PART I - PRELIMINARY
SECTION 1
1
SHORT TITLE
This Act may be cited as the
Income Tax Rates Act 1986.
SECTION 2
2
COMMENCEMENT
This Act shall come into operation on the day on which it receives the Royal Assent.
SECTION 3
INTERPRETATION
3(1)
In this Act, unless the contrary intention appears-
abnormal income amount
, in relation to the taxable income of a taxpayer of a year of income, means any above-average special professional income included in the taxpayer's taxable income for the year of income under section 405-15 of the Income Tax Assessment Act 1997;
History
Definition of "abnormal income amount" amended by No 46 of 1998 and inserted by No 138 of 1987.
ADI
has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "ADI" inserted by No 45 of 2008, s 3 and Sch 1 item 45, effective 26 June 2008.
AD/RLA component
(Repealed by No 143 of 2007)
History
Definition of "AD/RLA component" repealed by No 143 of 2007, s 3 and Sch 7 item 73, applicable to assessments for the 2007-08 income year and later income years. The definition formerly read:
AD/RLA component
has the meaning that was given by Division 8 of Part III of the Assessment Act as in force immediately before 1 July 2000.
Definition of "AD/RLA component" substituted by No 89 of 2000 and inserted by No 106 of 1989.
AMIT
(short for attribution managed investment trust) has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "AMIT" inserted by No 49 of 2016, s 3 and Sch 1 item 1, effective 5 May 2016.
approved deposit fund
(Repealed by No 98 of 1989)
History
Definition of "approved deposit fund" inserted by No 138 of 1987.
Assessment Act
means the Income Tax Assessment Act 1936;
attribution managed investment trust
: see
AMIT
.
History
Definition of "attribution managed investment trust" inserted by No 49 of 2016, s 3 and Sch 1 item 1, effective 5 May 2016.
base rate entity
has the meaning given by section 23AA.
History
Definition of "base rate entity" inserted by No 41 of 2017, s 3 and Sch 1 item 7, applicable to the 2017-18 year of income and later years of income.
base rate entity passive income
has the meaning given by section 23AB.
History
Definition of "base rate entity passive income" inserted by No 94 of 2018, s 3 and Sch 1 item 1, effective 1 July 2017 and applicable to the 2017-18 year of income and later years of income.
capital gains amount
(Repealed by No 168 of 1999)
History
Definition of "capital gains amount" amended by No 46 of 1998 and inserted by No 138 of 1987.
capital gains component
(Repealed by No 168 of 1999)
History
Definition of "capital gains component" substituted by No 138 of 1987.
complying ADF
means a complying approved deposit fund as defined in the Income Tax Assessment Act 1997.
History
Definition of "complying ADF" substituted by No 19 of 2007, s 3 and Sch 1 item 1, applicable to the 2007-2008 income year and later years. The definition formerly read:
complying ADF
has the same meaning as in Part IX of the Assessment Act;
Definition of "complying ADF" inserted by No 98 of 1989.
complying superannuation class
of the taxable income of a life insurance company has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "complying superannuation class" inserted by No 70 of 2015, s 3 and Sch 1 item 109, effective 1 July 2015.
Former definition of "complying superannuation class" repealed by No 45 of 2008, s 3 and Sch 7 item 54, effective 26 June 2008. The definition formerly read:
complying superannuation class
of the taxable income of a life insurance company has the same meaning as in the Income Tax Assessment Act 1997.
Former definition of "complying superannuation class" inserted by No 89 of 2000.
complying superannuation/FHSA class
(Repealed by No 70 of 2015)
History
Definition of "complying superannuation/FHSA class" repealed by No 70 of 2015, s 3 and Sch 1 item 110, effective 1 July 2015. The definition formerly read:
complying superannuation/FHSA class
of the taxable income of a life insurance company has the same meaning as in the Income Tax Assessment Act 1997.
Definition of "complying superannuation/FHSA class" inserted by No 45 of 2008, s 3 and Sch 7 item 55, effective 26 June 2008.
complying superannuation fund
has the same meaning as in the Income Tax Assessment Act 1997;
History
Definition of "complying superannuation fund" amended by No 19 of 2007, s 3 and Sch 1 item 2, by substituting "the Income Tax Assessment Act 1997" for "Part IX of the Assessment Act", applicable to the 2007-2008 income year and later years.
Definition of "complying superannuation fund" inserted by No 98 of 1989.
corporate unit trust
(Repealed by No 53 of 2016)
History
Definition of "corporate unit trust" repealed by No 53 of 2016, s 3 and Sch 5 item 68, applicable to assessments for income years starting on or after 1 July 2016. For transitional provision, see note under definition of "prescribed unit trust". The definition formerly read:
corporate unit trust
, in relation to a year of income, means a unit trust that is a corporate unit trust, within the meaning of Division 6B of Part III of the Assessment Act, in relation to the year of income;
CS/RA component
(Repealed by No 143 of 2007)
History
Definition of "CS/RA component" repealed by No 143 of 2007, s 3 and Sch 7 item 74, applicable to assessments for the 2007-08 income year and later income years. The definition formerly read:
CS/RA component
:
(a)
for a life insurance company - has the meaning that was given by Division 8 of Part III of the Assessment Act as in force immediately before 1 July 2000; or
(b)
for a registered organisation - has the meaning that was given by Division 8A of Part III of the Assessment Act as in force immediately before 1 July 2000.
Definition of "CS/RA component" substituted by No 89 of 2000 and inserted by No 106 of 1989.
determined member component
has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "determined member component" inserted by No 49 of 2016, s 3 and Sch 1 item 1, effective 5 May 2016.
EC part of the taxable income
(Repealed by No 19 of 2007)
History
Definition of "EC part of the taxable income" repealed by No 19 of 2007, s 3 and Sch 1 item 3, applicable to the 2007-2008 income year and later years. The definition formerly read:
EC part of the taxable income
means so much of the taxable income as does not exceed the excessive component included in assessable income under subsection 27B(3) of the Assessment Act;
Definition of "EC part of the taxable income" amended by No 142 of 2003 and inserted by No 7 of 1993.
EIB component
(Repealed by No 143 of 2007)
History
Definition of "EIB component" repealed by No 143 of 2007, s 3 and Sch 7 item 75, applicable to assessments for the 2007-08 income year and later income years. The definition formerly read:
EIB component
has the meaning that was given by Division 8A of Part III of the Assessment Act as in force immediately before 1 July 2000.
Definition of "EIB component" substituted by No 89 of 2000 and inserted by No 106 of 1989.
eligible ADF
means a fund that is a complying approved deposit fund or a non-complying approved deposit fund, as defined in the Income Tax Assessment Act 1997.
History
Definition of "eligible ADF" substituted by No 19 of 2007, s 3 and Sch 1 item 4, applicable to the 2007-2008 income year and later years. The definition formerly read:
eligible ADF
has the same meaning as in Part IX of the Assessment Act;
Definition of "eligible ADF" inserted by No 98 of 1989.
eligible part
, in relation to the special income component of the taxable income of a taxpayer, means so much of the special income component as is eligible taxable income for the purposes of Division 6AA of Part III of the Assessment Act.
History
Definition of "eligible part" substituted by No 168 of 1999 and amended by No 138 of 1987.
eligible superannuation fund
means a fund that is a complying superannuation fund or a non-complying superannuation fund, as defined in the Income Tax Assessment Act 1997.
History
Definition of "eligible superannuation fund" substituted by No 19 of 2007, s 3 and Sch 1 item 5, applicable to the 2007-2008 income year and later years. The definition formerly read:
eligible superannuation fund
has the same meaning as in Part IX of the Assessment Act;
Definition of "eligible superannuation fund" inserted by No 98 of 1989.
employment termination remainder
of taxable income means so much of the taxable income as:
(a)
is included in assessable income under a maximum tax rate provision in Division
82 of the
Income Tax Assessment Act 1997 or Division
82 of the
Income Tax (Transitional Provisions) Act 1997; and
(b)
does not give rise to an entitlement to a tax offset under that maximum tax rate provision.
History
Definition of "employment termination remainder" inserted by No 19 of 2007, s 3 and Sch 1 item 6, applicable on and after 1 July 2007.
ETP
(Repealed by No 19 of 2007)
History
Definition of "ETP" repealed by No 19 of 2007, s 3 and Sch 1 item 7, applicable to the 2007-2008 income year and later years. The definition formerly read:
ETP
has the meaning given by subsection 27A(1) of the Assessment Act.
Definition of "ETP" inserted by No 142 of 2003.
FHSA component
(Repealed by No 70 of 2015)
History
Definition of "FHSA component" repealed by No 70 of 2015, s 3 and Sch 1 item 111, effective 1 July 2015. The definition formerly read:
FHSA component
has the same meaning as in the Income Tax Assessment Act 1997.
Definition of "FHSA component" inserted by No 45 of 2008, s 3 and Sch 1 item 46, effective 26 June 2008.
FHSA provider
(Repealed by No 70 of 2015)
History
Definition of "FHSA provider" repealed by No 70 of 2015, s 3 and Sch 1 item 112, effective 1 July 2015. The definition formerly read:
FHSA provider
has the same meaning as in the Income Tax Assessment Act 1997.
Definition of "FHSA provider" inserted by No 45 of 2008, s 3 and Sch 1 item 47, effective 26 June 2008.
FHSA trust
(Repealed by No 70 of 2015)
History
Definition of "FHSA trust" repealed by No 70 of 2015, s 3 and Sch 1 item 113, effective 1 July 2015. The definition formerly read:
FHSA trust
has the same meaning as in the Income Tax Assessment Act 1997.
Definition of "FHSA trust" inserted by No 45 of 2008, s 3 and Sch 1 item 48, effective 26 June 2008.
friendly society
has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "friendly society" inserted by No 89 of 2000.
general fund component
(Repealed by No 143 of 2007)
History
Definition of "general fund component" repealed by No 143 of 2007, s 3 and Sch 7 item 76, applicable to assessments for the 2007-08 income year and later income years. The definition formerly read:
general fund component
has the meaning that was given by Division 8 of Part III of the Assessment Act as in force immediately before 1 July 2000.
Definition of "general fund component" substituted by No 89 of 2000 and inserted by No 62 of 1997.
ineligible approved deposit fund
(Repealed by No 98 of 1989)
investment income
(Repealed by No 98 of 1989)
life assurance company
(Repealed by No 89 of 2000)
History
Definition of "life assurance company" inserted by No 106 of 1989.
life insurance company
has the same meaning as in the Life Insurance Act 1995.
History
Definition of "life insurance company" inserted by No 89 of 2000.
low tax component
has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "low tax component" inserted by No 19 of 2007, s 3 and Sch 1 item 8, applicable to the 2007-2008 income year and later years.
managed investment trust
has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "managed investment trust" inserted by No 49 of 2016, s 3 and Sch 1 item 1, effective 5 May 2016.
maximum tax rate provision
means any of the following provisions:
(a)
section
82-10 of the
Income Tax Assessment Act 1997;
(b)
section
82-65 of the
Income Tax Assessment Act 1997;
(c)
section
82-70 of the
Income Tax Assessment Act 1997;
(d)
section
301-95 of the
Income Tax Assessment Act 1997;
(e)
section
301-105 of the
Income Tax Assessment Act 1997;
(f)
section
301-115 of the
Income Tax Assessment Act 1997;
(g)
section
82-10A of the
Income Tax (Transitional Provisions) Act 1997;
(h)
section
82-10C of the
Income Tax (Transitional Provisions) Act 1997.
History
Definition of "maximum tax rate provision" inserted by No 19 of 2007, s 3 and Sch 1 item 9, applicable on and after 1 July 2007.
NCS component
(Repealed by No 143 of 2007)
History
Definition of "NCS component" repealed by No 143 of 2007, s 3 and Sch 7 item 77, applicable to assessments for the 2007-08 income year and later income years. The definition formerly read:
NCS component
:
(a)
for a life insurance company - has the meaning that was given by Division 8 of Part III of the Assessment Act as in force immediately before 1 July 2000; and
(b)
for a friendly society - has the meaning that was given by Division 8A of Part III of the Assessment Act as in force immediately before 1 July 2000.
Definition of "NCS component" substituted by No 89 of 2000 and inserted by No 106 of 1989.
net income phase-out limit
has the meaning given by subsection 14(3).
History
Definition of "net income phase-out limit" inserted by No 88 of 2013, s 3 and Sch 7 item 211, applicable in relation to the 2012-13 income year and later income years.
non-arm's length component
has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "non-arm's length component" inserted by No 19 of 2007, s 3 and Sch 1 item 10, applicable to the 2007-2008 income year and later years.
non-complying ADF
means a fund that, at all times during the year of income when the fund is in existence, is an approved deposit fund within the meaning of the Income Tax Assessment Act 1997, but does not include a fund that is a complying ADF.
History
Definition of "non-complying ADF" substituted by No 19 of 2007, s 3 and Sch 1 item 11, applicable to the 2007-2008 income year and later years. The definition formerly read:
non-complying ADF
has the same meaning as in Part IX of the Assessment Act;
Definition of "non-complying ADF" inserted by No 98 of 1989.
non-complying superannuation fund
has the same meaning as in the Income Tax Assessment Act 1997;
History
Definition of "non-complying superannuation fund" amended by No 19 of 2007, s 3 and Sch 1 item 12, by substituting "the Income Tax Assessment Act 1997" for "Part IX of the Assessment Act", applicable to the 2007-2008 income year and later years.
Definition of "non-complying superannuation fund" inserted by No 98 of 1989.
non-fund component
(Repealed by No 62 of 1997)
History
Definition of "non-fund component" inserted by No 106 of 1989.
non-profit company
means-
(a)
a company that is not carried on for the purposes of profit or gain to its individual members and is, by the terms of the company's constituent document, prohibited from making any distribution, whether in money, property or otherwise, to its members; or
(b)
a friendly society dispensary;
non-resident beneficiary
, in relation to a year of income, means a beneficiary of a trust estate who is a prescribed non-resident in relation to that year of income;
non-resident phase-out limit
has the meaning given by subsection 15(8).
History
Definition of "non-resident phase-out limit" inserted by No 88 of 2013, s 3 and Sch 7 item 212, applicable in relation to the 2012-13 income year and later income years.
non-resident taxpayer
, in relation to a year of income, means a taxpayer who is a prescribed non-resident in relation to that year of income;
non-resident trust estate
, in relation to a year of income, means a trust estate that is not a resident trust estate in relation to that year of income;
no-TFN contributions income
has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "no-TFN contributions income" inserted by No 19 of 2007, s 3 and Sch 1 item 13, applicable to the 2007-2008 income year and later years.
ordinary class
of the taxable income of a life insurance company has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "ordinary class" inserted by No 89 of 2000.
ordinary taxable income
means the taxable income, reduced by the superannuation remainder of the taxable income and by the employment termination remainder of the taxable income;
History
Definition of "ordinary taxable income" amended by No 19 of 2007, s 3 and Sch 1 item 14, by substituting "superannuation remainder of the taxable income and by the employment termination remainder of the taxable income" for "EC part of the taxable income", applicable to the 2007-2008 income year and later years.
Definition of "ordinary taxable income" inserted by No 7 of 1993.
PDF
(pooled development fund) has the same meaning as in the Assessment Act;
History
Definition of "PDF" inserted by No 98 of 1992.
PDF component
has the same meaning as in the Assessment Act;
History
Definition of "PDF component" inserted by No 98 of 1992.
pooled superannuation trust
has the same meaning as in the Income Tax Assessment Act 1997;
History
Definition of "pooled superannuation trust" amended by No 19 of 2007, s 3 and Sch 1 item 15, by substituting "the Income Tax Assessment Act 1997" for "Part IX of the AssessmentAct", applicable to the 2007-2008 income year and later years.
Definition of "pooled superannuation trust" inserted by No 98 of 1989.
post-June 83 component
(Repealed by No 19 of 2007)
History
Definition of "post-June 83 component" repealed by No 19 of 2007, s 3 and Sch 1 item 16, applicable to the 2007-2008 income year and later years. The definition formerly read:
post-June 83 component
of an ETP has the meaning given by section 27AA of the Assessment Act.
Definition of "post-June 83 component" inserted by No 142 of 2003.
prescribed non-resident
, in relation to a year of income, means a person who, at all times during the year of income, is a non-resident, not being a person to whom, at any time during the year of income, compensation or a pension, allowance or benefit is payable under-
(a)
the
Veterans' Entitlements Act 1986;
(b)
subsection 4(6) of the
Veterans' Entitlements (Transitional Provisions and Consequential Amendments) Act 1986; or
(ba)
the
Military Rehabilitation and Compensation Act 2004; or
(c)
the
Social Security Act 1991;
(d)
(Repealed by No 48 of 1991)
being compensation or a pension, allowance or benefit in respect of which the person is liable to be assessed and to pay income tax in Australia;
History
Definition of "prescribed non-resident" amended by No 52 of 2004, No 100 of 1991 and No 48 of 1991.
prescribed unit trust
, in relation to a year of income, means a trust estate that is a public trading trust in relation to the year of income.
History
Definition of "prescribed unit trust" substituted by No 53 of 2016, s 3 and Sch 5 item 69, applicable to assessments for income years starting on or after 1 July 2016. No 53 of 2016 (as amended by No 15 of 2019), s 3 and Sch 5 Pt 4 contains the following transitional provision:
Part 4 - Transitional
75 Transitional rule for 20% tracing requirement and repeal of Division 6B - imputation
(1)
This item applies if at a time (the
cessation time
), on or after the commencement of this Schedule, either:
(a)
section 102K of the Income Tax Assessment Act 1936 ceases to apply to the trustee of a trust because of the repeal of that section by Part 2 of this Schedule; or
(b)
section 102S of that Act ceases to apply to the trustee of a trust because of the amendment made by Part 1 of this Schedule.
(2)
Subitems (3) and (3A) apply if:
(a)
an event happens in respect of the trust that is described in:
(i)
the table in subsection 205-15(1) of the Income Tax Assessment Act 1997; or
(ii)
the table in subsection 205-30(1) of that Act; and
(b)
the event happens on or after the cessation time but before 1 July 2019; and
(c)
the event is:
(i)
the trust paying income tax for an income year starting before 1 July 2016; or
(ii)
the trust paying a PAYG instalment in respect of income tax for an income year starting before 1 July 2016; or
(iii)
the trust receiving a refund of income tax for an income year starting before 1 July 2016; or
(iv)
the trust franking a distribution; or
(v)
the trust ceasing to be a franking entity.
History
S 75(2) amended by No 15 of 2019, s 3 and Sch 1 items 34-36, by substituting "Subitems (3) and (3A) apply" for "Subitem (3) applies", "1 July 2019" for "1 July 2018" in para (b) and inserting para (c)(v), effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years.
(2A)
However, subparagraph (2)(c)(v) does not apply unless the trust's franking account is in surplus immediately before the trust ceases to be a franking entity.
History
S 75(2A) inserted by No 15 of 2019, s 3 and Sch 1 item 37, effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years.
(3)
For the purposes of determining whether a franking credit or franking debit arises in the trust's franking account as a result of the event:
(a)
treat the trust as a corporate tax entity at the time the event happens; and
(b)
treat the trust as satisfying the residency requirement in section 205-25 of the Income Tax Assessment Act 1997 for the income year in which the event happens.
(3A)
If the event is an event described in item 4 of the table in subsection 205-30(1) of the Income Tax Assessment Act 1997, treat the event as happening on 1 July 2019.
History
S 75(3A) inserted by No 15 of 2019, s 3 and Sch1 item 38, effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years.
(4)
Subitems (5) and (6) apply if:
(a)
the trust makes a distribution on or after the cessation time but before 1 July 2019; and
(b)
the trust's franking account is in surplus just before the trust makes the distribution; and
(c)
the distribution is not made out of income derived in relation to the 2016-17 income year or a later income year.
History
S 75(4) amended by No 15 of 2019, s 3 and Sch 1 items 39-41, by substituting "Subitems (5) and (6) apply" for "Subitem (5) applies", "1 July 2019" for "1 July 2018" in para (a) and inserting para (c), effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years.
(5)
For the purposes of determining whether the trust franks the distribution as a result of the event:
(a)
treat the trust as a corporate tax entity at the time it makes the distribution; and
(b)
treat the trust as satisfying the residency requirement in section 202-20 of the Income Tax Assessment Act 1997 at the time it makes the distribution.
(6)
Treat a beneficiary of the trust who receives the distribution as receiving, for the purposes of the income tax law, a dividend from a corporate tax entity.
History
S 75(6) inserted by No 15 of 2019, s 3 and Sch 1 item 42, effective 1 April 2019 and applicable in relation to the 2018-19 income year and later income years.
Note:
As a result, the trust will satisfy the requirement in paragraph 202-5(a) of that Act in respect of the distribution. If the other requirements in section 202-5 of that Act are satisfied in respect of the distribution, this means that the trust franks the distribution.
The definition formerly read:
prescribed unit trust
, in relation to a year of income, means a trust estate that-
(a)
is a corporate unit trust in relation to the year of income; or
(b)
is a public trading trust in relation to the year of income;
public trading trust
, in relation to a year of income, means a unit trust that is a public trading trust, within the meaning of Division 6C of Part III of the Assessment Act, in relation to the year of income;
History
Archived:
S 3(1) (definition of reducednotional income) repealed as inoperative by No 101 of 2006, s 3 and Sch 1 item 263, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive.
reduced share
(Repealed by No 168 of 1999)
reduced taxable income
means the part (if any) of the taxable income other than the special income component;
History
Definition of "reduced taxable income" substituted by No 138 of 1987.
registered organisation
(Repealed by No 143 of 2007)
History
Definition of "registered organisation" repealed by No 143 of 2007, s 3 and Sch 7 item 78, applicable to assessments for the 2007-08 income year and later income years. The definition formerly read:
registered organisation
has the meaning that was given by Division 8A of Part III of the Assessment Act as in force immediately before 1 July 2000.
Definition of "registered organisation" substituted by No 89 of 2000.
resident beneficiary
, in relation to a year of income, means a beneficiary of a trust estate who is not a prescribed non-resident in relation to that year of income;
resident phase-out limit
has the meaning given by subsection 13(10).
