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This is a Bill, not an Act. For current law, see the Acts databases.
1998-99
The
Parliament of the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
A New Tax
System (Taxation Laws Amendment) Bill (No. 1)
1999
No. ,
1999
(Treasury)
A Bill
for an Act to implement A New Tax System by amending the law about taxation, and
for related purposes
ISBN: 0642 405808
Contents
Part 1—Amendment of the Taxation Administration Act
1953 3
Part 2—Consequential amendment of
Acts 121
Income Tax Assessment Act
1997 121
Income Tax Assessment Act
1936 124
A New Tax System (Goods and Services Tax) Act
1999 132
A New Tax System (Goods and Services Tax Administration) Act
1999 137
A New Tax System (Australian Business Number) Act
1999 137
Fringe Benefits Tax Assessment Act
1986 139
Taxation Administration Act
1953 140
Part 1—Running balance
accounts 142
Division 1—Amendment of Part IIB of the Taxation Administration Act
1953 142
Division 2—Consequential
amendments 149
Income Tax Assessment Act
1936 149
Sales Tax Assessment Act
1992 149
Taxation (Interest on Overpayments and Early Payments) Act
1983 150
Division 3—Application and
transitional 150
Part 2—General interest
charge 151
Crimes (Taxation Offences) Act
1980 151
Income Tax Assessment Act
1936 151
Income Tax Assessment Act
1997 156
Sales Tax Assessment Act
1992 156
Taxation Administration Act
1953 157
Taxation (Interest on Overpayments and Early Payments) Act
1983 158
Taxation Laws Amendment Act (No. 3)
1999 159
Part 3—Fringe benefits
tax 161
Fringe Benefits Tax Assessment Act
1986 161
A Bill for an Act to implement A New Tax System by
amending the law about taxation, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the A New Tax System (Taxation Laws
Amendment) Act (No. 1) 1999.
(1) Subject to this section, this Act commences on the day on which it
receives the Royal Assent.
(2) Items 70 and 71 of Schedule 1 to this Act commence, or are taken to
have commenced, immediately before the commencement of Schedule 1 to the A
New Tax System (Goods and Services Tax Administration) Act 1999.
Subject to section 2, each Act that is specified in a Schedule to this
Act is amended or repealed as set out in the applicable items in the Schedule
concerned, and any other item in a Schedule to this Act has effect according to
its terms.
Section 170 of the Income Tax Assessment Act 1936 does not prevent
the amendment of an assessment made before the commencement of this section for
the purposes of giving effect to this Act.
Part
1—Amendment of the Taxation
Administration Act 1953
Insert in Part I:
(1) Schedule 1 has effect.
Application of interpretation provisions of Income Tax Assessment Act
1997
(2) An expression has the same meaning in Schedule 1 as in the Income
Tax Assessment Act 1997.
(3) Division 950 of the Income Tax Assessment Act 1997 (which
contains rules for interpreting that Act) applies to Schedule 1 to this Act as
if the provisions in that Schedule were provisions of that Act.
Application of provisions of Income Tax Assessment Act
1936
(4) Section 264B of the Income Tax Assessment Act 1936 (about
signature or electronic signature for notices etc. given to the Commissioner)
applies to Schedule 1 to this Act as if the provisions in that Schedule were
provisions of that Act.
Add:
Note: See section 3AA.
To help taxpayers meet their annual income tax liability, they are required
to pay amounts of their income at regular intervals as it is earned during the
year. The system for collecting these amounts is called “Pay as you
go”.
Amounts collected under this system also go towards meeting liability for
Medicare levy and liability to repay contributions under the Higher Education
Contribution Scheme (HECS).
Table of sections
6-5 The Pay as you go (PAYG) system
6-10 How the amounts collected are dealt
with
(1) Parts 2-5 and 2-10 establish the PAYG system, which has 2
components:
• PAYG withholding (Part 2-5)
• PAYG instalments (Part 2-10).
