Commonwealth Numbered Acts
[Index]
[Table]
[Search]
[Search this Act]
[Notes]
[Noteup]
[Previous]
[Next]
[Download]
[Help]
INCOME TAX (RATES) AMENDMENT ACT 1980 No. 22 of 1980 - SECT 8
Rates of tax where Division 6AA of Part III of the Assessment Act applies
8. After section 6L of the Principal Act the following section is inserted:
"6LA. (1) The rates of tax in respect of the taxable income of a person-
(a) who is a prescribed person in relation to the year of income for the
purposes of Division 6AA of Part III of the Assessment Act; and
(b) who has, for the purposes of that Division, an eligible taxable income
of an amount exceeding $1,040, are as set out in Schedule 21.
"(2) Where the eligible taxable income of a taxpayer for the purposes of
Division 6AA of Part III of the Assessment Act exceeds $1,040 but does not
exceed $3,432, the amount of tax payable under sub-section (1) in respect of
that eligible taxable income shall not exceed-
(a) 66% of the amount by which that eligible taxable income exceeds
$1,040; or
(b) the amount ascertained by deducting from the amount of the tax that
would be payable by the taxpayer if the rates set out in Schedule 17
or 19, as the case requires, were applied to the taxable income of the
taxpayer the amount of tax that would be payable by the taxpayer if
those rates were applied to the taxable income of the taxpayer reduced
by the amount of that eligible taxable income, whichever is the
greater.
"(3) Where-
(a) a trustee of a trust estate is liable to be assessed and to pay tax
under section 98 of the Assessment Act in respect of the share of a
beneficiary of the net income of the trust estate;
(b) Division 6AA of Part III of the Assessment Act applies to a part of
that share; and
(c) the part of that share to which that Division applies exceeds $1,040,
the rates of tax payable by the trustee in respect of that share of
the net income of the trust estate are as set out in Schedule 22.
"(4) Where-
(a) a trustee of a trust estate is liable to be assessed and to pay tax
under section 98 of the Assessment Act in respect of the share of a
beneficiary of the net income of the trust estate;
(b) Division 6AA of Part III of the Assessment Act applies to a part of
that share;
(c) the part of that share to which that Division applies does not exceed
$1,040;
(d) Division 6AA of Part III of the Assessment Act also applies to a part
of the share of the beneficiary of the net income of another trust
estate or to parts of the shares of the beneficiary of the net incomes
of other trust estates; and
(e) the sum of the part referred to in paragraph (b) and the part or parts
referred to in paragraph (d) exceeds $1,040, the trustee of the trust
estate referred to in paragraph (a) is liable to pay tax in respect of
the share of the net income of the trust estate referred to in that
paragraph at the rates set out in Schedule 22.
"(5) Where-
(a) the amount of tax that a trustee of a trust estate is liable to pay in
respect of the share of a beneficiary of the net income of the trust
estate is, by virtue of sub-section (4), to be calculated in
accordance with Schedule 22; and
(b) the sum of-
(i) the part of that share to which Division 6AA of Part III of the
Assessment Act applies; and
(ii) the part of the share of the beneficiary of the net income of
the other trust estate or the parts of the shares of the
beneficiary of the net incomes of the other trust estates, as
the case may be, to which that Division applies, does not
exceed $3,432, the tax that, apart from this sub-section, would
be payable by the trustee in respect of the share referred to
in paragraph (a) shall be reduced by such amount (if any) as,
in the opinion of the Commissioner, is fair and reasonable.
"(6) Subject to sub-section (7), where-
(a) the trustee of a trust estate is liable to be assessed and to pay tax
under section 98 of the Assessment Act in respect of the share of a
beneficiary of the net income of the trust estate;
(b) Division 6AA of Part III of the Assessment Act applies to a part (in
this sub-section referred to as the 'eligible part') of that share;
and
(c) the eligible part of that share exceeds $1,040 but does not exceed
$3,432, the amount of tax payable under sub-section (3) in respect of
the eligible part of that share shall not exceed-
(d) 66% of the amount by which the eligible part of that share exceeds
$1,040; or
(e) the amount ascertained by deducting from the amount of tax that would
be payable by the trustee if the rates referred to in Schedule 20 were
applied to that share of that net income the amount of tax that would
be payable by the trustee if those rates were applied to that share of
that net income reduced by the amount of the eligible part of that
share, whichever is the greater.
"(7) Sub-section (6) does not apply in relation to the share of a beneficiary
of the net income of a trust estate if Division 6AA of Part III of the
Assessment Act applies to a part of a share of the beneficiary of the net
income of another trust estate or to parts of the shares of the of the net
incomes of other trust estates.
"(8) Where-
(a) by reason of the application of sub-section (7), sub-section (6) does
not apply in relation to the share of a beneficiary of the net income
of a trust estate in respect of which a trustee is liable to be
assessed and to pay tax in pursuance of section 98 of the Assessment
Act; and
(b) the sum of-
(i) the part of that share to which Division 6AA of Part III of the
Assessment Act applies; and
(ii) the part of the share of the beneficiary of the net income of
the other trust estate or the parts of the shares of the
beneficiary of the net incomes of the other trust estates, as
the case may be, to which that Division applies, does not
exceed $3,432, the tax that, apart from this sub-section, would
be payable by the trustee in respect of the share referred to
in paragraph (a) shall be reduced by such amount (if any) as,
in the opinion of the Commissioner, is fair and reasonable.
"(9) In forming an opinion for the purposes of sub-section (5) or (8) (in this
sub-section referred to as the 'relevant sub-section') in relation to the
share of a beneficiary of the net income of a trust estate of a year of
income, the Commissioner shall have regard to-
(a) any limitation that would be applicable under sub-section (6) on the
amount of tax that would be payable by a trustee in accordance with
Schedule 22 in respect of a share of the net income of a trust estate
of the year of income of an amount equal to the sum of the shares
referred to in paragraph (b) of the relevant sub-section if-
(i) Division 6AA of Part III of the Assessment Act applied to so
much of that share as is equal to the sum of the parts of the
shares referred to in paragraph (b) of the relevant
sub-section; and
(ii) that share were a share of a beneficiary who is not entitled to
a share of the income of the year of income of any other trust
estate;
(b) the amount of any reduction previously granted by the Commissioner, in
pursuance of sub-section (5) or (8), in relation to the share of the
beneficiary of the net income of the year of income of any other trust
estate; and
(c) such other matters (if any) as he thinks fit.".
AustLII: Copyright Policy
| Disclaimers
| Privacy Policy
| Feedback