History
Definition of "resident phase-out limit" inserted by No 88 of 2013, s 3 and Sch 7 item 213, applicable in relation to the 2012-13 income year and later income years.
resident taxpayer
, in relation to a year of income, means a taxpayer who is not a prescribed non-resident in relation to that year of income;
resident trust estate
, in relation to a year of income, means a trust estate that, under subsection 95(2) of the Assessment Act, is to be taken to be a resident trust estate in relation to that year of income;
retained amount
(Repealed by No 19 of 2007)
History
Definition of "retained amount" repealed by No 19 of 2007, s 3 and Sch 1 item 17, applicable to the 2007-2008 income year and later years. The definition formerly read:
retained amount
of the post-June 83 component of an ETP has the meaning given by section 27AC of the Assessment Act.
Definition of "retained amount" inserted by No 142 of 2003.
RSA category A component
(Repealed by No 143 of 2007)
History
Definition of "RSA category A component" repealed by No 143 of 2007, s 3 and Sch 7 item 79, applicable to assessments for the 2007-08 income year and later income years. The definition formerly read:
RSA category A component
has the meaning that was given by Division 8A of Part III of the Assessment Act as in force immediately before 1 July 2000.
Definition of "RSA category A component" substituted by No 89 of 2000 and inserted by No 41 of 1999.
RSA category B component
(Repealed by No 143 of 2007)
History
Definition of "RSA category B component" repealed by No 143 of 2007, s 3 and Sch 7 item 80, applicable to assessments for the 2007-08 income year and later income years. The definition formerly read:
RSA category B component
has the meaning that was given by Division 8A of Part III of the Assessment Act as in force immediately before 1 July 2000.
Definition of "RSA category B component" substituted by No 89 of 2000 and inserted by No 41 of 1999.
RSA combined component
(Repealed by No 143 of 2007)
History
Definition of "RSA combined component" repealed by No 143 of 2007, s 3 and Sch 7 item 81, applicable to assessments for the 2007-08 income year and later income years. The definition formerly read:
RSA combined component
has the meaning that was given by Division 8A of Part III of the Assessment Act as in force immediately before 1 July 2000.
Definition of "RSA combined component" substituted by No 89 of 2000 and inserted by No 41 of 1999.
RSA component
has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "RSA component" substituted by No 143 of 2007, s 3 and Sch 7 item 82, applicable to assessments for the 2007-08 income year and later income years. The definition formerly read:
RSA component
:
(a)
for a life insurance company - has the meaning that was given by Division 8 of Part III of the Assessment Act as in force immediately before 1 July 2000; or
(b)
in any other case - has the same meaning as in the Income Tax Assessment Act 1997.
Definition of "RSA component" amended by No 19 of 2007, s 3 and Sch 1 item 18, by substituting "the Income Tax Assessment Act 1997" for "Part IX of the Assessment Act", applicable to the 2007-2008 income year and later years.
Definition of "RSA component" amended by No 89 of 2000 and inserted by No 62 of 1997.
second resident personal tax rate
means the rate mentioned in item 2 of the table in clause 1 of Part I of Schedule 7 that is applicable to the year of income.
History
Definition of "second resident personal tax rate" substituted by No 47 of 2018, s 3 and Sch 2 item 10, effective 1 July 2018. The definition formerly read:
second resident personal tax rate
means the rate mentioned in item 2 of the table in clause 1 of Part I of Schedule 7.
Definition of "second resident personal tax rate" inserted by No 60 of 2012, s 3 and Sch 1 item 1, applicable to the 2012-2013 year of income and later years of income.
SME income component
has the same meaning as in Subdivision B of Division 10E of Part III of the Assessment Act;
History
Definition of "SME income component" inserted by No 181 of 1994.
sovereign entity
has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "sovereign entity" inserted by No 36 of 2019, s 3 and Sch 1 item 1, effective 1 July 2019.
special component
(Repealed by No 19 of 2007)
History
Definition of "special component" repealed by No 19 of 2007, s 3 and Sch 1 item 19, applicable to the 2007-2008 income year and later years. The definition formerly read:
special component
has the same meaning as in Part IX of the Assessment Act;
Definition of "special component" inserted by No 98 of 1989.
special income component
, in relation to a taxable income for which there is an abnormal income amount, means:
(a)
so much of the taxable income as does not exceed the abnormal income amount; or
(b)
if the sum (the
component sum
) of:
(i)
the abnormal income amount; and
(ii)
the superannuation remainder of the taxable income; and
(iii)
the employment termination remainder of the taxable income;
is more than the taxable income - the abnormal income amount, reduced by the amount by which the component sum exceeds the taxable income.
History
Definition of "special income component" amended by No 19 of 2007, s 3 and Sch 1 item 20, by substituting para (b)((ii) and (iii) for para (b)(ii), applicable to the 2007-2008 income year and later years. Para (b)(ii) formerly read:
(ii)
the EC part of the taxable income;
Definition of "special income component" substituted by No 168 of 1999, No 7 of 1993 and inserted by No 138 of 1987.
standard component
has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "standard component" substituted by No 143 of 2007, s 3 and Sch 7 item 83, applicable to assessments for the 2007-08 income year and later income years. The definition formerly read:
standard component
:
(a)
for a life insurance company - has the meaning that was given by Division 8 of Part III of the Assessment Act as in force immediately before 1 July 2000; or
(b)
in any other case - has the same meaning as in the Income Tax Assessment Act 1997.
Definition of "standard component" amended by No 19 of 2007, s 3 and Sch 1 item 21, by substituting "the Income Tax Assessment Act 1997" for "Part IX of the Assessment Act", applicable to the 2007-2008 income year and later years.
Definition of "standard component" amended by No 89 of 2000, substituted by No 62 of 1997 and inserted by No 98 of 1989.
superannuation fund
(Repealed by No 98 of 1989)
superannuation remainder
of taxable income means so much of the taxable income as:
(a)
is included in assessable income under a maximum tax rate provision in Division
301 of the
Income Tax Assessment Act 1997; and
(b)
does not give rise to an entitlement to a tax offset under that maximum tax rate provision.
History
Definition of "superannuation remainder" inserted by No 19 of 2007, s 3 and Sch 1 item 22, applicable on and after 1 July 2007.
tax
means income tax imposed as such by any Act other than income tax payable in accordance with section 121H, 126, 128B, 128N, 128NA, 128NB, 128T, 128V, 136A or 159C of the Assessment Act.
History
Definition of "tax" amended by No 11 of 1988.
taxed element
(Repealed by No 19 of 2007)
History
Definition of "taxed element" repealed by No 19 of 2007, s 3 and Sch 1 item 23, applicable to the 2007-2008 income year and later years. The definition formerly read:
taxed element
of the retained amount of the post-June 83 component of an ETP has the meaning given by section 27AC of the Assessment Act.
Definition of "taxed element" inserted by No 142 of 2003.
tax-free threshold
means $18,200.
History
Definition of "tax-free threshold" was to be amended by No 150 of 2011, s 3 and Sch 1 item 7, by substituting "$19,400" for "$18,200" as the tax-free threshold, applicable to the 2015-16 year of income and later years of income. This amendment was repealed by Sch 1 item 2 of Labor 2013-14 Budget Savings (Measures No 1) Act 2015 (No 72 of 2015) so that the tax-free threshold remains at $18,200 for the 2015-16 year of income and later years of income.
Definition of "tax-free threshold" inserted by No 150 of 2011, s 3 and Sch 1 item 1, applicable to the 2012-13 year of income and later years of income.
tax offset
has the same meaning as in the Income Tax Assessment Act 1997.
History
Definition of "tax offset" inserted by No 19 of 2007, s 3 and Sch 1 item 24, applicable to the 2007-2008 income year and later years.
third resident personal tax rate
means the rate mentioned in item 3 of the table in clause 1 of Part I of Schedule 7 that is applicable to the year of income.
History
Definition of "third resident personal tax rate" inserted by No 3 of 2024, s 3 and Sch 1 item 1, effective 1 April 2024.
unregulated investment component
has the same meaning as in Subdivision B of Division 10E of Part III of the Assessment Act.
History
Definition of "unregulated investment component" inserted by No 181 of 1994.
working holiday maker
has the meaning given by subsection 3A(1).
History
Definition of "working holiday maker" inserted by No 92 of 2016, s 3 and Sch 1 item 1, applicable in relation to:
(a) assessable income derived on or after 1 January 2017; and
(b) so much of any amounts that can be deducted as relate to such assessable income.
working holiday taxable income
has the meaning given by subsections 3A(2) and (3).
History
Definition of "working holiday taxable income" inserted by No 92 of 2016, s 3 and Sch 1 item 1, applicable in relation to:
(a) assessable income derived on or after 1 January 2017; and
(b) so much of any amounts that can be deducted as relate to such assessable income.
3(2)
In this Act-
(a)
a reference to net income, taxable income or reduced taxable income shall be read as a reference to net income, taxable income or reduced taxable income, as the case may be, of the year of income; and
(b)
a reference to eligible taxable income for the purposes of Division
6AA of Part
III of the Assessment Act shall be read as a reference to eligible taxable income of the year of income for the purposes of that Division.
History
S 3(2) amended by No 101 of 2006, s 3 and Sch 2 item 780, by omitting ", reduced notional income" after "income, taxable income" (twice occurring) in para (a), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive.
S 3(2)(a) amended by No 98 of 1989.
3(3)
A reference in this Act to the part to which Division
6AA of Part
III of the Assessment Act applies of the share of a beneficiary of the net income of a trust estate shall, if that Division applies to the whole of such a share, be read as a reference to the whole of that share.
SECTION 3A
WORKING HOLIDAY MAKERS AND WORKING HOLIDAY TAXABLE INCOME
3A(1)
An individual is a
working holiday maker
at a particular time if the individual holds at that time:
(a)
a Subclass 417 (Working Holiday) visa; or
(b)
a Subclass 462 (Work and Holiday) visa; or
(c)
a bridging visa permitting the individual to work in Australia if:
(i)
the bridging visa was granted under the Migration Act 1958 in relation to an application for a visa of a kind described in paragraph (a) or (b); and
(ii)
the Minister administering that Act is still to make a decision in relation to the application; and
(iii)
the most recent visa, other than a bridging visa, granted under that Act to the individual was a visa of a kind described in paragraph (a) or (b); or
(d)
a COVID-19 pandemic event 408 visa (as defined by subclause 9204(1) of Schedule 13 to the
Migration Regulations 1994).
History
S 3A(1) amended by No 8 of 2022, s 3 and Sch 8 item 17, by inserting para (d), effective 23 February 2022. No 8 of 2022, s 3 and Sch 8 item 18 contains the following application provisions:
18 Application of amendment
18
The amendment of subsection 3A(1) of the Income Tax Rates Act 1986 made by this Part applies to an individual in relation to a particular time if:
(a)
the time is in an income year (a
pre-commencement income year
) that begins on or after 1 July 2019 but before the first 1 July to occur after the day this Part commences and the individual is a non-resident taxpayer in relation to that income year; or
(b)
the time:
(i)
is in a pre-commencement income year in relation to which there are one or more part-year residency periods in relation to the individual; and
(ii)
is not in one of those part-year residency periods; or
(c)
the time is in an income year that begins on or after the first 1 July to occur after the day this Part commences.
3A(2)
An individual's
working holiday taxable income
for a year of income is the individual's assessable income for the year of income derived:
(a)
from sources in Australia; and
(b)
while the individual is a working holiday maker;
less so much of any amount the individual can deduct for the year of income as relates to that assessable income.
3A(3)
However, the individual's
working holiday taxable income
does not include any superannuation remainder, or employment termination remainder, of the individual's taxable income for the year of income.
History
S 3A inserted by No 92 of 2016, s 3 and Sch 1 item 2, applicable in relation to:
(a) assessable income derived on or after 1 January 2017; and
(b) so much of any amounts that can be deducted as relate to such assessable income.
SECTION 4
4
INCORPORATION
The Assessment Act is incorporated, and shall be read as one, with this Act.
PART II - RATES OF INCOME TAX PAYABLE UPON INCOMES OTHER THAN INCOMES OF COMPANIES, PRESCRIBED UNIT TRUSTS, SUPERANNUATION FUNDS AND CERTAIN OTHER TRUSTS
Division 1 - Preliminary
SECTION 5
5
INTERPRETATION
In this Part,
tax
means-
(a)
tax payable by a natural person, other than-
(i)
a person in the capacity of a trustee of an eligible superannuation fund; or
(ii)
a person in the capacity of a trustee of a prescribed unit trust; or
(iii)
a person in the capacity of a trustee of an eligible ADF; or
(iiia)
a person in the capacity of a trustee of a pooled superannuation trust; or
(iv)
a person in the capacity of a trustee of a trust estate, being a person who is liable to be assessed and to pay tax under paragraph 98(3)(b) or subsection 98(4) of the Assessment Act; or
(v)
a person in the capacity of a trustee of an AMIT, being a person who is liable to be assessed and to pay tax under paragraph 276-105(2)(b) or (c) of the Income Tax Assessment Act 1997; or
(b)
tax payable by a company in the capacity of a trustee, other than-
(i)
a company in the capacity of a trustee of an eligible superannuation fund; or
(ii)
a company in the capacity of a trustee of a prescribed unit trust; or
(iii)
a company in the capacity of a trustee of an eligible ADF; or
(iiia)
a company in the capacity of a trustee of a pooled superannuation trust; or
(iv)
a company in the capacity of a trustee of a trust estate, being a company that is liable to be assessed and to pay tax under paragraph 98(3)(b) or subsection 98(4) of the Assessment Act; or
(v)
a company in the capacity of a trustee of an AMIT, being a company that is liable to be assessed and to pay tax under paragraph 276-105(2)(b) or (c) of the Income Tax Assessment Act 1997.
History
S 5 amended by No 49 of 2016, s 3 and Sch 1 items 2-9, by inserting "or" in para (a)(i), (ii), (iii), inserting para (a)(v), "or" in para (b)(i), (ii), (iii) and inserting para (b)(v), effective 5 May 2016.
S 5 amended by No 79 of 2007, s 3 and Sch 9 items 27 and 28, by substituting "paragraph 98(3)(b) or subsection 98(4)" for "subsection 98(3)" in para (a)(iv) and para (b)(iv), applicable in relation to income years starting on or after 1 July 2006.
S 5 amended by No 98 of 1989 and No 138 of 1987.
Former Division 2 - Financial Year Commencing on 1 July 1986
History
Div 2 repealed by No 70 of 1989.
Division 3 - Rates of tax
History
Div 3 heading substituted by No 70 of 1989.
Former Subdivision A - Application of Division
History
Subdiv A repealed by No 70 of 1989.
Subdivision B - Rates of tax and notional rates
SECTION 12
RATES OF TAX AND NOTIONAL RATES
12(1)
Except as otherwise provided by this Division, the rates of tax are as set out in Schedule
7.
12(2)
The notional rates for the purposes of section
156 of the Assessment Act are as set out in Schedule
8.
12(3)
(Repealed by No 41 of 1998)
12(4)
For every dollar of so much of the net income of a trust estate as is equal to the deemed net income from primary production, the rate of complementary tax for the purposes of subsection
156(5A) of the Assessment Act is the amount ascertained by dividing the amount of the excess referred to in paragraph (b) of that subsection by the number of whole dollars in the eligible net income of the trust estate.
History
Archived:
S 12(5) repealed as inoperative by No 101 of 2006, s 3 and Sch 1 item 264, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive.
12(6)
Subject to sections
13,
14 and
15, the rates of tax payable by a trustee under section
98 or
99 of the Assessment Act are as set out in Schedule
10.
History
S 12(6) amended by No 101 of 2004.
12(6A)
The rate of tax payable by a trustee under paragraph
276-105(2)(a) of the
Income Tax Assessment Act 1997 is as set out in Schedule
10A.
History
S 12(6A) inserted by No 49 of 2016, s 3 and Sch 1 item 10, effective 5 May 2016.
12(7)
The rate of further tax payable by a person under subsection
94(9) of the Assessment Act is:
(a)
in respect of the part of the taxable income of the person that is the relevant part of that taxable income for the purposes of subsections
94(10A) and
(10B) of the Assessment Act - the amount (if any) per dollar ascertained in accordance with the formula
where:
A
is an amount equal to 45% of the taxable income of the person;
B
is the amount of tax (if any) that, but for this subsection, section 12A and any rebate, credit or other tax offset (as defined in the Income Tax Assessment Act 1997) to which the person is entitled, would be payable by the person in respect of the taxable income of the person; and
C
is the number of whole dollars in the taxable income of the person; and
(b)
in respect of the part of the taxable income of the person that is the prescribed part of that taxable income for the purposes of subsection
94(10B) of the Assessment Act - the amount (if any) per dollar ascertained in accordance with the formula
where:
A
is an amount equal to 45% of the taxable income of the person;
B
is the amount of tax (if any) that would be payable by the person on the person's taxable income if:
(i) the comparison rate described in section 392-55 of the Income Tax Assessment Act 1997 were the rate of tax payable by the person on that income; and
(ii) this subsection and section 12A did not apply; and
(iii) the person were not entitled to any rebate, credit or other tax offset (as defined in the Income Tax Assessment Act 1997); and
C
is the number of whole dollars in the taxable income of the person.
History
S 12(7) amended by No 92 of 2020, s 3 and Sch 5 item 39, by substituting "section 12A" for "sections 12A and 12B" (wherever occurring), effective 1 January 2021 and applicable in relation to assessments for income years commencing on or after 1 July 2021.
S 12(7) amended by No 92 of 2011, s 3 and Sch 1 item 1, by substituting "sections 12A and 12B" for "section 12A" wherever occurring, applicable to assessments for years of income commencing on or after 1 July 2011.
S 12(7) amended by No 55 of 2006, s 3 and Sch 1 items 7 and 8, by substituting "45%" for "47%" in paras (a) and (b) of the definition of "A", applicable to assessments for the 2006-2007 year of income and later years of income.
S 12(7) amended by No 101 of 2004, No 83 of 1999, No 46 of 1998, No 124 of 1997 and No 70 of 1989.
12(8)
The rate of further tax payable by a trustee under subsection
94(11) or (12) of the Assessment Act is:
(a)
in respect of the part of the net income of the trust estate that is the relevant part of that net income for the purposes of subsections
94(12A) and (12B) of the Assessment Act - the amount (if any) per dollar ascertained in accordance with the formula
where:
A
is an amount equal to 45% of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 or 99 of the Assessment Act;
B
is the amount of tax (if any) that, but for this subsection, subsection (4) and any rebate, credit or other tax offset (as defined in the Income Tax Assessment Act 1997) to which the trustee is entitled, would be payable by the trustee in respect of that net income; and
C
is the number of whole dollars in that net income; and
(b)
in respect of the part of the net income of the trust estate that is the prescribed part of that net income for the purposes of subsection
94(12B) of the Assessment Act - the amount (if any) per dollar ascertained in accordance with the formula
where:
A
is an amount equal to 45% of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 or 99 of the Assessment Act;
B
is the amount of tax (if any) that, but for this subsection, subsection (4) and any rebate, credit or other tax offset (as defined in the Income Tax Assessment Act 1997) to which the trustee is entitled, would be payable by the trustee in respect of that net income if the notional rates declared by this Division for the purposes of section 156 of the Assessment Act were the rates of tax payable by the trustee in respect of that net income; and
C
is the number of whole dollars in that net income.
History
S 12(8) amended by No 55 of 2006, s 3 and Sch 1 items 9 and 10, by substituting "45%" for "47%" in paras (a) and (b) of the definition of "A", applicable to assessments for the 2006-2007 year of income and later years of income.
S 12(8) amended by No 101 of 2004, No 83 of 1999, No 124 of 1997 and No 70 of 1989.
12(9)
The rate of tax payable by a trustee in respect of the net income of a trust estate in respect of which the trustee is liable, under section
99A of the Assessment Act, to be assessed and to pay tax is 45%.
History
S 12(9) amended by No 55 of 2006, s 3 and Sch 1 item 11, by substituting "45%" for "47%", applicable to assessments for the 2006-2007 year of income and later years of income.
S 12(9) amended by No 70 of 1989.
12(10)
The rate of tax payable by a trustee of a managed investment trust under subsection
275-605(2) of the
Income Tax Assessment Act 1997 is 30%.
History
S 12(10) inserted by No 49 of 2016, s 3 and Sch 1 item 11, effective 5 May 2016.
12(11)
The rate of tax payable by a trustee of an AMIT under subsection
276-405(2) of the
Income Tax Assessment Act 1997 is 45%.
History
S 12(11) inserted by No 49 of 2016, s 3 and Sch 1 item 11, effective 5 May 2016.
12(12)
The rate of tax payable by a trustee of an AMIT under subsection
276-415(2) of the
Income Tax Assessment Act 1997 is 45%.
History
S 12(12) inserted by No 49 of 2016, s 3 and Sch 1 item 11, effective 5 May 2016.
12(13)
The rate of tax payable by a trustee of an AMIT under subsection
276-420(2) of the
Income Tax Assessment Act 1997 is 45%.
History
S 12(13) inserted by No 49 of 2016, s 3 and Sch 1 item 11, effective 5 May 2016.
SECTION 12A
RATE OF EXTRA INCOME TAX FOR PRIMARY PRODUCERS
12A(1)
[Rate specified]
This section sets the rate of extra income tax payable under subsection 392-35(3) of the Income Tax Assessment Act 1997 on every dollar of a taxpayer's averaging component for a year of income.
12A(2)
[Calculation of rate]
The rate is worked out using the formula:
| |
Averaging adjustment
|
| |
Averaging component |
12A(3)
(Repealed by No 83 of 1999)
History
S 12A(3) amended by No 69 of 1999.
12A(4)
(Repealed by No 83 of 1999)
History
S 12A(4) amended by No 69 of 1999.
12A(5)
(Repealed by No 83 of 1999)
12A(6)
Rate if taxable income is less than tax-free threshold adjusted by family tax assistance.
In this section:
"adjusted tax-free threshold"
(Repealed by No 83 of 1999)
History
Definition of "adjusted tax-free threshold" amended by No 69 of 1999.
averaging adjustment
means the taxpayer's smoothing adjustment, worked out for the year of income under section 392-75 of the Income Tax Assessment Act 1997.
averaging component
means the taxpayer's averaging component in whole dollars, worked out for the year of income under Subdivision 392-C of the Income Tax Assessment Act 1997.
"lowest marginal rate of tax"
(Repealed by No 83 of 1999)
"taxable income"
(Repealed by No 83 of 1999)
"tax-free threshold increase"
(Repealed by No 83 of 1999)
History
Definition of "tax-free threshold increase" amended by No 69 of 1999.
History
S 12A inserted by No 46 of 1998.
