The Secretary to the Treasury has forwarded me a copy of the Unemployment Relief Act 1930 of the State of Victoria and desires advice as to whether employees of the Commonwealth Public Service will be subject to the tax.

The Act is read and construed as one with the Income Tax Act 1928 and amending Acts.

Section 3 of the Act provides, inter alia, for the charging, levying, collection and payment for the use of His Majesty in aid of the consolidated revenue of an Unemployment Relief Tax in accordance with the Act and the Schedule.

By sub-section (3) of that section every person whose taxable income:

1. derived or received from any source other than salary or wages–is not less than fifty-two pounds or not more than three hundred and twelve pounds; or
2. whether derived or received from salary or wages or any other source or all or some of them–is more than three hundred and twelve pounds–is liable to pay the tax.

The section then proceeds to enact certain exceptions from the incidents of the tax as set out in the earlier provisions of the section.

Section 6 provides for the assessment of the tax by the Commissioner and for the payment into a fund to be called ‘The Unemployment Relief Fund’ of an amount equivalent to the amount paid into the consolidated revenue in pursuance of the Act.

Section 2 of the Commonwealth Salaries Act 1907 provides, inter alia, that the taxation by a State, in common with other salaries earned within the State, of the official salaries of officers of the Commonwealth residing in the State earned in the State after the commencement of the Act shall not, if the taxation is not at a higher rate, or to a greater extent than is imposed upon other salaries of the same amount earned in the State, be deemed to be an interference with the exercise of any power of the Commonwealth, or to be inconsistent with any Act by or in pursuance of which the salary is fixed or made payable.

In my opinion, in view of these provisions Unemployment Relief Tax is payable by employees of the Commonwealth Public Service resident in Victoria in common with other residents of the State.

[Vol. 24, p. 632]