INCOME TAX ASSESSMENT.

No. 3 of 1944.

An Act to amend the Income Tax Assessment Act 1936–1943.

[Assented to 3rd April, 1944.]

BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.)     This Act may he cited as the Income Tax Assessment Act 1944.

(2.)    The Income Tax Assessment Act 1936–1943 is in this Act referred to as the Principal Act.

(3.)    The Principal Act, as amended by this Act, may be cited as the Income Tax Assessment Act 1936–1944.

Commencement.

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

(2.)    Sections seven, eight and nine of this Act shall be deemed to have come into operation on the first day of July, One thousand nine hundred and forty-three.

(3.)  Sections sixteen to twenty (both inclusive) and sections twenty-two to twenty-five (both inclusive) of this Act shall come into operation on the first day of July, One thousand nine hundred and forty-four.

 

Parts.

3.   Section five of the Principal Act is amended—

(a) by inserting after the words “Division 17.—Rebates.” the words “Division 18.—Partial Liability to Tax on Income of a certain Period.”; and

(b) by inserting after the words “Division 2.—Collection of Income Tax by Instalments.” the words “Division 3.—Provisional Tax.”.

Definitions.

4.     Section six of the Principal Act is amended by omitting the definition of “year of income” and inserting in its stead the following definition:—

“‘year of income’ means—

(a) in relation to a company (except a company in the capacity of a trustee)—the financial year next preceding the year of tax, or the accounting period, if any, adopted under this Act in lieu of that financial year; and

(b) in relation to any other person—the financial year for which income tax is levied, or the accounting period, if any, adopted under this Act in lieu of that financial year;”.

Exemptions.

5.   Section twenty-three of the Principal Act is amended—

(a) by omitting from sub-paragraph (vi) of paragraph (c) the words “development or defence” and inserting in their stead the words “or development”;

(b) by omitting paragraph (s) and inserting in its stead the following paragraph:—

“(s) in the case of any person enlisted in or appointed to the Defence Force, the pay and allowances earned by him as a member of that Force during the year of income—

(i) out of Australia;

(ii) in Australia if, within the period comprised of the year of income and twelve months after the close of that year—

(1) he leaves Australia for service out of Australia or serves in a sea-going ship, and, during the period of twelve months immediately following the date on which he leaves Australia or commences so to serve, is on service out of Australia or borne in a sea-going ship for a continuous period of not less than ninety days or for periods which aggregate not less than one hundred and eighty days or,

 

before the completion of such a period of ninety days, he dies or, owing to injury or illness is returned to Australia or discharged from his ship; or

(2) he is posted or attached as a member of the air crew of a squadron in Australia, if the role of the squadron is operational involving flights out of Australia, and, during the period of twelve months immediately following the date on which he is so posted or attached, serves as such a member for a continuous period of not less than ninety days or for periods which aggregate not less than one hundred and eighty days or, before the completion of such a period of ninety days, he dies or, owing to injury or illness, is withdrawn from service as a member of the air crew of such a squadron; and

(iii) in Australia, until the expiration of ninety days—

(1) immediately following his resumption of duty in Australia, if he is a member whose pay and allowances have been exempted under clause (1) of subparagraph (ii) of this paragraph or under sub-paragraph (ii) of paragraph (s) of section twenty-three of the Income Tax Assessment Act 1936–1941; or

(2) after he is withdrawn from service as a member of the air crew of a squadron described in clause (2) of sub-paragraph (ii) of this paragraph or, if he is so withdrawn owing to injury or illness, after his resumption of duty, if he is a member whose pay and allowances have been exempted under that clause:

Provided that clause (1) of sub-paragraph (ii), or clause (1) of sub-paragraph (iii), of this paragraph shall not apply to exempt the pay and

 

allowances earned by a person enlisted in or appointed to the Defence Force who does not serve as a member of a body, contingent or detachment of that Force engaged on service out of Australia.

For the purposes of this paragraph—

‘air-crew’ includes photographers and members of the ground staff who regularly take part in the course of their duty in flights out of Australia, but does not include members of a reserve squadron except members serving at any time during any continuous period of not less than ninety days during which the reserve squadron takes part in operations as an operational squadron;

‘Australia’ does not include the Territories of Papua, Norfolk Island and New Guinea; and

‘sea-going ship’ does not include a depot ship or a ship principally employed on or in connexion with port or harbour defence;”;

(c) by omitting from paragraph (t) the word “and” (second occurring); and

(d) by adding at the end thereof the following paragraphs:—

“(v) income derived, by any person visiting Australia, from an occupation carried on by him while in Australia, if, in the opinion of the Treasurer, the visit and occupation are primarily and principally directed to assisting the Commonwealth government in the defence of Australia and the Treasurer is satisfied that the income is not exempt from income tax in the country where the person is ordinarily resident; and

“(w) income derived by any person serving with the mercantile marine of any part of His Majesty’s dominions (other than Australia) or of any country or Power allied or associated with His Majesty in the present war, from an occupation carried on by him on a sea-going ship, if the income is not exempt from income tax imposed in any part of His Majesty’s dominions or in any such country or by any such Power.”.

Acquisition of depreciated property.

6.—(1.)   Section sixty of the Principal Act is amended by omitting from the proviso to sub-section (1.) the words “the last preceding section” and inserting in their stead the words “section fifty-nine of this Act”.

 

(2.)  The amendment made by this section shall be deemed to have had effect on and after the sixth day of October, One thousand nine hundred and forty-two.

7.   Section sixty-six of the Principal Act is repealed and the following section inserted in its stead:—

Contributions to pension funds.

“66.—(1.) Where a taxpayer sets apart or pays in the year of income any sum as or to a fund to provide individual personal benefits, pensions or retiring allowances for his employees and—

(a) the taxpayer is under a legal obligation to set apart or pay that sum; and

(b) the rights of the employees to receive the benefits, pensions or retiring allowances are fully secured,

an amount ascertained in accordance with the provisions of this section shall be an allowable deduction.

“(2.)    For the purposes of this section, the Commissioner shall determine, in respect of any sum so set apart or paid after the thirtieth day of June, One thousand nine hundred and forty-three—

(a) the number of employees for whom, during the year of income, the fund provided present or future individual personal benefits, pensions or retiring allowances;

(b) the part, if any, of the sum so set apart or paid which is attributable to the provision of benefits, pensions or retiring allowances for employees other than employees engaged in producing assessable income of the taxpayer;

(c) in the case of a taxpayer which is a private company within the meaning of Division 7 of this Part—the part, if any, of the sum so set apart or paid which is attributable to the provision of benefits, pensions or retiring allowances for any person who is both a shareholder and an employee of that company if, in the opinion of the Commissioner, the benefits, pensions or retiring allowances are provided for that person as a shareholder; and

(d) the amount included in the sum so set apart or paid which is attributable to the provision of individual personal benefits, pensions or retiring allowances for each employee included in the number determined under paragraph (a) of this sub-section who is not an employee or one of a number of employees in relation to whom a part has been determined under paragraph (b) or (c) of this sub-section.

