PART I
-
PRELIMINARY
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(Repealed by No 143 of 2007)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repealed by No 143 of 2007, s 3 and Sch 7 item 73, applicable to assessments for the 2007-08 income year and later income years.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(Repealed by No 98 of 1989)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(Repealed by No 168 of 1999)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(Repealed by No 168 of 1999)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 Assessment Act
"
, 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 Sch 1 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 reduced notional 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.
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