Income Tax Act 1986

s 1 — Short title

This Act may be cited as the Income Tax Act 1986 .

s 2 — Commencement

This Act shall come into operation on the day on which it receives the Royal Assent.

s 3 — Interpretation

(1) In this Act, unless the contrary intention appears: Assessment Act means the Income Tax Assessment Act 1936 . non ‑ profit company means: (a) a company that is not carried on for the purposes of profit or gain to its individual members and is, by the terms of the company’s constituent document, prohibited from making any distribution, whether in money, property or otherwise, to its members; or (b) a friendly society dispensary. prescribed unit trust means a trust estate that is a public trading trust within the meaning of Division 6C of Part III of the Assessment Act. (2) In this Act, a reference to taxable income shall be read as a reference to taxable income of the year of income.

Amendment history: Amended by No 89 of 2000, Sch 2 item 89 | Sch 2 item 90 | Sch 2 item 91 | Sch 2 item 92 | Sch 2 item 93 | Sch 2 item 94 | Sch 2 item 95 | Sch 2 item 96 | Sch 2 item 97 | Sch 2 item 98 | Sch 2 item 99 | Sch 2 item 100 | Sch 2 item 101 | Sch 2 item 102 | Sch 2 item 103 | Sch 2 item 104 | Sch 2 item 112, effective Sch 2 (items 112, 113): 30 June 2000 (s 2(1)) | Amended by No 53 of 2016, Sch 5 item 5 | Sch 5 item 68 | Sch 5 item 69 | Sch 5 item 71, effective Sch 5 (items 5, 75) and Sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4)

s 4 — Incorporation

The Assessment Act is incorporated, and shall be read as one, with this Act.

s 5 — Imposition of income tax

(1) Income tax is imposed in accordance with this Act and at the relevant rates declared by the Income Tax Rates Act 1986 . (2) This Act does not impose tax payable in accordance with section 121H, 126, 128B, 128NA, 128NB or 128V of the Assessment Act. (2A) This Act does not impose tax payable in accordance with section 301 ‑ 175 or 306 ‑ 15, or Division 840, of the Income Tax Assessment Act 1997 or Division 840 of the Income Tax (Transitional Provisions) Act 1997 . (3) This Act does not impose tax upon the taxable income of a non ‑ profit company where that taxable income does not exceed $416. (4) If this Act, insofar as it imposes tax upon the taxable income of a complying superannuation fund, a non ‑ complying superannuation fund, a complying approved deposit fund, a non ‑ complying approved deposit fund or a pooled superannuation trust (as defined in the Income Tax Assessment Act 1997 ), would, apart from this subsection, deal with 2 subjects of taxation (within the meaning of section 55 of the Constitution), namely: (a) the taxation of so much of the taxable income as is attributable to contributions that are included in assessable income under Subdivision 295 ‑ C of the Income Tax Assessment Act 1997 ; and (b) the taxation of the remainder of the taxable income; this Act imposes tax in respect of only that subject of taxation mentioned in paragraph (b). (5) This Act does not impose tax upon the taxable income of a non ‑ complying superannuation fund within the meaning of the Income Tax Assessment Act 1997 , to the extent that the taxable income is attributable to the inclusion of an amount in the fund’s assessable income under table item 2 in section 295 ‑ 320 of that Act. (6) This Act does not impose tax upon the taxable income of a Australian superannuation fund, to the extent that the taxable income is attributable to the inclusion of an amount in the fund’s assessable income under table item 3 in section 295 ‑ 320 of that Act.

