INCOME TAX RATES ACT 1986

PART I - PRELIMINARY  

SECTION 3   INTERPRETATION  

3(1)  


In this Act, unless the contrary intention appears -

abnormal income amount
, in relation to the taxable income of a taxpayer of a year of income, means any above-average special professional income included in the taxpayer ' s taxable income for the year of income under section 405-15 of the Income Tax Assessment Act 1997 ;

ADI
has the same meaning as in the Income Tax Assessment Act 1997 .

AD/RLA component
(Repealed by No 143 of 2007)

AMIT
(short for attribution managed investment trust) has the same meaning as in the Income Tax Assessment Act 1997 .

approved deposit fund
(Repealed by No 98 of 1989)

Assessment Act
means the Income Tax Assessment Act 1936 ;

attribution managed investment trust
: see AMIT .

base rate entity
has the meaning given by section 23AA .

base rate entity passive income
has the meaning given by section 23AB .

capital gains amount
(Repealed by No 168 of 1999)

capital gains component
(Repealed by No 168 of 1999)

complying ADF
means a complying approved deposit fund as defined in the Income Tax Assessment Act 1997 .

complying superannuation class
of the taxable income of a life insurance company has the same meaning as in the Income Tax Assessment Act 1997 .

complying superannuation/FHSA class
(Repealed by No 70 of 2015)

complying superannuation fund
has the same meaning as in the Income Tax Assessment Act 1997 ;

corporate unit trust
(Repealed by No 53 of 2016)

CS/RA component
(Repealed by No 143 of 2007)

determined member component
has the same meaning as in the Income Tax Assessment Act 1997 .

EC part of the taxable income
(Repealed by No 19 of 2007)

EIB component
(Repealed by No 143 of 2007)

eligible ADF
means a fund that is a complying approved deposit fund or a non-complying approved deposit fund, as defined in the Income Tax Assessment Act 1997 .

eligible part
, in relation to the special income component of the taxable income of a taxpayer, means so much of the special income component as is eligible taxable income for the purposes of Division 6AA of Part III of the Assessment Act.

eligible superannuation fund
means a fund that is a complying superannuation fund or a non-complying superannuation fund, as defined in the Income Tax Assessment Act 1997 .

employment termination remainder
of taxable income means so much of the taxable income as:


(a) is included in assessable income under a maximum tax rate provision in Division 82 of the Income Tax Assessment Act 1997 or Division 82 of the Income Tax (Transitional Provisions) Act 1997 ; and


(b) does not give rise to an entitlement to a tax offset under that maximum tax rate provision.

ETP
(Repealed by No 19 of 2007)

FHSA component
(Repealed by No 70 of 2015)

FHSA provider
(Repealed by No 70 of 2015)

FHSA trust
(Repealed by No 70 of 2015)

friendly society
has the same meaning as in the Income Tax Assessment Act 1997 .

general fund component
(Repealed by No 143 of 2007)

ineligible approved deposit fund
(Repealed by No 98 of 1989)

investment income
(Repealed by No 98 of 1989)

life assurance company
(Repealed by No 89 of 2000)

life insurance company
has the same meaning as in the Life Insurance Act 1995 .

low tax component
has the same meaning as in the Income Tax Assessment Act 1997 .

managed investment trust
has the same meaning as in the Income Tax Assessment Act 1997 .

maximum tax rate provision
means any of the following provisions:


(a) section 82-10 of the Income Tax Assessment Act 1997 ;


(b) section 82-65 of the Income Tax Assessment Act 1997 ;


(c) section 82-70 of the Income Tax Assessment Act 1997 ;


(d) section 301-95 of the Income Tax Assessment Act 1997 ;


(e) section 301-105 of the Income Tax Assessment Act 1997 ;


(f) section 301-115 of the Income Tax Assessment Act 1997 ;


(g) section 82-10A of the Income Tax (Transitional Provisions) Act 1997 ;


(h) section 82-10C of the Income Tax (Transitional Provisions) Act 1997 .

NCS component
(Repealed by No 143 of 2007)

net income phase-out limit
has the meaning given by subsection 14(3) .

non-arm ' s length component
has the same meaning as in the Income Tax Assessment Act 1997 .

non-complying ADF
means a fund that, at all times during the year of income when the fund is in existence, is an approved deposit fund within the meaning of the Income Tax Assessment Act 1997 , but does not include a fund that is a complying ADF.

non-complying superannuation fund
has the same meaning as in the Income Tax Assessment Act 1997 ;

non-fund component
(Repealed by No 62 of 1997)

non-profit company
means -


(a) a company that is not carried on for the purposes of profit or gain to its individual members and is, by the terms of the company ' s constituent document, prohibited from making any distribution, whether in money, property or otherwise, to its members; or


(b) a friendly society dispensary;

non-resident beneficiary
, in relation to a year of income, means a beneficiary of a trust estate who is a prescribed non-resident in relation to that year of income;

non-resident phase-out limit
has the meaning given by subsection 15(8) .

