INCOME TAX AND SOCIAL SERVICES CONTRIBUTION ASSESSMENT (No. 2).

No. 68 of 1964.

An Act relating to Income Tax.

[Assented to 20th October, 1964.]

BE it enacted by the Queen’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 be cited as the Income Tax and Social Services Contribution Assessment Act (No. 2) 1964.

(2.)     The Income Tax and Social Services Contribution Assessment Act 1936-1963, as amended by the Income Tax and Social Services Contribution Assessment Act 1964, is in this Act referred to as the Principal Act.

(3.)     Section one of the Income Tax and Social Services Contribution Assessment Act 1964 is amended by omitting sub-section (3.).

(4.)     The Principal Act, as amended by this Act, may be cited as the Income Tax and Social Services Contribution Assessment Act 1936-1964.

Commencement.

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

(2.)     The amendments made by sections five to eight, inclusive, of this Act shall be deemed to have come into operation on the fourteenth day of May, One thousand nine hundred and sixty-four.

Officers to observe secrecy.

3.  Section sixteen of the Principal Act is amended by inserting after paragraph (g) of sub-section (4.) the following paragraph:—

“(ga) the Commonwealth Statistician for the purposes of the Census and Statistics Act 1905-1949 in relation to statistics as to employment, being information as to—

(i) the name and address of a person who is an employer within the meaning of Division 2 of Part VI.; and

(ii) the name or description of the industry, trade, business, calling, service, profession or occupation in which the person is such an employer;”.

Exemptions.

4.  Section twenty-three of the Principal Act is amended by inserting after paragraph (r) the following paragraph:—

“(s) in the case of a member of the Citizen Naval Forces, the Citizen Military Forces or the Citizen Air Force, the pay and allowances paid to him as such a member, other than pay and allowances in respect of full-time duty;”.

5.  After section twenty-three aa of the Principal Act the following section is inserted:—

Income of certain persons serving with an armed force under the control of the United Nations.

“23ab.—(1.) In this section—

‘prescribed taxpayer’ means a taxpayer who, being a resident of Australia, is, or is included in a class of persons that is, prescribed by the regulations for the purposes of this section;

‘tax deductions unapplied’, in relation to a deceased person, means the amount of any deductions made in pursuance of Division 2 of Part VI. from salary, wages or allowances derived by the deceased person in respect of United Nations service, being deductions that have not been credited in payment of income tax and in respect of which a payment has not been made by the Commissioner;

‘the prescribed area’ has the same meaning as in section seventy-nine a of this Act;

‘United Nations service’ means service, other than service as a member of the Defence Force, performed, at the direction or with the approval of the Commonwealth, outside Australia with an armed force under the control of the United Nations, at a time when the person performing the service was a prescribed taxpayer.

“(2.)  The regulations may prescribe a person or a class of persons for the purposes of this section but shall not so prescribe a person or class of persons unless the salary, wages and allowances received by the person or by all the persons in that class, as the case may be, in respect of his or their United Nations service are paid, given or granted by the Commonwealth or by the United Nations for and on behalf of the Commonwealth.

“(3.)  A succeeding provision of this section does not apply in relation to a person if the regulations provide that that provision does not apply in relation to that person or in relation to a class of persons in which that person is included.

“(4.)  Regulations made for the purposes of either of the last two preceding sub-sections may provide that the regulations shall be deemed to have taken effect on a date specified in the regulations, being a date before the date on which the regulations are notified in the Gazette, and, in that case, the regulations shall be deemed to have taken effect on the date so specified.

“(5.)    Where—

(a) a payment of compensation under the Commonwealth Employees’ Compensation Act 1930-1962 is made in respect of the incapacity or death of a taxpayer;

(b) the incapacity or death of the taxpayer resulted from an occurrence that happened during the performance by the taxpayer of United Nations service; and

(c) if the taxpayer had, at the time of the happening of the occurrence, been a member of the Defence Force serving on special service within the meaning of the Repatriation (Special Overseas Service) Act 1962, the Commonwealth would be liable to pay a pension under that Act in respect of the incapacity or death of the taxpayer,

the payment of compensation is exempt from income tax.

