STATES (PERSONAL INCOME TAX SHARING) ACT 1976 [Note: This Act is "repealed" by Act No. 99 of 1981]
(#DATE 29:02:1980)
- Incorporating all amendments by legislation made to 29 February 1980
- Reprinted as at 29 February 1980
*1* The States (Personal Income Tax Sharing) Act 1976 as shown in this
reprint
comprises Act No. 122, 1976 as amended by the other Acts specified in the
following table:
----------------------------------------------------------------------------
Application,
saving
or
Number Date Date of transitional
Act and year of Assent commencement provisions
----------------------------------------------------------------------------
States (Personal
Income Tax Sharing)
Act 1976 122, 1976 24 Nov 1976 24 Nov 1976
States (Personal
Income Tax Sharing)
Amendment Act 1978 85, 1978 22 June 1978 22 June 1978 -
Income Tax
(Arrangements with
the States) Act
1978 87, 1978 22 June 1978 22 June 1978 -
----------------------------------------------------------------------------
STATES (PERSONAL INCOME TAX SHARING) ACT 1976 - TABLE OF PROVISIONS
TABLE
TABLE OF PROVISIONS
Section
1. Short title
2. Commencement
3. Repeal
4. Interpretation
5. Declaration of special surcharges and special rebates
6. Base figure
7. State entitlements
8. Minimum entitlement of States
9. Determination of population of a State
10. Determinations to be presumed to be correct
11. Advance payments
12. Appropriation
13. Review of Act
-----------------
STATES (PERSONAL INCOME TAX SHARING) ACT 1976 - LONG TITLE
SECT
An Act to Entitle the States to Share in the Personal Income Tax Collections
of the Commonwealth
STATES (PERSONAL INCOME TAX SHARING) ACT 1976 - SECT. 1.
Short title
SECT
1. This Act may be cited as the States (Personal Income Tax Sharing) Act
1976.*1*
See notes to first article of this Chapter.
STATES (PERSONAL INCOME TAX SHARING) ACT 1976 - SECT. 2.
Commencement
SECT
2. This Act shall come into operation on the day on which it receives the
Royal Assent.*1*
See notes to first article of this Chapter.
STATES (PERSONAL INCOME TAX SHARING) ACT 1976 - SECT. 3.
Repeal
SECT
3. (1) The following Acts are repealed:
States Grants Act 1973; States Grants Act 1974;
States Grants Act 1975.
(2) Subject to sub-section (3), a State is not, and shall be deemed not to
have been, entitled to a grant under the States Grants Act 1973 by virtue of
the operation of that Act on and after 1 July 1976.
(3) A payment made to a State under the States Grants Act 1973 on or after 1
July 1976 and before the commencement of this Act shall be deemed to be an
advance made under section 11 of this Act in respect of the amount to which
that State is entitled under this Act in respect of the year that commenced on
that date.
STATES (PERSONAL INCOME TAX SHARING) ACT 1976 - SECT. 4.