PAYG withholding
(2) Under PAYG withholding, amounts are collected in respect of particular
kinds of payments or transactions. Usually, someone who makes a payment to you
is required to withhold an amount from the payment, and then to pay the
amount to the Commissioner.
For a list of the payments and other
transactions to which
PAYG withholding applies, see
Division 10
PAYG instalments
(3) You pay PAYG instalments directly to the Commissioner. These are
usually based on your ordinary income for a past period, but
excluding:
• income subject to PAYG withholding
(with certain exceptions)
• exempt income, or income that is otherwise not assessable.
An instalment is usually paid after each quarter, but some taxpayers are
eligible to pay an annual instalment after the end of the income year.
You are entitled to credits for the amounts of your income that are
collected under the PAYG system. The credits are applied under Division 3 of
Part IIB against your tax debts, and any excess is refunded to
you.
Under PAYG withholding, amounts are collected in respect of particular
kinds of payments or transactions. Usually, someone who makes a payment to you
is required to withhold an amount from the payment, and then to pay the
amount to the Commissioner.
If a non-cash benefit is provided instead of a payment, the provider must
first pay to the Commissioner the amount that would have been withheld from the
payment.
This Part also contains provisions about the obligations and rights of
payers and recipients.
The payments and other transactions covered by PAYG withholding are
called withholding payments. They are summarised in the table.
Note: The obligation to pay an amount to the Commissioner is
imposed on the entity making the withholding payment (except for items 17, 19
and 22).
|
Summary of withholding payments |
||
|---|---|---|
|
Item |
Withholding payment |
Section |
|
1 |
A payment of salary etc. to an employee |
12-35 |
|
2 |
A payment of remuneration to the director of a company |
12-40 |
|
3 |
A payment of salary etc. to an office holder (e.g. a member of the Defence
Force) |
12-45 |
|
4 |
A return to work payment to an individual |
12-50 |
|
5 |
A payment that is covered by a voluntary agreement |
12-55 |
|
6 |
A payment under a labour hire arrangement or a payment specified by
regulations |
12-60 |
|
7 |
A payment of pension or annuity |
12-80 |
|
8 |
An eligible termination payment |
12-85 |
|
9 |
A payment for unused leave on an individual’s retirement or
termination of employment |
12-90 |
|
10 |
A social security or similar payment (e.g. old age pension) |
12-110 |
|
11 |
A Commonwealth education or training payment |
12-115 |
|
12 |
A compensation, sickness or accident payment |
12-120 |
|
13 |
A payment arising from an investment where the recipient does not quote its
tax file number, or in some cases, its ABN |
12-140 |
|
14 |
Investor becoming presently entitled to income of a unit trust |
12-145 |
|
15 |
A payment for a supply where the recipient of the payment does not quote
its ABN |
12-190 |
|
16 |
A dividend payment to an overseas person |
12-210 |
|
17 |
A dividend payment received for a foreign resident |
12-215 |
|
18 |
An interest payment to an overseas person |
12-245 |
|
19 |
An interest payment received for a foreign resident |
12-250 |
|
20 |
An interest payment derived by a lender in carrying on business through
overseas permanent establishment |
12-255 |
|
21 |
A royalty payment to an overseas person |
12-280 |
|
22 |
A royalty payment received for a foreign resident |
12-285 |
|
23 |
A mining payment |
12-320 |
|
24 |
A natural resource payment |
12-325 |
Table of sections
11-5 Constructive payment
The object of this Part is to ensure the efficient collection
of:
(a) income tax; and
(b) Medicare levy; and
(c) amounts of liabilities to the Commonwealth under Chapter 5A of the
Higher Education Funding Act 1988; and
(d) *withholding tax; and
(e) *mining withholding tax.
(1) In working out whether an entity has paid an amount to another entity,
and when the payment is made, the amount is taken to have been paid to the other
entity when the first entity applies or deals with the amount in any way on the
other’s behalf or as the other directs.
(2) An amount is taken to be payable by an entity to another entity if the
first entity is required to apply or deal with it in any way on the
other’s behalf or as the other directs.
