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Thursday, 18 September 1958


Mr MENZIES (Kooyong) (Prime Minister) . - I move -

Interpretation.

1.   - (1.) That, in this Resolution - " co-operative company " have the same mean ing as in Division 9 of Part III. of the Assessment Act; " friendly society dispensary " mean a friendly society dispensary to which Division 9a of Part III. of the Assessment Act applies; " life assurance company " have the same meaning as in Division 8 of Part III. of the Assessment Act; " mutual income ", in relation to a life assurance company (other than a mutual life assurance company), mean -

(a)   so much of that part of the taxable income of the company which has been derived from its life assurance business as bears the same proportion to that part of the taxable income as the amount of the profits divided for the same year of income among the life assurance policy holders of the company bears to the total profits divided among those policy holders and the shareholders of the company in respect of the company's life assurance business for the same year of income; or

(b)   where no profits in respect of the company's life assurance business are divided for the year of income but, by virtue of the company's memorandum or articles of association, any profits to be divided among the life assurance policy holders of the company are required to be a certain proportion of the total profits to be divided - that proportion of that part of the taxable income of the company which has been derived from its life assurance business; " mutual life assurance company " have the same meaning as in Division 8 of Part III. of the Assessment Act; " non-profit company " mean -

(a)   a company which is not carried on for the purposes of profit or gain to its individual members and is, by the terms of the memorandum or articles of association, rules or other document constituting the company or governing its activities, prohibited from making any distribution, whether in money, property or otherwise, to its members; or

(b)   a friendly society dispensary; " private company " have the same meaning as in Division 7 of Part III. of the Assessment Act; " the Assessment Act " mean the Income Tax and Social Services Contribution Assessment Act 1936-1957, as proposed to be amended by the Income Tax and Social Services Contribution Assessment Bill 1958. (2.) That a reference in this Resolution to taxable income be' read as a reference to taxable income of the year of income.

Incorporation.

2.   That the Assessment Act be incorporated and read as one with the Act passed to give effect to this Resolution.

Imposition of Income Tax and Social Services Contribution.

3.   - (1.) That a tax by the name of income tax and social services contribution be imposed at the rates- declared in this Resolution. (2.) That, notwithstanding anything contained in this Resolution, income tax. and social services contribution be not imposed upon a taxable income which does not exceed One hundred and four pounds derived by -

(a)   a person who is not a company;

(b)   a company in the capacity of a trustee; or

(c)   a non-profit company.

Rates of Tax and Contribution Payable by Persons other than Companies.

4.   - (1.) That the rates of income tax and social services contribution payable by a person other than a company be as set out in the First Schedule to this Resolution. (2.) That the rates of income tax and social services contribution in respect of a taxable income to which Division 16 of Part III. of the Assessment Act applies be as set out in the Second Schedule to this Resolution. (3.) That the rate of income tax and social services contribution in respect of a taxable income in any case where section fifty-nine ab, section eighty-six or section one hundred and fifty-eight d of the Assessment Act applies be as set out in the Third Schedule to this Resolution. (4.) That the rate of income tax and. social: services contribution payable by a trustee be as set out in the Fourth Schedule to this Resolution.

Limitation of Tax and Contribution Payable by Aged Persons.

5.   - (1.) That this paragraph apply to a taxpayer who -

(a)   being a man, has attained the age of sixty-five years, or being a woman, has attained the age of sixty years, on or before the last day of the year of income; and

(b)   is a resident of Australia during the whole of the year of income, but do not apply to a taxpayer in the capacity of. a trustee. (2.) That where the net income of a taxpayer to whom this paragraph applies does not exceed. Four hundred and sixty pounds, the maximum amount of income tax and social servicescontribution payable by him be nine-twentieths of the amount by which his net income exceeds Four hundred and ten pounds, or, if his net income does not exceed Four hundred and ten pounds, no income tax and social services contribution be. payable by him. (3.) That where the net income of a taxpayer to whom this paragraph applies does not exceed One thousand one hundred and six pounds and during the year of income the taxpayer contributes to the maintenance of -

(a)   his wife, being a person who is a resident of Australia during the whole of the year of income and has attained the age of sixty years on or before the last day of that year; or

