INCOME TAX ACT.
Act No. 42, 1928.
An Act to impose an Income T a x : to make provision for the application of rates ofj tax
different from those applied by the Income
Tax Act, 1927; to repeal the Income Tax
(Amendment) Act, 1925; to amend certain
other Acts; and for purposes connected
therewith. [Assented to, 26th December,
1928.]
B
E it enacted by the King's Most Excellent Majesty,
by and with the advice and consent of the Legislative Council and Legislative Assembly of New South
Wales in Parliament assembled, and by the authority of
the same, as follows :—
1. This Act may be cited as the " Income Tax Act,
1928," and shall be construed with the Income Tax
(Management) Act, 1928.
2 . I n respect of the taxable income which has been
derived by any person during the year ended on the
thirtieth day of J u n e , one thousand nine hundred and
twenty-eight, or such other period as may be accepted
by the Commissioner in lieu thereof, and during each
subsequent income year, there shall be annually levied
and paid under the provisions of the Income Tax
(Management) Act, 1928, and in the manner therein
prescribed, income tax at the respective rates in this
Act provided.
3 . The Income Tax (Amendment) Act, 1925, and
section five of the Income Tax Act, 1924, as inserted
therein by that Act and section five of the Income Tax
Act, 1927, and subsection two of section two of the
Income Tax (Companies) Act, 1927, are hereby repealed,
and such repeal shall take effect retrospectively from
the respective dates of the enactments hereby repealed.
4.
4.
(1) I n the ease of a person other than a company—
(a) the rate of income tax in respect of income
derived from personal exertion shall be as set
out in the First Schedule to this A c t ;
(b) the rate of income tax in respect of income
derived from property shall be as set out in
the Second Schedule to this A c t ;
(c) the rates of income tax in respect of a total
taxable income, part being income derived
from personal exertion and the remainder
being income derived from property, shall be
as set out in the Third Schedule to this Act.
(2) Notwithstanding anything contained in the
last preceding subsection, where a person would, apart
from this subsection, be liable to pay income tax of an
amount less than ten shillings the tax payable by that
person shall be ten shillings.
(3) The rates of income tax payable by a trustee
shall be as set out in the Fourth Schedule to this Act.
(4) Subject to the last preceding subsection, the
rates of income tax payable by a company shall be as
set out in the Fifth Schedule to this Act.
5. I n addition to the income tax payable by a company under subsection four of section four of this Act,
there shall be payable by every company in respect of
its taxable income derived during the year ended on the
thirtieth day of June, one thousand nine hundred and
twenty-eight, or such other period as may be accepted
by the Commissioner in lieu thereof, as and by way of
income tax, a super tax of threepence in each and
every pound sterling of the taxable income of the com­
pany, except taxable income referred to in the Fourth
Schedule, in paragraph two, subparagraph (a) of para­
graph three, and in paragraph four of the Fifth Schedule
to this Act.
SCHEDULES.
SCHEDULES.
FIRST
SCHEDULE.
RATE oF TAX UPON INCOME DERIVED FROM PERSONAL EXERTION.
1. If t h e t a x a b l e income does n o t exceed seven t h o u s a n d pounds,
t h e r a t e of t a x p e r p o u n d s t e r l i n g of t h e t a x a b l e income shall be sevenpence plus as m a n y times one two-hundred-and-fiftieth of one p e n n y as
t h e r e are p o u n d s sterling in t h e t a x a b l e income.
2. If t h e t a x a b l e income exceeds seven t h o u s a n d pounds, the r a t e of
t a x on every p o u n d sterling of t h e first seven t h o u s a n d pounds thereof
shall be thirty-five pence, a n d t h e r a t e of t a x on every p o u n d sterling
of t h e t a x a b l e income in excess of seven t h o u s a n d p o u n d s shall be
s i x t y pence.
SECOND
SCHEDULE.
RATE OF TAX UPON INCOME DERIVED FROM PROPERTY.
1. If t h e t a x a b l e income does not exceed five t h o u s a n d five h u n d r e d
p o u n d s , t h e r a t e of t a x p e r p o u n d sterling of t h e t a x a b l e income shall
be n i n e p e n c e plus as m a n y times t h r e e five-hundredths of one p e n n y
as t h e r e a r e p o u n d s s t e r l i n g in t h e t a x a b l e income.
2. If t h e t a x a b l e income exceeds five t h o u s a n d five h u n d r e d p o u n d s
t h e r a t e of t a x on every p o u n d s t e r l i n g of t h e first five t h o u s a n d five
h u n d r e d p o u n d s thereof shall be forty-two pence, a n d t h e r a t e of t a x
on every p o u n d sterling of t h e t a x a b l e income in excess of five t h o u s a n d
five h u n d r e d p o u n d s shall be s i x t y pence.
THIRD
SCHEDULE
RATES OF TAX PAYABLE IN RESPECT OF TAXABLE INCOME, PART BEING
INCOME DERIVED FROM PERSONAL EXERTION AND THE REMAINDER
BEING INCOME DERIVED FROM PROPERTY.
1. F o r every pound s t e r l i n g of t a x a b l e income derived from personal
e x e r t i o n t h e r a t e of t a x shall be a s c e r t a i n e d b y d i v i d i n g t h e t o t a l
a m o u n t of t h e t a x t h a t would be p a y a b l e u n d e r t h e F i r s t Schedule if
t h e t o t a l t a x a b l e income of t h e t a x p a y e r were derived exclusively from
personal e x e r t i o n by t h e a m o u n t of t h e t o t a l t a x a b l e income.