“(3.)    The amount which shall be an allowable deduction under this section shall be the amount remaining after deducting from the sum so set apart or paid the total of the following amounts:—

(a) Any amount determined by the Commissioner under paragraph (b) of the last preceding sub-section;

(b) Any amount determined by the Commissioner under paragraph (c) of the last preceding sub-section: and

 

(c) The sum of the respective amounts by which each of the amounts determined by the Commissioner under paragraph

(d) of the last preceding sub-section exceeds—

(i) One hundred pounds; or

(ii) five per centum of the remuneration paid by the taxpayer to the employee, in relation to whom the amount has been so determined, in respect of the year ended on the thirtieth day of June next preceding the date on which the sum was so set apart or paid,

whichever is the greater.

“(4.)    Where the provisions of paragraph (c) of the last preceding sub-section result in a reduction of the amount otherwise allowable as a deduction under the foregoing provisions of this section, and the Commissioner is of opinion that the special circumstances of the case warrant the allowance of a higher amount as a deduction, the Commissioner shall allow as a deduction such higher amount (not exceeding the amount which would have been allowable if that paragraph did not apply) as he considers to be reasonable.

“(5.)  In the application of this section—

(a) the aggregate of all sums set apart or paid (after the thirtieth day of June, One thousand nine hundred and forty-three) in the year of income by the taxpayer as or to any one fund shall be deemed to be one sum so set apart or paid; and

(b) in the case of a taxpayer who has, in the year of income, set apart or paid sums as or to more than one fund, the deductions allowable under this section shall be ascertained in respect of the funds in such order as the Commissioner thinks fit, and, in the application of this section in relation to any such fund, the amounts specified in sub-paragraphs (i) and (ii) of paragraph (c) of sub-section (3.) of this section shall, in relation to any employee, be reduced by the aggregate of any amounts determined in respect of that employee under paragraph (d) of sub-section (2.) of this section in relation to any other funds, to the extent to which the amounts so determined have not been excluded in ascertaining the deductions allowable in relation to those other funds.

“(6.)    “Where any part of any sum so set apart or paid on or before the second day of March, One thousand nine hundred and forty-four has, by reason of paragraph (c) of sub-section (3.) of this section, been excluded from the deduction otherwise allowable under this section, the taxpayer shall be entitled to recover out of the assets of the fund at the second day of March, One thousand nine hundred and forty-four, the amount by which the tax as assessed under this Act and the amount by which the tax, if any, as assessed under the

 

War-time (Company) Tax Assessment Act 1940–1943, in respect of income derived by the taxpayer, has been increased by reason of the exclusion of that part of the sum so set apart or paid, and may sue for those amounts accordingly.

“(7.)  If the value of the assets of the fund on the second day of March, One thousand nine hundred and forty-four, is less than the amount which the taxpayer is entitled to recover under the last preceding sub-section, the amount of the deficiency shall be an allowable deduction.

“(8.)  Where a taxpayer is, on the second day of March, One thousand nine hundred and forty-four, under a legal obligation to set apart or pay any sum as or to a fund to provide individual personal benefits, pensions or retiring allowances for employees, he shall, by force of this section, be released from the obligation to set apart or pay so much of any portion of that sum which is not allowable as a deduction under this section as would have been allowable as a deduction under section sixty-six of the Income Tax Assessment Act 1936–1943.

“(9.)  Any sum or part of any sum which is excluded in ascertaining the deduction under this section shall not be an allowable deduction under any other provision of this Act.

“(10.)  Where any taxpayer who has, either before or after the commencement of this section, been allowed a deduction of any sum, or part of any sum, set apart or paid as or to any such fund, receives from that fund any payment (other than an amount recovered under sub-section (6.) of this section) or other benefit which has a money value, his assessable income shall include that payment or the money value of that benefit.

“(11.)  For the purposes of this section a director of a company shall be deemed to be an employee of the company.”.

Gifts and contributions.

8.  Section seventy-eight of the Principal Act is amended—

(a) by omitting from sub-section (1.) all the words down to and including the word” deductions” (second occurring) and inserting in their stead the words “The following shall, subject to this section, be allowable deductions”;

(b) by omitting paragraph (b) of sub-section (1.); and

(c) by omitting sub-section (3.) and inserting in its stead the following sub-section:—

“(3.) The aggregate of the deductions allowable under this section and under the next succeeding section shall not exceed the amount of income remaining after deducting from the assessable income all other allowable deductions except the deduction of losses of previous years.”.

9.  After section seventy-eight of the Principal Act the following section is inserted:—

Voluntary contributions to pension funds.

“79.—(1.)  Where a taxpayer sets apart or pays in the year of income any sum, not allowable in whole or in part as a deduction under section sixty-six of this Act, as or to a fund to provide individual

 

personal benefits, pensions or retiring allowances for employees who are residents and are engaged in his or any business or class of business, or for dependants of such employees, and the rights of the employees or dependants to receive the benefits, pensions or retiring allowances are fully secured, an amount ascertained in accordance with the provisions of this section shall, subject to sub-section (3.) of the last preceding section, be an allowable deduction.

“(2.)  For the purposes of this section, the Commissioner shall determine, in respect of any sum so set apart or paid after the thirtieth day of June, One thousand nine hundred and forty-three—

(a) the number of employees for whom, or for the dependants of whom, during the year of income, the fund provided present or future individual personal benefits, pensions or retiring allowances;

(b) the part, if any, of the sum so set apart or paid which is attributable to the provision of benefits, pensions or retiring allowances for non-residents or employees not engaged in any business or class of business;

(c) in the case of a taxpayer which is a private company within the meaning of Division 7 of this Part—the part, if any, of the sum so set apart or paid which is attributable to the provision of benefits, pensions or retiring allowances for any person who is both a shareholder and an employee of that company if, in the opinion of the Commissioner, the benefits, pensions or retiring allowances are provided for that person as a shareholder; and

(d) the amount included in the sum so set apart or paid which is attributable to the provision of individual personal benefits, pensions or retiring allowances for each employee included in the number determined under paragraph (a) of this sub-section who is not an employee or one of a number of employees in relation to whom a part has been determined under paragraph (b) or (c) of this sub-section.