(b)   her husband, being a person who is a resident of Australia during the whole of the year of income and has attained the age of sixty-five years on or before that day. the maximum amount of income tax and social services contribution payable by the taxpayer be nine-twentieths of the amount by which the sum of the net incomes of the taxpayer and his or her spouse exceedsEight hundred and nineteen pounds, or, if the sum of those net incomes does not exceed Eight hundred and nineteen pounds, no income tax and social services contribution be payable by the taxpayer. (4.) That, for the purposes of this paragraph, the net income of a person be ascertained by deducting from the gross income of that person all expenses (not being expenses of a capital, private or domestic nature) incurred in deriving that gross income.

Minimum Tax and Contribution.

6.   That where, but for this paragraph, the amount of income tax and social services contribution which a person would be liable to pay under the preceding provisions of this Resolution, after deducting all rebates to which that person is entitled in his assessment, is less than Ten shillings, the income tax and social services contribution payable by that person be Ten shillings.

Rates of Tax and Contribution Payable by a Company.

7.   - (1.) That the rates of income tax and social services contribution payable by a company, other than a company in the capacity of a trustee, be as set out in the Fifth Schedule to this Resolution. (2.) That where the taxable income of a nonprofit company does not exceed Two hundred and thirty-one pounds, the maximum amount of income tax and social services contribution payable by the company be one-half of the amount by which the taxable income exceeds One hundred and four pounds.

Elimination of Pence.

8.   That where the amount of the income tax and social services contribution which a person would be liable to pay under the preceding provisions of this Resolution, before deducting any rebate or credit to which that person is entitled in his assessment, is an amount of pounds, shillings and pence or shillings and pence -

(a)   if the pence do not exceed six - the amount be deemed to be reduced by the amount of the pence; and

(b)   if the pence exceed six - the amount be deemed to be increased by treating the pence as One shilling.

Tax and Contribution where Amount to be Collected or Refunded would not exceed Two Shillings.

9.   - (1.) That, notwithstanding anything contained in the preceding provisions of this Resolution, where a person has, in accordance with section two hundred and twenty-one H of the Assessment Act, forwarded to the Commissioner a tax stamps sheet or group certificate issued to him in respect of deductions made in a year from his salary or wages, and the difference between the available deductions and the income tax and social services contribution which would, but for this sub-paragraph, be payable by that person in respect of the taxable income derived by him in that year is not more than Two shillings, the income tax and social services contribution payable by that person in respect of that taxable income be an amount equal to the available deductions. (2.) That the last preceding sub-paragraph do not apply -

(a)   in relation to a person who is liable to pay provisional tax and contribution in respect of his income of the year im mediately succeeding the year referred to in that sub-paragraph; or

(b)   in any case in which the amount of income tax and social services contribution which would, but for this paragraph, be payable is Ten shillings and the available deductions exceed Ten shillings. (3.) That, in this paragraph, " the available deductions " mean the sum of the amount represented by the face value of the tax stamps duly affixed to a tax stamps sheet referred to in subparagraph (1.) of this paragraph and the amount of the deductions specified in a group certificate so referred to.

Levy of Tax and Contribution.

10.   - (1.) That the income tax and social services contribution imposed in pursuance of the preceding provisions of this Resolution be levied and paid for the financial year which commenced on the first day of July, One thousand nine hundred and fifty-eight. (2.) That, until the commencement of the Act for the levying and payment of income tax and social services contribution for the financial year commencing on the first day of July, One thousand nine hundred and fifty-nine, the preceding provisions of this Resolution also apply for all financial years subsequent to that which commenced on the first day of July, One thousand nine hundred and fifty-eight.

Provisional Tax and Contribution.

11.   That provisional tax and contribution be imposed and be payable, in accordance with the provisions of the Assessment Act, in respect of the income of the year of income which commenced on the first day of July, One thousand nine hundred and fifty-eight.

THE SCHEDULES.

FIRST SCHEDULE.

General Rates of Tax and Contribution Payable by Persons other than Companies.

The rate of income tax and social services contribution for every £1 of each part of the taxable income specified in the first column of the following table is the rate set out in the second column of that table opposite to the reference to that part of the taxable income: -

 

 







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