2. F o r every pound sterling of t a x a b l e income derived from p r o p e r t y ,
t h e r a t e of t a x shall be ascertained by d i v i d i n g t h e t o t a l a m o u n t of
t h e t a x t h a t would be p a y a b l e u n d e r t h e Second Schedule if the t o t a l
t a x a b l e income of t h e t a x p a y e r were derived exclusively from p r o p e r t y
by t h e a m o u n t of t h e total t a x a b l e income.
FOURTH
FOURTH
SCHEDULE.
RATES OP TAX PAYABLE BY A
TRUSTEE
F o r every p o u n d sterling of t h e t a x a b l e income in respect of which
a t r u s t e e is liable to be separately assessed and to pay t a x , t h e r a t e of
t a x shall b e t h e r a t e which would be p a y a b l e u n d e r t h e F i r s t ,
Second or T h i r d Schedules, as t h e case r e q u i r e s , if one i n d i v i d u a l were
liable to be separately assessed a n d to p a y t a x on t h a t t a x a b l e income.
FIFTH
SCHEDULE,
RATES OF TAX PAYABLE BY A COMPANY;
T h e rates of income t a x in respect of t h e incomes of companies shall
be as follows : —
(1) On t h e t a x a b l e income of every N e w South W a l e s company
if t h e t a x a b l e income of t h e c o m p a n y does n o t exceed six thousand
pounds, t h e r a t e of t a x per p o u n d sterling of t h e t a x a b l e income
of t h e c o m p a n y shall, e x c e p t as is hereinafter specifically provided,
be according to t h e following scale, t h a t is to say :—
If the taxable income of the company—
Does n o t exceed five h u n d r e d p o u n d s . . .
Exceeds five h u n d r e d a n d does not
exceed one t h o u s a n d pounds.
E x c e e d s one t h o u s a n d a n d does not
exceed one t h o u s a n d five h u n d r e d
pounds.
E x c e e d s one t h o u s a n d five h u n d r e d
p o u n d s a n d does n o t exceed t w o
thousand pounds.
E x c e e d s t w o t h o u s a n d a n d does not
exceed t w o t h o u s a n d five h u n d r e d
pounds.
E x c e e d s t w o t h o u s a n d five h u n d r e d a n d
does not exceed t h r e e
thousand
pounds.
E x c e e d s t h r e e t h o u s a n d a n d does n o t
exceed t h r e e t h o u s a n d five h u n d r e d
pounds.
E x c e e d s t h r e e t h o u s a n d five h u n d r e d
and does n o t exceed four t h o u s a n d
pounds.
The rate of tax per pound sterling
of the taxable income shall be—
T w o shillings.
T w o shillings a n d one penny.
T w o shillings a n d twopence.
T w o shillings a n d threepence.
Two shillings a n d fourpence.
T w o shillings a n d
fivepence.
T w o shillings a n d sixpence.
T w o shillings and sevenpence.
FIFTH
FIFTH
SCHEDULE—continued.
If the taxable income of the c o m p a n y -
E x c e e d s four t h o u s a n d a n d does n o t
exceed four t h o u s a n d five h u n d r e d
pounds.
Exceeds four t h o u s a n d five h u n d r e d and
does n o t exceed five t h o u s a n d pounds.
Exceeds five t h o u s a n d a n d does n o t
exceed five t h o u s a n d five h u n d r e d
pounds.
Exceeds five t h o u s a n d five h u n d r e d
a n d does n o t exceed six t h o u s a n d
pounds.
T h e
e r
rate of tax P pound sterling
of the taxable income shall be—
f
T w o shillings and eightpence.
T w o shillings and ninepence.
T w o shillings a n d tenpenee
Two shillings
pence.
and
eleven­
(2) On t h e t a x a b l e income of every m u t u a l life assurance comp a n y t h e r a t e of t a x per pound sterling of t h e t a x a b l e income of
t h e company shall be twenty-four pence.
(3) On t h e t a x a b l e income of a c o m p a n y (other t h a n a m u t u a l
life assurance c o m p a n y ) carrying on t h e business of life assurance in t h e S t a t e , t h e r a t e s of income t a x shall be as follows:—
(a) on so much of t h a t p a r t of t h e t a x a b l e income, of t h e comp a n y which has been derived from its life assurance business
as bears t h e same proportion to such p a r t of t h e t a x a b l e
income as t h e a m o u n t of t h e profits divided for t h e same
income year a m o n g s t t h e life assurance policy holders of
the company bears t o t h e total profits of t h e company's life
assurance business for t h e same income year t h e r a t e of
income t a x shall be twenty-four pence per p o u n d sterling ;
(b) on t h e r e m a i n d e r of t h e t a x a b l e income of t h e company
t h e r a t e of income t a x shall be thirty-six pence p e r pound
sterling.
(4) F o r every pound sterling of t h e t a x a b l e income
c o m p a n y as is assessed u r d e r t h e provisions of p a r a g r a p h
section seventeen of t h e I n c o m e T a x ( M a n a g e m e n t ) A c t ,
t h e r a t e of t a x shall be e i g h t e e n pence in each a n d every
sterling of such t a x a b l e income.
of a
(a) of
1928,
pound
(5) E x c e p t as hereinbefore in this Schedule specifically pro­
vided, on t h e t a x a b l e income of every N e w S o u t h W a l e s c o m p a n y
a n d on t h e t a x a b l e income of every foreign company t h e r a t e of
t a x shall be t h i r t y - s i x pence for every p o u n d sterling of t h e
t a x a b l e income.
PUBLIC