“(3.)    The amount which shall be an allowable deduction under this section shall be the amount remaining after deducting from the sum so set apart or paid the total of the following amounts:—

(a) Any amount determined by the Commissioner under paragraph (b) of the last preceding sub-section;

(b) Any amount determined by the Commissioner under paragraph (c) of the last preceding sub-section; and

(c) The sum of the respective amounts by which each of the amounts determined by the Commissioner under paragraph (d) of the last preceding sub-section in respect of an employee, increased by the portion of any deduction

 

allowable, in the assessment of the taxpayer, under the provisions of section sixty-six of this Act which the Commissioner considers to be attributable to that employee, exceeds—

(i) One hundred pounds; or

(ii) five per centum of the remuneration paid to the employee, in relation to whom the amount has been so determined, in respect of the year ended on the thirtieth day of June next preceding the date on which the sum was so set apart or paid,

whichever is the greater.

“(4.)  Where the provisions of paragraph (c) of the last preceding sub-section result in a reduction of the amount otherwise allowable as a deduction under the foregoing provisions of this section and the Commissioner is of opinion that the special circumstances of the case warrant the allowance of a higher amount as a deduction, the Commissioner shall allow as a deduction such higher amount (not exceeding the amount which would have been allowable if that paragraph did not apply) as he considers to be reasonable.

“(5.)  In the application of this section—

(a) the aggregate of all sums set apart or paid (after the thirtieth day of June, One thousand nine hundred and forty-three) in the year of income by the taxpayer as or to any one fund shall be deemed to be one sum so set apart or paid; and

(b) in the case of a taxpayer who has, in the year of income, set apart or paid sums as or to more than one fund, the deductions allowable under this section shall be ascertained in respect of the funds in such order as the Commissioner thinks fit, and, in the application of this section in relation to any such fund, the amounts specified in sub-paragraphs (i) and (ii) of paragraph (c) of sub-section (3.) of this section shall, in relation to any employee, be reduced by the aggregate of any amounts determined in respect of that employee under paragraph (d) of sub-section (2.) of this section in relation to any other funds, to the extent to which the amounts so determined have not been excluded in ascertaining the deductions allowable in relation to those other funds.

“(6.)  Where any part of any sum so set apart or paid on or before the second day of March, One thousand nine hundred and forty-four, has, by reason of paragraph (c) of sub-section (3.) of this section, been excluded from the deduction otherwise allowable under this section, the taxpayer shall be entitled to recover out of the assets of the fund at the second day of March, One thousand nine hundred and forty-four, the amount by which the tax as assessed under this Act

 

and the amount by which the tax, if any, as assessed under the War-time (Company) Tax Assessment Act 1940–1943, in respect of income derived by the taxpayer, has been increased by reason of the exclusion of that part of the sum so set apart or paid, and may sue for those amounts accordingly.

“(7.)  If the value of the assets of the fund on the second day of March, One thousand nine hundred and forty-four, is less than the amount which the taxpayer is entitled to recover under the last preceding sub-section, the amount of the deficiency shall be an allowable deduction.

“(8.)  Any sum or part of any sum which is excluded in ascertaining the deduction under this section shall not be an allowable deduction under any other provision of this Act.

“(9.)  Where any taxpayer who has, either before or after the commencement of this section, been allowed a deduction of any sum, or part of any sum, set apart or paid as or to any such fund, receives from that fund any payment (other than an amount recovered under sub-section (6.) of this section) or other benefit which has a money value, his assessable income shall include that payment or the money value of that benefit.

“(10.)   For the purposes of this section, a director of a company shall be deemed to be an employee of the company.”.

Losses of previous years.

10.   Section eighty of the Principal Act is amended by adding at the end thereof the following sub-sections:—

“(5.)    Notwithstanding any other provision of this section, in the case of a taxpayer which is a private company within the meaning of Division 7 of this Part, no loss incurred by the company in any year prior to the year of income shall be an allowable deduction unless the company establishes to the satisfaction of the Commissioner that, on the last day of the year of income, shares of the company carrying not less than twenty-five per centum of the voting power were beneficially held by persons who beneficially held shares of the company carrying not less than twenty-five per centum of the voting power on the last day of the year in which the loss was incurred.

“(6.)    For the purposes of the last preceding sub-section, shares of the company beneficially held by a person on the last day of the year in which the loss was incurred shall be deemed to have been beneficially held by the same person on the last day of the year of income, if—

(a) the person has died and the shares were, on the last day of the year of income, beneficially held by the trustee of his estate or a shareholder who received the shares as a beneficiary in his estate; or

(b) the shares have been transferred by that person to a company, the majority of the shares of which were, on the last day of the year of income, beneficially held by that person or, if he has died, by the trustee of his estate or a shareholder who received the shares as a beneficiary in his estate.”.

 

Deduction for member of Defence Force, &c.

11.   Section eighty-one of the Principal Act is amended—

(a) by omitting from sub-section (1.) all the words before paragraph (a) and inserting in their stead the following words:—

“Where the income of any taxpayer includes pay or allowances earned by him as a member of the Defence Force, remuneration earned by him as an accredited person, or salary, wages, bonuses or allowances earned by him as a mariner employed on a sea-going ship, and—”;

(b) by omitting sub-section (2.) and inserting in its stead the following sub-section:—

“(2.) The deduction allowable under sub-section (1.) of this section shall not exceed—

(a) in the case of a person whose income includes pay or allowances earned by him as a member of the Defence Force but who was not, at any time during the year of income, engaged in continuous full-time service as a member of that Force for the duration of, and directly in connexion with, the war—the pay and allowances derived by him during the year of income as a member of the Defence Force;

(b) in the case of an accredited person—the remuneration derived by him in respect of service out of Australia during the year of income as an accredited person;

(c) in the case of a person whose income includes income derived from his employment on a sea-going ship, but whose income was not wholly so derived—the income derived by him during the year of income from his employment on a sea-going ship.”; and

(c) by inserting in sub-section (4.), before the definition of “mariner”, the following definitions:—

“‘accredited person’ means—

(a) a person who is engaged in carrying out the objects of a public institution or public fund of the kind referred to in subparagraph (viii) of paragraph (a) of subsection (1.) of section seventy-eight of this Act;

(b) a member of a broadcasting unit established by the Australian Broadcasting Commission;

(c) a war correspondent or photographer employed by the Department of Information; or

 

(d) a camouflage officer employed by the Department of Home Security,

duly accredited by an authority of the Defence Force and who is attached to and accompanies a body, contingent or detachment of that Force serving outside Australia;

“‘Australia’ does not include the Territories of Papua, Norfolk Island and New Guinea;”.

Definitions.

