INCOME TAX RATES ACT 1986

PART II - RATES OF INCOME TAX PAYABLE UPON INCOMES OTHER THAN INCOMES OF COMPANIES, PRESCRIBED UNIT TRUSTS, SUPERANNUATION FUNDS AND CERTAIN OTHER TRUSTS  

Division 3 - Rates of tax  

Subdivision B - Rates of tax and notional rates  

SECTION 12   RATES OF TAX AND NOTIONAL RATES  

12(1)  
Except as otherwise provided by this Division, the rates of tax are as set out in Schedule 7 .

12(2)  
The notional rates for the purposes of section 156 of the Assessment Act are as set out in Schedule 8 .

12(3)  
(Repealed by No 41 of 1998)

12(4)  
For every dollar of so much of the net income of a trust estate as is equal to the deemed net income from primary production, the rate of complementary tax for the purposes of subsection 156(5A) of the Assessment Act is the amount ascertained by dividing the amount of the excess referred to in paragraph (b) of that subsection by the number of whole dollars in the eligible net income of the trust estate.

12(6)  


Subject to sections 13 , 14 and 15 , the rates of tax payable by a trustee under section 98 or 99 of the Assessment Act are as set out in Schedule 10 .

12(6A)  
The rate of tax payable by a trustee under paragraph 276-105(2)(a) of the Income Tax Assessment Act 1997 is as set out in Schedule 10A .

12(7)  


The rate of further tax payable by a person under subsection 94(9) of the Assessment Act is:


(a) in respect of the part of the taxable income of the person that is the relevant part of that taxable income for the purposes of subsections 94(10A) and (10B) of the Assessment Act - the amount (if any) per dollar ascertained in accordance with the formula


A - B ,
    C


where:

A is an amount equal to 45% of the taxable income of the person;

B is the amount of tax (if any) that, but for this subsection, sections 12A and 12B and any rebate, credit or other tax offset (as defined in the Income Tax Assessment Act 1997 ) to which the person is entitled, would be payable by the person in respect of the taxable income of the person; and

C is the number of whole dollars in the taxable income of the person; and


(b) in respect of the part of the taxable income of the person that is the prescribed part of that taxable income for the purposes of subsection 94(10B) of the Assessment Act - the amount (if any) per dollar ascertained in accordance with the formula


A - B ,
    C


where:

A is an amount equal to 45% of the taxable income of the person;

B is the amount of tax (if any) that would be payable by the person on the person's taxable income if:

  • (i) the comparison rate described in section 392-55 of the Income Tax Assessment Act 1997 were the rate of tax payable by the person on that income; and
  • (ii) this subsection and sections 12A and 12B did not apply; and
  • (iii) the person were not entitled to any rebate, credit or other tax offset (as defined in the Income Tax Assessment Act 1997 ); and
  • C is the number of whole dollars in the taxable income of the person.

    12(8)  
    The rate of further tax payable by a trustee under subsection 94(11) or (12) of the Assessment Act is:


    (a) in respect of the part of the net income of the trust estate that is the relevant part of that net income for the purposes of subsections 94(12A) and (12B) of the Assessment Act - the amount (if any) per dollar ascertained in accordance with the formula


    A - B ,
        C


    where:

    A is an amount equal to 45% of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 or 99 of the Assessment Act;

    B is the amount of tax (if any) that, but for this subsection, subsection (4) and any rebate, credit or other tax offset (as defined in the Income Tax Assessment Act 1997 ) to which the trustee is entitled, would be payable by the trustee in respect of that net income; and

    C is the number of whole dollars in that net income; and


    (b) in respect of the part of the net income of the trust estate that is the prescribed part of that net income for the purposes of subsection 94(12B) of the Assessment Act - the amount (if any) per dollar ascertained in accordance with the formula


    A - B ,
        C


    where:

    A is an amount equal to 45% of the net income of the trust estate in respect of which the trustee is liable to be assessed and to pay tax under section 98 or 99 of the Assessment Act;

    B is the amount of tax (if any) that, but for this subsection, subsection (4) and any rebate, credit or other tax offset (as defined in the Income Tax Assessment Act 1997 ) to which the trustee is entitled, would be payable by the trustee in respect of that net income if the notional rates declared by this Division for the purposes of section 156 of the Assessment Act were the rates of tax payable by the trustee in respect of that net income; and

    C is the number of whole dollars in that net income.

    12(9)  


    The rate of tax payable by a trustee in respect of the net income of a trust estate in respect of which the trustee is liable, under section 99A of the Assessment Act, to be assessed and to pay tax is 45%.

    12(10)  


    The rate of tax payable by a trustee of a managed investment trust under subsection 275-605(2) of the Income Tax Assessment Act 1997 is 30%.

    12(11)  


    The rate of tax payable by a trustee of an AMIT under subsection 276-405(2) of the Income Tax Assessment Act 1997 is 45%.

    12(12)  


    The rate of tax payable by a trustee of an AMIT under subsection 276-415(2) of the Income Tax Assessment Act 1997 is 45%.

    12(13)  


    The rate of tax payable by a trustee of an AMIT under subsection 276-420(2) of the Income Tax Assessment Act 1997 is 45%.



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