Interpretation
Sub-section (1) amended by No. 87, 1978, s. 74
SECT
4. (1) In this Act, unless the contrary intention appears-
"adjusted population figure ", in relation to a State in respect of a year,
means-
(a) in the case of Victoria, the estimated population of that State on
31 December in that year; and
(b) in the case of any other State, the estimated population of the
State on 31 December in that year multiplied by-
(i) in the case of New South Wales-1.02740;
(ii) in the case of Queensland-1.39085;
(iii) in the case of South Australia-1.52676;
(iv) in the case of Western Australia-1.66516; and
(v) in the case of Tasmania-2.00188;
"base figure ", in relation to a year, means the amount determined by the
Commissioner under section 6 in respect of the year;
"Commissioner" means the Commissioner of Taxation;
"company" has the same meaning as in the Income Tax Assessment Act;
"gross personal income tax collections ", in relation to a year, means the
total of-
(a) amounts received by the Commissioner during the year by virtue of
the operation of Division 2 and Division 3 of Part VI of the Income Tax
Assessment Act; and
(b) other amounts received by the Commissioner during the year in
respect of liability for personal income tax or in respect of liability for
tax (including additional tax, tax of a similar nature to additional tax,
penalties, and tax of a similar nature to provisional tax) under a State
income tax law, or amounts treated by the Commissioner (otherwise than by
virtue of section 45, 160AN or 160AP, or Division 2 or 3 of Part VI, of the
Income Tax Assessment Act) as having been so received;
"health insurance levy" means the levy referred to in Part VIIB of the
Income Tax Assessment Act;
"income tax" means income tax as defined by sub-section 6 (1) of the
Income Tax Assessment Act, and includes health insurance levy;
"Income Tax Assessment Act" means the Income Tax Assessment Act 1936;
"net personal income tax collections ", in relation to a year, means the
gross personal income tax collections for the year less refunds of personal
income tax made during the year;
"person" does not include a company other than a company in the capacity
of a trustee;
"personal income tax" means income tax imposed on persons (including
income tax imposed on a person in the capacity of a trustee), and includes
additional tax payable under section 207 or 226 of the Income Tax Assessment
Act in relation to a liability for, or otherwise in connexion with, income tax
imposed on persons, and additional health insurance levy payable under section
251W of that Act, but does not include withholding tax;
"refund of personal income tax ", in relation to a year, means-
(a) a refund or payment made by the Commissioner during the year by
virtue of section 45, 160AN or 160AP, or Division 2 or 3 or Part VI, of the
Income Tax Assessment Act; or
(b) a refund made by the Commissioner during the year (otherwise than
under any of those sections or either of those Divisions) of the whole or part
of an amount received by the Commissioner, whether in that year or a previous
year, in payment of liability for personal income tax or for tax (including
additional tax, tax of a similar nature to additional tax, or a penalty) under
a State income tax law;
"special rebate" means a rebate declared by the Treasurer under section 5
to be a special rebate for the purposes of this Act;
"special surcharge" means any income tax specified in a declaration by the
Treasurer under section 5 to the extent to which, or in the respect in which,
it is declared to be a special surcharge for the purposes of this Act;
"State income tax law" has the meaning given to that expression in
sub-section 6 (1) of the Income Tax Assessment Act;
"trustee" includes trustee of a superannuation fund;
"withholding tax" means income tax payable in accordance with section 128B
of the Income Tax Assessment Act, and includes tax payable in accordance with
sub-section 128N (2) of that Act and additional tax payable under sub-section
128C (3) of that Act;
"year" means a financial year;
"year to which this Act applies" means the year commencing on 1 July 1976
and each subsequent year.
Amended by No. 87, 1978, s. 74
SECT
(2) A reference in the definition of "refund of personal income tax" in
sub-section (1) to a refund or payment made by the Commissioner shall be read
as including a reference to the application of an amount by the Commissioner
in payment of a liability of a person or company other than-
(a) a liability for personal income tax; or
(b) a liability for, or otherwise in connexion with, tax under a State
income tax law.
STATES (PERSONAL INCOME TAX SHARING) ACT 1976 - SECT. 5.
Declaration of special surcharges and special rebates
SECT
5. The Treasurer may, by notice published in the Gazette-
(a) declare that any income tax specified in the notice is, to such extent
or in such respect as is so specified, a special surcharge for the purposes of
this Act; or
(b) declare that a rebate specified in the notice, being a rebate to which
taxpayers are entitled in assessments under the Income Tax Assessment Act, is
a special rebate for the purposes of this Act,
and may, at any time, by notice published in the Gazette, revoke such a
declaration with effect from such date as is specified in the notice.
STATES (PERSONAL INCOME TAX SHARING) ACT 1976 - SECT. 6.
