Income Tax Act 1986

Act No. 108 of 1986 as amended

This compilation was prepared on 24 July 2000
taking into account amendments up to Act No. 89 of 2000

The text of any of those amendments not in force
on that date is appended in the Notes section

Prepared by the Office of Legislative Drafting,
Attorney-General’s Department, Canberra

Contents

1 Short title [see Note 1]...........................

2 Commencement [see Note 1].......................

3 Interpretation.................................

4 Incorporation.................................

5 Imposition of income tax..........................

6 Adjustment where amount to be paid by, or refunded to, taxpayer would not exceed 49 cents             

7 Levy of Tax..................................

Notes 

An Act to impose a tax upon incomes

1  Short title [see Note 1]

This Act may be cited as the Income Tax Act 1986.

2  Commencement [see Note 1]

This Act shall come into operation on the day on which it receives the Royal Assent.

3  Interpretation

 (1) In this Act, unless the contrary intention appears:

Assessment Act means the Income Tax Assessment Act 1936;

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;

prescribed unit trust means a trust estate that:

 (a) is a corporate unit trust within the meaning of Division 6B of Part III of the Assessment Act; or

 (b) is a public trading trust within the meaning of Division 6C of Part III of the Assessment Act;

 (2) In this Act, a reference to taxable income shall be read as a reference to taxable income of the year of income.

4  Incorporation

The Assessment Act is incorporated, and shall be read as one, with this Act.

5  Imposition of income tax

 (1) Income tax is imposed in accordance with this Act and at the relevant rates declared by the Income Tax Rates Act 1986.

 (2) This Act does not impose tax payable in accordance with section 121H, 126, 128B, 128N, 128NA, 128NB, 128V, 136A or 159C of the Assessment Act.

 (3) This Act does not impose tax upon the taxable income of a non-profit company where that taxable income does not exceed $416.

 (4) If this Act, insofar as it imposes tax upon the taxable income of an eligible entity within the meaning of Part IX of the Assessment Act, would, apart from this subsection, deal with 2 subjects of taxation (within the meaning of section 55 of the Constitution), namely:

 (a) the taxation of so much of the taxable income as is attributable to taxable contributions within the meaning of Part IX of the Assessment Act; and

 (b) the taxation of the remainder of the taxable income;

this Act imposes tax in respect of only that subject of taxation mentioned in paragraph (b).

 (5) This Act does not impose tax upon the taxable income of a non-complying superannuation fund within the meaning of Part IX of the Assessment Act, to the extent that the taxable income is attributable to the inclusion of an amount in the fund’s assessable income under section 288A of that Act.

 (6) This Act does not impose tax upon the taxable income of a resident superannuation fund, to the extent that the taxable income is attributable to the inclusion of an amount in the fund’s assessable income under section 288B of that Act.

6  Adjustment where amount to be paid by, or refunded to, taxpayer would not exceed 49 cents

 (1) This section applies for the purposes of the making of an assessment of tax (other than further tax payable under subsection 94(9), (11) or (12) of the Assessment Act) in respect of the income of a taxpayer of a year of income where, upon the making of the assessment and the serving of notice of the assessment upon the taxpayer, there would, but for this section, be a net amount of not more than 49 cents payable by the Commissioner to the taxpayer, or by the taxpayer to the Commissioner, under the law relating to income tax, after taking into account all liabilities of the taxpayer, and all rebates and credits allowable to the taxpayer, under that law.

 (2) Where this section applies in relation to the making of an assessment:

 (a) if the amount of not more than 49 cents would be an amount payable to the taxpayer—additional tax equal to that amount is imposed by this Act in respect of the income of the taxpayer of the year of income; and

 (b) if the amount of not more than 49 cents would be an amount payable to the Commissioner—the amount that, but for this section, would be the amount of income tax imposed in respect of the income of the taxpayer of the year of income before the allowance of any rebates to which the taxpayer is entitled, is reduced by so much of that amount of not more than 49 cents as does not exceed the amount calculated by deducting the amount of any such rebates from the sum of the amount that is to be so reduced and any amount of further tax payable by the taxpayer in respect of that year of income under subsection 94(9), (11) or (12) of the Assessment Act.

 (3) A reference in this section to a liability of the taxpayer shall be read as including a reference to a liability in respect of income tax or provisional tax notified to the taxpayer by the Commissioner, notwithstanding that the amount of the liability has not become due and payable.

 (4) For the purposes of any calculation under the law relating to income tax that depends upon the amount of tax paid or payable by, or assessed in respect of the income of, a taxpayer, the tax assessed and payable under an assessment in relation to which this section applies shall be deemed to be the tax that would have been so assessed and payable if this section had not applied.

7  Levy of Tax

The tax imposed by subsection 5(1) is levied, and shall be paid, for the financial year commencing on 1 July 1986 and for all subsequent financial years until the Parliament otherwise provides

Notes to the Income Tax Act 1986

Note 1

The Income Tax Act 1986 as shown in this compilation comprises Act No. 108, 1986 amended as indicated in the Tables below.

Table of Acts

(a) The Income Tax Act 1986 was amended by Part III (sections 6 and 7) only of the Taxation Laws Amendment Act 1988, subsection 2(1) of which provides as follows:

 “(1) Subject to this section, this Act shall come into operation on the day on which it receives the Royal Assent.”

(b) The Income Tax Act 1986 was amended by Schedule 2 (items 112 and 113) only of the New Business Tax System (Miscellaneous) Act (No. 2) 2000, subsection 2(1) of which provides as follows:

 (1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.

Table of Amendments