Pursuant to the Tax Collection Act 1920 the State and Commonwealth Governments reached an Agreement whereby the Commonwealth would collect on behalf of the state, all taxes and duties payable under the 'Land and Income Assessment Act' 1907, the 'Dividend Duties Act 1902,' and the 'Totalisator Duties Act' 1905. On the date this Agreement took effect (1 July 1921) all State Taxation Department Officers, including the Commissioner, were transferred to the Commonwealth Public Service. The Deputy Federal Commissioner of Taxation was given authority under the Agreement to act as the State Commissioner of Taxation. In June 1941 the Commonwealth assumed total control of income tax collection. Those branches of the Federal Taxation Department that dealt with land valuation and the collection of state taxes were transferred back to State jurisdiction in 1970 and integrated with the State Taxation Department.

See: 'Fourteenth Annual Report of the State Commissioner of Taxation' 1921/1922. Parliamentary Paper No. 22. 1922. 'Hansard' Volume 185 (1969-1970) Page 2783-4.