INCOME TAX RATES ACT 1986 (ARCHIVE)

SCHEDULE 9  

Subsection 12(5)

RATES OF TAX BY REFERENCE TO A NOTIONAL INCOME

PART I - RESIDENT TAXPAYERS  

2.    
For every $1 of the taxable income of a resident taxpayer -

(a) who derives a notional income, as specified by section 59AB or 86 of the Assessment Act or the former section 42-300 of the Income Tax Assessment Act 1997 ; and

(b) whose taxable income consists of or includes a special income component;

the rate of tax is the amount ascertained in accordance with the formula

	A+B	,
	C

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 of Part I of Schedule 7 on a taxable income equal to the sum of -

(i) the reduced notional 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 of Part I of Schedule 7 on a taxable income equal to the reduced notional 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.