12B
(Repealed) SECTION 12B RATE OF EXTRA INCOME TAX FOR RECOUPMENTS FOR R&D ACTIVITIES
(Repealed by No 92 of 2020)
History
S 12B repealed by No 92 of 2020, s 3 and Sch 5 item 40, effective 1 January 2021 and applicable in relation to assessments for income years commencing on or after 1 July 2021. S 12B formerly read:
SECTION 12B RATE OF EXTRA INCOME TAX FOR RECOUPMENTS FOR R&D ACTIVITIES
12B
The rate of extra income tax payable by a taxpayer under Subdivision 355-G (about government R&D recoupments) of the Income Tax Assessment Act 1997 for a year of income is 10%.
S 12B inserted by No 92 of 2011, s 3 and Sch 1 item 2, applicable to assessments for years of income commencing on or after 1 July 2011.
12C
(Repealed) SECTION 12C RATE OF TEMPORARY FLOOD AND CYCLONE RECONSTRUCTION LEVY
(Repealed by No 15 of 2011)
History
S 12C repealed by No 15 of 2011 (as amended by No 70 of 2015), s 3 and Sch 2 item 1, effective 1 July 2016. S 12C formerly read:
SECTION 12C RATE OF TEMPORARY FLOOD AND CYCLONE RECONSTRUCTION LEVY
12C
The rate of extra income tax payable as mentioned in section 4-10 of the Income Tax (Transitional Provisions) Act 1997 (temporary flood and cyclone reconstruction levy) for the 2011-12 financial year on a taxpayer's taxable income for the 2011-12 year of income is the rate applicable under the table.
|
Rate of temporary flood and cyclone reconstruction levy
|
|
Item
|
For the part of the taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
exceeds $50,000 but does not exceed $100,000 |
0.5% |
| 2 |
exceeds $100,000 |
1% |
S 12C renumbered from s 12B by No 70 of 2015, s 3 and Sch 6 item 39, effective 25 June 2015. This amendment corrects a misdescribed amendment by No 15 of 2011, s 3 and Sch 1 item 1.
S 12B inserted by No 15 of 2011, s 3 and Sch 1 item 1, effective 12 April 2011.
Subdivision C - Resident taxpayers, resident beneficiaries and resident trust estates
SECTION 13
RATES OF TAX WHERE DIVISION 6AA OF PART III OF THE ASSESSMENT ACT APPLIES
13(1)
The rates of tax in respect of the taxable income of a resident taxpayer:
(a)
who is a prescribed person in relation to the year of income for the purposes of Division
6AA of Part
III of the Assessment Act; and
(b)
who has, for the purposes of that Division, an eligible taxable income of an amount exceeding $416;
are as set out in Part I of Schedule 11.
13(2)
Where the eligible taxable income of a resident taxpayer for the purposes of Division
6AA of Part
III of the Assessment Act exceeds $416 but does not exceed the resident phase-out limit,the amount of tax payable under subsection (1) in respect of that eligible taxable income shall not exceed:
(a)
66% of the amount by which that eligible taxable income exceeds $416; or
(b)
the amount ascertained by deducting from the amount of tax that would be payable by the taxpayer if the rates set out in Part I of Schedule
7 were applied to the taxable income of the taxpayer the amount of tax that would be payable by the taxpayer if those rates were applied to the taxable income of the taxpayer reduced by the amount of that eligible taxable income;
whichever is the greater.
History
S 13(2) amended by No 88 of 2013, s 3 and Sch 7 item 214, by substituting "the resident phase-out limit" for "$1,307", applicable in relation to the 2012-13 income year and later income years.
S 13(2) amended by No 101 of 2006, s 3 and Sch 2 item 781, by omitting the reference to a repealed inoperative provision in para (b), effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive.
S 13(2) amended by No 55 of 2006, s 3 and Sch 1 item 12, by substituting "$1,307" for "$1,445", applicable to assessments for the 2006-2007 year of income and later years of income.
S 13(2) amended by No 70 of 1989.
13(3)
Where:
(a)
a trustee of a trust estate is liable to be assessed and to pay tax under section
98 of the Assessment Act in respect of the share of a resident beneficiary of the net income of the trust estate;
(b)
Division
6AA of Part
III of the Assessment Act applies to a part of that share; and
(c)
the part of that share to which that Division applies exceeds $416;
the rates of tax payable by the trustee in respect of that share of the net income of the trust estate are as set out in Part I of Schedule 12.
13(4)
Where:
(a)
a trustee of a trust estate is liable to be assessed and to pay tax under section
98 of the Assessment Act in respect of the share of a resident beneficiary of the net income of the trust estate;
(b)
Division
6AA of Part
III of the Assessment Act applies to a part of that share;
(c)
the part of that share to which that Division applies does not exceed $416;
(d)
Division
6AA of Part
III of the Assessment Act also applies to a part of the share of the beneficiary of the net income of another trust estate or to parts of the shares of the beneficiary of the net incomes of other trust estates; and
(e)
the sum of the part referred to in paragraph (b) and the part or parts referred to in paragraph (d) exceeds $416;
the trustee of the trust estate referred to in paragraph (a) is liable to pay tax in respect of the share of the net income of the trust estate referred to in that paragraph at the rates set out in Part I of Schedule 12.
13(5)
Where:
(a)
the amount of tax that a trustee of a trust estate is liable to pay in respect of the share of a resident beneficiary of the net income of the trust estate is, by virtue of subsection (4), to be calculated in accordance with Part I of Schedule
12; and
(b)
the sum of:
(i)
the part of that share to which Division 6AA of Part III of the Assessment Act applies; and
(ii)
the part of the share of the beneficiary of the net income of the other trust estate or the parts of the shares of the beneficiary of the net incomes of the other trust estates, as the case may be, to which that Division applies;
does not exceed the resident phase-out limit;
the tax that, apart from this subsection, would be payable by the trustee in respect of the share referred to in paragraph (a) shall be reduced by such amount (if any) as, in the opinion of the Commissioner, is fair and reasonable.
History
S 13(5) amended by No 88 of 2013, s 3 and Sch 7 item 215, by substituting "the resident phase-out limit" for "$1,307" in para (b), applicable in relation to the 2012-13 income year and later income years.
S 13(5) amended by No 55 of 2006 and No 70 of 1989.
13(6)
Subject to subsection (7), where:
(a)
the trustee of a trust estate is liable to be assessed and to pay tax under section
98 of the Assessment Act in respect of the share of a resident beneficiary of the net income of the trust estate;
(b)
Division
6AA of Part
III of the Assessment Act applies to a part (in this subsection referred to as the
eligible part
) of that share; and
(c)
the eligible part of that share exceeds $416 but does not exceed the resident phase-out limit;
the amount of tax payable under subsection (3) in respect of the eligible part of that share shall not exceed:
(d)
66% of the amount by which the eligible part of that share exceeds $416; or
(e)
the amount ascertained by deducting from the amount of tax that would be payable by the trustee if the rates referred to in Part I of Schedule
10 were applied to that share of that net income the amount of tax that would be payable by the trustee if those rates were applied to that share of that net income reduced by the amount of the eligible part of that share;
whichever is the greater.
History
S 13(6) amended by No 88 of 2013, s 3 and Sch 7 item 215, by substituting "the resident phase-out limit" for "$1,307" in para (c), applicable in relation to the 2012-13 income year and later income years.
S 13(6) amended by No 55 of 2006 and No 70 of 1989.
13(7)
Subsection (6) does not apply in relation to the share of a beneficiary of the net income of a trust estate if Division
6AA of Part
III of the Assessment Act applies to a part of a share of the beneficiary of the net income of another trust estate or to parts of the shares of the beneficiary of the net incomes of other trust estates.
13(8)
Where:
(a)
by reason of the application of subsection (7), subsection (6) does not apply in relation to the share of a beneficiary of the net income of a trust estate in respect of which a trustee is liable to be assessed and to pay tax under section
98 of the Assessment Act;and
(b)
the sum of:
(i)
the part of that share to which Division 6AA of Part III of the Assessment Act applies; and
(ii)
the part of the share of the beneficiary of the net income of the other trust estate or the parts of the shares of the beneficiary of the net incomes of the other trust estates, as the case may be, to which that Division applies;
does not exceed the resident phase-out limit;
the tax that, apart from this subsection, would be payable by the trustee in respect of the share referred to in paragraph (a) shall be reduced by such amount (if any) as, in the opinion of the Commissioner, is fair and reasonable.
History
S 13(8) amended by No 88 of 2013, s 3 and Sch 7 item 215, by substituting "the resident phase-out limit" for "$1,307" in para (b), applicable in relation to the 2012-13 income year and later income years.
S 13(8) amended by No 55 of 2006 and No 70 of 1989.
13(9)
In forming an opinion for the purposes of subsection (5) or (8) (in this subsection referred to as the
relevant subsection
) in relation to the share of a beneficiary of the net income of a trust estate of a year of income, the Commissioner shall have regard to:
(a)
any limitation that would be applicable under subsection (6) on the amount of tax that would be payable by a trustee in accordance with Part I of Schedule
12 in respect of a share of the net income of a trust estate of the year of income of an amount equal to the sum of the shares referred to in paragraph (b) of the relevant subsection if:
(i)
Division 6AA of Part III of the Assessment Act applied to so much of that share as is equal to the sum of the parts of the shares referred to in paragraph (b) of the relevant subsection; and
(ii)
that share were a share of a resident beneficiary who is not presently entitled to a share of the income of the year of income of any other trust estate;
(b)
the amount of any reduction previously granted by the Commissioner under subsection (5) or (8) in relation to the share of the beneficiary of the net income of the year of income of any other trust estate; and
(c)
such other matters (if any) as the Commissioner thinks fit.
13(10)
The
resident phase-out limit
is the following amount rounded down to the nearest dollar:
$416 × 66%
66% − Highest rate in the table in Part I of Schedule 7 |
History
S 13(10) inserted by No 88 of 2013, s 3 and Sch 7 item 216, applicable in relation to the 2012-13 income year and later income years.
SECTION 14
LIMITATION ON TAX PAYABLE BY CERTAIN TRUSTEES
14(1)
Where-
(a)
the trustee of a resident trust estate is liable to be assessed and to pay tax under section
99 of the Assessment Act in respect of the net income or a part of the net income of the trust estate;
(b)
in the case of a trust estate of a deceased person, the deceased person died not less than 3 years before the end of the year of income; and
(c)
that net income or that part of the net income of the trust estate does not exceed $416;
no tax is payable under subsection 12(6) in respect of that net income or that part of the net income, as the case may be.
14(2)
Where-
(a)
the trustee of a resident trust estate is liable to be assessed and to pay tax under section
99 of the Assessment Act in respect of the net income or a part of the net income of the trust estate;
(b)
in the case of a trust estate of a deceased person, the deceased person died not less than 3 years before the end of the year of income; and
(c)
that net income or that part of the net income of the trust estate exceeds $416 but does not exceed the net income phase-out limit;
the amount of tax payable by the trustee under subsection 12(6) in respect of that net income or that part of the net income shall not exceed 50% of the amount by which that net income or that part of the net income, as the case may be, exceeds $416, less any rebate or credit to which the trustee is entitled.
History
S 14(2) amended by No 88 of 2013, s 3 and Sch 7 item 217, by substituting "the net income phase-out limit" for "$594" in para (c), applicable in relation to the 2012-13 income year and later income years.
S 14(2) amended by No 58 of 2006, s 3 and Sch 7 item 114, by substituting "$594" for "$630" in para (c), applicable to assessments for the 2005-06 income year and later income years.
S 14(2) amended by No 167 of 2001, No 48 of 1991 and No 70 of 1989.
S 14(2) amended by No 58 of 2006, No 167 of 2001, No 48 of 1991 and No 70 of 1989.
14(3)
The
net income phase-out limit
is the following amount rounded down to the nearest dollar:
$416 × 50%
50% − Lowest rate in the table in Part I of Schedule 7 |
History
S 14(3) inserted by No 88 of 2013, s 3 and Sch 7 item 218, applicable in relation to the 2012-13 income year and later income years.
Subdivision D - Non-resident taxpayers, non-resident beneficiaries and non-resident trust estates
SECTION 15
RATES OF TAX WHERE DIVISION 6AA OF PART III OF THE ASSESSMENT ACT APPLIES
15(1)
[Eligible taxable income of non-resident]
The rates of tax in respect of the taxable income of a non-resident taxpayer:
(a)
who is a prescribed person in relation to the year of income for the purposes of Division
6AA of Part
III of the Assessment Act; and
(b)
who has, for the purposes of that Division, an eligible taxable income;
are as set out in Part II of Schedule 11.
15(2)
[Shading in]
Where the eligible taxable income of a non-resident taxpayer for the purposes of Division 6AA of Part III of the Assessment Act:
(a)
does not exceed $416 - the amount of tax payable under subsection (1) in respect of that eligible taxable income shall not exceed:
(i)
the amount ascertained by applying the second resident personal tax rate to that eligible taxable income; or
(ii)
the amount ascertained by deducting from the amount of tax that would be payable by the taxpayer if the rates set out in Part II of Schedule 7 were applied to the taxable income of the taxpayer the amount of tax that would be payable by the taxpayer if those rates were applied to the taxable income of the taxpayer reduced by the amount of that eligible taxable income;
whichever is the greater; or
(b)
exceeds $416 but does not exceed the non-resident phase-out limit - the amount of tax payable under subsection (1) in respect of that eligible taxable income shall not exceed:
(i)
the amount ascertained by applying the second resident personal tax rate to $416, and then adding 66% of the amount by which that eligible taxable income exceeds $416; or
(ii)
the amount ascertained by deducting from the amount of tax that would be payable by the taxpayer if the rates set out in Part II of Schedule 7 were applied to the taxable income of the taxpayer the amount of tax that would be payable by the taxpayer if those rates were applied to the taxable income of the taxpayer reduced by the amount of that eligible taxable income;
whichever is the greater.
History
S 15(2) amended by No 88 of 2013, s 3 and Sch 7 item 219, by substituting "the non-resident phase-out limit" for "$663" in para (b), applicable in relation to the 2012-13 income year and later income years.
S 15(2) amended by No 60 of 2012, s 3 and Sch 1 items 2, 2A and 3, by substituting para (a)(i) and (b)(i), and substituting "$663" for "$732" in para (b), applicable to the 2012-2013 year of income and later years of income. Para (a)(i) and (b)(i) formerly read:
(a)(i)
29% of that eligible taxable income; or
(b)(i)
the sum of $120.64 and 66% of the amount by which that eligible taxable income exceeds $416; or
S 15(2) amended by No 101 of 2006, s 3 and Sch 2 item 782, by omitting references to a repealed inoperative provision, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive.
S 15(2) amended by No 55 of 2006, s 3 and Sch 1 item 14, by substituting "$732" for "$810" in para (b), applicable to assessments for the 2006-2007 year of income and later years of income.
S 15(2) amended by No 70 of 1989.
15(3)
[Div 6AA income from single trust]
Where:
(a)
a trustee of a trust estate is liable to be assessed and to pay tax under section
98 of the Assessment Act in respect of the share of a non-resident beneficiary of the net income of the trust estate; and
(b)
Division
6AA of Part
III of the Assessment Act applies to a part of that share;
the rates of tax payable by the trustee in respect of that share of the net income of the trust estate are as set out in Part II of Schedule 12.
15(4)
[Shading in: subsec (3)]
Subject to subsection (5), where:
(a)
the trustee of a trust estate is liable to be assessed and to pay tax under section
98 of the Assessment Act in respect of the share of a non-resident beneficiary of the net income of the trust estate; and
(b)
Division
6AA of Part
III of the Assessment Act applies to a part (in this subsection referred to as the
eligible part
) of that share;
the amount of tax payable under subsection (3) in respect of the eligible part of that share shall not exceed:
(c)
where the eligible part of that share does not exceed $416:
(i)
the amount ascertained by applying the second resident personal tax rate to the amount of the eligible part of that share; or
(ii)
the amount ascertained by deducting from the amount of tax that would be payable by the trustee if the rates referred to in Part II of Schedule 10 were applied to that share of that net income the amount of tax that would be payable by the trustee if those rates were applied to that share of that net income reduced by the amount of the eligible part of that share;
whichever is the greater; or
(d)
where the eligible part of that share exceeds $416 but does not exceed the non-resident phase-out limit:
(i)
the amount ascertained by applying the second resident personal tax rate to $416, and then adding 66% of the amount by which the eligible part of that share exceeds $416; or
(ii)
the amount ascertained by deducting from the amount of tax that would be payable by the trustee if the rates referred to in Part II of Schedule 10 were applied to that share of that net income the amount of tax that would be payable by the trustee if those rates were applied to that share of that net income reduced by the amount of the eligible part of that share;
whichever is the greater.
History
S 15(4) amended by No 88 of 2013, s 3 and Sch 7 item 219, by substituting "the non-resident phase-out limit" for "$663" in para (d), applicable in relation to the 2012-13 income year and later income years.
S 15(4) amended by No 60 of 2012, s 3 and Sch 1 items 4, 4A and 5, by substituting para (c)(i) and (d)(i), and substituting "$663" for "$732" in para (d), applicable to the 2012-2013 year of income and later years of income. Para (c)(i) and (d)(i) formerly read:
(c)(i)
29% of the amount of the eligible part of that share; or
(d)(i)
the sum of $120.64 and 66% of the amount by which the eligible part of that share exceeds $416; or
S 15(4) amended by No 55 of 2006, s 3 and Sch 1 item 14, by substituting "$732" for "$810" in para (d), applicable to assessments for the 2006-2007 year of income and later years of income.
S 15(4) amended by No 70 of 1989.
15(5)
[Div 6AA income where 2 or more trusts]
Subsection (4) does not apply in relation to the share of a beneficiary of the net income of a trust estate if Division 6AA of Part III of the Assessment Act applies to a part of a share of the beneficiary of the net income of another trust estate or to parts of the shares of the beneficiary of the net incomes of other trust estates.
15(6)
[Reduction of tax where Div 6AA income not exceeding non-resident phase-out limit]
Where:
(a)
by reason of the application of subsection (5), subsection (4) does not apply in relation to the share of a beneficiary of the net income of a trust estate in respect of which a trustee is liable to be assessed and to pay tax under section
98 of the Assessment Act; and
(b)
the sum of:
(i)
the part of that share to which Division 6AA of Part III of the Assessment Act applies; and
(ii)
the part of the share of the beneficiary of the net income of the other trust estate or the parts of the shares of the beneficiary of the net incomes of the other trust estates, as the case may be, to which that Division applies;
does not exceed the non-resident phase-out limit;
the tax that, apart from this subsection, would be payable by the trustee in respect of the share referred to in paragraph (a) shall be reduced by such amount (if any) as, in the opinion of the Commissioner, is fair and reasonable.
History
S 15(6) amended by No 88 of 2013, s 3 and Sch 7 item 219, by substituting "the non-resident phase-out limit" for "$663" in para (b), applicable in relation to the 2012-13 income year and later income years.
S 15(6) amended by No 60 of 2012, s 3 and Sch 1 item 5A, by substituting "$663" for "$732" in para (b), applicable to the 2012-2013 year of income and later years of income.
S 15(6) amended by No 55 of 2006, s 3 and Sch 1 item 14, by substituting "$732" for "$810" in para (b), applicable to assessments for the 2006-2007 year of income and later years of income.
S 15(6) amended by No 70 of 1989.
15(7)
[Commissioner's discretion as to share of net income]
In forming an opinion for the purposes of subsection (6) in relation to the share of a beneficiary of the net income of a trust estate of a year of income, the Commissioner shall have regard to:
(a)
any limitation that would be applicable under subsection (4) on the amount of tax that would be payable by a trustee in accordance with Part II of Schedule
12 in respect of a share of the net income of a trust estate of the year of income of an amount equal to the sum of the shares referred to in paragraph (6)(b) if:
(i)
Division 6AA of Part III of the Assessment Act applied to so much of that share as is equal to the sum of the parts of the shares referred to in paragraph (6)(b); and
(ii)
that share were a share of a non-resident beneficiary who is not presently entitled to a share of the income of the year of income of any other trust estate;
(b)
the amount of any reduction previously granted by the Commissioner under subsection (6) in relation to the share of the beneficiary of the net income of the year of income of any other trust estate; and
(c)
such other matters (if any) as the Commissioner thinks fit.
15(8)
The
non-resident phase-out limit
is the following amount rounded down to the nearest dollar:
History
S 15(8) inserted by No 88 of 2013, s 3 and Sch 7 item 220, applicable in relation to the 2012-13 income year and later income years.
Division 4 - Pro-rating of the tax-free threshold
SECTION 16
16
INTERPRETATION
In this Division:
beneficiary
, in relation to a trust estate, includes a person who is capable (whether by the exercise of a power of appointment or otherwise) of benefiting under the trust;
eligible pensioner
, in relation to a year of income, means a person to whom, at any time during the year of income, compensation or a pension, allowance or benefit is payable under:
(a)
the
Veterans' Entitlements Act 1986;
(b)
subsection 4(6) of the
Veterans' Entitlements (Transitional Provisions and Consequential Amendments) Act 1986; or
(ba)
the
Military Rehabilitation and Compensation Act 2004; or
(c)
a provision of the
Social Security Act 1991 other than Part 2.11, 2.12 or 2.15 of that Act;
(d)
(Omitted by No 48 of 1991)
being compensation or a pension, allowance or benefit in respect of which the person is liable to be assessed and to pay income tax in Australia.
History
Definition of "eligible pensioner" amended by No 67 of 2024, s 3 and Sch 5 item 44, by substituting "or 2.15" for ", 2.15 or 3.15A" in para (c), effective 1 October 2024. No 67 of 2024, s 3 and Sch 5 item 48 contains the following application provision:
48 Application of amendments
48
Despite any amendment made of a particular provision, the provision, as in force immediately before the commencement of the amendment, continues to apply on and after that commencement in relation to a payment made before that commencement.
Definition of "eligible pensioner" amended by No 26 of 2018, s 3 and Sch 5 item 40, by omitting "2.14," after "2.12," from para (c), effective 20 September 2020.
