Commonwealth Numbered Acts

INCOME TAX (ARRANGEMENTS WITH THE STATES) ACT 1978 No. 87 of 1978 - SECT 11

11. (1) The State income tax law shall provide that, where-

   (a)  tax is imposed under that law in respect of income of a person of a
        year of income; and

(b) the person has paid tax (in this section referred to as ''foreign tax'')
under the law of a country outside Australia, or under the laws of two or more
such countries, in respect of income, or part of the income, referred to in
paragraph (a) that was derived from a source or sources in the country
concerned, the person will be entitled to a credit in respect of-

   (c)  if the person is entitled under the income tax law of the Commonwealth
        to a credit in respect of part of the foreign tax, being a credit
        calculated by reference to the total foreign tax-so much of the
        foreign tax as has not been allowed or is not allowable as a credit
        under the income tax law of the Commonwealth by reason that the
        foreign tax exceeded the income tax payable in respect of the income
        or part of the income concerned; or

   (d)  if the person is entitled to a credit under the income tax law of the
        Commonwealth in respect of part of the foreign tax, being a credit
        calculated by reference to the foreign tax paid in respect of a
        particular class or classes of income-so much of that part of the
        foreign tax as has not been allowed or is not allowable as a credit
        under the income tax law of the Commonwealth by reason that that part
        of the foreign tax exceeded the income tax payable in respect of the
        class or classes of income concerned.

(2) The State income tax law may provide that a credit to which a person is
entitled under that law in respect of an amount of foreign tax paid in respect
of income of a year of income is not to exceed the amount of the tax payable
under that law in respect of that year of income that is attributable to
income in respect of which the foreign tax was imposed.

(3) A reference in this section to the income tax law of the Commonwealth
shall be construed as a reference to the Income Tax (International Agreements)
Act 1953 and the Income Tax Assessment Act.