Commonwealth legislation

Income Tax (Indexation) Regulations

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Act Number

76 of 1977

Collection

legislative instrument

Plain English Summary

1/10 complexity

These regulations set the indexation factor for income tax at 1.109 for the 1977-78 financial year.

What this means:

Indexation is a method of adjusting tax rates or thresholds to keep pace with inflation (rising prices).
The factor of 1.109 acts as a multiplier applied to certain tax amounts to prevent "bracket creep" — this happens when people are pushed into higher tax brackets simply because their wages rose with inflation, not because they actually earned more in real terms.
This is a technical, mathematical update required by the Income Tax (Rates) Act 1976 to ensure tax calculations reflect the changing cost of living for that specific year.

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Current sections

Direct links to the current provisions in Income Tax (Indexation) Regulations.

Income Tax (Indexation) Regulations

Commonwealth Coat of Arms of Australia

Statutory Rules

1977 No. 76

REGULATIONS UNDER THE INCOME TAX (RATES) ACT 1976.*

I, THE ADMINISTRATOR of the Government of the Commonwealth of Australia, acting with the advice of the Federal Executive Council and having regard to the matters referred to in sub-section 9 (5) of the Income Tax (Rates) Act 1976, hereby make the following Regulations under the Income Tax (Rates) Act 1976.

Dated this eighth day of June, 1977.

A. R. CUTLER

Administrator.

By His Excellency’s Command,

PHILLIP LYNCH

Treasurer.

INCOME TAX (INDEXATION) REGULATIONS

Citation.

These Regulations may be cited as the Income Tax (Indexation) Regulations.

Factor prescribed for purposes of sub-section 9 (2).

For the purposes of sub-section 9 (2) of the Income Tax (Rates) Act 1976, the factor prescribed in relation to the year of income commencing on 1 July 1977 is 1.109.

* Notified in the Australian Government Gazette on 14 June 1977.

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

1 Income Tax (Indexation) Regulations