Commonwealth Consolidated Acts

INCOME TAX RATES ACT 1986 - SCHEDULE 7

Subsection   12(1)

Part   I -- Resident taxpayers

  1.   Subject to clauses   2, 3 and 4, the rates of tax on the taxable income of a resident taxpayer are as follows:

  (a)   45% for the superannuation remainder (if any) of the taxable income;

  (aa)   45% for the employment termination remainder (if any) of the taxable income;

  (b)   for each part of the ordinary taxable income specified in the table applicable to the year of income--the rate applicable under that table.

  2.   Where:

  (a)   the taxable income of a resident taxpayer consists of or includes a special income component; and

  (b)   Division   16 of Part   III of the Assessment Act does not apply to the income of the taxpayer; and

  (c)   Division   392 (Long - term averaging of primary producers' tax liability) of the Income Tax Assessment Act 1997 does not apply to the taxpayer's assessment;

the rate of tax for every $1 of the taxable income is the amount ascertained in accordance with the formula , where:

A   is the amount of tax that would be payable by the taxpayer under clause   1 on a taxable income equal to the reduced taxable income;

B   is 5 times the difference between:

  (c)   the amount of tax that would be payable by the taxpayer under clause   1 on a taxable income equal to the sum of:

  (i)   the reduced taxable income; and

  (ii)   20% of the special income component of the taxable income; and

  (d)   the amount of tax that would be payable by the taxpayer under clause   1 on a taxable income equal to the reduced taxable income; and

C   is the number of whole dollars in the taxable income.

In applying the formula, component B is to be worked out on the assumption that the whole of the taxable income is ordinary taxable income.

  3.   Where:

  (a)   the taxable income of a resident taxpayer consists of or includes a special income component; and

  (b)   Division   16 of Part   III of the Assessment Act applies to the income of the taxpayer or Division   392 (Long - term averaging of primary producers' tax liability) of the Income Tax Assessment Act 1997 applies to the taxpayer's assessment;

the rate of tax for every $1 of the taxable income is the amount ascertained in accordance with the formula , where:

A   is the amount of tax that would be payable by the taxpayer under clause   1 on a taxable income equal to the reduced taxable income;

B   is 5 times the difference between:

  (c)   the amount of tax that would be payable by the taxpayer under clause   1 on a taxable income equal to the sum of:

  (i)   the average income; and

  (ii)   20% of the special income component of the taxable income; and

  (d)   the amount of tax that would be payable by the taxpayer under clause   1 on a taxable income equal to the average income; and

C   is the number of whole dollars in the taxable income.

In applying the formula, component B is to be worked out on the assumption that the whole of the taxable income is ordinary taxable income.

  4.   If the resident taxpayer is a working holiday maker at any time during the year of income:

  (a)   count the taxpayer's working holiday taxable income for the year of income as the first parts (starting from $0) of the taxpayer's ordinary taxable income for the purposes of the table in clause   1 that is applicable to the year of income; and

  (b)   do not apply the rates in that table to that working holiday taxable income; and

  (c)   do not count that working holiday taxable income when working out the taxpayer's taxable income for the purposes of clause   2 or 3.

Note:   The rates for the taxpayer's working holiday taxable income for the year of income are set out in Part   III.

Part   II -- Non - resident taxpayers

  1.   Subject to clauses   2, 3 and 4, the rates of tax on the taxable income of a non - resident taxpayer are as follows:

  (a)   45% for the superannuation remainder (if any) of the taxable income;

  (aa)   45% for the employment termination remainder (if any) of the taxable income;

  (b)   for each part of the ordinary taxable income specified in the table applicable to the year of income--the rate applicable under that table.

  2.   Where:

  (a)   the taxable income of a non - resident taxpayer consists of or includes a special income component; and

  (b)   Division   16 of Part   III of the Assessment Act does not apply to the income of the taxpayer; and

  (c)   Division   392 (Long - term averaging of primary producers' tax liability) of the Income Tax Assessment Act 1997 does not apply to the taxpayer's assessment;

the rate of tax for every $1 of the taxable income is the amount ascertained in accordance with the formula , where:

A   is the amount of tax that would be payable by the taxpayer under clause   1 on a taxable income equal to the reduced taxable income;

B   is 5 times the difference between:

  (c)   the amount of tax that would be payable by the taxpayer under clause   1 on a taxable income equal to the sum of:

  (i)   the reduced taxable income; and

  (ii)   20% of the special income component of the taxable income; and

  (d)   the amount of tax that would be payable by the taxpayer under clause   1 on a taxable income equal to the reduced taxable income; and

C   is the number of whole dollars in the taxable income.

In applying the formula, component B is to be worked out on the assumption that the whole of the taxable income is ordinary taxable income.

  3.   Where:

  (a)   the taxable income of a non - resident taxpayer consists of or includes a special income component; and

  (b)   Division   16 of Part   III of the Assessment Act applies to the income of the taxpayer or Division   392 (Long - term averaging of primary producers' tax liability) of the Income Tax Assessment Act 1997 applies to the taxpayer's assessment;

the rate of tax for every $1 of the taxable income is the amount ascertained in accordance with the formula , where:

A   is the amount of tax that would be payable by the taxpayer under clause   1 on a taxable income equal to the reduced taxable income;

B   is 5 times the difference between:

  (c)   the amount of tax that would be payable by the taxpayer under clause   1 on a taxable income equal to the sum of:

  (i)   the average income; and

  (ii)   20% of the special income component of the taxable income; and

  (d)   the amount of tax that would be payable by the taxpayer under clause   1 on a taxable income equal to the average income; and

C   is the number of whole dollars in the taxable income.

In applying the formula, component B is to be worked out on the assumption that the whole of the taxable income is ordinary taxable income.

  4.   If the non - resident taxpayer is a working holiday maker at any time during the year of income:

  (a)   count the taxpayer's working holiday taxable income for the year of income as the first parts (starting from $0) of the taxpayer's ordinary taxable income for the purposes of the table in clause   1 applicable to the year of income; and

  (b)   do not apply the rates in that table to that working holiday taxable income; and

  (c)   do not count that working holiday taxable income when working out the taxpayer's taxable income for the purposes of clause   2 or 3.

Note:   The rates for the taxpayer's working holiday taxable income for the year of income are set out in Part   III.

Part   III -- Working holiday makers

  1.   The rates of tax on a taxpayer's working holiday taxable income for a year of income are as set out in the table that is applicable to the year of income.