Base figure
Amended by No. 87, 1978, s. 74
SECT
6. The Commissioner shall, within 1 month after the end of a year to which
this Act applies, determine, for the purposes of this Act and of the Local
Government (Personal Income Tax Sharing) Act 1976, the amount that, in his
opinion, would have been the amount of the net personal income tax collections
for the year if health insurance levy and special surcharges (if any) had not
been imposed, special rebates (if any) had not been provided for and, if the
law of a State imposed a tax upon incomes of its residents of that year or any
previous year or had provided for a payment to the Commonwealth in partial
discharge of the liability of its residents for income tax in respect of
income of that year or any previous year, that law had not imposed that tax or
provided for that payment, and shall inform the Treasurer of that amount and
the Treasurer shall, as soon as is practicable after being so informed, inform
the Premier of each State of that amount.
STATES (PERSONAL INCOME TAX SHARING) ACT 1976 - SECT. 7.
State entitlements
Sub-section (1) amended by No. 85, 1978, s. 3
SECT
7. (1) Each State is entitled to the payment, in respect of the year that
commenced on 1 July 1976, by way of financial assistance, of an amount that
bears to 33.6 per centum of the base figure for the year the same proportion
as the adjusted population figure of the State for the year bears to the total
of the adjusted population figures of all States for that year.
Added by No. 85, 1978, s. 3
SECT
(2) Each State is entitled to the payment, in respect of the year that
commenced on 1 July 1977, by way of financial assistance, of an amount that
bears to $4,336,100,000 the same proportion as the adjusted population figure
of the State for the year bears to the total of the adjusted population
figures of all States for that year.
Added by No. 85, 1978, s. 3
SECT
(3) Each State is entitled to the payment, in respect of a year (in this
sub-section referred to as the "relevant year ") subsequent to the year that
commenced on 1 July 1977, by way of financial assistance, of an amount that
bears to 39.87 per centum of the base figure for the year immediately
preceding the relevant year the same proportion as the adjusted population
figure of the State for the relevant year bears to the total of the adjusted
population figures of all States for the relevant year.
STATES (PERSONAL INCOME TAX SHARING) ACT 1976 - SECT. 8.
Minimum entitlement of States
SECT
8. (1) Where the amount to which a State is entitled under section 7 in
respect of a year is less than the amount of the minimum entitlement of the
State in respect of the year, the State is entitled to the payment, in respect
of the year, by way of financial assistance, in addition to its entitlement
under section 7, of an amount equal to the difference between those amounts.
(2) In this section-
"minimum entitlement ", in relation to a State, means-
(a) in respect of the year that commenced on 1 July 1976-
(i) the total amount payable to the State during the year that
commenced on 1 July 1975 under sections 6 and 7 of the States Grants Act 1973;
or
(ii) the amount that, in relation to the State in respect of the
year, is the notional amount of assistance under the repealed Act,
whichever is the greater;
(b) in respect of a year (in this paragraph referred to as the "
relevant year ") subsequent to the year that commenced on 1 July 1976, but
not subsequent to the year commencing on 1 July 1979-
(i) the total amount to which the State is entitled in respect of
the year immediately preceding the relevant year under section 7 of this Act
and sub-section (1) of this section; or
(ii) the amount that, in relation to the State in respect of the
relevant year, is the notional amount of assistance under the repealed Act,
whichever is the greater; and
(c) in respect of a year (in this paragraph referred to as the
"relevant year ") subsequent to the year commencing on 1 July 1979-the total
amount to which the State is entitled in respect of the year immediately
preceding the relevant year under section 7 of this Act and sub-section (1) of
this section;
"notional amount of assistance under the repealed Act ", in relation to a
State in respect of a year, means the amount that, if the States Grants Act
1973 had continued in force and grants had continued to be made under that
Act, would have been payable to the State during the year under section 6 of
that Act.
(3) Notwithstanding the repeal of the States Grants Act 1973, section 10 of
that Act shall continue to have effect for the purpose of ascertaining the
amount that would have been payable to a State during a year under section 6
of that Act if that Act had continued in force.
