Commonwealth act

Income Tax (Non-Resident Companies) Act 1978

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Act Number

173 of 1978

Collection

act

Plain English Summary

2/10 complexity

This Act imposes a flat 5% Australian income tax on certain earnings of non‑resident (foreign) companies — principally the categories of income already identified as taxable under section 128T of the Income Tax Assessment Act 1936 — using the existing "reduced taxable income" calculation from that Act.

It does not change what income is taxable; it simply sets the 5% rate, ensuring foreign companies pay a distinct, lower flat rate on specified Australian‑source profits (e.g., certain dividends).

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Current sections

Direct links to the current provisions in Income Tax (Non-Resident Companies) Act 1978.

Income Tax (Non-Resident Companies) Act 1978

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INCOME TAX (NON-RESIDENT COMPANIES) ACT 1978

No. 173 of 1978

An Act to impose income tax upon the reduced taxable income of non-resident companies.

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:

Short title

This Act may be cited as the Income Tax (Non-Resident Companies) Act 1978.

Commencement

This Act shall come into operation on the day on which it receives the Royal Assent.

Interpretation

In this Act “Assessment Act” means the Income Tax Assessment Act 1936.

Incorporation

The Assessment Act is incorporated, and shall be read as one, with this Act.

Imposition of tax

The tax known as income tax, to the extent that that tax is payable in accordance with section 128t of the Assessment Act, is imposed by this Act.

Rate of tax

The rate of tax imposed by this Act is 5 per centum.

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Source text

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