to assessments for years of income starting on or after 1 July 2015. S 23(7) formerly read:

23(7)
The amount of tax payable by a company that is a recognised medium credit union in relation to a year of income must not exceed 45% of the amount by which the taxable income exceeds $49,999 less any rebate, credit or other tax offset (as defined in the Income Tax Assessment Act 1997 ) to which the company is entitled.

S 23(7) renumbered from s 23(6) by No 143 of 2007, s 3 and Sch 7 item 89, applicable to assessments for the 2007-08 income year and later income years.

S 23(6) amended by No 101 of 2004, No 167 of 1999, No 90 of 1995, No 173 of 1994 and inserted by No 57 of 1993.