Statutory Rules
1974 No. 267
REGULATIONS UNDER THE INCOME TAX ASSESSMENT ACT
1936-1974.*
I, THE GOVERNOR-GENERAL of Australia, acting with the advice of the Executive Council, hereby make the following Regulations under the Income Tax Assessment Act 1936-1974.
Dated this nineteenth day of December, 1974.
John R. Kerr
Governor-General.
By His Excellency's Command, 
Treasurer.
________
Amendments of the Income Tax Regulations†
Parts.
1. Regulation 2 of the Income Tax Regulations is repealed.
2. After regulation 54aa of the Income Tax Regulations the following regulation is inserted:—
Rates of deduction where employee claims in respect of housing loan interest.
“ 54ab. Where an employee has furnished to his employer or to the Commissioner a declaration under Subdivision AA, this Subdivision applies to and in relation to the employee for the purpose of determining the prescribed rate at which deductions are to be made, for the purposes of section 221c of the Act, from the salary or wages of that employee in respect of a week or part of a week as if—
(a) a reference in any of the following provisions, namely, the definition of 'reduced salary or wages ' in regulation 54aa, paragraph 54a (a), paragraph 54a (b), paragraph 54b (1) (c), sub-paragraph 54b (1) (d) (ii) and sub-regulation 54b (1a), to salary or wages (not being a reference to reduced salary or wages); or
(b) the reference (second occurring) in sub-regulation 54da (1), and the reference (second occurring) in sub-regulation 54da (2), to salary or wages,
were a reference to the amount of the salary or wages of the employee as reduced by—
(c) where the declaration is furnished by the employee to his employer— the amount by which the amount of the salary or wages is to be reduced in accordance with regulation 54df; or
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* Notified in the Australian Government Gazette on 23 December, 1974.
† Statutory Rules 1936, No. 94, as amended to date, for previous amendments of the Income Tax Regulations see footnote † to Statutory Rules 1974, No. 193, and see also Statutory Rules 1974, Nos. 193 and 226.
18899/74—Recommended retail price 15c 12/10.12.1974
(d) where the declaration is furnished by the employee to the Commissioner—the amount by which the amount of the salary or wages is to be reduced in terms of the notification given to the employer by the Commissioner in accordance with regulation 54dh.”.
3. After regulation 54da of the Income Tax Regulations the following Subdivision is inserted:—
“ Subdivision AA—Declarations in respect of Housing Loan Interest
Interpretation.
“ 54db. (1) In this Subdivision, unless the contrary intention appears—
‘ estimated annual housing loan interest ’, in relation to a housing loan that is the subject of a declaration under this Subdivision made by an employee, means the amount that, having regard to the facts and circumstances existing at the date on which the declaration is made, the employee regards as a fair and reasonable estimate of the interest that he will be required by the lender to pay in respect of the housing loan during the financial year referred to at the head of the declaration;
‘ housing loan ’, in relation to an employee, means moneys lent to the employee, or to the employee and another person, that are, in pursuance of Subdivision C of Division 3 of Part III of the Act, to be taken as applied by the employee for housing purposes connected with a dwelling;
‘ lender ’, in relation to moneys lent to an employee, or to an employee and another person, means the lender of the moneys, and includes a person by whom an amount, a principal sum or a part of a principal sum, is to be deemed, for the purposes of Subdivision C of Division 3 of Part III of the Act, to have been lent to the employee or to the employee and another person.
“ (2) In this Subdivision, a reference to moneys lent to an employee, or to an employee and another person, shall be read as including a reference to an amount, a principal sum or a part of a principal sum, that is to be deemed, for the purposes of Subdivision C of Division 3 of Part III of the Act, to have been lent to the employee or to the employee and another person.
“ (3) Moneys lent to an employee, or to an employee and another person that are, in pursuance of Subdivision C of Division 3 of Part III of the Act, to be taken as applied by the employee for housing purposes connected with a dwelling shall not be regarded as a housing loan for the purposes of this Subdivision unless the dwelling is, at the date on which the declaration is made, used by the employee as his sole or principal residence.
Furnishing of declaration.
“ 54dc. (1) An employee who desires to have estimated annual housing loan interest taken into account in determining the prescribed rate at which deductions are to be made, for the purposes of section 221c of the Act, from the salary or wages of the employee in respect of a week or part of a week shall furnish a declaration under this Subdivision to his employer or to the Commissioner.
“ (2) Where, after an employee has furnished to his employer or to the Commissioner a declaration under this Subdivision, the facts or circumstances that existed at the date on which the declaration was made change in such a way or to such a degree that, if the new facts or circumstances continued unchanged during the remainder of the financial year referred to at the head of the declaration, the employee would not be entitled to a deduction, or would be entitled to a significantly lesser deduction, in his assessment in respect
of income of the appropriate year of income, under Subdivision C of Division 3 of Part III of the Act in respect of interest in respect of a housing loan that is the subject of the declaration, the employee shall, within 14 days after the date on which the change in those facts or circumstances occurred or became apparent, furnish a further declaration under this Subdivision to his employer or to the Commissioner, as the case may be.
Form for declaration.