Table of Subdivisions
12-B Payments for work and services
12-C Retirement payments, eligible termination payments and
annuities
12-D Benefit and compensation payments
12-E Payments where TFN or ABN not quoted
12-F Dividend, interest and royalty payments
12-G Payments in respect of mining on Aboriginal land, and natural
resources
Table of sections
12-5 What to do if more than one provision requires a
withholding
12-10 Division does not apply to non-cash
benefits
12-15 Amounts to be expressed in Australian
currency
Exempt income of recipient
(1) An entity need not withhold an amount under section 12-35, 12-40,
12-45, 12-50, 12-55, 12-60, 12-80, 12-90, 12-120 or 12-190 from a payment if the
whole of the payment is *exempt income of the
entity receiving the payment.
Living-away-from-home allowance benefit
(2) In working out how much to withhold under section 12-35, 12-40, 12-45,
12-115 or 12-120 from a payment, disregard so much of the payment as is a
living-away-from-home allowance benefit as defined by section 136 of the
Fringe Benefits Tax Assessment Act 1986.
Expense payment benefit
(3) In working out how much to withhold under section 12-35, 12-40, 12-45,
12-115 or 12-120 from a payment, disregard so much of the payment as:
(a) is an expense payment benefit as defined by section 136 of the
Fringe Benefits Tax Assessment Act 1986; and
(b) is not an exempt benefit under section 22 of that Act (about
reimbursement of car expenses on the basis of distance travelled).
(1) If more than one provision in this Division covers a payment, only one
amount is to be withheld from the payment.
(2) The provision to apply is the one that is most specific to the
circumstances of the payment. However, this general rule is subject to the
specific rules in the table.
|
Specific rules for determining priority among withholding
provisions |
|||
|---|---|---|---|
|
Item |
Apply: |
Which is about: |
In priority to: |
|
1 |
section 12-35, 12-40, 12-45 or 12-50 |
a payment for work or services |
section 12-60 (payment under a labour hire arrangement or specified by
regulations); or section 12-190 (payment for a supply where recipient does not quote its
ABN) |
|
2 |
section 12-80, 12-85 or 12-90 |
a retirement payment, an eligible termination payment or an
annuity |
section 12-60 (payment under a labour hire arrangement or specified by
regulations); or section 12-190 (payment for a supply where recipient does not quote its
ABN) |
|
3 |
section 12-110, 12-115 or 12-120 |
a payment of benefit or compensation |
section 12-60 (payment under a labour hire arrangement or specified by
regulations); or section 12-190 (payment for a supply where recipient does not quote its
ABN) |
|
4 |
section 12-60 |
a payment under a labour hire arrangement or specified by
regulations |
section 12-190 (payment for a supply where recipient does not quote its
ABN) |
|
5 |
section 12-140 or 12-145 |
a payment arising from investment where the recipient does not quote tax
file number |
section 12-210, 12-215, 12-245, 12-250 or 12-255 (payment of a dividend or
interest) |
|
6 |
section 12-280 or 12-285 |
a payment of royalty |
section 12-325 (natural resource payment) |
Note: Some provisions of this Division clearly do not cover
a payment covered by some other provisions. For example:
• Section 12-55 (about voluntary agreements) covers a
payment only if no other provision requires the payer to withhold an amount from
the payment.
This Division does not apply to a payment in so far as it consists of
providing a *non-cash benefit.
Note: If a non-cash benefit is provided in circumstances
where a payment would give rise to a withholding obligation, the provider must
pay an amount to the Commissioner: see Division 14.
The amount that this Division requires to be withheld from a payment made
in foreign currency:
(a) is to be expressed in Australian currency; and
(b) is to be worked out on the basis of the exchange rate applicable when
the amount is required to be withheld under this Division.
Table of sections
12-40 Payment to company director
12-45 Payment to office holder
12-50 Return to work payment
12-55 Voluntary agreement to withhold
12-60 Payment under labour hire arrangement, or specified by
regulations
An entity must withhold an amount from salary, wages, commission, bonuses
or allowances it pays to an individual as an employee (whether of that or
another entity).