Definition of "eligible pensioner" amended by No 52 of 2004, No 76 of 2000, No 216 of 1991, No 100 of 1991, No 48 of 1991 and No 78 of 1988.
partial threshold allowance month
(Repealed by No 110 of 2006)
History
Definition of "partial threshold allowance month" repealed by No 110 of 2006, s 3 and Sch 3 item 2, applicable to assessments for the 2006-2007 year of income and later years of income. The definition formerly read:
partial threshold allowance month
, in relation to a taxpayer in relation to a year of income, means a month in the year of income where:
(a)
both of the following conditions are satisfied:
(i)
the whole or a part of a part-year workforce period in relation to the taxpayer in relation to the year of income subsists during the month;
(ii)
the taxpayer is a resident at any time during the month; or
(b)
the whole or a part of a part-year residency period in relation to the taxpayer in relation to the year of income subsists during the month;
related deductions
(Repealed by No 110 of 2006)
History
Definition of "related deductions" repealed by No 110 of 2006, s 3 and Sch 3 item 3, applicable to assessments for the 2006-2007 year of income and later years of income. The definition formerly read:
related deductions
, in relation to a particular kind of assessable income of a taxpayer of a year of income, means:
(a)
deductions allowed or allowable under the Assessment Act to the taxpayer in the year of income that relate exclusively to assessable income of that kind; and
(b)
so much of any other deductions allowed or allowable under the Assessment Act to the taxpayer in the year of income as, in the opinion of the Commissioner, may appropriately be related to assessable income of that kind;
salary or wages
(Repealed by No 110 of 2006)
History
Definition of "salary or wages" repealed by No 110 of 2006, s 3 and Sch 3 item 4, applicable to assessments for the 2006-2007 year of income and later years of income. The definition formerly read:
salary or wages
means payments from which an amount must be withheld under a provision of Subdivision 12-B (other than section 12-55), 12-C or 12-D in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not withheld).
Note:
The payments covered are: payments to employees and company directors, payments to office holders, return to work payments, payments under labour hire arrangements, payments of pensions and annuities, eligible termination payments, payments for unused leave, benefit payments, compensation payments and payments specified by regulations.
Definition of "salary or wages" substituted by No 179 of 1999 and amended by No 216 of 1991.
study period
(Repealed by No 110 of 2006)
History
Definition of "study period" repealed by No 110 of 2006, s 3 and Sch 3 item 5, applicable to assessments for the 2006-2007 year of income and later years of income. The definition formerly read:
study period
, in relation to a part-year workforce period in relation to a taxpayer in relation to a year of income, means the period commencing at the beginning of the year of income and ending on the day in the year of income on which the occasion, or the last of the occasions, as the case requires, referred to in paragraph 17(1)(a) occurred.
16(2)
(Repealed by No 110 of 2006)
History
S 16(2) repealed by No 110 of 2006, s 3 and Sch 3 items 1 and 6, applicable to assessments for the 2006-2007 year of income and later years of income. S 16(2) formerly read:
16(2)
For the purposes of this Division:
(a)
a person shall not be taken not to be engaged in a course of education by reason only that the person is on a vacation break in that course; and
(b)
a person who is enrolled in a course of education shall be deemed to be engaged in that course.
16A
(Repealed) SECTION 16A DIVISION TO APPLY BEFORE ANY TAX-FREE THRESHOLD INCREASE UNDER DIVISION 5
(Repealed by No 83 of 1999)
History
S 16A inserted by No 64 of 1996.
17
(Repealed) SECTION 17 PART-YEAR WORKFORCE PERIOD
(Repealed by No 110 of 2006)
History
S 17 repealed by No 110 of 2006, s 3 and Sch 3 item 7, applicable to assessments for the 2006-2007 year of income and later years of income. S 17 formerly read:
SECTION 17 PART-YEAR WORKFORCE PERIOD
17(1)
Subject to this section, where-
(a)
on an occasion, or on 2 or more occasions, during a year of income, a taxpayer ceased (whether in or out of Australia) to be engaged in a course of full-time education at a school, college, university or similar institution;
(b)
the taxpayer was not engaged in such a course at the end of the year of income; and
(c)
where the occasion, or the last of the occasions, as the case may be, occurred in the last 4 months of the year of income - the taxpayer was not, at any time during the period that ended 4 months after the occurrence of the occasion or the last of the occasions, as the case may be, engaged in such a course;
the period-
(d)
commencing on the first day of the month in which the occasion, or the last of the occasions, as the case may be, occurred; and
(e)
ending at the end of the year of income;
is a part-year workforce period in relation to the taxpayer in relation to the year of income.
17(2)
For the purposes of this Division, where-
(a)
a period would, but for this subsection, be a part-year workforce period in relation to a taxpayer in relation to a year of income; and
(b)
there was a part-year workforce period in relation to the taxpayer in relation to a preceding year of income (including a year of income before the commencement of this Act);
the first-mentioned period shall be deemed not to be a part-year workforce period in relation to the taxpayer in relation to the first-mentioned year of income.
17(3)
A period shall not be taken for the purposes of this Division (other than paragraph (2)(b) of this section) to be a part-year workforce period in relation to a taxpayer in relation to a year of income if the period is the whole of the year of income.
SECTION 18
PART-YEAR RESIDENCY PERIOD
18(1)
[When part-year residency period arises]
Subject to subsection (2), the following periods are part-year residency periods in relation to a person in relation to a year of income:
(a)
where the person was a resident at the beginning of the first month of the year of income and continued to be a resident until a time during a subsequent month in the year of income when the person ceased to be a resident - the period from the beginning of the year of income until the end of that subsequent month;
(b)
where the person commenced to be a resident during a month of the year of income and continued to be a resident until the end of the year of income - the period from the beginning of that month until the end of the year of income;
(c)
where the person commenced to be a resident during a month of the year of income and continued to be a resident until a time during a subsequent month of the year of income when the person ceased to be a resident - the period from the beginning of that first-mentioned month until the end of that subsequent month.
18(2)
[Period not part-year residency period]
A period shall not be taken to be a part-year residency period in relation to a person in relation to a year of income if:
(a)
the person is an eligible pensioner in relation to the year of income; or
(b)
the period is the whole of the year of income.
19
(Repealed) SECTION 19 PRE-WORKFORCE INCOME
(Repealed by No 110 of 2006)
History
S 19 repealed by No 110 of 2006, s 3 and Sch 3 item 7, applicable to assessments for the 2006-2007 year of income and later years of income. S 19 formerly read:
SECTION 19 PRE-WORKFORCE INCOME
19
For the purposes of this Division, where there is a part-year workforce period in relation to a taxpayer in relation to a year of income, the following amounts shall be taken to be pre-workforce income derived by the taxpayer in the year of income:
(a)
where the taxpayer derived assessable income in the study period by way of salary or wages - the amount of that assessable income reduced by any related deductions;
(b)
where:
(i)
the taxpayer derived assessable income in the year of income by way of the proceeds of a business carried on by the taxpayer alone; and
(ii)
the taxpayer carried on the business alone at any time during the study period;
the amount calculated in accordance with the formula
AB/C
, where:
A
is the amount of that assessable income reduced by any related deductions;
B
is the number of days in the period during the study period when the business was carried on by the taxpayer alone; and
C
is the number of days in the period during the year of income when the business was carried on by the taxpayer alone;
(c)
where:
(i)
an amount was included in the assessable income of the taxpayer of the year of income under subsection 92(1) of the Assessment Act in respect of the net income of a partnership; and
(ii)
the taxpayer was a partner in the partnership at any time during the study period;
the amount calculated in accordance with the formula
AB/C
where:
A
is the amount of that assessable income reduced by any related deductions;
B
is the number of days in the period during the study period when the taxpayer was a partner in the partnership; and
C
is the number of days in the period during the year of income when the taxpayer was a partner in the partnership;
(d)
where:
(i)
an amount was included in the assessable income of the taxpayer of the year of income under section 97, 98A, 99B or 100 of the Assessment Act in respect of a trust estate; and
(ii)
the taxpayer was, at any time during the study period, a beneficiary of the trust estate;
the amount calculated in accordance with the formula
AB/C
where:
A
is the amountof that assessable income reduced by any related deductions;
B
is the number of days in the period during the study period when the taxpayer was a beneficiary of the trust estate; and
C
is the number of days in the period during the year of income when the taxpayer was a beneficiary of the trust estate;
(e)
where the taxpayer derived assessable income in the year of income otherwise than:
(i)
by way of salary or wages;
(ii)
by way of the proceeds of a business carried on by the taxpayer alone; or
(iii)
by virtue of the inclusion in the assessable income of the taxpayer of an amount under subsection 92(1) or section 97, 98A, 99B or 100 of the Assessment Act;
the amount calculated in accordance with the formula
AB/C
where:
A
is the amount of that assessable income reduced by any related deductions;
B
is the number of days in the study period; and
C
is the number of days in the year of income.
SECTION 20
PRO-RATING OF THE TAX-FREE THRESHOLD
Part-year residency periods
20(1)
This Act applies in relation to a person and a year of income as if the reference in the table applicable to the year of income in Part
I of Schedule
7 to the tax-free threshold were a reference to the amount calculated in accordance with the following formula, if there are one or more part-year residency periods in relation to the person in relation to the year of income:
History
S 20(1) amended by No 47 of 2018, s 3 and Sch 2 item 11, by inserting "applicable to the year of income", effective 1 July 2018.
S 20(1) substituted by No 150 of 2011, s 3 and Sch 1 item 2, applicable to the 2012-13 year of income and later years of income. S 20(1) formerly read:
20(1)
If there are one or more part-year residency periods in relation to a person in relation to a year of income, this Act applies in relation to the person and the year of income as if the reference in the table in Part I of Schedule 7 to $6,000 were a reference to the amount calculated in accordance with the following formula:
| |
$500 |
× |
Number of months in the year of income during which there is a part-year residency period in relation to the person and the year of income |
|
S 20(1) substituted by No 110 of 2006, s 3 and Sch 3 item 8, applicable to assessments for the 2006-2007 year of income and later years of income. S 20(1) formerly read:
20(1)
Subject to this section, where there are one or more partial threshold allowance months in relation to a taxpayer in relation to a year of income, this Act applies in relation to the taxpayer in relation to the year of income as if the reference in the table in Part I of Schedule 7 to $6,000 were a reference to the amount calculated in accordance with the formula
AB + C
where:
A
is $500;
B
is:
(e) where paragraph (f) does not apply - the number of partial threshold allowance months in relation to the taxpayer in relation to the year of income; or
(f) where there is a part-year workforce period in relation to the taxpayer in relation to the year of income - the number of partial threshold allowance months in relation to the taxpayer in relation to the year of income, not including any partial threshold allowance month occurring before the commencement of that part-year workforce period; and
C
is so much of the amount of pre-workforce income (if any) derived by the taxpayer in the year of income as does not exceed the amount calculated in accordance with the formula
DE,
where:
D
is the amount represented by component
A
; and
E
is:
(g) where there is no part-year residency period in relation to the taxpayer in relation to the year of income - the number of months in the year of income occurring before the commencement of the part-year workforce period; and
(h) in any other case - the number of months in the year of income that are included in a part-year residency period or part-year residency periods in relation to the taxpayer in relation to the year of income, not including any month that is included in the part-year workforce period.
S 20(1) amended by No 167 of 2001, No 69 of 1999, No 87 of 1990 and No 70 of 1989.
Trustees
20(1A)
Subsection (1) does not apply in calculating the tax payable by the trustee of a trust estate under section
98 of the Assessment Act in respect of a share of a beneficiary of the net income of the trust estate of a year of income.
History
S 20(1A) inserted by No 150 of 2011, s 3 and Sch 1 item 2, applicable to the 2012-13 year of income and later years of income.
20(2)
However, this Act applies in calculating the tax payable by the trustee in respect of that share as if the reference in the table applicable to the year of income in Part
I of Schedule
7 to the tax-free threshold were a reference to the amount calculated in accordance with the following formula, if there are one or more part-year residency periods in relation to the beneficiary in relation to the year of income:
History
S 20(2) amended by No 47 of 2018, s 3 and Sch 2 item 11, by inserting "applicable to the year of income", effective 1 July 2018.
S 20(2) substituted by No 150 of 2011, s 3 and Sch 1 item 2, applicable to the 2012-13 year of income and later years of income. S 20(2) formerly read:
20(2)
Subsection (1) does not apply in calculating the tax payable by the trustee of a trust estate under section 98 of the Assessment Act in respect of a share of a beneficiary of the net income of the trust estate of a year of income but, where there are one or more part-year residency periods in relation to the beneficiary in relation to the year of income, this Act applies in calculating the tax payable by the trustee in respect of that share as if the reference in the table in Part I of Schedule 7 to $6,000 were a reference to the amount calculated in accordance with the formula
AB
,
where:
A
is $500;
B
is the number of months in the year of income when a part-year residency period, or part-year residency periods, in relation to the beneficiary in relation to the year of income subsisted.
S 20(2) amended by No 167 of 2001, No 69 of 1999, No 87 of 1990 and No 70 of 1989.
20(3)
Subsection (1) does not apply in calculating the tax payable by the trustee of a trust estate under section
99 of the Assessment Act.
Division 5 - Family tax assistance: increased tax-free threshold
for certain taxpayers with dependent children
History
Div 5 repealed by No 82 of 1999 and inserted by
No 64 of 1996.
20A
(Repealed) SECTION 20A OBJECT OF DIVISION
(Repealed by No 82 of 1999)
History
S 20A inserted by No 64 of 1996.
20B
(Repealed) SECTION 20B DEFINITIONS
(Repealed by No 82 of 1999)
History
S 20B amended by No 124 of 1997 and inserted by No 64 of 1996.
20C
(Repealed) SECTION 20C INCREASE IN TAX-FREE THRESHOLD
(Repealed by No 82 of 1999)
History
S 20C amended by No 69 of 1999 and No 124 of 1997 and inserted by No 64 of 1996.
20D
(Repealed) SECTION 20D FURTHER INCREASE IN TAX-FREE THRESHOLD
(Repealed by No 82 of 1999)
History
S 20D amended by No 69 of 1999, No 197and No 124 of 1997 and inserted by No 64 of 1996.
20E
(Repealed) SECTION 20E WHERE ADJUSTED TAX-FREE THRESHOLD EXCEEDS $20,000
(Repealed by No 82 of 1999)
History
S 20E amended by No 69 of 1999 and No 124 of 1997 and inserted by No 64 of 1996.
20F
(Repealed) SECTION 20F WHERE TAXABLE INCOME INCLUDES SPECIAL INCOME
(Repealed by No 82 of 1999)
History
S 20F amended by No 168 of 1999 and No 124 of 1997 and inserted by No 64 of 1996.
20G
(Repealed) SECTION 20G COMPLEMENTARY TAX
(Repealed by No 82 of 1999)
History
S 20G amended by No 69 of 1999, No 46 of 1998 and No 124 of 1997 and inserted by No 64 of 1996.
20H
(Repealed) SECTION 20H NOTIONAL INCOME
(Repealed by No 82 of 1999)
History
S 20H amended by No 69 of 1999, No 124 and No 121 of 1997 and inserted by No 64 of 1996.
20J
(Repealed) SECTION 20J TRUSTEE ASSESSMENT WHERE SECTION 20C OR 20D APPLIES TO BENEFICIARY
(Repealed by No 82 of 1999)
History
S 20J amended by No 124 of 1997 and inserted by No 64 of 1996.
20K
(Repealed) SECTION 20K DEPENDANTS
(Repealed by No 82 of 1999)
History
S 20K inserted by No 64 of 1996.
20L
(Repealed) SECTION 20L WHERE A PERSON IS A DEPENDANT OF 2 OR MORE PERSONS WHO DO NOT RESIDE TOGETHER
(Repealed by No 82 of 1999)
History
S 20L inserted by No 64 of 1996.
20M
(Repealed) SECTION 20M WHERE A PERSON IS A DEPENDANT OF 2 OR MORE PERSONS WHO RESIDE TOGETHER AND SECTION 20D APPLIES TO ONE ONLY OF THEM
(Repealed by No 82 of 1999)
History
S 20M inserted by No 64 of 1996.
20N
(Repealed) SECTION 20N WHERE A PERSON TO WHOM SECTION 20M DOES NOT APPLY IS A DEPENDANT OF 2 OR MORE PERSONS WHO RESIDE TOGETHER AND MAKE AN AGREEMENT ABOUT DEPENDENCY
(Repealed by No 82 of 1999)
History
S 20N inserted by No 64 of 1996.
20P
(Repealed) SECTION 20P WHERE A PERSON IS A DEPENDANT OF 2 OR MORE PERSONS WHO RESIDE TOGETHER AND DO NOT MAKE AN AGREEMENT ABOUT DEPENDENCY
(Repealed by No 82 of 1999)
History
S 20P inserted by No 64 of 1996.
20Q
(Repealed) SECTION 20Q FAMILY INCOME CEILING
(Repealed by No 82 of 1999)
History
S 20Q inserted by No 64 of 1996.
20R
(Repealed) SECTION 20R TAXPAYER'S INCOME CEILING
(Repealed by No 82 of 1999)
History
S 20R inserted by No 64 of 1996.
20S
(Repealed) SECTION 20S PERSON A DEPENDANT FOR PART ONLY OF RELEVANT PERIOD
(Repealed by No 82 of 1999)
History
S 20S amended by No 69 of 1999 and inserted by No 64 of 1996.
20T
(Repealed) SECTION 20T TAXPAYER QUALIFIED UNDER SECTION 20D FOR PART ONLY OF RELEVANT PERIOD
(Repealed by No 82 of 1999)
History
S 20T amended by No 69 of 1999 and inserted by No 64 of 1996.
20U
(Repealed) SECTION 20U PROVISION APPLYING WHERE FAMILY TAX PAYMENTS RECEIVED UNDER SOCIAL SECURITY ACT
(Repealed by No 82 of 1999)
History
S 20U amended by No 69 of 1999, No 124 of 1997 and inserted by No 64 of 1996.
20V
(Repealed) SECTION 20V QUOTATION OF SPOUSE'S TAX FILE NUMBER
(Repealed by No 82 of 1999)
History
S 20V inserted by No 64 of 1996.
PART III - RATES OF INCOME TAX PAYABLE UPON INCOMES OF COMPANIES, PRESCRIBED UNIT TRUSTS, SUPERANNUATION FUNDS, CERTAIN OTHER TRUSTS AND SOVEREIGN ENTITIES
History
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.
SECTION 21
21
INTERPRETATION
In this Part,
``tax''
does not include tax within the meaning of Part
II.
22
(Repealed) SECTION 22 ACT TO BE DEEMED TO BE THE ACT DECLARING RATES OF INCOME TAX
(Repealed by No 12 of 2012)
History
S 22 repealed No 12 of 2012, s 3 and Sch 6 item 185, effective 21 March 2012. S 22 formerly read:
SECTION 22 ACT TO BE DEEMED TO BE THE ACT DECLARING RATES OF INCOME TAX
22
For the purposes of subsection 104(1) of the Assessment Act, this Act shall be deemed to be the Act declaring the rates of income tax payable for the financial year commencing on 1 July 1986 and for all subsequent financial years.
S 22 amended by No 60 of 1987.
SECTION 23
RATES OF TAX PAYABLE BY COMPANIES
23(1A)
This section has effect subject to section
23A.
History
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.
23(1)
The rates of tax payable by a company, other than a company in the capacity of a trustee, are as set out in the following provisions of this section.
23(2)
The rate of tax in respect of the taxable income of a company is:
(a)
if the company is a base rate entity for a year of income - 25%; or
(b)
otherwise - 30%;
if subsections (3) to (5) and section 23A do not apply to the company.
History
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.
23(3)
The rates of tax in respect of the taxable income of a company (other than a life insurance company) that is an RSA provider are:
(a)
in respect of the RSA component - 15%; and
(aa)
(Repealed by No 70 of 2015)
(b)
in respect of the standard component:
(i)
if the company is a base rate entity for a year of income - 25%; or
(ii)
otherwise - 30%.
History
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.
23(3A)
(Repealed by No 70 of 2015)
History
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.
23(4)
The rates of tax in respect of the taxable income of a company that becomes a PDF during a year of income and is still a PDF at the end of the year of income are:
(a)
in respect of the SME income component - 15%; and
(b)
in respect of the unregulated investment component - 25%; and
(c)
in respect of so much of the taxable income as exceeds the PDF component:
(i)
if the company is a base rate entity for a year of income - 25%; or
(ii)
otherwise - 30%.
History
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.
23(4A)
(Repealed by No 143 of 2007)
History
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 andSch 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.
23(4B)
(Repealed by No 143 of 2007)
History
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.
23(5)
The rates of tax in respect of the taxable income of a company that is a PDF throughout the year of income are:
(a)
in respect of the SME income component - 15%; and
(b)
in respect of the unregulated investment component - 25%.
History
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.
23(6)
The amount of tax payable by a company (before applying any rebate, credit or other tax offset (within the meaning of the
Income Tax Assessment Act 1997)) must not be greater than 55% of the amount (if any) by which the taxable income of the company exceeds $416, if:
(a)
the company is a non-profit company; and
(b)
the taxable income is not greater than:
(i)
if the company is a base rate entity for a year of income - $762; or
(ii)
otherwise - $915.
History
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.
23(7)
The amount of tax payable by a company (before applying any rebate, credit or other tax offset (within the meaning of the
Income Tax Assessment Act 1997)) must not be greater than:
(a)
if the company is a base rate entity for a year of income - 37.5%; or
(b)
otherwise - 45%;
of the amount by which the taxable income of the company exceeds $49,999, if the company is a recognised medium credit union in relation to the year of income.
History
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.
SECTION 23AA
23AA
MEANING OF
BASE RATE ENTITY
An entity is a
base rate entity
for a year of income if:
(a)
no more than 80% of its assessable income for the year of income is base rate entity passive income; and
(b)
its aggregated turnover (within the meaning of the
Income Tax Assessment Act 1997) for the year of income, worked out as at the end of that year, is less than $50 million.
History
S 23AA amended by No 41 of 2017, s 3 and Sch 1 item 16, by substituting "$50 million" for "$25 million" in para (b), effective 1 July 2018 and applicable to the 2018-19 year of income and later years of income.
S 23AA substituted by No 94 of 2018, s 3 and Sch 1 item 2, effective 1 July 2017 and applicable to the 2017-18 year of income and later years of income. S 23AA formerly read:
SECTION 23AA MEANING OF
BASE RATE ENTITY
23AA
An entity is a
base rate entity
for a year of income if:
(a)
it carries on a business (within the meaning of the Income Tax Assessment Act 1997) in the year of income; and
(b)
its aggregated turnover (within the meaning of that Act) for the year of income, worked out as at the end of that year, is less than $25 million.
S 23AA inserted by No 41 of 2017, s 3 and Sch 1 item 13, effective 1 July 2017 and applicable to the 2017-18 year of income and later years of income.