12.   Section one hundred and three of the Principal Act is amended by adding at the end of sub-section (2.) the following paragraph:—

“;(g) in the case of a private company carrying on the business of insurance in Australia—

(i) the taxable income shall be deemed to be the amount which would be the taxable income if section one hundred and forty-eight of this Act did not apply to the company; and

(ii) there shall be included in the distributable income, in addition to the amount ascertained in accordance with sub-section (1.) of this section, any amount which has been received by the private company in the year of income, directly or indirectly, as a re-imbursement of, or otherwise for or in respect of, any tax which has been deducted or is deductible, in ascertaining the distributable income of any year of income, either under paragraph (a) of the definition of ‘distributable income’ in the last preceding sub-section or under subsection (3.) of this section.”.

Division not to apply to certain non-residents.

13.   Section one hundred and nine a of the Principal Act is amended by inserting after the word “Division” the words “, other than section one hundred and seven,”.

14.   The Principal Act is amended by adding at the end of Part III. the following Division:—

“Division 18.—Partial Liability to Tax on Income of a certain Period.

Interpretation.

“160af.—(1.) In this Division—

‘the current year’s tax’, in relation to a taxpayer, means the amount remaining after deducting from the income tax levied in pursuance of section one hundred and sixty ag of this Act on the income derived by that taxpayer all rebates of tax other than a rebate allowed by section one hundred and fifty-nine of this Act and the rebate allowable under this Division;

‘year of income’ means the year ending on the thirtieth day of June, One thousand nine hundred and forty-four, or the accounting period, if any, adopted under this Act in lieu of that year.

 

“(2.)  Unless the contrary intention appears, any reference in this Act to a year of income shall, in relation to the levying and payment of income tax in pursuance of this Division, be deemed to be a reference to the year of income as defined in sub-section (1.) of this section.

Income tax of persons other than companies on income of year ending on the 30th June, 1944.

“160ag.—(1.)  In addition to any income tax levied in pursuance of section seventeen of this Act, income tax at the rates declared by the Parliament shall be levied and paid for the financial year commencing on the first day of July, One thousand nine hundred and forty-four, upon the taxable income derived during the year of income by any person, whether a resident or a non-resident, other than a company, but not including a taxable income which does not exceed One hundred and four pounds.

“(2.)    An assessment made for the purposes of this Division shall be separate and distinct from any assessment made for the purposes of section seventeen of this Act.

“(3.)    In this section, ‘company’ does not include a company in the capacity of a trustee.

Rebate of tax.

“160ah.—(1.)      A taxpayer shall be entitled, in his assessment of the income tax levied in pursuance of the last preceding section, to a rebate of tax ascertained in accordance with this Division.

“(2.)  Where the amount of the taxable income upon which tax is levied in pursuance of the last preceding section—

(a) does not exceed Five hundred pounds; or

(b) exceeds Five hundred pounds but does not exceed by more than twenty per centum the taxable income derived by the taxpayer during the year next preceding the year of income,

the rebate shall be an amount equal to seventy-five per centum of the current year’s tax.

“(3.)  In any case to which the last preceding sub-section does not apply the rebate shall, subject to this Division, be an amount equal to—

(a) seventy-five per centum of the amount which would have been the current year’s tax if the taxable income derived by the taxpayer during the year of income had been reduced by an amount equal to the excess of that taxable income over the sum of the taxable income of the year next preceding the year of income and twenty per centum thereof, and the reduction had been made successively from taxable income from—

(i) personal exertion;

(ii) interest to which section twenty of the Commonwealth Debt Conversion Act 1931 or sub-section (2.) of section fifty-two b of the Commonwealth Inscribed Stock Act 1911–1943 applies;

(iii) interest to which section one hundred and sixty ab of this Act applies;

(iv) income from dividends; and

(v) other income from property; or

 

(b) One hundred and twenty-five pounds,

whichever is the greater.

Rebate in certain cases.

“160aj.—(1.) Where the Commissioner is satisfied that, in any case to which sub-section (3.) of the last preceding section would, but for this section, apply, the taxable income of the year next preceding the year of income was less than the amount of the taxable income which might be expected normally to be derived in a year by the taxpayer, the Commissioner shall determine that amount, and the provisions of the last preceding section shall thereupon apply as if the amount so determined had been the taxable income of that next preceding year.

“(2.)    For the purposes of the last preceding sub-section, the Commissioner may, in addition to considering any other facts which he considers to be relevant, regard assessable income of a recurring nature derived by the taxpayer during the year of income from a source from which assessable income was not derived by the taxpayer during the year next preceding the year of income, either wholly or in part as assessable income which might be expected normally to be derived in a year by the taxpayer.

Reference to a Board of Referees.

“160ak.—(1.) A decision under the last preceding section may be made by the Commissioner either of his own accord, or upon application in writing made by the taxpayer prior to the expiration of sixty days after service of the notice of assessment in respect of the income of the year of income, and, ii the taxpayer is dissatisfied with the Commissioner’s decision, he may, within sixty days after service on him of notice of the decision, in writing, request the Commissioner to refer the decision to a Board of Referees, and the Commissioner shall refer the decision accordingly.

“(2.)    Upon every such reference to a Board of Referees, the Board shall review the decision of the Commissioner and shall give a decision in writing either confirming, reducing, increasing or varying the amount of rebate allowed by the Commissioner.

“(3.)    Every decision made under this section by a Board shall be final and conclusive, and the Commissioner shall give effect to the decision.

“(4.)    The provisions of Division 2 of Part V. of this Act shall not apply in respect of any matter which, under sub-section (1.) of this section, may be referred to a Board of Referees.

Maximum amount of rebate.

“160al.   The amount of rebate allowable under this Division, whether in consequence of a decision of the Commissioner or a Board of Referees or otherwise, shall not exceed seventy-five per centum of the current year’s tax.

Payment of tax on income other than salary or wages.

“160am.—(1.)    So much of the income tax assessed in accordance with this Division as, in the opinion of the Commissioner, is attributable to that part of the income which is not salary or wages as defined in section two hundred and twenty-one a of this Act, where that part exceeds Fifty pounds, shall be due and payable in three equal instalments.

 

“(2.)  The first of such instalments shall be due and payable on the date specified in the notice of assessment issued for the purposes of this Division, not being less than thirty days after the service of the notice.

“(3.)  The second of such instalments shall be due and payable on the date specified in the notice of assessment of income tax levied in pursuance of section seventeen of this Act for the financial year ending on the thirtieth day of June, One thousand nine hundred and forty-five, or on such date, not being earlier than the thirtieth day of June, One thousand nine hundred and forty-five, as is specified in a notice served by the Commissioner on the taxpayer.

“(4.)  The third of such instalments shall be due and payable on the date specified in the notice of assessment of income tax levied in pursuance of section seventeen of this Act for the financial year ending on the thirtieth day of June, One thousand nine hundred and forty-six or on such date, not being earlier than the thirtieth day of June, One thousand nine hundred and forty-six, as is specified in a notice served by the Commissioner on the taxpayer.