non-resident taxpayer
, in relation to a year of income, means a taxpayer who is a prescribed non-resident in relation to that year of income;

non-resident trust estate
, in relation to a year of income, means a trust estate that is not a resident trust estate in relation to that year of income;

no-TFN contributions income
has the same meaning as in the Income Tax Assessment Act 1997 .

ordinary class
of the taxable income of a life insurance company has the same meaning as in the Income Tax Assessment Act 1997 .

ordinary taxable income
means the taxable income, reduced by the superannuation remainder of the taxable income and by the employment termination remainder of the taxable income;

PDF
(pooled development fund) has the same meaning as in the Assessment Act;

PDF component
has the same meaning as in the Assessment Act;

pooled superannuation trust
has the same meaning as in the Income Tax Assessment Act 1997 ;

post-June 83 component
(Repealed by No 19 of 2007)

prescribed non-resident
, in relation to a year of income, means a person who, at all times during the year of income, is a non-resident, not being a person to whom, at any time during the year of income, compensation or a pension, allowance or benefit is payable under -


(a) the Veterans ' Entitlements Act 1986 ;


(b) subsection 4(6) of the Veterans ' Entitlements (Transitional Provisions and Consequential Amendments) Act 1986 ; or


(ba) the Military Rehabilitation and Compensation Act 2004 ; or


(c) the Social Security Act 1991 ;


(d) (Repealed by No 48 of 1991)

being compensation or a pension, allowance or benefit in respect of which the person is liable to be assessed and to pay income tax in Australia;

prescribed unit trust
, in relation to a year of income, means a trust estate that is a public trading trust in relation to the year of income.

public trading trust
, in relation to a year of income, means a unit trust that is a public trading trust, within the meaning of Division 6C of Part III of the Assessment Act, in relation to the year of income;

reduced share
(Repealed by No 168 of 1999)

reduced taxable income
means the part (if any) of the taxable income other than the special income component;

registered organisation
(Repealed by No 143 of 2007)

resident beneficiary
, in relation to a year of income, means a beneficiary of a trust estate who is not a prescribed non-resident in relation to that year of income;

resident phase-out limit
has the meaning given by subsection 13(10) .

resident taxpayer
, in relation to a year of income, means a taxpayer who is not a prescribed non-resident in relation to that year of income;

resident trust estate
, in relation to a year of income, means a trust estate that, under subsection 95(2) of the Assessment Act, is to be taken to be a resident trust estate in relation to that year of income;

retained amount
(Repealed by No 19 of 2007)

RSA category A component
(Repealed by No 143 of 2007)

RSA category B component
(Repealed by No 143 of 2007)

RSA combined component
(Repealed by No 143 of 2007)

RSA component
has the same meaning as in the Income Tax Assessment Act 1997 .

second resident personal tax rate
means the rate mentioned in item 2 of the table in clause 1 of Part I of Schedule 7 that is applicable to the year of income.

SME income component
has the same meaning as in Subdivision B of Division 10E of Part III of the Assessment Act;

sovereign entity
has the same meaning as in the Income Tax Assessment Act 1997 .

special component
(Repealed by No 19 of 2007)

special income component
, in relation to a taxable income for which there is an abnormal income amount, means:


(a) so much of the taxable income as does not exceed the abnormal income amount; or


(b) if the sum (the component sum ) of:


(i) the abnormal income amount; and

(ii) the superannuation remainder of the taxable income; and

(iii) the employment termination remainder of the taxable income;
is more than the taxable income - the abnormal income amount, reduced by the amount by which the component sum exceeds the taxable income.

standard component
has the same meaning as in the Income Tax Assessment Act 1997 .

superannuation fund
(Repealed by No 98 of 1989)

superannuation remainder
of taxable income means so much of the taxable income as:


(a) is included in assessable income under a maximum tax rate provision in Division 301 of the Income Tax Assessment Act 1997 ; and


(b) does not give rise to an entitlement to a tax offset under that maximum tax rate provision.

tax
means income tax imposed as such by any Act other than income tax payable in accordance with section 121H , 126 , 128B , 128N , 128NA , 128NB , 128T , 128V , 136A or 159C of the Assessment Act.

taxed element
(Repealed by No 19 of 2007)

tax-free threshold
means $18,200.

tax offset
has the same meaning as in the Income Tax Assessment Act 1997 .

unregulated investment component
has the same meaning as in Subdivision B of Division 10E of Part III of the Assessment Act.

working holiday maker
has the meaning given by subsection 3A(1) .

working holiday taxable income
has the meaning given by subsections 3A(2) and (3) .

3(2)  
In this Act -


(a) a reference to net income, taxable income or reduced taxable income shall be read as a reference to net income, taxable income or reduced taxable income, as the case may be, of the year of income; and


(b) a reference to eligible taxable income for the purposes of Division 6AA of Part III of the Assessment Act shall be read as a reference to eligible taxable income of the year of income for the purposes of that Division.

3(3)  
A reference in this Act to the part to which Division 6AA of Part III of the Assessment Act applies of the share of a beneficiary of the net income of a trust estate shall, if that Division applies to the whole of such a share, be read as a reference to the whole of that share.




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