SECTION 23AB
MEANING OF BASE RATE ENTITY PASSIVE INCOME
23AB(1)
Base rate entity passive income
is assessable income that is any of the following:
(a)
a distribution (within the meaning of the
Income Tax Assessment Act 1997) by a corporate tax entity (within the meaning of that Act), other than a non-portfolio dividend (within the meaning of section
317 of the Assessment Act);
(b)
an amount of a franking credit (within the meaning of the
Income Tax Assessment Act 1997) on such a distribution;
(c)
a non-share dividend (within the meaning of the
Income Tax Assessment Act 1997) by a company;
(d)
interest (or a payment in the nature of interest), royalties and rent;
(e)
a gain on a qualifying security (within the meaning of Division 16E of Part
III of the Assessment Act);
(f)
a net capital gain (within the meaning of the
Income Tax Assessment Act 1997);
(g)
an amount included in the assessable income of a partner in a partnership or of a beneficiary of a trust estate under Division
5 or
6 of Part
III of the Assessment Act, to the extent that the amount is referable (either directly or indirectly through one or more interposed partnerships or trust estates) to another amount that is base rate entity passive income under a preceding paragraph of this subsection.
23AB(2)
However, if an entity has assessable income that is interest (or a payment in the nature of interest):
(a)
treat the assessable income as not being interest (or a payment in the nature of interest) of the entity for the purposes of paragraph
(1)(d) if:
(i)
the entity is a financial institution (within the meaning of section 202A of the Assessment Act); or
(ii)
the entity is a registered entity (within the meaning of the Financial Sector (Collection of Data) Act 2001) that carries on a general business of providing finance (within the meaning of that Act) on a commercial basis; or
(iii)
the entity holds an Australian credit licence (within the meaning of the National Consumer Credit Protection Act 2009), or is a credit representative (within the meaning of that Act) of another entity that holds such an Australian credit licence; or
(iv)
the entity is a financial services licensee (within the meaning of the Corporations Act 2001) whose licence covers dealings in financial products mentioned in paragraph 764A(1)(a) of that Act (securities), or is an authorised representative (within the meaning of that Act) of such a financial services licensee; or
(v)
the entity is an entity of a kind specified in a legislative instrument made under subsection (3); and
(b)
treat the assessable income as not being interest (or a payment in the nature of interest) of the entity for the purposes of paragraph
(1)(d) to the extent that it is a return on an equity interest in a company.
History
S 23AB(2) amended by No 76 of 2023, s 3 and Sch 2 item 660, by omitting "section 761A of" after "within the meaning of" from para (a)(iv), effective 20 October 2023.
23AB(3)
The Minister may, by legislative instrument, specify one or more kinds of entities for the purposes of subparagraph
(2)(a)(v).
History
S 23AB inserted by No 94 of 2018, s 3 and Sch 1 item 2, effective 1 July 2017 and applicable to the 2017-18 year of income and later years of income.
SECTION 23A
23A
RATES OF TAX PAYABLE BY LIFE INSURANCE COMPANIES
The rates of tax in respect of the taxable income of a life insurance company are:
(a)
in respect of the ordinary class - 30%; and
(b)
in respect of the complying superannuation class - 15%.
History
S 23A amended by No 70 of 2015, s 3 and Sch 1 item 116, by substituting "superannuation" for "superannuation/FHSA" in para (b), effective 1 July 2015.
S 23A amended by No 45 of 2008, s 3 and Sch 6 item 17, by substituting "complying superannuation/FHSA class" for "complying superannuation class" in para (b), effective 26 June 2008.
S 23A amended by No 143 of 2007, s 3 and Sch 7 item 91 and 92, by substituting "The" for "Subject to sections 23B and 23C, the" and substituting paras (a) and (b), applicable to assessments for the 2007-08 income year and later income years. Paras (a) and (b) formerly read:
(a)
in respect of the ordinary class:
(i)
for the 2000-01 year of income - 33% for a company that is a friendly society and 34% for any other life insurance company; and
(ii)
for all later years of income - 30%; and
(b)
in respect of the complying superannuation class for the 2000-01 year of income and all later years of income - 15%.
S 23A inserted by No 89 of 2000.
23B
(Repealed) SECTION 23B SPECIAL PROVISIONS RELATING TO RATES OF TAX PAYABLE BY LIFE INSURANCE COMPANIES OTHER THAN FRIENDLY SOCIETIES
(Repealed by No 143 of 2007)
History
S 23B repealed by No 143 of 2007, s 3 and Sch 7 item 93, applicable to assessments for the 2007-08 income year and later income years. S 23B formerly read:
SECTION 23B SPECIAL PROVISIONS RELATING TO RATES OF TAX PAYABLE BY LIFE INSURANCE COMPANIES OTHER THAN FRIENDLY SOCIETIES
23B(1)
This section applies to a life insurance company other than a friendly society.
23B(2)
If the 2000-01 year of income of a life insurance company starts before 1 July 2000, the rates of tax in respect of parts of the company's taxable income for the period starting at the start of the company's 2000-01 year of income and ending at the end of 30 June 2000 are as follows:
(a)
the part of the CS/RA component equal to the amount that would be the CS/RA component if that period were a year of income - 15%;
(b)
the part of the AD/RLA component equal to the amount that would be the AD/RLA component if that period were a year of income - 39%;
(c)
the part of the RSA component of the general fund component equal to the amount that would be that RSA component if that period were a year of income - 15%;
(d)
the part of the standard component of the general fund component equal to the amount that would be that standard component if that period were a year of income:
(i)
if the company is a mutual life assurance company (within the meaning of section 110 of the Assessment Act as in force immediately before 1 July 2000) at the end of the period - 39%; or
(ii)
in any other case - 34%;
(e)
the part of the NCS component equal to the amount that would be the NCS component if that period were a year of income - 47%.
23B(3)
If the 2000-01 year of income of a life insurance company starts before 1 July 2000, the rates of tax in respect of parts of the company's taxable income for the period starting on 1 July 2000 and ending at the end of the company's 2000-01 year of income are as follows:
(a)
the part of the ordinary class equal to the amount that would be the ordinary class if that period were a year of income - 34%;
(b)
the part of the complying superannuation class equal to the amount that would be the complying superannuation class if that period were a year of income - 15%.
23B(4)
If the 2000-01 year of income of a life insurance company starts after 1 July 2000, the rates of tax in respect of parts of the company's taxable income for the period starting at the start of the company's 1999-2000 year of income and ending at the end of 30 June 2000 are as follows:
(a)
the part of the CS/RA component equal to the amount that would be the CS/RA component if that period were a year of income - 15%;
(b)
the part of the AD/RLA component equal to the amount that would be the AD/RLA component if that period were a year of income - 39%;
(c)
the part of the RSA component of the general fund component equal to the amount that would be that RSA component if that period were a year of income - 15%;
(d)
the part of the standard component of the general fund component equal to the amount that would be that standard component if that period were a year of income:
(i)
if the company is a mutual life assurance company (within the meaning of section 110 of the Assessment Act as in force immediately before 1 July 2000) at the end of the period - 39%; or
(ii)
in any other case - 36%;
(e)
the part of the NCS component equal to the amount that would be the NCS component if that period were a year of income - 47%.
23B(5)
If the 2000-01 year of income of a life insurance company starts after 1 July 2000, the rates of tax in respect of parts of the company's taxable income for the period starting on 1 July 2000 and ending at the end of the company's 1999-2000 year of income are as follows:
(a)
the part of the ordinary class equal to the amount that would be the ordinary class if that period were a year of income - 36%;
(b)
the part of the complying superannuation class equal to the amount that would be the complying superannuation class if that period were a year of income - 15%.
S 23B inserted by No 89 of 2000.
23C
(Repealed) SECTION 23C SPECIAL PROVISIONS RELATING TO RATES OF TAX PAYABLE BY FRIENDLY SOCIETIES THAT ARE LIFE INSURANCE COMPANIES
(Repealed by No 143 of 2007)
History
S 23C repealed by No 143 of 2007, s 3 and Sch 7 item 93, applicable to assessments for the 2007-08 income year and later income years. S 23C formerly read:
SECTION 23C SPECIAL PROVISIONS RELATING TO RATES OF TAX PAYABLE BY FRIENDLY SOCIETIES THAT ARE LIFE INSURANCE COMPANIES
23C(1)
This section applies to a friendly society that is a life insurance company.
23C(2)
If the 2000-01 year of income of a friendly society starts before 1 July 2000, the rates of tax in respect of parts of the society's taxable income for the period starting at the start of the society's 2000-01 year of income and ending at the end of 30 June 2000 are as follows:
(a)
the part of the CS/RA component equal to the amount that would be the CS/RA component if that period were a year of income - 15%;
(b)
the part of the EIB component equal to the amount that would be the EIB component if that period were a year of income - 33%;
(c)
the part of the RSA category A component equal to the amount that would be that RSA category A component if that period were a year of income - 15%;
(d)
the part of the RSA category B component equal to the amount that would be that RSA category B component if that period were a year of income - 34%;
(e)
the part of the NCS component equal to the amount that would be the NCS component if that period were a year of income - 47%.
23C(3)
If the 2000-01 year of income of a friendly society starts before 1 July 2000, the rates of tax in respect of parts of the society's taxable income for the period starting on 1 July 2000 and ending at the end of the society's 2000-01 year of income are as follows:
(a)
the part of the ordinary class equal to the amount that would be the ordinary class if that period were a year of income - 33%;
(b)
the part of the complying superannuation class equal to the amount that would be the complying superannuation class if that period were a year of income - 15%.
23C(4)
If the 2000-01 year of income of a friendly society starts after 1 July 2000, the rates of tax in respect of parts of the society's taxable income for the period starting at the start of the society's 1999-2000 year of income and ending at the end of 30 June 2000 are as follows:
(a)
the part of the CS/RA component equal to the amount that would be the CS/RA component if that period were a year of income - 15%;
(b)
the part of the EIB component equal to the amount that would be the EIB component if that period were a year of income - 33%;
(c)
the part of the RSA category A component equal to the amount that would be the RSA category A component if that period were a year of income - 15%;
(d)
the part of the RSA category B component equal to the amount that would be the RSA category B component if that period were a year of income - 36%;
(e)
the part of the NCS component equal to the amount that would be the NCS component if that period were a year of income - 47%.
23C(5)
If the 2000-01 year of income of a friendly society starts after 1 July 2000, the rates of tax in respect of parts of the society's taxable income for the period starting on 1 July 2000 and ending at the end of the society's 1999-2000 year of income are as follows:
(a)
the part of the ordinary class equal to the amount that would be the ordinary class if that period were a year of income - 33%;
(b)
the part of the complying superannuation class equal to the amount that would be the complying superannuation class if that period were ayear of income - 15%.
S 23C inserted by No 89 of 2000.
24
(Repealed) SECTION 24 RATE OF TAX PAYABLE BY TRUSTEES OF CORPORATE UNIT TRUSTS
(Repealed by No 53 of 2016)
History
S 24 repealed by No 53 of 2016, s 3 and Sch 5 item 70, applicable to assessments for income years starting on or after 1 July 2016. For transitional provision, see note under definition of "prescribed unit trust". S 24 formerly read:
SECTION 24 RATE OF TAX PAYABLE BY TRUSTEES OF CORPORATE UNIT TRUSTS
24
The rate of tax payable by a trustee of a corporate unit trust in respect of the net income of the corporate unit trust in respect of which the trustee is liable, under section 102K of the Assessment Act, to be assessed and to pay tax is:
(a)
if the trust is a small business entity for a year of income - 28.5%; or
(b)
otherwise - 30%.
S 24 substituted by No 66 of 2015, s 3 and Sch 1 item 3, applicable to assessments for years of income starting on or after 1 July 2015. S 24 formerly read:
SECTION 24 RATE OF TAX PAYABLE BY TRUSTEES OF CORPORATE UNIT TRUSTS
24
The rate of tax payable by a trustee of a corporate unit trust in respect of the net income of the corporate unit trust in respect of which the trustee is liable, under section 102K of the Assessment Act, to be assessed and to pay tax is 30%.
S 24 amended by No 167 of 1999, No 90 of 1995, No 18 of 1993, No 118 of 1988 and No 60 of 1987.
SECTION 25
25
RATE OF TAX PAYABLE BY TRUSTEES OF PUBLIC TRADING TRUSTS
The rate of tax payable by a trustee of a public trading trust in respect of the net income of the public trading trust in respect of which the trustee is liable, under section
102S of the Assessment Act, to be assessed and to pay tax is:
(a)
if the trust is a base rate entity for a year of income - 25%; or
(b)
otherwise - 30%.
History
S 25 amended by No 41 of 2017 (as amended by No 134 of 2018), s 3 and Sch 1 item 50, 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 25 amended by No 41 of 2017 (as amended by No 134 of 2018), s 3 and Sch 1 item 44, 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 25 amended by No 41 of 2017, s 3 and Sch 1 item 14, 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 25 amended by No 41 of 2017, s 3 and Sch 1 item 6, 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 25 substituted by No 66 of 2015, s 3 and Sch 1 item 3, applicable to assessments for years of income starting on or after 1 July 2015. S 25 formerly read:
SECTION 25 RATE OF TAX PAYABLE BY TRUSTEES OF PUBLIC TRADING TRUSTS
25
The rate of tax payable by a trustee of a public trading trust in respect of the net income of the public trading trust in respect of which the trustee is liable, under section 102S of the Assessment Act, to be assessed and to pay tax is 30%.
S 25 amended by No 167 of 1999, No 90 of 1995, No 18 of 1993, No 118 of 1988 and No 60 of 1987.
SECTION 26
RATES OF TAX PAYABLE BY TRUSTEES OF SUPERANNUATION FUNDS
26(1)
[Complying superannuation fund]
The rates of tax payable by a trustee of a complying superannuation fund in respect of the taxable income of the fund are:
(a)
in respect of the low tax component - 15%; and
(b)
in respect of the non-arm's length component - 45%.
History
S 26(1) amended by No 19 of 2007, s 3 and Sch 1 items 25 and 26, by substituting "low tax component" for "standard component" and "non-arm's length component" for "special component", applicable to the 2007-2008 income year and later years.
S 26(1) amended by No 55 of 2006, s 3 and Sch 1 item 15, by substituting "45%" for "47%" in para (b), applicable to assessments for the 2006-2007 year of income and later years of income.
S 26(1) amended by No 106 of 1989.
26(2)
[Non-complying superannuation fund]
The rate of tax payable by a trustee of a non-complying superannuation fund in respect of the taxable income of the fund is 45%.
History
S 26(2) amended by No 55 of 2006, s 3 and Sch 1 item 16, by substituting "45%" for "47%", applicable to assessments for the 2006-2007 year of income and later years of income.
S 26 amended by No 106 of 1998 and substituted by No 98 of 1989.
Former S 26 amended by No 138 of 1987 and No 60 of 1987.
SECTION 27
RATES OF TAX PAYABLE BY TRUSTEES OF APPROVED DEPOSIT FUNDS
27(1)
[Complying ADF]
The rates of tax payable by a trustee of a complying ADF in respect of the taxable income of the fund are:
(a)
in respect of the low tax component - 15%; and
(b)
in respect of the non-arm's length component - 45%.
History
S 27(1) amended by No 19 of 2007, s 3 and Sch 1 items 27 and 28, by substituting "low tax component" for "standard component" and "non-arm's length component" for "special component", applicable to the 2007-2008 income year and later years.
S 27(1) amended by No 55 of 2006, s 3 and Sch 1 item 17, by substituting "45%" for "47%" in para (b), applicable to assessments for the 2006-2007 year of income and later years of income.
S 27(1) amended by No 106 of 1989.
27(2)
[Non-complying ADF]
The rate of tax payable by a trustee of a non-complying ADF in respect of the taxable income of the fund is 45%.
History
S 27(2) amended by No 55 of 2006, s 3 and Sch 1 item 18, by substituting "45%" for "47%", applicable to assessments for the 2006-2007 year of income and later years of income.
S 27 amended by No 106 of 1989 and substituted by No 98 of 1989.
Former s 27 amended by No 138 and No 60 of 1987.
SECTION 27A
27A
RATES OF TAX PAYABLE BY TRUSTEES OF POOLED SUPERANNUATION TRUSTS
The rates of tax payable by a trustee of a pooled superannuation trust in respect of the taxable income of the trust are:
(a)
in respect of the low tax component - 15%; and
(b)
in respect of the non-arm's length component - 45%.
History
S 27A amended by No 19 of 2007, s 3 and Sch 1 items 29 and 30, by substituting "low tax component" for "standard component" and "non-arm's length component" for "special component", applicable to the 2007-2008 income year and later years.
S 27A amended by No 55 of 2006, s 3 and Sch 1 item 19, by substituting "45%" for "47%" in para (b), applicable to assessments for the 2006-2007 year of income and later years of income.
S 27A amended by No 106 of 1989 and inserted by No 98 of 1989.
SECTION 28
28
RATES OF TAX PAYABLE BY CERTAIN TRUSTEES TO WHOM SECTION 98 OF THE ASSESSMENT ACT APPLIES
The rates of tax payable by a trustee of a trust estate in respect of a share of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax are:
(a)
if paragraph
98(3)(b) of the Assessment Act (about beneficiaries that are companies) applies:
(i)
if the beneficiary is a company to which paragraph 23(2)(a) of this Act applies - the rate specified in paragraph 23(2)(a); or
(ii)
otherwise - the rate specified in paragraph 23(2)(b); and
(b)
if subsection
98(4) of the Assessment Act applies - the maximum rate specified in column 3 of the table applicable to the year of income in Part
II of Schedule
7 to this Act that applies for the year of income.
Note:
If paragraph 98(3)(a) of the Assessment Act applies, see subsection 12(6).
History
S 28 amended by No 47 of 2018, s 3 and Sch 2 item 12, by inserting "applicable to the year of income" in para (b), effective 1 July 2018.
S 28 amended by No 66 of 2015, s 3 and Sch 1 item 30, by substituting para (a), applicable to assessments for years of income starting on or after 1 July 2015. Para (a) formerly read:
(a)
if paragraph 98(3)(b) of the Assessment Act applies - the rate specified in subsection 23(2) (about companies); and
S 28 substituted by No 79 of 2007, s 3 and Sch 9 item 29, applicable in relation to income years starting on or after 1 July 2006. S 28 formerly read:
SECTION 28 RATE OF TAX PAYABLE BY TRUSTEE TO WHOM SUBSECTION 98(3) OF THE ASSESSMENT ACT APPLIES
28
The rate of tax payable by a trustee of a trust estate in respect of a share of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax under subsection 98(3) of the Assessment Act is 30%.
S 28 amended by No 167 of 1999, No 90 of 1995, No 18 of 1993, No 118 of 1988 and inserted by No 60 of 1987.
SECTION 28A
28A
RATES OF TAX PAYABLE BY TRUSTEES OF AMITs UNDER PARAGRAPH 276-105(2)(b) or (c) OF THE
INCOME TAX ASSESSMENT ACT 1997
The rates of tax payable by a trustee of an AMIT under paragraph
276-105(2)(b) or (c) of the
Income Tax Assessment Act 1997 are:
(a)
if paragraph
276-105(2)(b) of the
Income Tax Assessment Act 1997 applies - the rate specified in paragraph
23(2)(b) of this Act; and
(b)
if paragraph
276-105(2)(c) of that Act applies - the maximum rate specified in column 3 of the table applicable to the year of income in Part
II of Schedule
7 to this Act that applies for the year of income.
Note:
If paragraph 276-105(2)(a) of the Income Tax Assessment Act 1997 applies, see subsection 12(6A).
History
S 28A amended by No 47 of 2018, s 3 and Sch 2 item 12, by inserting "applicable to the year of income" in para (b), effective 1 July 2018.
S 28A amended by No 41 of 2017, s 3 and Sch 1 item 15, by substituting "the rate specified in paragraph 23(2)(b) of this Act" for "the rate specified in paragraph 23(2)(b) (about companies other than small business entities)" in para (a), effective 1 July 2017 and applicable to the 2017-18 year of income and later years of income.
S 28A inserted by No 49 of 2016, s 3 and Sch 1 item 12, effective 5 May 2016.
SECTION 29
RATE OF TAX ON NO-TFN CONTRIBUTIONS INCOME
29(1)
This section sets the rate of tax payable:
(a)
by a trustee of a complying superannuation fund in respect of the no-TFN contributions income of the fund; and
(b)
by a trustee of a non-complying superannuation fund in respect of the no-TFN contributions income of the fund; and
(c)
by a company that is an RSA provider in respect of no-TFN contributions income.
History
S 29(1) amended by No 19 of 2007, s 3 and Sch 1 item 31, by omitting "(other than a life insurance company)" after "company" in para (c), applicable to the 2007-2008 income year and later years.
29(2)
The rate of tax is worked out in the following way:
(a)
first, work out the maximum rate specified in column 3 of the table applicable to the year of income in Part
I of Schedule
7 to this Act that applies for the year of income;
(b)
next, add 2%;
(c)
next, subtract the rate of tax:
(i)
for a trustee of a complying superannuation fund - set out in paragraph 26(1)(a); or
(ii)
for a trustee of a non-complying superannuation fund - set out in subsection 26(2); or
(iii)
for a company (other than a life insurance company) that is an RSA provider - set out in paragraph 23(3)(a); or
(iv)
for a life insurance company that is an RSA provider - set out in paragraph 23A(b).
History
S 29(2) amended by No 47 of 2018, s 3 and Sch 2 item 12, by inserting "applicable to the year of income" in para (a), effective 1 July 2018.
S 29(2) amended by No 41 of 2013, s 3 and Sch 1 item 1, by substituting "2%" for "1.5%" in para (b), applicable to assessments for the 2014-15 income year and later income years.
S 29(2) amended by No 143 of 2007, s 3 and Sch 7 items 94 and 95, by substituting "paragraph 23(3)(a)" for "paragraph 23(4BA)(a)" in para (c)(iii) and substituting "paragraph 23A(b)" for "paragraph 23(4A)(ba)" in para (c)(iv), applicable to assessments for the 2007-08 income year and later income years.
S 29(2) amended by No 19 of 2007, s 3 and Sch 1 item 32, by inserting para (c)(iv), applicable to the 2007-2008 income year and later years.
History
S 29 inserted by No 9 of 2007, s 3 and Sch 1 item 18, applicable to the 2007-2008 income year and later years.
SECTION 30
30
RATE OF TAX PAYABLE BY SOVEREIGN ENTITIES
The rate of tax payable in respect of the taxable income of a sovereign entity is 30%, unless another provision of this Part sets the rate of tax in respect of that taxable income.
History
S 30 inserted by No 36 of 2019, s 3 and Sch 1 item 3, effective 1 July 2019.