STATES (PERSONAL INCOME TAX SHARING) ACT 1976 - SECT. 9.
Determination of population of a State
SECT
9. (1) For the purposes of this Act, the estimated population of a State on
31 December in a year shall be the population of the State on that date as
determined by the Australian Statistician under this section.
Amended by No. 85, 1978, s. 4
SECT
(2) The determination by the Australian Statistician under this section of
the estimated population of a State on 31 December in a year shall be made
after that date and before 10 June next following that date.
(3) The Australian Statistician, in making a determination under this
section of the estimated population of a State, shall, where practicable,
consult with the official Statistician of the State and shall have regard to
the latest statistics in relation to population available to the Australian
Statistician on the day on which the determination is made.
STATES (PERSONAL INCOME TAX SHARING) ACT 1976 - SECT. 10.
Determinations to be presumed to be correct
SECT
10. A determination made by the Commissioner under section 6, or a
determination made by the Australian Statistician under section 9, shall, for
the purposes of this Act, be conclusively presumed to be correct.
STATES (PERSONAL INCOME TAX SHARING) ACT 1976 - SECT. 11.
Advance payments
SECT
11. The Treasurer may make advances to a State of portions of the amount or
amounts to which it appears to him the State will be entitled under this Act
in respect of a year.
STATES (PERSONAL INCOME TAX SHARING) ACT 1976 - SECT. 12.
Appropriation
SECT
12. Payments under this Act shall be made out of the Consolidated Revenue
Fund, which is appropriated accordingly.
STATES (PERSONAL INCOME TAX SHARING) ACT 1976 - SECT. 13.
Review of Act
SECT
13. (1) The Government of the Commonwealth shall, before 30 June 1981,
consult with the Governments of the States with a view to determining whether
any change is desirable in the provisions of this Act and submitting to the
Parliament legislation to give effect to any changes that the Government of
the Commonwealth considers to be desirable as a result of the consultation.
(2) If there has occurred, or there is proposed to be, a substantial change
in the financial arrangements between the Government of the Commonwealth and
the Governments of a State or States, the Government of the Commonwealth may
review the provisions of this Act in consultation with the Governments of the
States with a view to submitting to the Parliament legislation to give effect
to any changes that the Government of the Commonwealth considers to be
desirable as a result of the review.
Added by No. 85, 1978, s. 5
SECT
(3) The Minister shall before 30 June 1981 arrange, and, after consultations
between the Government of the Commonwealth and the Governments of the States,
may periodically after that date arrange, for the question whether any change
is desirable in the State factors to be referred to the Commonwealth Grants
Commission for inquiry and report by a Division of the Commission constituted
in accordance with section 19A of the Commonwealth Grants Commission Act
1973-
(a) on the basis of the principle that the respective payments to which the
States are entitled under this Act should enable each State to provide,
without imposing taxes and charges at levels appreciably different from the
levels of the taxes and charges imposed by the other States, government
services at standards not appreciably different from the standards of the
government services provided by the other States;
(b) taking account of-
(i) differences in the capacities of the States to raise revenues; and
(ii) differences in the amounts required to be expended by the States in
providing comparable government services; and
(c) in the light of an examination by the Commission of-
(i) the matters that influenced the determination of the State factors;
and
(ii) any events that have occurred since those State factors were
determined that, in the opinion of the Commission, affect the appropriateness
of the continued application of those factors.
Added by No. 85, 1978, s. 5
SECT
(4) For the purposes of sub-section (3), the State factors are-
(a) in the case of a State other than Victoria-the number by which the
estimated population of the State on 31 December in a year is, by virtue of
the definition of "adjusted population figure" in sub-section 4 (1),
required to be multiplied for the purpose of ascertaining the adjusted
population figure of that State in respect of that year; and
(b) in the case of Victoria-the number one.
--------------------------------------------------------------------------------