INCOME TAX RATES ACT 1986 - SCHEDULE 11 Rates of tax payable on eligible taxable income

INCOME TAX RATES ACT 1986 - SCHEDULE 11

Subsections   13(1) and 15(1)

Part   I -- Resident taxpayers

  1.   In the case of a resident taxpayer whose eligible taxable income for the purposes of Division   6AA of Part   III of the Assessment Act exceeds $416 and whose taxable income does not consist of or include a special income component, the rates of tax in respect of that part (in this clause referred to as the relevant part ) of the taxable income of the taxpayer other than the eligible taxable income of the taxpayer are the rates that would be payable under Part   I of Schedule   7 if the relevant part of that taxable income were the taxable income of the taxpayer.

  2.   In the case of a resident taxpayer whose eligible taxable income for the purposes of Division   6AA of Part   III of the Assessment Act exceeds $416 and whose taxable income does not consist of or include a special income component, the rate of tax in respect of the eligible taxable income of the taxpayer is 45%.

  3.   For every $1 of the taxable income of a resident taxpayer:

  (a)   whose eligible taxable income for the purposes of Division   6AA of Part   III of the Assessment Act exceeds $416; 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 , where:

A   is the amount of tax that would be payable by the taxpayer under clauses   1 and 2 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)   whichever of the following amounts is applicable:

  (A)   if Division   392 (Long - term averaging of primary producers' tax liability) of the Income Tax Assessment Act 1997 applies--the average income worked out under section   392 - 45 of that Act;

  (B)   if sub - subparagraph   (A) does not apply--the reduced taxable income; and

  (ii)   20% of the part of the special income component other than the eligible part of the special income component; 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 average income worked out under section   392 - 45 of the Income Tax Assessment Act 1997 or reduced taxable income, as the case may be;

C   is 45% of the eligible part of the special income component; and

D   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.

Part   II -- Non - resident taxpayers

  1.   In the case of a non - resident taxpayer who has an eligible taxable income for the purposes of Division   6AA of Part   III of the Assessment Act and whose taxable income does not consist of or include a special income component, the rates of tax in respect of that part (in this clause referred to as the relevant part ) of the taxable income of the taxpayer other than the eligible taxable income of the taxpayer are the rates that would be payable under Part   II of Schedule   7 if the relevant part of that taxable income were the taxable income of the taxpayer.

  2.   In the case of a non - resident taxpayer who has an eligible taxable income for the purposes of Division   6AA of Part   III of the Assessment Act and whose taxable income does not consist of or include a special income component, the rate of tax in respect of the eligible taxable income of the taxpayer is 45%.

  3.   For every $1 of the taxable income of a non - resident taxpayer:

  (a)   who has an eligible taxable income for the purposes of Division   6AA of Part   III of the Assessment Act; 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 , where:

A   is the amount of tax that would be payable by the taxpayer under clauses   1 and 2 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   II of Schedule   7 on a taxable income equal to the sum of:

  (i)   whichever of the following amounts is applicable:

  (A)   if Division   392 (Long - term averaging of primary producers' tax liability) of the Income Tax Assessment Act 1997 applies--the average income worked out under section   392 - 45 of that Act;

  (B)   if sub - subparagraph   (A) does not apply--the reduced taxable income; and

  (ii)   20% of the part of the special income component other than the eligible part of the special income component; and

  (d)   the amount of tax that would be payable by the taxpayer under clause   1 of Part   II of Schedule   7 on a taxable income equal to the average income worked out under section   392 - 45 of the Income Tax Assessment Act 1997 or reduced taxable income, as the case may be;

C   is 45% of the eligible part of the special income component; and

D   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.