Former s 30 repealed by No 70 of 2015, s 3 and Sch 1 item 117, effective 1 July 2015. S 30 formerly read:
SECTION 30 RATE OF TAX IN RELATION TO TRUSTEE OF FHSA TRUST
30
The rate of tax for the purposes of section 345-5 of the Income Tax Assessment Act 1997 is 15%.
Former s 30 inserted by No 45 of 2008, s 3 and Sch 1 item 52, effective 26 June 2008.
31
(Repealed) SECTION 31 RATE OF EXTRA INCOME TAX FOR RECOUPMENTS FOR R&D ACTIVITIES
(Repealed by No 92 of 2020)
History
S 31 repealed by No 92 of 2020, s 3 and Sch 5 item 40, effective 1 January 2021 and applicable in relation to assessments for income years commencing on or after 1 July 2021. S 31 formerly read:
SECTION 31 RATE OF EXTRA INCOME TAX FOR RECOUPMENTS FOR R&D ACTIVITIES
31
The rate of extra income tax payable under Subdivision 355-G (about government R&D recoupments) of the Income Tax Assessment Act 1997 for a year of income is 10%.
S 31 inserted by No 92 of 2011, s 3 and Sch 1 item 3, applicable to assessments for years of income commencing on or after 1 July 2011.
(Repealed) PART IV - TEMPORARY BUDGET REPAIR LEVY
History
Pt IV repealed by No 47 of 2018, s 3 and Sch 2 item 13, effective 1 July 2018. No 47 of 2018, s 3 and Sch 2 item 14 contains the following provision:
14 Repealed law continues for relevant years of income
14
Despite the repeal of Part IV of the Income Tax Rates Act 1986 by this Part, that Part continues to apply, in relation to assessments for a temporary budget repair levy year, as if that repeal had not happened.
Note:
The temporary budget repair levy years are the years of income corresponding to the 2014-15, 2015-16 and 2016-17 financial years (see former section 32 of the Income Tax Rates Act 1986).
Pt IV inserted by No 45 of 2014, s 3 and Sch 1 item 1, effective 25 June 2014.
32
(Repealed) SECTION 32 INTERPRETATION
(Repealed by No 47 of 2018)
History
S 32 repealed by No 47 of 2018, s 3 and Sch 2 item 13, effective 1 July 2018. See note under Pt IV heading. S 32 formerly read:
SECTION 32 INTERPRETATION
32
In this Part:
temporary budget repair levy year
means a year of income corresponding to a temporary budget repair levy year (within the meaning of section 4-11 of the Income Tax (Transitional Provisions) Act 1997).
S 32 inserted by No 45 of 2014, s 3 and Sch 1 item 1, effective 25 June 2014.
33
(Repealed) SECTION 33 APPLICATION
(Repealed by No 47 of 2018)
History
S 33 repealed by No 47 of 2018, s 3 and Sch 2 item 13, effective 1 July 2018. See note under Pt IV heading. S 33 formerly read:
SECTION 33 APPLICATION
33
This Part applies in relation to the temporary budget repair levy years.
S 33 inserted by No 45 of 2014, s 3 and Sch 1 item 1, effective 25 June 2014.
34
(Repealed) SECTION 34 EXTRA INCOME TAX FOR TEMPORARY BUDGET REPAIR LEVY
(Repealed by No 47 of 2018)
History
S 34 repealed by No 47 of 2018, s 3 and Sch 2 item 13, effective 1 July 2018. See note under Pt IV heading. S 34 formerly read:
SECTION 34 EXTRA INCOME TAX FOR TEMPORARY BUDGET REPAIR LEVY
34
The rate of extra income tax payable as mentioned in section 4-11 of the Income Tax (Transitional Provisions) Act 1997 (temporary budget repair levy) for a financial year on a taxpayer's taxable income for the corresponding year of income is the rate applicable under the table.
|
Rate of temporary budget repair levy
|
|
Item
|
Column 1
For the part of the taxable income of the taxpayer that:
|
Column 2
The rate is:
|
| 1 |
exceeds $180,000 |
2% |
S 34 inserted by No 45 of 2014, s 3 and Sch 1 item 1, effective 25 June 2014.
35
(Repealed) SECTION 35 TEMPORARY BUDGET REPAIR LEVY FOR OTHER INCOME TAX RATES
(Repealed by No 47 of 2018)
History
S 35 repealed by No 47 of 2018, s 3 and Sch 2 item 13, effective 1 July 2018. See note under Pt IV heading. S 35 formerly read:
SECTION 35 TEMPORARY BUDGET REPAIR LEVY FOR OTHER INCOME TAX RATES
References to 45%
35(1)
The provisions of this Act set out in column 1 of the table apply as if each reference in the provision to 45% was increased by 2 percentage points.
|
Provisions containing references to 45%
|
|
Item
|
Column 1
Provision
|
Column 2
Topic of provision
|
| 1 |
Subsection 12(7) |
Rate for subsection 94(9) of the Assessment Act |
| 2 |
Subsection 12(8) |
Rate for subsections 94(11) and (12) of the Assessment Act |
| 3 |
Subsection 12(9) |
Rate for section 99A of the Assessment Act |
| 3A |
Subsection 12(11) |
Rate for subsection 276-405(2) of the Income Tax Assessment Act 1997 |
| 3B |
Subsection 12(12) |
Rate for subsection 276-415(2) of the Income Tax Assessment Act 1997 |
| 3C |
Subsection 12(13) |
Rate for subsection 276-420(2) of the Income Tax Assessment Act 1997 |
| 4 |
Paragraph 26(1)(b) |
Rate for superannuation funds with non-arm's length component |
| 5 |
Subsection 26(2) |
Rate for non-complying superannuation funds |
| 6 |
Paragraph 27(1)(b) |
Rate for complying ADFs with non-arm's length component |
| 7 |
Subsection 27(2) |
Rate for non-complying ADFs |
| 8 |
Subsection 27A(b) |
Rate for pooled superannuation trusts with non-arm's length component |
Note:
Some provisions, such as the Schedules, are excluded from this list so as not to duplicate the operation of the levy.
History
S 35(1) amended by No 49 of 2016, s 3 and Sch 1 item 13, by inserting table items 3A, 3B and 3C, effective 5 May 2016.
References to maximum rate
35(2)
The following provisions of this Act apply as if the maximum rate specified as mentioned in the provision was increased by 2 percentage points:
(a)
paragraph 28(b) (rate for subsection 98(4) of the Assessment Act);
(aa)
paragraph 28A(b) (rate for paragraph 276-105(2)(c) of the
Income Tax Assessment Act 1997);
(b)
paragraph 29(2)(a) (rate for no-TFN contributions income).
Note:
This subsection does not cover references to the "highest rate" in subsection 13(1) and 15(8), which are about phase-out limits.
History
S 35(2) amended by No 49 of 2016, s 3 and Sch 1 item 14, by inserting para (aa), effective 5 May 2016.
S 35 inserted by No 45 of 2014, s 3 and Sch 1 item 1, effective 25 June 2014.
36
(Repealed) SECTION 36 RATE WHERE DIVISION 6AA OF PART III OF THE ASSESSMENT ACT APPLIES
(Repealed by No 47 of 2018)
History
S 36 repealed by No 47 of 2018, s 3 and Sch 2 item 13, effective 1 July 2018. See note under Pt IV heading. S 36 formerly read:
SECTION 36 RATE WHERE DIVISION 6AA OF PART III OF THE ASSESSMENT ACT APPLIES
36(1)
This section applies in respect of the following amounts:
(a)
so much of the eligible taxable income of a resident taxpayer who is a prescribed person for the purposes of Division 6AA of Part III of the Assessment Act as exceeds $416 but does not exceed $180,000;
(b)
so much of the eligible taxable income of a non-resident taxpayer who is a prescribed person for the purposes of that Division as does not exceed $180,000;
(c)
so much of a share of the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax as:
(i)
is a share to which that Division applies; and
(ii)
does not exceed $180,000.
36(2)
Increase by 2 percentage points the rate of tax that would, apart from this section, apply to the amount.
S 36 inserted by No 45 of 2014, s 3 and Sch 1 item 1, effective 25 June 2014.
37
(Repealed) SECTION 37 OPERATION OF THIS PART
(Repealed by No 47 of 2018)
History
S 37 repealed by No 47 of 2018, s 3 and Sch 2 item 13, effective 1 July 2018. See note under Pt IV heading. S 37 formerly read:
SECTION 37 OPERATION OF THIS PART
37
Nothing in the provisions of this Act (other than this Part) limits the operation of this Part.
Note:
This reflects the fact that temporary budget repair levy is extra income tax.
S 37 inserted by No 45 of 2014, s 3 and Sch 1 item 1, effective 25 June 2014.
Schedules
(Repealed) SCHEDULES 1-6
(Repealed by No 70 of 1989)
History
Former Sch 1-6 amended by No 138 of 1987.
SCHEDULE 7 - GENERAL RATES OF TAX
Subsection 12(1)
History
Sch 7 heading amended by No 70 of 1989.
PART I - RESIDENT TAXPAYERS
SECTION 1.
1.
Subject to clauses 2, 3 and 4, the rates of tax on the taxable income of a resident taxpayer are as follows:
(a)
45% for the superannuation remainder (if any) of the taxable income;
(aa)
45% for the employment termination remainder (if any) of the taxable income;
(b)
for each part of the ordinary taxable income specified in the table applicable to the year of income - the rate applicable under that table.
|
Tax rates for resident taxpayers for the 2024-25 year of income or a later year of income
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
exceeds the tax-free threshold but does not exceed $45,000 |
16% |
| 2 |
exceeds $45,000 but does not exceed $135,000 |
30% |
| 3 |
exceeds $135,000 but does not exceed $190,000 |
37% |
| 4 |
exceeds $190,000 |
45% |
History
Part I cl 1 amended by No 92 of 2020, s 3 and Sch 1 item 13, by repealing table dealing with tax rates for resident taxpayers for the 2020-21, 2021-22, 2022-23 or 2023-24 year of income (including the note), effective 1 July 2024. No 92 of 2020, s 3 and Sch 1 item 16 contains the following application provision:
16 Repealed law continues for relevant years of income
16
Despite the repeal of a table by this Part, that table continues to apply, in relation to assessments for a year of income mentioned in the table's heading, as if that repeal had not happened.
The table dealing with tax rates for resident taxpayers for the 2020-21, 2021-22, 2022-23 or 2023-24 year of income (including the note) formerly read:
|
Tax rates for resident taxpayers for the 2020-21, 2021-22, 2022-23 or 2023-24 year of income
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
exceeds the tax-free threshold but does not exceed $45,000 |
19% |
| 2 |
exceeds $45,000 but does not exceed $120,000 |
32.5% |
| 3 |
exceeds $120,000 but does not exceed $180,000 |
37% |
| 4 |
exceeds $180,000 |
45% |
Note:
The above table will be repealed on 1 July 2024 by the Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Act 2020.
Part I cl 1 amended by No 3 of 2024, s 3 and Sch 1 item 2, by substituting table dealing with tax rates for resident taxpayers for the 2024-25 year of income or a later year of income, effective 1 April 2024. The table dealing with tax rates for resident taxpayers for the 2024-25 year of income or a later year of income formerly read:
|
Tax rates for resident taxpayers for the 2024-25 year of income or a later year of income
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
exceeds the tax-free threshold but does not exceed $45,000 |
19% |
| 2 |
exceeds $45,000 but does not exceed $200,000 |
30% |
| 3 |
exceeds $200,000 |
45% |
Part I cl 1 amended by No 92 of 2020, s 3 and Sch 1 items 3 and 4, by substituting "
Tax rates for resident taxpayers for the 2020-21, 2021-22, 2022-23 or 2023-24 year of income
" for "
Tax rates for resident taxpayers for the 2022-23 or 2023-24 year of income
" and the note in table dealing with "tax rates for resident taxpayers for the 2022-23 or 2023-24 year of income", effective 15 October 2020. The note formerly read:
Note:
The above table will be repealed on 1 July 2026 by the Treasury Laws Amendment (Personal Income Tax Plan) Act 2018.
Part I cl 1 amended by No 92 of 2020, s 3 and Sch 1 item 1, by repealing the table dealing with "tax rates for resident taxpayers for the 2018-19, 2019-20, 2020-21 or 2021-22 year of income" (including the note), effective 15 October 2020. No 92 of 2020, s 3 and Sch 1 item 2 contains the following application provision:
2 Repealed law continues for relevant years of income
2
Despite the repeal by item 1 of the table mentioned in that item, that table continues to apply, in relation to assessments for the 2018-19 or 2019-20 year of income, as if that repeal had not happened.
The table dealing with "tax rates for resident taxpayers for the 2018-19, 2019-20, 2020-21 or 2021-22 year of income" (including the note) formerly read:
|
Tax rates for resident taxpayers for the 2018-19, 2019-20, 2020-21 or 2021-22 year of income
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
exceeds the tax-free threshold but does not exceed $37,000 |
19% |
| 2 |
exceeds $37,000 but does not exceed $90,000 |
32.5% |
| 3 |
exceeds $90,000 but does not exceed $180,000 |
37% |
| 4 |
exceeds $180,000 |
45% |
Note:
The above table will be repealed on 1 July 2024 by the Treasury Laws Amendment (Personal Income Tax Plan) Act 2018.
Part I cl 1 amended by No 52 of 2019, s 3 and Sch 2 items 1 and 2, by substituting table dealing with "tax rates for resident taxpayers for the 2022-23 or 2023-24 year of income" including the note and table dealing with "tax rates for resident taxpayers for the 2024-25 year of income or a later year of income", effective 6 July 2019. The tables formerly read:
|
Tax rates for resident taxpayers for the 2022-23 or 2023-24 year of income
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
exceeds the tax-free threshold but does not exceed $41,000 |
19% |
| 2 |
exceeds $41,000 but does not exceed $120,000 |
32.5% |
| 3 |
exceeds $120,000 but does not exceed $180,000 |
37% |
| 4 |
exceeds $180,000 |
45% |
Note:
The above table will be repealed on 1 July 2026 by the Treasury Laws Amendment (Personal Income Tax Plan) Act 2018.
|
Tax rates for resident taxpayers for the 2024-25 year of income or a later year of income
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
exceeds the tax-free threshold but does not exceed $41,000 |
19% |
| 2 |
exceeds $41,000 but does not exceed $200,000 |
32.5% |
| 3 |
exceeds $200,000 |
45% |
Part I cl 1 amended by No 47 of 2018, s 3 and Sch 2 items 1 and 2, by substituting para (b) and the table, effective 1 July 2018. Para (b) and the table formerly read:
(b)
for each part of the ordinary taxable income specified in the table - the rate applicable under the table.
|
Tax rates for resident taxpayers
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
exceeds the tax-free threshold but does not exceed $37,000 |
19% |
| 2 |
exceeds $37,000 but does not exceed $87,000 |
32.5% |
| 3 |
exceeds $87,000 but does not exceed $180,000 |
37% |
| 4 |
exceeds $180,000 |
45% |
Part I cl 1 amended by No 92 of 2016, s 3 and Sch 1 item 3, by substituting ", 3 and 4" for "and 3", applicable in relation to:
(a) assessable income derived on or after 1 January 2017; and
(b) so much of any amounts that can be deducted as relate to such assessable income.
Part I cl 1 amended by No 68 of 2016, s 3 and Sch 1 items 1 and 2, by substituting "$87,000" for "$80,000" in table items 2 and 3, column headed "For the part of the ordinary taxable income of the taxpayer that:", applicable to the 2016-17 year of income and later years of income.
Part I cl 1 was to be amended by No 150 of 2011, s 3 and Sch 1 item 8, by substituting table item 2 to increase the marginal tax rate from 32.5% to 33%, applicable to the 2015-16 year of income and later years of income. This amendment was repealed by Sch 1 item 2 of Labor 2013-14 Budget Savings (Measures No 1) Act 2015 (No 72 of 2015) so that the marginal tax rate remains at 32.5% for the 2015-16 year of income and later years of income.
Part I cl 1 amended by No 150 of 2011, s 3 and Sch 1 item 3, by substituting table items 1 and 2, applicable to the 2012-13 year of income and later years of income. Table items 1 and 2 formerly read:
| 1 |
exceeds $6,000 but does not exceed $37,000 |
15% |
| 2 |
exceeds $37,000 but does not exceed $80,000 |
30% |
Part I cl 1 amended by No 29 of 2008, s 3 and Sch 1 item 23, by substituting the table, applicable to assessments for the 2010-11 year of income and later years of income. The table formerly read:
|
Tax rates for resident taxpayers
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
exceeds $6,000 but does not exceed $35,000 |
15% |
| 2 |
exceeds $35,000 but does not exceed $80,000 |
30% |
| 3 |
exceeds $80,000 but does not exceed $180,000 |
38% |
| 4 |
exceeds $180,000 |
45% |
Part I cl 1 amended by No 29 of 2008, s 3and Sch 1 item 13, by substituting the table, applicable to assessments for the 2009-10 year of income. The table formerly read:
|
Tax rates for resident taxpayers
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
exceeds $6,000 but does not exceed $34,000 |
15% |
| 2 |
exceeds $34,000 but does not exceed $80,000 |
30% |
| 3 |
exceeds $80,000 but does not exceed $180,000 |
40% |
| 4 |
exceeds $180,000 |
45% |
Part I cl 1 amended by No 29 of 2008, s 3 and Sch 1 item 3, by substituting the table, applicable to assessments for the 2008-09 year of income. The table formerly read:
|
Tax rates for resident taxpayers
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
exceeds $6,000 but does not exceed $37,000 |
15% |
| 2 |
exceeds $37,000 but does not exceed $80,000 |
30% |
| 3 |
exceeds $80,000 but does not exceed $180,000 |
37% |
| 4 |
exceeds $180,000 |
45% |
Part I cl 1 amended by No 76 of 2007, s 3 and Sch 1 items 12 and 13, by substituting "$80,000" for "$75,000" in table items 2 and 3 and substituting "$180,000" for "$150,000" in table items 3 and 4, applicable to assessments for the 2008-09 year of income and later years of income.
Part I cl 1 amended by No 76 of 2007, s 3 and Sch 1 item 4, by substituting "30,000" for "$25,000" in table items 1 and 2, applicable to assessments for the 2007-08 year of income and later years of income.
Part I cl 1 amended by No 19 of 2007, s 3 and Sch 1 item 33, by substituting paras (a) and (aa), applicable to the 2007-2008 income year and later years. The paras formerly read:
(a)
38% for the amount (if any) of the EC part of the taxable income that does not exceed the difference between:
(i)
the amount that would have been the taxed element of the retained amount of the post-June 83 component of the ETP if the amount of the excessive component of the ETP had been nil; and
(ii)
the taxed element of the retained amount of the post-June 83 component of the ETP;
worked out disregarding section 27AAA of the Assessment Act;
(aa)
45% for the remainder (if any) of the EC part of the taxable income;
Part I cl 1 amended by No 55 of 2006, s 3 and Sch 1 item 1 and 20, by substituting the table and substituting "45%" for 47%" in para 1(aa), applicable to assessments for the 2006-2007 year of income and later years of income. The table formerly read:
|
Tax rates for resident taxpayers
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
exceeds $6,000 but does not exceed $21,600 |
15% |
| 2 |
(a) |
for the 2005-06 year of income - exceeds $21,600 but does not exceed $63,000; and |
30% |
| |
(b) |
for later years of income - exceeds $21,600 but does not exceed $70,000 |
|
| 3 |
(a) |
for the 2005-06 year of income - exceeds $63,000 but does not exceed $95,000; and |
42% |
| |
(b) |
for later years of income - exceeds $70,000 but does not exceed $125,000 |
|
| 4 |
(a) |
for the 2005-06 year of income - exceeds $95,000; and |
47% |
| |
(b) |
for later years of income - exceeds $125,000 |
|
Part 1 cl 1 amended by No 58 of 2006, s 3 and Sch 7 item 116, by substituting para (b), effective 22 June 2006. Para (b) formerly read:
(b)
for each part of the ordinary taxable income specified in column 1 of the following table - the corresponding rate set out in column 2 of the table:
Part I cl 1 table substituted by No 101 of 2005, s 3 and Sch 1 item 1, applicable to assessments for the 2005-2006 year of income and later years of income. The table formerly read:
|
"Tax rates for resident taxpayers
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
exceeds $6,000 but does not exceed $21,600 |
17% |
| 2 |
(a) |
for the 2004-05 year of income - exceeds $21,600 but does not exceed $58,000; and |
30% |
| |
(b) |
for later years of income - exceeds $21,600 but does not exceed $63,000 |
|
| 3 |
(a) |
for the 2004-05 year of income - exceeds $58,000 but does not exceed $70,000; and |
42% |
| |
(b) |
for later years of income - exceeds $63,000 but does not exceed $80,000 |
|
| 4 |
(a) |
for the 2004-05 year of income - exceeds $70,000; and |
47%" |
| |
(b) |
for later years of income - exceeds $80,000 |
|
Part I cl 1 table substituted by No 67 of 2004, No 45 of 2003, amended by No 69 of 1999, substituted by No 58 of 1993, No 87 of 1990 and amended by No 48 of 1991.
Part I cl 1 amended by No 142 of 2003.
Part I amended by No 7 of 1993.
Former Part I table substituted by No 70 of 1989.
SECTION 2.
2.
Where-
(a)
the taxable income of a resident taxpayer consists of or includes a special income component; and
(b)
Division
16 of Part
III of the Assessment Act does not apply to the income of the taxpayer; and
(c)
Division 392 (Long-term averaging of primary producers' tax liability) of the
Income Tax Assessment Act 1997 does not apply to the taxpayer's assessment;
the rate of tax for every $1 of the taxable income is the amount ascertained in accordance with the formula
where-
A
is the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the reduced taxable income;
B
is 5 times the difference between-
(c) the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the sum of-
(i) the reduced taxable income; and
(ii) 20% of the special income component of the taxable income; and
(d) the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the reduced taxable income; and
C
is the number of whole dollars in the taxable income.
In applying the formula, component
B
is to be worked out on the assumption that the whole of the taxable income is ordinary taxable income.
History
Part I cl 2 amended by No 46 of 1998 and No 7 of 1993.
SECTION 3.
3.
