Income Tax (Annual) Act 1985

This commentary item was published in Public Information Bulletin Volume 144, March 1986

More information about Public Information Bulletins.

This Act fixes the rates of income tax and excess retention tax for the year of assessment that commenced on 1 April 1985. It received the Governor-General's assent on 7 December 1985.

Section 1 - The Short Title

This section provides that the Annual Act is to be read with and form part of the Income Tax Act 1976.

Section 2 - Rates of Income Tax

Individuals

The 1985 Annual Act confirms the rates as set out in the First Schedule of the Income Tax Act 1976 (as amended by section 21 of the Income Tax Amendment Act 1984). These rates, which are modified pursuant to section 22 of the Income Tax Amendment Act 1984 to incorporate the temporary surtax introduced in 1982, are:

On so much of the taxable income as:

Companies

The 1985 Annual Act confirms the rates applying to companies as being those set out in clause 7 (resident companies - 45 cents) and clause 8 (non-resident companies - 50 cents) in Part A of the First Schedule to the Income Tax Act 1976.

Others

The 1985 Annual Act confirms the rates applying to taxpayers other than individuals and companies as being those set out in the relevant clauses in Part A of the First Schedule to the Income Tax Act 1976 (as amended by section 19 of the Income Tax Amendment Act 1984 — which relates to the rate of tax applying to life insurance companies).

Section 3 - Excess Retention Tax

There is no change to the rate of excess retention tax. The rate of 35 cents is that set out in clause 11 of Part A of the First Schedule of the Income Tax Act 1976.

Section 4 - Repeal

This section repeals the Income Tax (Annual) Act 1984. This repeal does not invalidate past or future assessments of income tax for the 1985 income year.