{"id":"C2004A00325","name":"Income Tax (Untainting Tax) Act 1998","slug":"income-tax-untainting-tax-act-1998","collection":"act","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":"65 of 1998","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":5964,"registerId":"commonwealth-C2004A00325-current","compilationNumber":null,"startDate":"2026-03-30","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Income Tax (Untainting Tax) Act 1998","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\ntitle: untainting tax bill 24/02/98\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.png)\n\n \n\n \n\n \n\n \n\nIncome Tax (Untainting Tax) Act 1998\n\n \n\nNo. 65, 1998\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n![](image.002.png)\n\n \n\n \n\n \n\n \n\nIncome Tax (Untainting Tax) Act 1998\n\n \n\nNo. 65, 1998\n\n \n\n \n\n \n\n \n\nAn Act to impose a tax in relation to untainting tainted share capital accounts of companies\n\n \n\n \n\n \n\nContents\n\n1 Short title..................................1\n\n2 Commencement..............................1\n\n3 Imposition of tax..............................2\n\n \n\n![](image.003.png)\n\nIncome Tax (Untainting Tax) Act 1998\n\nNo. 65, 1998\n\n \n\n \n\n \n\nAn Act to impose a tax in relation to untainting tainted share capital accounts of companies\n\n[Assented to 30 June 1998]\n\nThe Parliament of Australia enacts:\n\n1  Short title\n\n  This Act may be cited as the Income Tax (Untainting Tax) Act 1998.\n\n2  Commencement\n\n  This Act commences at the same time as section 1 of the Taxation Laws Amendment (Company Law Review) Act 1998.\n\n3  Imposition of tax\n\n  Tax payable under section 160ARDT or 160ARDY of the Income Tax Assessment Act 1936 is imposed.\n\n \n\n \n\n[Minister's second reading speech made in—\n\nHouse of Representatives on 8 April 1998\n\nSenate on 23 June 1998]\n\n \n\n(57/98)\n\n\n \n\n \n\n \n","sortOrder":0}],"analysis":{"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-batch","completionTokens":1756},"content_quality":"ok","complexity_score":1,"scope_assessment":{"changed":false,"description":"This remains a narrow, single-purpose imposition Act. It was enacted solely to impose tax on the untainting of share capital accounts under the company law review reforms, and its scope has not expanded beyond that original purpose."},"complexity_factors":["Only 3 operative sections","Single sentence of substantive law (section 3)","No defined terms within the Act itself","Relies entirely on external references to the Income Tax Assessment Act 1936 for all substantive rules"],"plain_english_summary":"This is a short technical law that **formally creates a specific tax** on companies choosing to \"untainting\" their share capital accounts.\n\nIn the late 1990s, company law reforms allowed companies to convert certain \"tainted\" share capital (amounts previously treated like taxable dividends) back to regular share capital. To prevent tax avoidance—where shareholders might otherwise receive company money as tax-free capital instead of taxable dividends—this Act imposes a tax on that conversion process.\n\n**Key points:**\n- **What it does**: Legally imposes the \"untainting tax\" (a constitutional requirement for any Commonwealth tax)\n- **Who it affects**: Companies that choose to untainting tainted share capital accounts\n- **How it works**: This Act doesn't set the tax rate or calculation rules; it simply authorises the tax. The actual amounts payable are calculated under sections **160ARDT** and **160ARDY** of the *Income Tax Assessment Act 1936* (the main tax law)."}},"importantCases":[],"_links":{"self":"/api/acts/income-tax-untainting-tax-act-1998","history":"/api/acts/income-tax-untainting-tax-act-1998/history","analysis":"/api/acts/income-tax-untainting-tax-act-1998/analysis","conflicts":"/api/acts/income-tax-untainting-tax-act-1998/conflicts","importantCases":"/api/acts/income-tax-untainting-tax-act-1998/important-cases","documents":"/api/acts/income-tax-untainting-tax-act-1998/documents"}}