Commonwealth Consolidated Acts

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INCOME TAX RATES ACT 1986 - SECT 20

Pro - rating of the tax - free threshold

Part - year residency periods

  (1)   This Act applies in relation to a person and a year of income as if the reference in the table applicable to the year of income in Part   I of Schedule   7 to the tax - free threshold were a reference to the amount calculated in accordance with the following formula, if there are one or more part - year residency periods in relation to the person in relation to the year of income:

Start formula open bracket The tax-free threshold minus $4,736 close bracket plus open bracket $4,736 times start fraction Number of months in the year of income during which there is a part-year residency period in relation to the person and the year of income over 12 end fraction close bracket end formula

Trustees

  (1A)   Subsection   (1) does not apply in calculating the tax payable by the trustee of a trust estate under section   98 of the Assessment Act in respect of a share of a beneficiary of the net income of the trust estate of a year of income.

  (2)   However, this Act applies in calculating the tax payable by the trustee in respect of that share as if the reference in the table applicable to the year of income in Part   I of Schedule   7 to the tax - free threshold were a reference to the amount calculated in accordance with the following formula, if there are one or more part - year residency periods in relation to the beneficiary in relation to the year of income:

Start formula open bracket The tax-free threshold minus $4,736 close bracket plus open bracket $4,736 times start fraction Number of months in the year of income when a part-year residency period, or part-year residency periods, in relation to the beneficiary in relation to the year of income subsisted over 12 end fraction close bracket end formula

  (3)   Subsection   (1) does not apply in calculating the tax payable by the trustee of a trust estate under section   99 of the Assessment Act.

 


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