Issued
01 Sep 1972

Land and Income Tax Annual Act 1972

Archived legislative commentary on the Land and Income Tax Annual Act 1972 from PIB vol 69 Sep 1972.

This commentary item was published in Public Information Bulletin Volume 69, September 1972

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This Act fixes the rates of land tax, income tax, excess retention tax and bonus issue tax for the year of assessment which began on 1 April 1972.

Income Tax - Individuals

The rates to apply to income derived in the 1972/73 income year are those set out in Part D of the First Schedule to the principal Act. A general rebate of 7 1/2 percent of the tax calculated according to that basic scale is to be allowed.

Income Tax - Companies

The rates to apply to income derived in the 1972/73 income year are those set out in Part-B (resident companies) and Part C (non-resident companies) of the First Schedule to the principal Act. Note that new Parts B and C are substituted by section 38 of the Land and Income Tax Amendment Act (No 2) 1972 - see notes in this bulletin on section 38 of that Act.

Land Tax - All Taxpayers

The basic rates of land tax for all classes of taxpayers are the same as those in force for last year. These are -

On so much of the unimproved value on which land tax is payable as -   Rate of tax for every $1
Does not exceed $20,000 ... ... ... 5/12 c
Exceeds $20,000 but does not exceed $30,000 5/6 c
Exceeds $30,000 but does not exceed $40,000 1 1/4c
Exceeds $40,000 ... ... ... 1 2/3c

A rebate of 50% is allowed on tax assessed at these rates.

Excess Retention Tax

The rate of excess retention tax remains the same at 35c in the $ on the amount of the insufficient distribution.

Bonus Issue Tax

The rate of bonus issue tax remains the same at 17.5c in the $ on the amount of the bonus issue.

Note that under section 34 of the Land and Income Tax Amendment Act (No 2) 1972 - explained earlier in this bulletin - the rate so fixed will also apply to bonus issues made on or after 1 April 1973 and before the passing of the Annual Act for 1973.

Terminating Dates

Section of Act General Description Terminating Date
114A (1) Special depreciation on plant, machinery, and employee accommodation 31 March 1974
114A (1A) Special depreciation on farm buildings 31 March 1974
114A (1B) Special depreciation on private bathroom facilities in hotels 31 March 1974
114A (1BB) Special depreciation on export meat storage buildings (operator-owned) 31 March 1976
114A (1BC) Special depreciation on export meat storage buildings (lessor-owned) 31 March 1976
114B Additional depreciation on export meat hygiene improvements 31 March 1976
114C Additional depreciation on export fish hygiene improvements 31 March 1976
114D Special depreciation on new tourist hotels 31 March 1976
117A Investment allowance on plant and machinery 31 March 1974
117C Investment allowance on West Coast redevelopment projects 31 March 1974
119D Development expenditure on farming or agricultural land 31 March 1974
119G Development expenditure on rock oyster or mussel farms 31 March 1974
129A Export market development and tourist promotion expenditure 31 March 1976
129AA Export market development by self-employed persons 31 March 1976
129B Increased exports 31 March 1978