Amendment history: Amended by No 109 of 1987, item 3, effective 26 Nov 1987 (s 2) | Amended by No 11 of 1988, item 7 | item 20, effective s 7: 26 Apr 1988 (s 2(1)) | Amended by No 100 of 1989, item 3, effective 30 June 1989 (s 2) | Amended by No 181 of 1994, Sch 3 item 102 | Sch 5 item 44, effective Sch 3 (items 101, 102): 19 Dec 1994 (s 2(1)) | Amended by No 89 of 2000, Sch 2 item 113, effective Sch 2 (items 112, 113): 30 June 2000 (s 2(1)) | Amended by No 15 of 2002, Sch 1 item 15, effective Sch 1 (items 15, 21): 4 Apr 2002 (s 2(1) item 2) | Amended by No 101 of 2006, Sch 2 item 21 | Sch 2 item 117 | Sch 2 item 1044 | Sch 5 item 6 | Sch 5 item 7 | Sch 5 item 14 | Sch 5 item 15 | Sch 5 item 16 | Sch 5 item 17 | Sch 5 item 42 | Sch 5 item 65, effective Sch 2 (item 117) and Sch 6 (items 1, 6–11): 14 Sept 2006 (s 2(1) items 2, 4) | Amended by No 16 of 2007, Sch 1 item 1 | Sch 1 item 2 | Sch 1 item 3 | Sch 1 item 4 | Sch 1 item 5 | Sch 1 item 6 | Sch 1 item 7 | Sch 1 item 8, effective 15 Mar 2007 (s 2) | Amended by No 32 of 2008, Sch 1 item 3, effective Sch 1 (items 3, 58): 23 June 2008 (s 2) | Amended by No 45 of 2008, Sch 1 item 1 | Sch 3 item 1 | Sch 3 item 2 | Sch 3 item 3, effective Sch 1 (item 1): 26 June 2008 (s 2) | Amended by No 70 of 2015, Sch 1 item 4 | Sch 1 item 5 | Sch 1 item 6 | Sch 1 item 46 | Sch 6 item 62, effective Sch 1 (items 46, 195–205): 1 July 2015 (s 2(1) items 3, 6)

s 6 — Adjustment where amount to be paid by, or refunded to, taxpayer would not exceed 49 cents

(1) This section applies for the purposes of the making of an assessment of tax (other than further tax payable under subsection 94(9), (11) or (12) of the Assessment Act) in respect of the income of a taxpayer of a year of income where, upon the making of the assessment and the serving of notice of the assessment upon the taxpayer, there would, but for this section, be a net amount of not more than 49 cents payable by the Commissioner to the taxpayer, or by the taxpayer to the Commissioner, under the law relating to income tax, after taking into account all liabilities of the taxpayer, and all rebates and credits allowable to the taxpayer, under that law. (2) Where this section applies in relation to the making of an assessment: (a) if the amount of not more than 49 cents would be an amount payable to the taxpayer—additional tax equal to that amount is imposed by this Act in respect of the income of the taxpayer of the year of income; and (b) if the amount of not more than 49 cents would be an amount payable to the Commissioner—the amount that, but for this section, would be the amount of income tax imposed in respect of the income of the taxpayer of the year of income before the allowance of any rebates to which the taxpayer is entitled, is reduced by so much of that amount of not more than 49 cents as does not exceed the amount calculated by deducting the amount of any such rebates from the sum of the amount that is to be so reduced and any amount of further tax payable by the taxpayer in respect of that year of income under subsection 94(9), (11) or (12) of the Assessment Act. (3) A reference in this section to a liability of the taxpayer shall be read as including a reference to a liability in respect of income tax or provisional tax notified to the taxpayer by the Commissioner, notwithstanding that the amount of the liability has not become due and payable. (4) For the purposes of any calculation under the law relating to income tax that depends upon the amount of tax paid or payable by, or assessed in respect of the income of, a taxpayer, the tax assessed and payable under an assessment in relation to which this section applies shall be deemed to be the tax that would have been so assessed and payable if this section had not applied.

s 7 — Levy of Tax

The tax imposed by subsection 5(1) is levied, and shall be paid, for the financial year commencing on 1 July 1986 and for all subsequent financial years until the Parliament otherwise provides.

Amendment history: Amended by No 109 of 1987, item 4, effective 26 Nov 1987 (s 2) | Repealed and substituted by No 92 of 1988, item 3, effective 24 Nov 1988 (s 2) | Amended by No 142 of 1989, item 3, effective 23 Nov 1989 (s 2) | Repealed and substituted by No 85 of 1990, item 3, effective 6 Nov 1990 (s 2)