Income Tax Rates Act 1986

Schedules

SCHEDULE 7 - GENERAL RATES OF TAX  

Subsection 12(1)


PART I - RESIDENT TAXPAYERS  

SECTION 3.   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


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 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.


     

    Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

    CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

    The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.