“(5.)  Where a person who has been or is liable to be assessed to tax to which this section applies—

(a) appears to the Commissioner to be about to leave Australia;

(b) dies; or

(c) becomes bankrupt, or applies to take the benefit of any Act or State Act for the relief of bankrupt or insolvent debtors, or compounds with his creditors, or makes an assignment of any of his property for their benefit,

so much of the tax to which this section applies as has not already become due and payable shall become due and payable on the date specified in a notice, requiring payment of the tax, served by the Commissioner on the taxpayer, or on the trustee of his estate, as the case requires.”.

15.   Section one hundred and sixty a of the Principal Act is repealed and the following section inserted in its stead:—

Interpretation.

“160a.   For the purposes of this Part—

(a) a company shall not include a private company; and

(b) in the case of a company carrying on the business of insurance in Australia—

(i) the taxable income shall be deemed to be the amount which would be the taxable income if section one hundred and forty-eight of this Act did not apply to the company; and

(ii) in ascertaining the taxable income there shall be added to the amount which would, but for this section, be the taxable income any amount which has been received by the company in the year of income, directly or indirectly, as a re-imbursement

 

of, or otherwise for or in respect of, any tax which has been deducted or is deductible in ascertaining, in respect of any year of income, that portion of the taxable income which has not been distributed as dividends, either under paragraph (i) of sub-section (1.), or under subsection (5.), of section one hundred and sixty c of this Act.”.

Definitions.

16.   Section two hundred and twenty-one a of the Principal Act is amended—

(a) by omitting the definition of “certificate of credit”; and

(b) by inserting after the definition of “employer” the following definitions:—

“‘group certificate’ means a certificate in a form authorized by the Commissioner issued by a group employer, or by or on behalf of an authority with which an arrangement has been entered into in pursuance of section two hundred and twenty-one kb of this Act, to an employee in accordance with this Division in respect of deductions made from the salary or wages of the employee;

“‘group employer’ means any person who is registered or is required to apply for registration as a group employer under section two hundred and twenty-one k of this Act;

“‘interim stamps receipt’ means an interim stamps receipt issued in pursuance of section two hundred and twenty-one h of this Act;”.

Variation of deductions.

17.   Section two hundred and twenty-one d of the Principal Act is amended by omitting sub-section (1.) and inserting in its stead the following sub-section:—

“(1.)  Notwithstanding anything contained in the last preceding section, the Commissioner may vary the amounts to be deducted from the salary or wages of any employee or class of employees for the purpose of meeting the special circumstances of any case or class of cases.”.

Employer to deliver stamps to employee.

18.    Section two hundred and twenty-one f of the Principal Act is amended by inserting after the word “employer” the words” (if he is not a group employer)”.

Employee to affix and initial stamps in book.

19.    Section two hundred and twenty-one g of the Principal Act is amended by inserting in sub-section (1.), after the word “Division” (first occurring) the words “, and who receives tax stamps from his employer,”.

 

20.—(1.)   Sections two hundred and twenty-one h and two hundred and twenty-one ha of the Principal Act are repealed and the following sections inserted in their stead:—

Application of deductions In payment of tax.

“221h.—(1.)   An employee from whose salary or wages a deduction is made in accordance with this Division and upon whom a notice of assessment is served shall, not later than the date specified in that notice as the last day for payment of the tax, produce to the Commissioner the pages of the book to which any tax stamps duly delivered to him are affixed and any group certificate issued to him in respect of a period prior to the close of the latest year of income in respect of which a notice of assessment has been served on him, and the Commissioner shall—

(a) if the sum of the amount represented by the face value of such of those stamps as were delivered to the employee prior to the close of the latest year of income in respect of which a notice of assessment has been served on him, and the amount shown in any such certificate does not exceed the tax payable by the employee—credit that sum in payment or part payment of that tax; or

(b) if that sum exceeds that tax—credit in payment of that tax so much of that sum as is equal to that tax, and pay to the employee an amount equal to the excess.

“(2.)    Where an employee produces to the Commissioner the pages of a book to which any tax stamps duly delivered to him during any year of income are affixed or a group certificate issued to him in respect of any year of income or any period included in any year of income, and the Commissioner is satisfied that there is not and will not be any tax payable by the employee in respect of the income of that year of income or any previous year of income, the Commissioner shall pay to the employee an amount equal to the amount represented by the face value of those tax stamps or the amount shown in that certificate, as the case may be.

“(3.)    If the amount credited by the Commissioner in pursuance of paragraph (a) of sub-section (1.) of this section is less than the amount of tax payable by the employee the Commissioner may credit in payment or part payment of that tax an amount equal to the face value of any other tax stamps duly delivered to the employee and produced by him to the Commissioner or any amount shown in any other group certificate so produced if he is satisfied that it is desirable to do so by reason of special circumstances and that the amounts which will have been deducted in pursuance of this Division from the salary or wages of the employee prior to the close of the year of income in which those other stamps or certificates are so produced will be sufficient to pay the tax payable by the employee in respect of the income of that year of income.

 

“(4.)    If the amount credited by the Commissioner in pursuance of the foregoing provisions of this section is less than the amount of tax payable by the employee—

(a) the Commissioner shall apply the amount so credited in payment, so far as that amount extends, of such tax payable by the employee as the Commissioner determines, and that amount shall be deemed to have been paid by the employee in satisfaction, to that extent, of that tax, and not otherwise; and

(b) the employee shall be liable or continue to be liable (as the case may be) to pay the remainder of that tax on the date or dates specified in the notice or notices of assessment, and all the provisions of this Act relating to the collection and recovery of tax shall apply to that remainder.

“(5.)    Where tax stamps or group certificates are produced for the purposes of this section, the Commissioner shall, if the case requires, issue to the employee an interim stamps receipt showing an amount equal to so much of the face value of the stamps produced or of the amounts shown in the certificates, as the case may be, as is not applied in payment of tax and in respect of which the Commissioner has not made and does not make a payment to the employee:

Provided that where the amount which would be shown in an interim stamps receipt is less than One pound, the Commissioner shall, instead of issuing an interim stamps receipt, pay that amount to the employee.

“(6.)    The Commissioner shall deface all tax stamps and group certificates in respect of which he credits any amount, makes any payment or issues any interim stamps receipt, and shall retain them for such period as he thinks fit, after which he shall cause them to be destroyed.

Interim stamps receipts.