Where-
(a)
the taxable income of a resident taxpayer consists of or includes a special income component; and
(b)
Division
16 of Part
III of the Assessment Act applies to the income of the taxpayer or Division 392 (Long-term averaging of primary producers' tax liability) of the
Income Tax Assessment Act 1997 applies to the taxpayer's assessment;
the rate of tax for every $1 of the taxable income is the amount ascertained in accordance with the formula
where-
A
is the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the reduced taxable income;
B
is 5 times the difference between-
(c) the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the sum of-
(i) the average income; and
(ii) 20% of the special income component of the taxable income; and
(d) the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the average income; and
C
is the number of whole dollars in the taxable income.
In applying the formula, component
B
is to be worked out on the assumption that the whole of the taxable income is ordinary taxable income.
History
Part I cl 3 amended by No 46 of 1998 and No 7 of 1993.
SECTION 4.
4.
If the resident taxpayer is a working holiday maker at any time during the year of income:
(a)
count the taxpayer's working holiday taxable income for the year of income as the first parts (starting from $0) of the taxpayer's ordinary taxable income for the purposes of the table in clause 1 that is applicable to the year of income; and
(b)
do not apply the rates in that table to that working holiday taxable income; and
(c)
do not count that working holiday taxable income when working out the taxpayer's taxable income for the purposes of clause 2 or 3.
Note:
The rates for the taxpayer's working holiday taxable income for the year of income are set out in Part III.
History
Part I cl 4 amended by No 47 of 2018, s 3 and Sch 2 item 3, by inserting "that is applicable to the year of income" in para (a), effective 1 July 2018.
Part I cl 4 inserted by No 92 of 2016, s 3 and Sch 1 item 4, applicable in relation to:
(a) assessable income derived on or after 1 January 2017; and
(b) so much of any amounts that can be deducted as relate to such assessable income.
PART II - NON-RESIDENT TAXPAYERS
SECTION 1.
1.
Subject to clauses 2, 3 and 4, the rates of tax on the taxable income of a non-resident taxpayer are as follows:
(a)
45% for the superannuation remainder (if any) of the taxable income;
(aa)
45% for the employment termination remainder (if any) of the taxable income;
(b)
for each part of the ordinary taxable income specified in the table applicable to the year of income - the rate applicable under that table.
|
Tax rates for non-resident taxpayers for the 2024-25 year of income or a later year of income
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
does not exceed $135,000 |
The second resident personal tax rate |
| 2 |
exceeds $135,000 but does not exceed $190,000 |
The third resident personal tax rate |
| 3 |
exceeds $190,000 |
45% |
History
Part II cl 1 amended by No 92 of 2020, s 3 and Sch 1 item 14, by repealing table dealing with tax rates for non-resident taxpayers for the 2020-21, 2021-22, 2022-23 or 2023-24 year of income (including the note), effective 1 July 2024. For application provision, see note under Pt I cl 1. The table dealing with tax rates for non-resident taxpayers for the 2020-21, 2021-22, 2022-23 or 2023-24 year of income (including the note) formerly read:
|
Tax rates for non-resident taxpayers for the 2020-21, 2021-22, 2022-23 or 2023-24 year of income
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
does not exceed $120,000 |
The second resident personal tax rate |
| 2 |
exceeds $120,000 but does not exceed $180,000 |
37% |
| 3 |
exceeds $180,000 |
45% |
Note:
The above table will be repealed on 1 July 2024 by the Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Act 2020.
Part II cl 1 amended by No 3 of 2024, s 3 and Sch 1 item 3, by substituting table dealing with tax rates for non-resident taxpayers for the 2024-25 year of income or a later year of income. The table dealing with tax rates for non-resident taxpayers for the 2024-25 year of income or a later year of income formerly read:
|
Tax rates for non-resident taxpayers for the 2024-25 year of income or a later year of income
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
does not exceed $200,000 |
The second resident personal tax rate |
| 2 |
exceeds $200,000 |
45% |
Part II cl 1 amended by No 92 of 2020, s 3 and Sch 1 items 7 and 8, by substituting "
Tax rates for non-resident taxpayers for the 2020-21, 2021-22, 2022-23 or 2023-24 year of income
" for "
Tax rates for non-resident taxpayers for the 2022-23 or 2023-24 year of income
" and the note in table dealing with "tax rates for non-resident taxpayers for the 2022-23 or 2023-24 year of income", effective 15 October 2020. The note formerly read:
Note:
The above table will be repealed on 1 July 2026 by the Treasury Laws Amendment (Personal Income Tax Plan) Act 2018.
Part II cl 1 amended by No 92 of 2020, s 3 and Sch 1 item 5, by repealing the table dealing with "tax rates for non-resident taxpayers for the 2018-19, 2019-20, 2020-21 or 2021-22 year of income" (including the note), effective 15 October 2020. No 92 of 2020, s 3 and Sch 1 item 6 contains the following application provision:
6 Repealed law continues for relevant years of income
6
Despite the repeal by item 5 of the table mentioned in that item, that table continues to apply, in relation to assessments for the 2018-19 or 2019-20 year of income, as if that repeal had not happened.
The table dealing with "tax rates for non-resident taxpayers for the 2018-19, 2019-20, 2020-21 or 2021-22 year of income" (including the note) formerly read:
|
Tax rates for non-resident taxpayers for the 2018-19, 2019-20, 2020-21 or 2021-22 year of income
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
does not exceed $90,000 |
The second resident personal tax rate |
| 2 |
exceeds $90,000 but does not exceed $180,000 |
37% |
| 3 |
exceeds $180,000 |
45% |
Note:
The above table will be repealed on 1 July 2024 by the Treasury Laws Amendment (Personal Income Tax Plan) Act 2018.
Part II cl 1 amended by No 47 of 2018, s 3 and Sch 2 items 4 and 5, by substituting para (b) and the table, effective 1 July 2018. Para (b) and the table formerly read:
(b)
for each part of the ordinary taxable income specified in the table - the rate applicable under the table.
|
Tax rates for non-resident taxpayers
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
does not exceed $87,000 |
The second resident personal tax rate |
| 2 |
exceeds $87,000 but does not exceed $180,000 |
37% |
| 3 |
exceeds $180,000 |
45% |
Part II cl 1 amended by No 92 of 2016, s 3 and Sch 1 item 5, by substituting ", 3 and 4" for "and 3", applicable in relation to:
(a) assessable income derived on or after 1 January 2017; and
(b) so much of any amounts that can be deducted as relate to such assessable income.
Part II cl 1 amended by No 68 of 2016, s 3 and Sch 1 items 3 and 4, by substituting "$87,000" for "$80,000" in table items 1 and 2, column headed "For the part of the ordinary taxable income of the taxpayer that:", applicable to the 2016-17 year of income and later years of income.
Part II cl 1 amended by No 60 of 2012, s 3 and Sch 1 item 6, by substituting the table, applicable to the 2012-2013 year of income and later years of income. The table formerly read:
|
Tax rates for non-resident taxpayers
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
does not exceed $37,000 |
29% |
| 2 |
exceeds $37,000 but does not exceed $80,000 |
30% |
| 3 |
exceeds $80,000 but does not exceed $180,000 |
37% |
| 4 |
exceeds $180,000 |
45% |
Part II cl 1 amended by No 29 of 2008, s 3 and Sch 1 item 24, by substituting the table, applicable to assessments for the 2010-11 year of income and later years of income. The table formerly read:
|
Tax rates for non-resident taxpayers
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
does not exceed $35,000 |
29% |
| 2 |
exceeds $35,000 but does not exceed $80,000 |
30% |
| 3 |
exceeds $80,000 but does not exceed $180,000 |
38% |
| 4 |
exceeds $180,000 |
45% |
Part II cl 1 amended by No 29 of 2008, s 3 and Sch 1 item 14, by substituting the table, applicable to assessments for the 2009-10 income year of income. The table formerly read:
|
Tax rates for non-resident taxpayers
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
does not exceed $34,000 |
29% |
| 2 |
exceeds $34,000 but does not exceed $80,000 |
30% |
| 3 |
exceeds $80,000 but does not exceed $180,000 |
40% |
| 4 |
exceeds $180,000 |
45% |
Part II cl 1 amended by No 29 of 2008, s 3 and Sch 1 item 4, by substituting the table, applicable to assessments for the 2008-09 year of income. The table formerly read:
|
Tax rates for non-resident taxpayers
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
does not exceed $30,000 |
29% |
| 2 |
exceeds $30,000 but does not exceed $80,000 |
30% |
| 3 |
exceeds $80,000 but does not exceed $180,000 |
40% |
| 4 |
exceeds $180,000 |
45% |
Part II cl 1 amended by No 76 of 2007, s 3 and Sch 1 items 14 and 15, by substituting "$80,000" for "$75,000" in table items 2 and 3 and substituting "$180,000" for "$150,000" in table items 3 and 4, applicable to assessments for the 2008-09 year of income and later years of income.
Part II cl 1 amended by No 76 of 2007, s 3 and Sch 1 item 5, by substituting "$30,000" for "$25,000" in table items 1 and 2, applicable to assessments for the 2007-08 year of income and later years of income.
Part II cl 1 amended by No 19 of 2007, s 3 and Sch 1 item 34, by substituting paras (a) and (aa), applicable to the 2007-2008 income year and later years. The paras formerly read:
(a)
38% for the amount (if any) of the EC part of the taxable income that does not exceed the difference between:
(i)
the amount that would have been the taxed element of the retained amount of the post-June 83 component of the ETP if the amount of the excessive component of the ETP had been nil; and
(ii)
the taxed element of the retained amount of the post-June 83 component of the ETP;
worked out disregarding section 27AAA of the Assessment Act;
(aa)
45% for the remainder (if any) of the EC part of the taxable income;
Part II cl 1 amended by No 55 of 2006, s 3 and Sch 1 item 2 and 21, by substituting the table and substituting "45%" for 47%" in para 1(aa), applicable to assessments for the 2006-2007 year of income and later years of income. The table formerly read:
|
Tax rates for non-resident taxpayers
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
does not exceed $21,600 |
29% |
| 2 |
(a) |
for the 2005-06 year of income - exceeds $21,600 but does not exceed $63,000; and |
30% |
| |
(b) |
for later years of income - exceeds $21,600 but does not exceed $70,000 |
|
| 3 |
(a) |
for the 2005-06 year of income - exceeds $63,000 but does not exceed $95,000; and |
42% |
| |
(b) |
for later years of income - exceeds $70,000 but does not exceed $125,000 |
|
| 4 |
(a) |
for the 2005-06 year of income - exceeds $95,000; and |
47% |
| |
(b) |
for later years of income - exceeds $125,000 |
|
Part II cl 1 amended by No 58 of 2006, s 3 and Sch 7 item 117, by substituting para (b), effective 22 June 2006. Para (b) formerly read:
(b)
for each part of the ordinary taxable income specified in column 1 of the following table - the corresponding rate set out in column 2 of the table:
Part II cl 1 table substituted by No 101 of 2005, s 3 and Sch 1 item 2, applicable to assessments for the 2005-2006 year of income and later years of income. The table formerly read:
|
Tax rates for non-resident taxpayers
|
|
Item
|
For the part of the ordinary taxable income of the taxpayer that:
|
The rate is:
|
| 1 |
does not exceed $21,600 |
29% |
| 2 |
(a) |
for the 2004-05 year of income - exceeds $21,600 but does not exceed $58,000; and |
30% |
| |
(b) |
for later years of income - exceeds $21,600 but does not exceed $63,000 |
|
| 3 |
(a) |
for the 2004-05 year of income - exceeds $58,000 but does not exceed $70,000; and |
42% |
| |
(b) |
for later years of income - exceeds $63,000 but does not exceed $80,000 |
|
| 4 |
(a) |
for the 2004-05 year of income - exceeds $70,000; and |
47%" |
| |
(b) |
for later years of income - exceeds $80,000 |
|
Part II cl 1 table substituted by No 67 of 2004, No 45 of 2003, No 69 of 1999, No 58 of 1993, No 87 of 1990 and No 70 of 1989.
Part II cl 1 amended by No 142 of 2003.
Part II amended by No 7 of 1993.
SECTION 1A.
1A.
(Repealed by No 147 of 2011)
History
Pt II cl 1A repealed by No 174 of 2011, s 3 and Sch 2 item 2, effective 1 July 2016. Pt II cl 1A formerly read:
1A.
Treat the reference in item 1 of the table in clause 1 to 29% as being a reference to 15%, if:
(a)
the year of income is the 2011-12 year of income; and
(b)
at a time during the year of income, the non-resident taxpayer:
(i)
holds a Special Program Visa (subclass 416); and
(ii)
is employed by an Approved Employer under the Pacific Seasonal Worker Pilot Scheme.
Note 1:
This clause will be repealed on 1 July 2016. See Part 2 of Schedule 2 to the Tax Laws Amendment (2011 Measures No 7) Act 2011.
Note 2:
In the 2011-12 year of income, the rate applicable under item 1 of the table was 29%.
Pt II cl 1A amended by No 60 of 2012, s 3 and Sch 1 item 7, by substituting note 1 and 2 for the note at the end, applicable to the 2012-2013 year of income and later years of income. The note formerly read:
Note:
This clause will be repealed on 1 July 2016. See Part 2 of Schedule 2 to the Tax Laws Amendment (2011 Measures No 7) Act 2011.
Pt II cl 1A inserted by No 147 of 2011, s 3 and Sch 2 item 1, effective 29 November 2011.
SECTION 2.
2.
Where-
(a)
the taxable income of a non-resident taxpayer consists of or includes a special income component; and
(b)
Division
16 of Part
III of the Assessment Act does not apply to the income of the taxpayer; and
(c)
Division 392 (Long-term averaging of primary producers' tax liability) of the
Income Tax Assessment Act 1997 does not apply to the taxpayer's assessment;
the rate of tax for every $1 of the taxable income is the amount ascertained in accordance with the formula
where-
A
is the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the reduced taxable income;
B
is 5 times the difference between-
(c) the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the sum of-
(i) the reduced taxable income; and
(ii) 20% of the special income component of the taxable income; and
(d) the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the reduced taxable income; and
C
is the number of whole dollars in the taxable income.
In applying the formula, component
B
is to be worked out on the assumption that the whole of the taxable income is ordinary taxable income.
History
Part II amended by No 46 of 1998.
Part II cl 2 amended by No 7 of 1993.
SECTION 3.
3.
Where-
(a)
the taxable incomeof a non-resident taxpayer consists of or includes a special income component; and
(b)
Division
16 of Part
III of the Assessment Act applies to the income of the taxpayer or Division 392 (Long-term averaging of primary producers' tax liability) of the
Income Tax Assessment Act 1997 applies to the taxpayer's assessment;
the rate of tax for every $1 of the taxable income is the amount ascertained in accordance with the formula
where-
A
is the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the reduced taxable income;
B
is 5 times the difference between-
(c) the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the sum of-
(i) the average income; and
(ii) 20% of the special income component of the taxable income; and
(d) the amount of tax that would be payable by the taxpayer under clause 1 on a taxable income equal to the average income; and
C
is the number of whole dollars in the taxable income.
In applying the formula, component
B
is to be worked out on the assumption that the whole of the taxable income is ordinary taxable income.
History
Part II cl 3 amended by No 46 of 1998 and No 7 of 1993.
SECTION 4.
4.
If the non-resident taxpayer is a working holiday maker at any time during the year of income:
(a)
count the taxpayer's working holiday taxable income for the year of income as the first parts (starting from $0) of the taxpayer's ordinary taxable income for the purposes of the table in clause 1 applicable to the year of income; and
(b)
do not apply the rates in that table to that working holiday taxable income; and
(c)
do not count that working holiday taxable income when working out the taxpayer's taxable income for the purposes of clause 2 or 3.
Note:
The rates for the taxpayer's working holiday taxable income for the year of income are set out in Part III.
History
Part II cl 4 amended by No 47 of 2018, s 3 and Sch 2 items 6 and 7, by inserting "applicable to the year of income" in para (a) and repealing the example, effective 1 July 2018. The example formerly read:
Example:
Rosie earns a $60,000 salary while a working holiday maker from 1 July 2017 to 31 March 2018. She also earns $29,000 while holding a different class of visa from 1 April 2018 to 30 June 2018.
The $60,000 salary is Rosie's working holiday taxable income and is the first part of her ordinary taxable income. Under Part III, she pays tax at the rate of 15% on $37,000 of that salary, and tax at the rate of 32.5% on the remaining $23,000 of that salary.
The $29,000 income makes up the remaining parts of Rosie's ordinary taxable income. Under clause 1 of this Part, she pays tax at the rate of 32.5% on $27,000 of that income, and tax at the rate of 37% on the remaining $2,000 of that income.
Part II cl 4 inserted by No 92 of 2016, s 3 and Sch 1 item 6, applicable in relation to:
(a) assessable income derived on or after 1 January 2017; and
(b) so much of any amounts that can be deducted as relate to such assessable income.
PART III - WORKING HOLIDAY MAKERS
SECTION 1.
1.
The rates of tax on a taxpayer's working holiday taxable income for a year of income are as set out in the table that is applicable to the year of income.
|
Tax rates for working holiday makers for the 2024-25 year of income or a later year of income
|
|
Item
|
For the part of the taxpayer's working holiday taxable income that:
|
The rate is:
|
| 1 |
does not exceed $45,000 |
15% |
| 2 |
exceeds $45,000 but does not exceed $135,000 |
30% |
| 3 |
exceeds $135,000 but does not exceed $190,000 |
37% |
| 4 |
exceeds $190,000 |
45% |
History
Part III cl 1 amended by No 92 of 2020, s 3 and Sch 1 item 15, by repealing table dealing with tax rates for working holiday makers for the 2020-21, 2021-22, 2022-23 or 2023-24 year of income (including the note), effective 1 July 2024. For application provision, see note under Pt I cl 1. The table dealing with tax rates for working holiday makers for the 2020-21, 2021-22, 2022-23 or 2023-24 year of income (including the note) formerly read:
|
Tax rates for working holiday makers for the 2020-21, 2021-22, 2022-23 or 2023-24 year of income
|
|
Item
|
For the part of the taxpayer's working holiday taxable income that:
|
The rate is:
|
| 1 |
does not exceed $45,000 |
15% |
| 2 |
exceeds $45,000 but does not exceed $120,000 |
32.5% |
| 3 |
exceeds $120,000 but does not exceed $180,000 |
37% |
| 4 |
exceeds $180,000 |
45% |
Note:
The above table will be repealed on 1 July 2024 by the Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Act 2020.
Part III cl 1 amended by No 3 of 2024, s 3 and Sch 1 item 4, by substituting table dealing with tax rates for working holiday makers for the 2024-25 year of income or a later year of income. The table dealing with tax rates for working holiday makers for the 2024-25 year of income or a later year of income formerly read:
|
Tax rates for working holiday makers for the 2024-25 year of income or a later year of income
|
|
Item
|
For the part of the taxpayer's working holiday taxable income that:
|
The rate is:
|
| 1 |
does not exceed $45,000 |
15% |
| 2 |
exceeds $45,000 but does not exceed $200,000 |
30% |
| 3 |
exceeds $200,000 |
45% |
Part III cl 1 amended by No 92 of 2020, s 3 and Sch 1 items 11 and 12, by substituting "
Tax rates for working holiday makers for the 2020-21, 2021-22, 2022-23 or 2023-24 year of income
" for "
Tax rates for working holiday makers for the 2022-23 or 2023-24 year of income
" and the note in table dealing with "tax rates for working holiday makers for the 2022-23 or 2023-24 year of income", effective 15 October 2020. The note formerly read:
Note:
The above table will be repealed on 1 July 2026 by the Treasury Laws Amendment (Personal Income Tax Plan) Act 2018.
Part III cl 1 amended by No 92 of 2020, s 3 and Sch 1 item 9, by repealing the table dealing with "tax rates for working holiday makers for the 2018-19, 2019-20, 2020-21 or 2021-22 year of income" (including the note), effective 15 October 2020. No 92 of 2020, s 3 and Sch 1 item 10 contains the following application provision:
10 Repealed law continues for relevant years of income
10
Despite the repeal by item 9 of the table mentioned in that item, that table continues to apply, in relation to assessments for the 2018-19 or 2019-20 year of income, as if that repeal had not happened.
The table dealing with "tax rates for working holiday makers for the 2018-19, 2019-20, 2020-21 or 2021-22 year of income" (including the note) formerly read:
|
Tax rates for working holiday makers for the 2018-19, 2019-20, 2020-21 or 2021-22 year of income
|
|
Item
|
For the part of the taxpayer's working holiday taxable income that:
|
The rate is:
|
| 1 |
does not exceed $37,000 |
15% |
| 2 |
exceeds $37,000 but does not exceed $90,000 |
32.5% |
| 3 |
exceeds $90,000 but does not exceed $180,000 |
37% |
| 4 |
exceeds $180,000 |
45% |
Note:
The above table will be repealed on 1 July 2024 by the Treasury Laws Amendment (Personal Income Tax Plan) Act 2018.
Part III cl 1 amended by No 52 of 2019, s 3 and Sch 2 items 3 and 4, by substituting table dealing with "tax rates for working holiday makers for the 2022-23 or 2023-24 year of income" including the note and table dealing with "tax rates for working holiday makers for the 2024-25 year of income or a later year of income", effective 6 July 2019. The tables formerly read:
|
Tax rates for working holiday makers for the 2022-23 or 2023-24 year of income
|
|
Item
|
For the part of the taxpayer's working holiday taxable income that:
|
The rate is:
|
| 1 |
does not exceed $41,000 |
15% |
| 2 |
exceeds $41,000 but does not exceed $120,000 |
32.5% |
| 3 |
exceeds $120,000 but does not exceed $180,000 |
37% |
| 4 |
exceeds $180,000 |
45% |
Note:
The above table will be repealed on 1 July 2026 by the Treasury Laws Amendment (Personal Income Tax Plan) Act 2018.
|
Tax rates for working holiday makers for the 2024-25 year of income or a later year of income
|
|
Item
|
For the part of the taxpayer's working holiday taxable income that:
|
The rate is:
|
| 1 |
does not exceed $41,000 |
15% |
| 2 |
exceeds $41,000 but does not exceed $200,000 |
32.5% |
| 3 |
exceeds $200,000 |
45% |
Part III cl 1 amended by No 47 of 2018, s 3 and Sch 2 items 8 and 9, by substituting "table that is applicable to the year of income" for "following table" and the table, effective 1 July 2018. The table formerly read:
|
Tax rates for working holiday makers
|
|
Item
|
For the part of the taxpayer's working holiday taxable income that:
|
The rate is:
|
| 1 |
does not exceed $37,000 |
15% |
| 2 |
exceeds $37,000 but does not exceed $87,000 |
32.5% |
| 3 |
exceeds $87,000 but does not exceed $180,000 |
37% |
| 4 |
exceeds $180,000 |
45% |
Part III cl 1 inserted by No 92 of 2016, s 3 and Sch 1 item 7, applicable in relation to:
(a) assessable income derived on or after 1 January 2017; and
(b) so much of any amounts that can be deducted as relate to such assessable income.