“ 54dd. (1) A declaration under this Subdivision shall be in a form provided by the Commissioner, be signed by the employee and be dated the day it is made.
“ (2) A declaration under this Subdivision shall set out—
(a) in the column of the form headed ‘Name of Each Lender’ —the name of the lender of each housing loan that is the subject of the declaration;
(b) in the column of the form headed ‘Housing Loans Outstanding’ opposite the name of the lender of the appropriate housing loan— the principal sum or the part of the principal sum that, at the date that is the relevant date for the purposes of this Subdivision in respect of that housing loan, remains to be paid by the employee, or by the employee and another person, to the lender in respect of the housing loan;
(c) in the column of the form headed ‘% Rate of Interest’ opposite the name of the lender of the appropriate housing loan—the rate per centum at which interest is payable at the date that is the relevant date for the purposes of this Subdivision in respect of the housing loan;
(d) in the column of the form headed ‘Estimated Housing Loan Interest’ opposite the name of the lender of the appropriate housing loan— the amount that, having regard to the facts and circumstances existing at the date on which the declaration is made, the employee regards as a fair and reasonable estimate of the interest that he will be required by the lender to pay in respect of the housing loan during the financial year referred to at the head of the declaration;
(e) in the space in the form opposite the words ‘Total Estimated Housing Loan Interest’—the amount, or the total of the amounts, set out in the column of the form headed ‘Estimated Housing Loan Interest’;
(f) in the space in the form below the words ‘Address of Dwelling’— the address of the dwelling in connexion with which the housing loan was, or each of the housing loans were, made; and
(g) in the space in the form below the words ‘Total Estimated Net Income’—the amount that, having regard to the facts and circumstances existing at the date on which the declaration is made, the employee regards as a fair and reasonable estimate of the amount that is the net income of the employee in respect of the appropriate year of income for the purposes of sub-section 82kc (1) of the Act.
Operation of declination or notification.
“ 54de. (I) Where a declaration under this Subdivision is furnished to an employer or to the Commissioner before the first day of the financial year referred to at the head of the declaration, the provisions of this Subdivision (other than sub-regulation (2)) shall, apply as if that declaration had been furnished on the first day of that financial year.
“ (2) An employer is not required to give effect to a declaration under this Subdivision, furnished by an employee or to a notification given by the Commissioner in accordance with regulation 54dh in making
deductions from salary or wages paid to the employee before the close of the first pay period which commences after the declaration is furnished or after the notification is given, as the case may be.
“ (3) A declaration under this Subdivision furnished by an employee to his employer Or a notification given by the Commissioner in accordance with regulation 54dh has effect for the purpose of determining the prescribed rate at which deductions are to be made, for the purposes of section 221c of the Act, from the salary or wages of that employee in respect of a week or part of a week at any time to and including the date of—
(a) the last payment of salary or wages before the first day of July next following the date on which the declaration is furnished, or the notification is given, as the case may be; or
(b) the close of the first pay period which ends after the date on which a further declaration under this Subdivision is furnished to the employer by the employee, or a further notification is given by the Commissioner in accordance with regulation 54dh,
as the case may be.
Reduction of salary or wages where declaration furnished.
“ 54df. Where an employee has furnished to his employer or to the Commissioner a declaration under this Subdivision, the salary or wages of the employee in respect of a week, or part of a week shall, for the purposes of Subdivision A, be reduced by—
(a) where the amount of, or the total of the amounts of, estimated annual housing loan interest does not exceed $1,000—the amount that is specified in the sub-column of column 2 of the table in the Fourth Schedule which has at its head the limits within which the amount of, or the total of the amounts of, estimated annual housing loan interest is included, opposite the limits specified in column 1 of the table within which the estimate of net income in respect of the appropriate year of income for the purposes of sub-section 82kc (1) of the Act is included; or
(b) where the amount of, or the total of the amounts of, estimated annual housing loan interest exceeds $1,000-—the amount that is the sum of—
(i.) the amount ascertained by multiplying the amount that is specified in the sub-column of column 2 of the table in the Fourth Schedule which has the limits ‘$951-1,000’ at its head, opposite the limits specified in column 1 of the table within which the estimate of net income in respect of the appropriate year of income for the purposes of sub-section 82kc (1) of the Act is included, by the whole number ascertained by dividing the amount of, or the total of the amounts of, estimated annual housing loan interest by 1,000; and
(ii) the amount that is specified in the sub-column of column 2 of the table which has at its head the limits within which the excess of the amount of, or the total of the amounts of, estimated annual housing loan interest over $1,000 or the excess of the amount of, or the total of the amounts of, estimated annual housing loan interest over a multiple of $1,000, as the case may be, is included, opposite the limits specified in column 1 of the table within which the estimate of net income in respect of the appropriate year of income for the purposes of sub-section 82kc (1) of the Act is included.
Employer to forward employees' declarations to Deputy Commissioner.