“(6.)  For the purposes of paragraph (e) of section twenty-six of this Act, the total value of all allowances, gratuities, compensations, benefits, bonuses and premiums (in this sub-section referred to as ‘living allowances’) allowed, given or granted in meals, sustenance or the use of premises or quarters (including payment in lieu of one or more of those living allowances) to a taxpayer in respect of, or for or in relation directly or indirectly to, United Nations service shall be deemed to be an amount calculated at the rate of One pound for each week of that service in which any of those living allowances were so allowed, given or granted, or in which payment in lieu of any of those living allowances was made, to the taxpayer.

“(7.)  Subject to the next succeeding sub-section and to section seventy-nine c of this Act, there shall be allowed as a deduction in the assessment of a taxpayer in respect of income of a year of income in which he has performed United Nations service and derived income by way of salary, wages or other allowances in respect of that service—

(a) where the total period of that service performed by the taxpayer during the year of income is more than one-half of the year of income or where the taxpayer dies while performing that service during the year of income—an amount equal to the sum of—

(i) Two hundred and seventy pounds; and

(ii) one-half of the sum of the deductions, if any, to which the taxpayer is entitled in respect of the year of income under sections eighty-two b and eighty-two d of this Act; or

(b) in any other case—such amount as, in the opinion of the Commissioner, is reasonable in the circumstances, being an amount not greater than the amount of the deduction to which the taxpayer would have been entitled under this sub-section if the last preceding paragraph had applied to him in respect of the year of income.

“(8.)  For the purposes of the last preceding sub-section, the total period of United Nations service of a taxpayer in any year of income shall be deemed to include any period in that year of income during which the taxpayer has resided, or has actually been, in the prescribed area.

“(9.)  Where a deduction is allowable under sub-section (7.) of this section in the assessment of a taxpayer in respect of income of a year of income, a deduction under section seventy-nine a of this Act is not allowable in that assessment.

“(10.)  Where—

(a) the trustee of the estate of a deceased person who has performed United Nations service is liable to pay income tax, in respect of a year of income, upon income that consists of or includes salary, wages or allowances derived by the deceased person in respect of that service;

(b) the death of the person resulted from an occurrence that happened during that service; and

(c) if the person had, at the time of the happening of the occurrence, been a member of the Defence Force serving on special service within the meaning of the Repatriation (Special Overseas Service) Act 1962, the Commonwealth would be liable to pay a pension under that Act in respect of the death of the person,

the trustee is, by force of this sub-section, released from the payment of so much of that tax as remains after deducting any tax deductions unapplied—

(d) if the assessable income of the deceased person of the year of income consists solely of the salary, wages or allowances derived in respect of that service—from the amount of income tax so payable by the trustee; or

(e) if the assessable income of the deceased person of the year of income includes income other than the salary, wages or allowances derived in respect of that service—

(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 the salary, wages or allowances so derived in the assessable income of the deceased person of the year of income,

whichever is the less.

“(11.)   Nothing in the last preceding sub-section shall be construed as authorizing or requiring the Commissioner to refund any amount paid as or for income tax by or on behalf of the deceased person or the trustee of his estate.”.

Deduction for residents of isolated areas.

6.  Section seventy-nine a of the Principal Act is amended by inserting after sub-section (3.) the following sub-section:—

“(3a.) This section has effect subject to section twenty-three ab of this Act.”.

Limitation on certain deductions.

7.  Section seventy-nine c of the Principal Act is amended by inserting after the word “under” (first occurring) the words “sub-section (7.) of section twenty-three ab of this Act and”.

Amendment of assessments.

8.  Section one hundred and seventy of the Principal Act is amended by inserting in sub-section (10.), before the words “section thirty-six aa”, the words “section twenty-three ab,”.

Application of amendment.

9.  The amendment made by section four of this Act applies to assessments in respect of income of the year of income that commenced on the first day of July, One thousand nine hundred and sixty-four, and in respect of income of all subsequent years of income.

Provisional tax for year of income that commenced 1st July, 1964.

10.    The amount of provisional tax and contribution payable by a taxpayer under Division 3 of Part VI. of the Principal Act as amended by this Act in respect of income of the year of income that commenced on the first day of July, One thousand nine hundred and sixty-four, is an amount equal to the amount that would have been payable in accordance with the provisions of that Division if he had not been entitled to a rebate under section eight of the Income Tax and Social Services Contribution Act 1963.