“221ha.—(1.)  Subject to this Division, the provisions of this Division shall apply in relation to an interim stamps receipt as if it were a page of a book to which were affixed tax stamps (duly delivered to the employee in accordance with this Division during the year of income specified in the receipt) of a face value equal to the amount for which the receipt is issued, and the production of any such receipt in accordance with the provisions of this Division shall have the same effect as the production of tax stamps, duly delivered to the employee during that year, of a face value equal to the amount shown in the receipt.

“(2.)    An interim stamps receipt shall not be liable to stamp duty or other tax under any law of the Commonwealth or of any State or Territory of the Commonwealth.

“(3.)    Except in accordance with the provisions of this Division or with the consent of the Commissioner, a person shall not sell or otherwise dispose of, or purchase or otherwise acquire, an interim stamps receipt.

Penalty: Fifty pounds.”.

 

(2.)    Notwithstanding anything contained in this Act, a certificate of credit issued under section two hundred and twenty-one h of the Income Tax Assessment Act 1936–1943 shall, for the purposes of the Income Tax Assessment Act 1936–1944, be deemed to be a page of a book to which are affixed tax stamps, duly delivered to the employee named in the certificate prior to the date on which the certificate was issued, of a face value equal to the amount shown in the certificate together with any interest accrued thereon.

(3.)    For the purposes of the sections inserted by this section, any tax stamps delivered to an employee before the first day of April, One thousand nine hundred and forty-four, shall be deemed to have been delivered during the year of income next preceding that date, and any group certificate in respect of a period prior to that date shall be deemed to have been issued in respect of a period comprised in that year of income.

21.    Section two hundred and twenty-one k of the Principal Act is repealed and the following sections are inserted in its stead:—

Group employers.

“221k.—(1.) An employer who, during a period of twelve months ending on the thirty-first day of May in any year, has ordinarily had in his employment ten or more employees from whose salary or wages he has been required to make deductions in accordance with this Division shall, unless he is already registered as a group employer, apply to the Commissioner, not later than the fourteenth day of June in that year, in a form authorized by the Commissioner, for registration as a group employer.

“(2.)    An employer who is not already registered as a group employer and who commences to carry on a business or becomes an employer and who, in consequence thereof, has in his employment ten or more employees from whose salary or wages he is required to make deductions in accordance with this Division shall, within seven days after commencing to carry on the business or after becoming an employer, as the case may be, apply to the Commissioner, in a form authorized by the Commissioner, for registration as a group employer.

“(3.)    The Commissioner may register as a group employer any employer, or any person acting on behalf of two or more employers, whether or not he is required by this section to apply for registration as a group employer, and may at any time cancel the registration of any group employer, and shall notify the group employer in writing that he has been so registered, or that his registration has been cancelled, as the case may be.

“(4.)    An employer registered as a group employer shall, notwithstanding any change in the number of his employees, remain registered as a group employer until notified by the Commissioner that his registration has been cancelled.

 

“(5.)    A group employer shall, in respect of deductions made after the thirtieth day of June, One thousand nine hundred and forty-four—

(a) not later than the seventh day of the month next succeeding a month in which he has made deductions in accordance with this Division, pay to the Commissioner the amount of the deductions so made;

(b) not later than the fourteenth day of August in each year, furnish to the Commissioner a statement in a form authorized by the Commissioner, setting out the total of the amounts deducted by him in accordance with this Division from the salary or wages of each employee during the period of twelve months which ended on the thirtieth day of June in that year;

(c) not later than the fourteenth day of July in each year, issue to each employee a group certificate setting out the total of the amounts deducted by him in accordance with this Division from the salary or wages of that employee during the period of twelve months which ended on the thirtieth day of June in that year, other than amounts which have been included in any group certificate previously issued to that employee;

(d) within seven days after any employee ceases to be employed by him, issue to that employee a group certificate setting out the total of the amounts deducted by him in accordance with this Division from the salary or wages of that employee earned to the date of cessation of his employment, other than amounts which have been included in any group certificate previously issued to that employee; and

(e) upon production to him by any employee of a certificate issued to that employee in pursuance of section two hundred and twenty-one l of this Act, where the certificate is so produced during the period specified in the certificate, issue to that employee a group certificate setting out the total of the amounts deducted by him in accordance with this Division, up to the date upon which the certificate is so produced, from the salary or wages of that employee, other than amounts which have been included in any group certificate previously issued.

“(6.)    The Commissioner may, by notice in writing served on any group employer, vary, in relation to that group employer, in such instances and to such extent as he thinks fit, any of the requirements of the last preceding sub-section, and that group employer shall comply with those requirements as so varied.

“(7.)  Where, by reason of a notice given under the last preceding sub-section, a group certificate is not required to be issued in respect of any deduction made by a group employer from the salary or wages of any employee, the group employer shall pay to the Commissioner

 

the amount of that deduction, and that amount shall be treated as if it represented the face value of tax stamps delivered, at the time when the deduction was made, to that employee and produced by him to the Commissioner.

“(8.)    Where the Commissioner has credited in payment of tax, or made a payment in respect of, any amount shown in a group certificate which is in excess of the amount which the group employer by whom the certificate was issued has deducted from the salary or wages of the employee to whom the certificate was issued, in respect of the period specified in the certificate—

(a) the group employer shall be liable to pay to the Commissioner the amount of the excess; and

(b) the group employer may sue for and recover from the employee as a debt due to him any amount paid to or recovered by the Commissioner under this sub-section.

“(9.)    The penalty for any contravention of paragraph (a) of sub-section (5.) of this section shall be a fine not exceeding Five hundred pounds or imprisonment for a term not exceeding twelve months, and the penalty for any contravention of any other provision of this section shall be a fine not exceeding One hundred pounds.

Penalty for late payment by group employer.

“221ka.    If any amount payable to the Commissioner by a group employer under the last preceding section remains unpaid after the time when it becomes payable, an additional amount shall be payable at the rate of ten per centum per annum on the amount unpaid computed from that time:

Provided that the Commissioner may in any case, for reasons which he thinks sufficient, remit the additional amount or any part thereof.

Arrangements with Authorities of Governments.

“221kb.—(1.)  The Commissioner may enter into an arrangement with the appropriate authority of the Commonwealth or any State or Territory of the Commonwealth providing for deductions from the salary or wages of persons employed by, or in the public service of, the Commonwealth or that State or Territory to be made and dealt with in accordance with the terms of the arrangement, and thereupon those deductions shall be made and dealt with in accordance with those terms.

“(2.)    The Commissioner may enter into an arrangement with an authority in Australia of the Government of a country other than the Commonwealth, providing for deductions in accordance with this Division to be made from the salary or wages of persons who are or become employed by that Government through that authority.

