INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 16 - Averaging of incomes  

SECTION 156   REBATE OF TAX FOR, OR COMPLEMENTARY TAX PAYABLE BY, CERTAIN PRIMARY PRODUCERS  

156(1A)   [Limit to application of subsec (4) and (4A)]  

Subsections (4) and (4A) do not apply to an assessment for the 1998-99 income year or a later income year.

Note:

This means that an individual taxpayer is not entitled to a rebate or required to pay complementary tax under this section for those income years (and that subsections (1), (2) and (3) are not relevant to those income years). Division 392 of the Income Tax Assessment Act 1997 provides for averaging of individual primary producers' tax liability for years of income after 1997-98, taking into account the tax on their average incomes.

156(4)   [Rebate - taxpayer not a trustee]  

Where:


(a) this Division applies to the income of a taxpayer of a year of income, not being income in respect of which the taxpayer is liable to be assessed and to pay tax in the capacity of a trustee of a trust estate; and


(b) the amount of tax that would, apart from this section, section 94 , Division 6AA and Part VIIB and Division 5 of Part II of the Income Tax Rates Act 1986 and but for any rebate or credit to which the taxpayer is entitled, be payable by the taxpayer in respect of his taxable income of the year of income exceeds the amount of tax that would, apart from this section, section 94 , Division 6AA and Part VIIB and but for any rebate or credit to which the taxpayer is entitled, be payable by the taxpayer in respect of that taxable income if the notional rates declared by the Parliament for the purposes of this section were the rates of tax payable by the taxpayer in respect of that taxable income;

the taxpayer is entitled, in his assessment in respect of income of the year of income, to a rebate of tax of an amount ascertained in accordance with the formula


AB
  C   '

where:

A is the number of whole dollars in the deemed taxable income from primary production of the taxpayer of the year of income;

B is the excess referred to in paragraph (b); and

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

156(4A)   [Liability for complementary tax]  

Where:


(a) this Division applies to the income of a taxpayer of a year of income, not being income in respect of which the taxpayer is liable to be assessed and to pay tax in the capacity of a trustee of a trust estate; and


(b) the amount of tax that would, apart from this section, section 94 , Division 6AA and Part VIIB and but for any rebate or credit to which the taxpayer is entitled, be payable by the taxpayer in respect of his taxable income of the year of income if the notional rates declared by the Parliament for the purposes of this section were the rates of tax payable by the taxpayer in respect of that taxable income exceeds the amount of tax that would, apart from this section, section 94 , Division 6AA and Part VIIB and Division 5 of Part II of the Income Tax Rates Act 1986 and but for any rebate or credit to which the taxpayer is entitled, be payable by the taxpayer in respect of that taxable income,

the taxpayer is liable to pay complementary tax, at the rate declared by the Parliament for the purposes of this subsection, on so much of the taxable income of the taxpayer of the year of income as is equal to the deemed taxable income from primary production of the taxpayer of the year of income.


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