History
Sch 7 amended by No 138 of 1987.
SCHEDULE 8 - NOTIONAL RATES FOR THE PURPOSES OF SECTION 156 OF THE ASSESSMENT ACT
Subsection 12(2)
History
Sch 8 heading amended by No 70 of 1989.
PART I - RESIDENT TAXPAYERS, RESIDENT BENEFICIARIES AND RESIDENT TRUST ESTATES
Division 1 - Normal notional rate
SECTION 1.
1.
This Division applies to the income of a resident taxpayer, other than income in respect of which a trustee is liable to be assessed and to pay tax under section
98 or
99 of the Assessment Act, if Division
16 of Part
III of the Assessment Act applies in relation to that income.
SECTION 2.
2.
Subject to clause 3, the notional rate in respect of income to which this Division applies is, for every $1 of the taxable income, the amount ascertained by determining the tax that would be payable if the rates set out in Part I of Schedule
7 were applied to a taxable income equal to the taxpayer's average income and dividing the resultant amount by a number equal to the number of whole dollars in that average income.
SECTION 3.
3.
The notional rate in respect of income to which this Division applies is to be calculated under clause 2 as if Division 5 of Part II had not been enacted.
History
Part I Div 1 amended by No 64 of 1996.
Division 2 - Notional rates in respect of certain trust income
SECTION 1.
1.
This Division applies-
(a)
to a share of a resident beneficiary of the net income of a trust estate, if-
(i)
the trustee of the trust estate is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of that share; and
(ii)
Division 16 of Part III of the Assessment Act applies in relation to that share; and
(b)
to the net income or a part of the net income of a resident trust estate, if-
(i)
the trustee of the trust estate is liable to be assessed and to pay tax under section 99 of the Assessment Act in respect of that net income or that part of that net income of the trust estate; and
(ii)
Division 16 of Part III of the Assessment Act applies in relation to that net income or that part of that net income.
SECTION 2.
2.
The notional rate in respect of income to which this Division applies is-
(a)
in a case where the income is-
(i)
a share of the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 of the Assessment Act; or
(ii)
the net income or a part of the net income of a trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 99 of the Assessment Act, being the net income or a part of the net income of the estate of a deceased person who died less than 3 years before the end of the year of income;
the rate that would be calculated in accordance with Division 1 if that income were the taxable income of one individual and were not income in respect of which a trustee is liable to be assessed and to pay tax under section
98 or
99 of the Assessment Act; and
(b)
in any other case - the rate that would be calculated in accordance with Division 1 in respect of a taxable income equal to the income if-
(i)
that income were the taxable income of one individual and were not income in respect of which a trustee is liable to be assessed and to pay tax under section 99 of the Assessment Act; and
(ii)
the words "exceeds the tax-free threshold but" were omitted from item 1 of the table applicable to the year of income in Part I of Schedule 7.
History
Part I Div 2 cl 2 amended by No 47 of 2018, s 3 and Sch 2 item 15, by substituting para (b)(ii), effective 1 July 2018. Para (b)(ii) formerly read:
(ii)
the reference in column 1 of the table in Part I of Schedule 7 to the part of the ordinary taxable income that exceeds the tax-free threshold but does not exceed $37,000 were a reference to the part of the ordinary taxable income that does not exceed $37,000.
Part I Div 2 cl 2 amended by No 150 of 2011, s 3 and Sch 1 item 4, by substituting "the tax-free threshold" for "$6,000" in para (b)(ii), applicable to the 2012-13 year of income and later years of income.
Part I Div 2 cl 2 amended by No 29 of 2008, s 3 and Sch 1 item 25, by substituting "$37,000" for "$35,000" (wherever occurring) in para (b)(ii), applicable to assessments for the 2010-11 year of income and later years of income.
Part I Div 2 cl 2 amended by No 29 of 2008, s 3 and Sch 1 item 15, by substituting "$35,000" for "$34,000" (wherever occurring) in para (b)(ii), applicable to assessments for the 2009-10 year of income.
Part I Div 2 cl 2 amended by No 29 of 2008, s 3 and Sch 1 item 5, by substituting "$34,000" for "$30,000" (wherever occurring) in para (b)(ii), applicable to assessments for the 2008-09 year of income.
Part I Div 2 cl 2 amended by No 76 of 2007, s 3 and Sch 1 item 6, by substituting "$30,000" for $25,000" (wherever occurring), applicable to assessments for the 2007-08 year of income and later years of income.
Part 1 Div 2 cl 2 amended by No 55 of 2006, s 3 and Sch 1 item 22, by substituting "$25,000" for "$21,600" (wherever occurring) in para (b)(ii), applicable to assessments for the 2006-2007 year of income and later years of income.
Part I Div 2 cl 2 amended by No 45 of 2003, s 3 and Sch 1 item 6, by substituting "$21,600" for "$20,000" (wherever occurring) in para (b)(ii), applicable to assessments for the 2003/2004 income year and later income years.
Part I Div 2 cl 2 amended by No 69 of 1999 and No 7 of 1993.
PART II - NON-RESIDENT TAXPAYERS, NON-RESIDENT BENEFICIARIES AND NON-RESIDENT TRUST ESTATES
Division 1 - Normal notional rate
SECTION 1.
1.
This Division applies to the income of a non-resident taxpayer, other than income in respect of which a trustee is liable to be assessed and to pay tax under section
98 or
99 of the Assessment Act, if Division
16 of Part
III of the Assessment Act applies in relation to that income.
SECTION 2.
2.
The notional rate in respect of income to which this Division applies is, for every $1 of the taxable income, the amount ascertained by determining the tax that would be payable if the rates set out in Part II of Schedule
7 were applied to a taxable income equal to the taxpayer's average income and dividing the resultant amount by a number equal to the number of whole dollars in that average income.
Division 2 - Notional rates in respect of certain trust income
SECTION 1.
1.
This Division applies-
(a)
to a share of a non-resident beneficiary of the net income of a trust estate if-
(i)
the trustee of the trust estate is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of that share; and
(ii)
Division 16 of Part III of the Assessment Act applies in relation to that share; and
(b)
to the net income or a part of the net income of a non-resident trust estate if-
(i)
the trustee of the trust estate is liable to be assessed and to pay tax under section 99 of the Assessment Act in respect of that net income or that part of that net income of the trust estate; and
(ii)
Division 16 of Part III of the Assessment Act applies in relation to that net income or that part of that net income.
SECTION 2.
2.
The notional rate in respect of income to which this Division applies is the rate that would be calculated in accordance with Division 1 in respect of a taxable income equal to the income if that income were the taxable income of one individual and were not income in respect of which a trustee is liable to be assessed and to pay tax under section
98 or
99 of the Assessment Act.
History
Sch 8 amended by No 87 of 1990 and No 70 of 1989.
History
Archived:
Sch 9 repealed as inoperative by No 101 of 2006, s 3 and Sch 1 item 265, effective 14 September 2006. For application and savings provisions and for former wording see the CCH Australian Income Tax Legislation archive.
SCHEDULE 10 - RATES OF TAX PAYABLE BY A TRUSTEE UNDER SECTION 98 OR 99 OF THE ASSESSMENT ACT
Subsection 12(6)
History
Sch 10 heading amended by No 70 of 1989.
PART I - RESIDENT BENEFICIARIES AND RESIDENT TRUST ESTATES
SECTION 1.
1.
In the case of a trustee who is liable to beassessed and to pay tax-
(a)
under section
98 of the Assessment Act in respect of a share of a resident beneficiary of the net income of a trust estate; or
(b)
under section
99 of the Assessment Act in respect of the net income or part of the net income of a resident trust estate, being the net income or part of the net income of the estate of a deceased person who died less than 3 years before the end of the year of income;
the rate of tax in respect of that share of the net income or that net income or that part of that net income is the rate that would be payable under Part I of Schedule 7 if one individual were liable to be assessed and to pay tax on that income as his or her taxable income.
SECTION 2.
2.
In the case of a trustee who is liable to be assessed and to pay tax under section
99 of the Assessment Act in respect of the net income or part of the net income of a resident trust estate, other than income to which clause 1 applies, the rate of tax is the rate that would be payable under Part I of Schedule
7 in respect of a taxable income equal to that net income or that part of the net income if-
(a)
one individual were liable to be assessed and to pay tax on that income; and
(b)
the words "exceeds the tax-free threshold but" were omitted from item 1 of the table applicable to the year of income in Part I of Schedule
7.
History
Part I cl 2 amended by No 47 of 2018, s 3 and Sch 2 item 16, by substituting para (b), effective 1 July 2018. Para (b) formerly read:
(b)
the reference in item 1 of the table in Part I of Schedule 7 to the part of the ordinary taxable income that exceeds the tax-free threshold but does not exceed $37,000 were a reference to the part of the ordinary taxable income that does not exceed $37,000.
Part I cl 2 amended by No 150 of 2011, s 3 and Sch 1 item 5, by substituting "the tax-free threshold" for "$6,000" in para (b), applicable to the 2012-13 year of income and later years of income.
Part I cl 2 amended by No 29 of 2008, s 3 and Sch 1 item 26, by substituting "$37,000" for "$35,000" (wherever occurring), applicable to assessments for the 2010-11 year of income and later years of income.
Part I cl 2 amended by No 29 of 2008, s 3 and Sch 1 item 16, by substituting "$35,000" for "$34,000" (wherever occurring) in para (b), applicable to assessments for the 2009-10 year of income.
Part I cl 2 amended by No 29 of 2008, s 3 and Sch 1 item 6, by substituting "$34,000" for "$30,000" (wherever occurring) in para (b), applicable to assessments for the 2008-09 year of income.
Part I cl 2 amended by No 76 of 2007, s 3 and Sch 1 item 7, by substituting "$30,000" for "$25,000" (wherever occurring), applicable to assessments for the 2007-08 year of income and later years of income.
Part I amended by No 101 of 2006, s 3 and Sch 2 item 783, by omitting references to a repealed inoperative provision, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive.
Part I cl 2 amended by No 55 of 2006, s 3 and Sch 1 item 23, by substituting "$25,000" for "$21,600" in para (b) (wherever occurring), applicable to assessments for the 2006-2007 year of income and later years of income.
Part I cl 2 amended by No 58 of 2006, s 3 and Sch 7 item 118, by substituting "item 1" for "column 1" in para (b), applicable to assessments for the 2003-04 income year and later income years.
Part I cl 2 amended by No 45 of 2003, s 3 and Sch 1 item 7, by substituting "$21,600" for "$20,000" (wherever occurring) in para (b), applicable to assessments for the 2003/2004 income year and later income years.
Part I cl 2 amended by No 69 of 1999 and No 7 of 1993.
PART II - NON-RESIDENT BENEFICIARIES AND NON-RESIDENT TRUST ESTATES
In the case of a trustee who is liable to be assessed and to pay tax-
(a) under section 98 of the Assessment Act in respect of a share of a non-resident beneficiary of the net income of a trust estate; or
(b) under section 99 of the Assessment Act in respect of the net income or part of the net income of a non-resident trust estate,
the rate of tax in respect of that share of the net income or that net income or that part of that net income is the rate that would be payable under Part II of Schedule 7 if one individual were liable to be assessed and to pay tax on that income as his or her taxable income.
History
Pt II amended by No 101 of 2006, s 3 and Sch 2 item 784, by omitting the reference to a repealed inoperative provision, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive.
Sch 10 amended by No 87 of 1990 and No 70 of 1989.
SCHEDULE 10A - RATES OF TAX PAYABLE BY AN AMIT TRUSTEE UNDER PARAGRAPH 276-105(2)(a) OF THE
INCOME TAX ASSESSMENT ACT 1997
Note:
See subsection 12(6A).
In the case of a trustee who is liable to be assessed and to pay tax under paragraph 276-105(2)(a) of the Income Tax Assessment Act 1997 in respect of an amount mentioned in subsection 276-105(3) of that Act, the rate of tax in respect of that amount is the rate that would be payable under Part II of Schedule 7 if one individual were liable to be assessed and to pay tax on that amount as his or her taxable income.
History
Sch 10A inserted by No 49 of 2016, s 3 and Sch 1 item 15, effective 5 May 2016.
SCHEDULE 11 - RATES OF TAX PAYABLE ON ELIGIBLE TAXABLE INCOME
Subsections 13(1) and 15(1)
History
Sch 11 heading amended by No 70 of 1989.
PART I - RESIDENT TAXPAYERS
SECTION 1.
1.
In the case of a resident taxpayer whose eligible taxable income for the purposes of Division
6AA of Part
III of the Assessment Act exceeds $416 and whose taxable income does not consist of or include a special income component, the rates of tax in respect of that part (in this clause referred to as the
relevant part
) of the taxable income of the taxpayer other than the eligible taxable income of the taxpayer are the rates that would be payable under Part I of Schedule 7 if the relevant part of that taxable income were the taxable income of the taxpayer.
SECTION 2.
2.
In the case of a resident taxpayer whose eligible taxable income for the purposes of Division
6AA of Part
III of the Assessment Act exceeds $416 and whose taxable income does not consistof or include a special income component, the rate of tax in respect of the eligible taxable income of the taxpayer is 45%.
History
Part I cl 2 amended by No 55 of 2006, s 3 and Sch 1 item 24, by substituting "45%" for "47%", applicable to assessments for the 2006-2007 year of income and later years of income.
SECTION 3.
3.
For every $1 of the taxable income of a resident taxpayer-
(a)
whose eligible taxable income for the purposes of Division
6AA of Part
III of the Assessment Act exceeds $416; and
(b)
whose taxable income consists of or includes a special income component;
the rate of tax is the amount ascertained in accordance with the formula
where-
A
is the amount of tax that would be payable by the taxpayer under clauses 1 and 2 on a taxable income equal to the reduced taxable income;
B
is 5 times the difference between-
(c) the amount of tax that would be payable by the taxpayer under clause 1 of Part I of Schedule 7 on a taxable income equal to the sum of-
(i) whichever of the following amounts is applicable:
(A) if Division 392 (Long-term averaging of primary producers' tax liability) of the Income Tax Assessment Act 1997 applies - the average income worked out under section 392-45 of that Act;
(B) if sub-subparagraph (A) does not apply - the reduced taxable income; and
(C) (Repealed by No 101 of 2006)
(ii) 20% of the part of the special income component other than the eligible part of the special income component; and
(d) the amount of tax that would be payable by the taxpayer under clause 1 of Part I of Schedule 7 on a taxable income equal to the average income worked out under section 392-45 of the Income Tax Assessment Act 1997 or reduced taxable income, as the case may be;
C
is 45% of the eligible part of the special income component; and
D
is the number of whole dollars in the taxable income.
In applying the formula, component
B
is to be worked out on the assumption that the whole of the taxable income is ordinary taxable income.
History
Part I amended by No 101 of 2006, s 3 and Sch 2 items 785 to 787, by omitting the reference to a repealed inoperative provision in cl 1, substituting para (c)(i)(B) for para (c)(i)(B) and (C) and omitting ", reduced notional income" before "or reduced taxable income," in para (d) of cl 3, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive. Para (c)(i)(B) and (C) formerly read:
(B) where any part of the amount represented by component A was calculated by reference to Schedule 9 - the reduced notional income;
(C) where neither sub-subparagraph (A) nor sub-subparagraph (B) applies - the reduced taxable income; and
Part I cl 3 amended by No 55 of 2006, s 3 and Sch 1 item 25, by substituting "45%" for "47%" in the definition of "C", applicable to assessments for the 2006-2007 year of income and later years of income.
Part I cl 3 amended by No 46 of 1998 and No 7 of 1993.
PART II - NON-RESIDENT TAXPAYERS
SECTION 1.
1.
In the case of a non-resident taxpayer who has an eligible taxable income for the purposes of Division
6AA of Part
III of the Assessment Act and whose taxable income does not consist of or include a special income component, the rates of tax in respect of that part (in this clause referred to as the
relevant part
) of the taxable income of the taxpayer other than the eligible taxable income of the taxpayer are the rates that would be payable under Part II of Schedule
7 if the relevant part of that taxable income were the taxable income of the taxpayer.
SECTION 2.
2.
In the case of a non-resident taxpayer who has an eligible taxable income for the purposes of Division
6AA of Part
III of the Assessment Act and whose taxable income does not consist of or include a special income component, the rate of tax in respect of the eligible taxable income of the taxpayer is 45%.
History
Part II cl 2 amended by No 55 of 2006, s 3 and Sch 1 item 26, by substituting "45%" for "47%", applicable to assessments for the 2006-2007 year of income and later years of income.
SECTION 3.
3.
For every $1 of the taxable income of a non-resident taxpayer-
(a)
who has an eligible taxable income for the purposes of Division
6AA of Part
III of the Assessment Act; and
(b)
whose taxable income consists of or includes a special income component;
the rate of tax is the amount ascertained in accordance with the formula
where-
A
is the amount of tax that would be payable by the taxpayer under clauses 1 and 2 on a taxable income equal to the reduced taxable income;
B
is 5 times the difference between-
(c) the amount of tax that would be payable by the taxpayer under clause 1 of Part II of Schedule 7 on a taxable income equal to the sum of-
(i) whichever of the following amounts is applicable:
(A) if Division 392 (Long-term averaging of primary producers' tax liability) of the Income Tax Assessment Act 1997 applies - the average income worked out under section 392-45 of that Act;
(B) if sub-subparagraph (A) does not apply - the reduced taxable income; and
(C) (Repealed by No 101 of 2006)
(ii) 20% of the part of the special income component other than the eligible part of the special income component; and
(d) the amount of tax that would be payable by the taxpayer under clause 1 of Part II of Schedule 7 on a taxable income equal to the average income worked out under section 392-45 of the Income Tax Assessment Act 1997 or reduced taxable income, as the case may be;
C
is 45% of the eligible part of the special income component; and
D
is the number of whole dollars in the taxable income.
In applying the formula, component
B
is to be worked out on the assumption that the whole of the taxable income is ordinary taxable income.
History
Part II amended by No 101 of 2006, s 3 and Sch 2 items 788 to 790, by amending the reference to a repealed inoperative provision in cl 1, subsituting para (c)(i)(B) for para (c)(i)(B) and (C) and omitting ", reduced notional income" before "or reduced taxable income," in para (d) of cl 3, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive. Para (c)(i)(B) and (C) formerly read:
(B) where any part of the amount represented by component A was calculated by reference to Schedule 9 - the reduced notional income;
(C) where neither sub-subparagraph (A) nor sub-subparagraph (B) applies - the reduced taxable income; and
Part II cl 3 amended by No 55 of 2006, s 3 and Sch 1 item 27, by substituting "45%" for "47%" in the definition of "C", applicable to assessments for the 2006-2007 year of income and later years of income.
Part II cl 3 amended by No 46 of 1998 and No 7 of 1993.
Sch 11 amended by No 70 of 1989 and No 138 of 1987.
SCHEDULE 12 - RATES OF TAX PAYABLE BY A TRUSTEE UNDER SECTION 98 OF THE ASSESSMENT ACT WHERE DIVISION 6AA OF PART III OF THAT ACT APPLIES
Subsections 13(3) and (4) and 15(3)
History
Sch 12 heading amended by No 70 of 1989.
PART I - RESIDENT BENEFICIARIES
SECTION 1.
1.
In the case of a trustee of a trust estate who is liable to be assessed and to pay tax under section
98 of the Assessment Act in respect of a share of a resident beneficiary of the net income of the trust estate where Division
6AA of Part
III of that Act applies to a part (in this clause referred to as the
eligible part
) of that share, the rates of tax in respect of the part (in this clause referred to as the
relevant part
) of that share other than the eligible part of that share are the rates that would be payable under Part I of Schedule
7 in respect of a taxable income equal to the relevant part of that share if one individual were liable to be assessed and to pay tax on that income.
History
Part I cl 1 amended by No 168 of 1999.
SECTION 2.
2.
In the case of a trustee of a trust estate who is liable to be assessed and to pay tax under section
98 of the Assessment Act in respect of a share of a resident beneficiary of the net income of the trust estate where Division
6AA of Part
III of that Act applies to a part of that share, the rate of tax in respect of that part of that share is 45%.
History
Part I cl 2 amended by No 55 of 2006, s 3 and Sch 1 item 28, by substituting "45%" for "47%", applicable to assessments for the 2006-2007 year of income and later years of income.
Part I cl 2 amended by No 168 of 1999.
SECTION 3.
3.
(Repealed by No 168 of 1999)
History
Part I amended by No 101 of 2006, s 3 and Sch 2 item 791, by omitting the reference to a repealed inoperative provision in cl 1, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive.
Part I cl 3 amended by No 7 of 1993.
PART II - NON-RESIDENT BENEFICIARIES
SECTION 1.
1.
In the case of a trustee of a trust estate who is liable to be assessed and to pay tax under section
98 of the Assessment Act in respect of a share of a non-resident beneficiary of the net income of the trust estate where Division
6AA of Part
III of that Act applies to a part (in this clause referred to as the
eligible part
) of that share, the rates of tax in respect of the part (in this clause referred to as the
relevant part
) of that share other than the eligible part of that share are the rates that would be payable under Part II of Schedule
7 in respect of a taxable income equal to the relevant part of that share if one individual were liable to be assessed and to pay tax on that income.
History
Part II cl 1 amended by No 168 of 1999.
SECTION 2.
2.
In the case of a trustee of a trust estate who is liable to be assessed and to pay tax under section
98 of the Assessment Act in respect of a share of a non-resident beneficiary of the net income of the trust estate where Division
6AA of Part
III of that Act applies to a part of that share, the rate of tax in respect of that part of that share is 45%.
History
Part II cl 2 amended by No 55 of 2006, s 3 and Sch 1 item 29, by substituting "45%" for "47%", applicable to assessments for the 2006-2007 year of income and later years of income.
Part II cl 2 amended by No 168 of 1999.
SECTION 3.
3.
(Repealed by No 168 of 1999)
History
Part II amended by No 101 of 2006, s 3 and Sch 2 item 792, by amending the reference to a repealed inoperative provision in cl 1, effective 14 September 2006. For application and savings provisions see the CCH Australian Income Tax Legislation archive.
Part II cl 3 amended by No 7 of 1993.
Sch 12 amended by No 70 of 1989.
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