“(3.)    Any person to whom an arrangement made under the last preceding sub-section applies shall, within fourteen days after he has been notified by, or on behalf of, his employer that the arrangement is in force, by writing under his hand delivered to the person charged with the payment of his salary or wages, authorize his

 

employer, and shall at all times keep his employer authorized, to make deductions from his salary or wages at the rates prescribed for the purposes of this Division.

Penalty: Twenty pounds.

“(4.)    The amount of any deduction made in pursuance of an authority given under the last preceding sub-section shall be paid to the Commissioner and shall be treated as if it represented the face value of tax stamps delivered, at the time when the deduction was made, to the person giving the authority and produced by that person to the Commissioner.

Recovery of amounts by Commissioner.

“221kc.   Any amount payable to the Commissioner under the provisions of this Division shall be a debt due to the King on behalf of the Commonwealth and payable to the Commissioner in the manner prescribed, and may be sued for and recovered in any court of competent jurisdiction by the Commissioner or a Deputy Commissioner suing in his official name.

Regulations in relation to tax stamps.

“221kd.—(1.) The regulations may provide that all or any employers (not being employers registered as group employers), instead of delivering tax stamps, as provided in this Division, to employees from whose salaries or wages deductions are made in pursuance of this Division, shall deal with amounts so deducted in the manner prescribed.

“(2.)    Any regulations made for the purpose of this section—

(a) shall be expressed so that the right which any employee would have, but for the regulations, to obtain any credit or payment in respect of any deduction made from his salary or wages shall be preserved;

(b) may contain such incidental and supplementary provisions (including provisions applying to employees) as the Governor-General considers necessary; and

(c) shall, subject to this section, have effect notwithstanding anything contained in this Division.”.

Certificate of exemption.

22.   Section two hundred and twenty-one l of the Principal Act is amended by omitting from sub-section (2.) all the words after the word “Act” and inserting in their stead the words “shall not apply, in respect of the employee named in the certificate, to an employer to whom the certificate, bearing the signature of the employee, is exhibited.”.

Purchase of tax stamps by persons other than employees.

23.    Section two hundred and twenty-one m of the Principal Act is amended—

(a) by omitting from sub-section (1.) the words “, other than the provisions of sub-sections (2.) and (2a.) of section two hundred and twenty-one h,”;

(b) by adding at the end of that sub-section the words “prior to the close of the latest year of income in respect of which he has received a notice of assessment.”; and

(c) by omitting sub-section (2.).

 

Destroyed tax stamps may be treated as if produced.

24.   Section two hundred and twenty-one u of the Principal Act is amended by inserting after the word “employee” (second occurring) the words “, issue an interim stamps receipt”.

Offences.

25.   Section two hundred and twenty-one v of the Principal Act is amended—

(a) by omitting from paragraph (d) the word “or” (last occurring); and

(b) by adding after paragraph (e) the following paragraph:—

“;or (f) present, for the purpose of obtaining any credit, payment or other benefit, any group certificate, or document purporting to be a group certificate, other than a group certificate duly issued to him in respect of the amount shown in the certificate.”.

26.   The Principal Act is amended by adding at the end of Part VI. the following Division:—

“Division 3.—Provisional Tax.

“221ya—(1.) In this Division—

Interpretation.

‘provisional tax’ means any amount payable as provisional tax in accordance with this Division;

‘salary or wages’ means salary or wages as defined in section two hundred and twenty-one a of this Act.

“(2.)    In sections two hundred and six, two hundred and seven, two hundred and eight, two hundred and nine, two hundred and fourteen, two hundred and eighteen, two hundred and fifty-four, two hundred and fifty-five, two hundred and fifty-eight and two hundred and fifty-nine of this Act, but not in any other section of this Act, ‘income tax’ or ‘tax’ includes provisional tax.

“(3.)    The ascertainment of the amount of any provisional tax shall not be deemed to be an assessment within the meaning of any of the provisions of this Act.

Liability to provisional tax.

“221yb.—(1.) For the purpose of enabling the income tax which will be payable by taxpayers to whom this Division applies to be collected during the financial year for which the income tax is levied, a person, other than a company (except in the capacity of a trustee), deriving assessable income, not being salary or wages, shall be liable to pay provisional tax in accordance with this Division.

“(2.)    Subject to the next succeeding sub-section, provisional tax shall be payable in respect of the income of the year of income ending on the thirtieth day of June, One thousand nine hundred and forty-five, or the accounting period (if any) adopted under this Act in lieu of that year, and in respect of the income of all subsequent years.

 

“(3.)    Provisional tax shall not be payable in respect of the income of any year of income unless the Act declaring the rates of income tax payable for the financial year for which income tax is imposed upon taxable income of that year of income provides that provisional tax shall be payable in accordance with the provisions of this Act.

Amount of provisional tax.

“221yc.—(1.) Subject to this section, the amount of provisional tax payable by a taxpayer in respect of the income of any year of income shall be—

(a) where the assessable income derived by him in the year next preceding that year of income did not include salary or wages—an amount equal to the income tax assessed in respect of the income of that next preceding year; or

(b) where the assessable income derived by him in that next preceding year comprised salary or wages together with other income—an amount equal to such part of the income tax so assessed as the Commissioner determines.

“(2.)    Where the rates of income tax declared by the Parliament (other than the rates of income tax payable by a company) for any financial year are higher or lower than the rates declared for the next preceding financial year, the provisional tax otherwise payable in respect of the income to which those first-mentioned rates are applicable shall be increased or decreased, as the case may be, to such extent and in such manner as are prescribed.

“(3.)    Where a taxpayer liable to pay provisional tax in respect of the income of any year of income commenced, during the year next preceding that year of income, to derive assessable income (other than salary or wages) from any source, the Commissioner may, in his discretion, estimate the amount of assessable income which would, in his opinion, have been derived from that source in that next preceding year if the taxpayer had commenced, at the beginning of that year, to derive assessable income from that source, and the amount of provisional tax payable shall be the amount which would have been payable if the taxpayer had derived from that source, in that next preceding year, in addition to any other assessable income derived by him, the amount of assessable income so estimated by the Commissioner, and had been assessed for income tax accordingly.

“(4.)    Where a taxpayer did not derive, during the year next preceding the year of income, assessable income (other than salary or wages) in excess of One hundred and four pounds, and that taxpayer has, up to the thirty-first day of March in the year of income, derived assessable income (other than salary or wages) in excess of One hundred and four pounds, he shall, not later than the fifteenth day of April in the year of income, or within such extended time as the Commissioner allows, furnish to the Commissioner a return, in the form provided by the Commissioner for the purpose, showing the amount of assessable income derived by him up to the thirty-first day of March in the

 

year of income and the amount of assessable income which he estimates will be derived by him during the remainder of the year of income, together with such other information as is specified in the form.