“ 54dg. Where an employee has furnished to his employer a declaration under this Subdivision, the employer shall—
(a) within 14 days after receiving the declaration, countersign the duplicate of the declaration and forward that duplicate to the Deputy Commissioner for the State or Territory in which the declaration was furnished; and
(b) within 14 days after the end of the financial year referred to at the head of the declaration, countersign the original of the declaration and forward the declaration, together with the relevant statement or statements furnished by the lender or lenders in accordance with regulation 54di (other than a statement or statements that has or have been delivered to the employee in accordance with sub-regulation 54di (5)), to the Deputy Commissioner for the State or Territory in which the declaration was furnished.
Declaration furnished to the Commissioner in special circumstances.
“ 54dh. (1) Where—
(a) by reason of circumstances connected with the employment of an employee, it is or will be impracticable for the employee to furnish to his employer a declaration under this Subdivision; or
(b) the employee does not desire to furnish such a declaration to his employer,
the employee may furnish the declaration to the Commissioner.
“ (2) Upon receiving, under sub-regulation (1), a declaration under this Subdivision furnished by an employee, the Commissioner shall notify the employer of the employee of the reduction to be made to the salary or wages of the employee in respect of a week or part of a week in accordance with regulation 54df for the purpose of determining, in accordance with Subdivision A, the prescribed rate at which deductions are to be made, for the purposes of section 221c of the Act, from the salary or wages of the employee in respect of a week or part of a week.
Declarations to be supported by statements in respect of housing loans.
“ 54di. (1) Where an employee desires to have estimated annual housing loan interest taken into account in determining the prescribed rate at which deductions are to be made, for the purposes of section 221c of the Act, from the salary or wages of that employee in respect of a week or part of a week, the lender of the housing loan to which that interest relates shall, upon the request of the employee, furnish to the employee, as soon as practicable, a statement in writing specifying—
(a) the name of the lender;
(b) the name and address of the employee or, if the loan was made to the employee and another person, the names and addresses of the employee and that other person;
(c) the address of the dwelling in connexion with which the loan was made;
(d) the amount of the loan that remained to be paid by the employee or by the employee and the other person at the date that is the relevant date for the purposes of this Subdivision in respect of that loan; and
(e) the rate per centum at which interest is charged in respect of the loan at that relevant date.
“ (2) Subject to sub-regulation (4), a declaration under this Subdivision furnished by an employee to his employer or to the Commissioner shall
not have effect, for the purpose of determining the prescribed rate at which deductions are to be made, for the purposes of section 221c of the Act, from the salary or wages of the employee in respect of a week or part of a week, until the employee furnishes to the employer or to the Commissioner, as the case requires, in respect of each housing loan that is the subject of the declaration, a statement furnished by the lender in accordance with this regulation.
“ (3) An employee who furnishes a declaration under this Subdivision to his employer or to the Commissioner shall, subject to sub-regulation (4), also furnish to the employer or to the Commissioner, as the case requires, in respect of each housing loan that is the subject of the declaration, a statement furnished by the lender in accordance with this regulation.
“ (4) Where—
(a) a declaration under this Subdivision in respect of a financial year has been furnished by an employee to his employer or to the Commissioner;
(b) a statement furnished by a lender in accordance with this regulation in respect of a housing loan that is a subject of the declaration has been furnished by the employee to the employer or to the Commissioner in accordance with sub-regulation (3); and
(c) that housing loan is the subject of a further declaration under this Subdivision furnished by the employee to the employer or to the Commissioner in respect of that financial year,
the employee is not required to furnish such, a statement in respect of that housing loan for the purposes of that further declaration.
“ (5) Where—
(a) a person, in pursuance of sub-regulation (3), furnished to his employer a statement furnished by a lender in accordance with this regulation; and
(b) during the financial year to which the appropriate declaration under this Subdivision furnished by the person to that employer relates, the person ceased to be employed by that employer,
that employer shall, upon the request of the person, cause the statement to be delivered to the person.
“ (6) For the purposes of this Subdivision, the relevant date, in respect of a housing loan, is—
(a) where the housing loan was made to the employee during the period of 3 months ending on the date on which the lender received the request for a statement in accordance with this regulation—the date on which the housing loan was made; or
(b) in any other case—the date nominated by the lender, being a date occurring within the period of 3 months ending on the date on which the lender received that request.
Variation by Commissioner of reductions to salary and wages.
“ 54dj. (1) Where an employee has furnished to his employer or to the Commissioner a declaration under this Subdivision and, in pursuance of the declaration, the amount of the salary or wages of the employee in respect of a week or part of a week is to be reduced for the purpose of determining the prescribed rate at which deductions are to be made, for the purposes of section 221c of the Act, from that salary or those wages, by an amount that, having regard to the provisions of Subdivision C of Division 3 of Part III of the Act, is in excess of the amount by which that salary or those wages ought to be so
reduced, the Commissioner may vary the amount of the reduction to be made to that salary or those wages in accordance with that Subdivision and these Regulations.
“ (2) Where the Commissioner so varies the amount by which the salary or wages of the employee in respect of a week or part of a week is to be reduced, the Commissioner shall notify the employer of the employee in writing of the variation, and the employer shall, subject to these Regulations, make deductions from the salary or wages payable to the employee during the remainder of the appropriate financial year in accordance with that variation.”.