“(5.)    The amount of provisional tax payable by a taxpayer to whom the last preceding sub-section applied shall be the amount which the Commissioner estimates, from the return furnished in pursuance of that sub-section or from any other information in his possession, will be the income tax payable by the taxpayer in respect of the income (other than salary or wages) of the year of income.

“(6.)    For the purposes of sub-section (1.) of this section, the income tax assessed in respect of the income of any taxpayer derived during the year ending on the thirtieth day of June, One thousand nine hundred and forty-four, or the accounting period, if any, adopted under this Act in lieu of that year, shall be deemed to be the amount of income tax which would have been so assessed if no rebate has been allowable in pursuance of Division 18 of Part III. of this Act, and, for the purposes of sub-section (3.) of this section, in ascertaining the income tax which would have been payable in respect of the income of that year of income or accounting period if the taxpayer had derived an amount of assessable income estimated by the Commissioner, no rebate under that Division shall be taken into account.

When provisional tax payable.

“221yd.  The amount of provisional tax payable by a taxpayer in respect of the income of any year of income may be—

(a) notified on the notice of assessment of the income tax payable by that taxpayer in respect of the income of the year next preceding that year of income, and in that case shall be due and payable on the date specified in that notice as the date on which tax is due and payable; or

(b) specified in a notice served by the Commissioner on the taxpayer, and in that case shall be due and payable on the date specified in the notice, not being less than thirty days after the service of the notice.

Provisional tax to be credited against tax assessed.

“221ye.    Where a taxpayer has paid provisional tax in respect of income of any year of income, and income tax has been assessed in respect of that income, or the Commissioner is satisfied that no income tax will be payable in respect of that income, the Commissioner shall credit the amount of that provisional tax in payment successively of—

(a) such income tax (if any) as is payable by the taxpayer in respect of that income;

(b) any other income tax payable by the taxpayer; and

(c) any provisional tax notified to the taxpayer in respect of the income of the year next succeeding that year of income,

and shall be liable to refund to the taxpayer the amount of that provisional tax not so credited.

 

Provisional tax not to be notified where income tax assessed.

“221yf. Notwithstanding anything contained in this Division, provisional tax shall not be notified to a taxpayer in respect of the income of any year of income where the Commissioner has made an assessment in respect of that income.

Alteration of notice of provisional tax.

“221yg.—(1.)      Where an alteration of the amount of provisional tax notified as payable by a taxpayer is, in the opinion of the Commissioner, necessary, by reason of the amendment of any assessment of income tax or otherwise, the Commissioner may make the necessary alteration and shall notify the taxpayer in writing of the altered amount.

“(2.)    Upon the service of a notice under the last preceding subsection—

(a) if the amount of provisional tax payable is increased, the additional amount shall become due and payable on the date specified in the notice, not being less than thirty days after service of the notice; or

(b) if the amount of provisional tax payable is reduced, the Commissioner shall credit any provisional tax overpaid in payment of any income tax payable by the taxpayer and refund to the taxpayer any amount of provisional tax overpaid not so credited.

Notice of provisional tax to be prima facie evidence.

“221yh.  The production of a notice of assessment or other notice on which an amount of provisional tax payable by any person is specified, or of a document under the hand of the Commissioner, Second Commissioner or a Deputy Commissioner purporting to be a copy of any such notice of assessment or other notice, shall be prima facie evidence that the amount of provisional tax and all particulars relating thereto are correct.”.

27.   After section two hundred and sixty-five of the Principal Act the following section is inserted:—

Release of liability of members of Defence Force on death.

“265a.—(1.)   Subject to the next succeeding sub-section, where, in respect of the income of any year of income, income tax is payable by the trustee of the estate of a deceased person who has been a member of the Defence Force, the trustee shall, by force of this section, be released from the payment of so much of that tax as remains after deducting any tax deductions unapplied—

(a) where the assessable income of the year of income consists solely of such pay and allowances—from the amount of income tax so payable by the trustee; or

(b) where the assessable income of the year of income includes income other than such pay and allowances—

(i) from the amount of income tax so payable by the trustee; or

 

(ii) from the amount by which the income tax payable in respect of the income of the year of income has been increased by the inclusion of such pay and allowances in the assessable income of that year or those years,

whichever is the less.

“(2.)    Nothing in the last preceding sub-section shall be construed so as to authorize or require the Commissioner to refund any amount paid as or for income tax by or on behalf of the taxpayer or his trustee.

“(3.)    The provisions of sub-section (1.) of this section shall not apply in any case where the death of the taxpayer has occurred in circumstances (including the circumstances of his service) in which the Commonwealth would not be liable to pay pensions under the Australian Soldiers’ Repatriation Act 1920–1943 to the dependants of deceased members of the Forces.

“(4.)    Any decision of an authority acting under the Australian Soldiers’ Repatriation Act 1920–1943 on any question affecting the right of any dependants of a deceased member of the Forces to a pension under that Act in respect of his death shall, so long as that decision has not been reversed or overruled, be conclusive evidence of the matters of fact or law so decided for the purposes of the application of the last preceding sub-section in relation to that deceased member of the Forces.

“(5.)    In this section, ‘tax deductions unapplied’ means the amount of any deductions made in pursuance of Division 2 of Part VI. of this Act from pay or allowances earned by the deceased person as a member of the Defence Force, being deductions which have not been credited in payment of tax, and in respect of which a payment has not been made by the Commissioner.”.

Application of amendments.

28.—(1.)   The amendment effected by section four of this Act shall apply to all assessments for the financial year beginning on the first day of July, One thousand nine hundred and forty-four, and all subsequent years.

(2.)    The amendments effected by paragraphs (a) and (d) of section five and by sections twelve and fifteen of this Act shall apply to all assessments for the financial year beginning on the first day of July, One thousand nine hundred and forty-three, and all subsequent years.

(3.)    The amendments effected by paragraph (b) of section five, and by section ten, of this Act shall apply to all assessments for the financial year beginning on the first day of July, One thousand nine hundred and forty-two, and all subsequent years and, for the purposes of that application, the amendment effected by paragraph (b) of section five of this Act shall be deemed to have come into operation on the first day of July, One thousand nine hundred and forty-one.

 

(4.)    The amendment effected by section thirteen of this Act shall apply to all assessments for the financial year beginning on the first day of July, One thousand nine hundred and forty, and all subsequent years.

(5.)  The amendments effected by section eleven of this Act shall apply—

(a) insofar as they affect an accredited person within the meaning of the definition inserted by paragraph (c) of that section—to assessments for the financial year beginning on the first day of July, One thousand nine hundred and forty-two, and all subsequent years; and

(b) in all other respects—to assessments for the financial year beginning on the first day of July, One thousand nine hundred and forty-three, and all subsequent years.