For exceptions, see section
12-1.
A company must withhold an amount from a payment of remuneration it makes
to an individual:
(a) if the company is incorporated—as a director of the company, or
as a person who performs the duties of a director of the company; or
(b) if the company is not incorporated—as a member of the committee
of management of the company, or as a person who performs the duties of such a
member.
For exceptions, see section
12-1.
(1) An entity must withhold an amount from salary, wages, commission,
bonuses or allowances it pays to an individual as:
(a) a member of an *Australian
legislature; or
(b) a person who holds, or performs the duties of, an appointment, office
or position under the Constitution or an
*Australian law; or
(c) a member of the Defence Force, or of a police force of the
Commonwealth, a State or a Territory; or
(d) a person who is otherwise in the service of the Commonwealth, a State
or a Territory; or
(e) a member of a local governing body to which subsection (3)
applies.
For exceptions, see subsection (2) and section
12-1.
(2) This section does not require an amount to be withheld from a payment
to an individual as a member of a local governing body established by or under a
*State law or
*Territory law unless subsection (3) applies to
the body.
(3) This subsection applies to a local governing body established by or
under a *State law or
*Territory law if:
(a) the body has unanimously resolved that it be treated as an eligible
local governing body for the purposes of Division 2 of Part VI of the Income
Tax Assessment Act 1936, or of this Division; and
(b) that body has not unanimously resolved to cancel the
resolution.
For rules about such resolutions, see section
221B of
the Income Tax Assessment Act
1936.
An entity must withhold an amount from a payment it makes to an
individual if the payment is included in the individual’s assessable
income under section 15-3 of the Income Tax Assessment Act 1997 (return
to work payments).
For
exceptions, see section 12-1.
(1) An entity must withhold an amount from a payment it makes to an
individual if:
(a) the payment is made under an
*arrangement the performance of which, in whole
or in part, involves the performance of work or services (whether or not by the
individual); and
(b) no other provision of this Division requires the entity to withhold an
amount from the payment; and
(c) the entity and the individual are parties to an agreement (the
voluntary agreement) that is in the
*approved form and states that this section
covers payments under the arrangement mentioned in paragraph (a), or under a
series of such arrangements that includes that arrangement; and
(d) the individual has an *ABN that is in
force and is *quoted in that
agreement.
For exceptions, see section
12-1.
(2) Each party must keep a copy of the voluntary agreement from when it is
made until 5 years after the making of the last payment covered by the
agreement.
Penalty: 30 penalty units.
Note: See section 4AA of the Crimes Act 1914 for the
current value of a penalty unit.
(3) A party to the voluntary agreement may terminate it at any time by
notifying the other party in writing.
An entity that carries on an *enterprise
must withhold an amount from a payment that it makes to an individual in the
course or furtherance of the enterprise if:
(a) the payment is made under an
*arrangement the performance of which, in whole
or in part, involves the performance of work or services by the individual for a
client of the entity; or
(b) the payment is, in whole or in part, for work or services and is of a
kind prescribed by the regulations.
For exceptions, see section
12-1.
Table of sections
12-80 Payment
of pension or annuity
12-85 Eligible termination payment
12-90 Payment for unused leave
An entity must withhold an amount from a payment it makes to an
individual if the payment is:
(a) a pension within the meaning of the Superannuation Industry
(Supervision) Act 1993 or the Retirement Savings Account Act 1997;
or
(b) an annuity within the meaning of the Superannuation Industry
(Supervision) Act 1993.
For exceptions, see section
12-1.
An entity must withhold an amount from an
*eligible termination payment it makes to an
individual.
An entity must withhold an amount from a payment it makes to an
individual if the payment is included in the individual’s assessable
income under:
(a) section 26AC (payment for unused annual leave); or
(b) section 26AD (payment for unused long service leave);
of the Income Tax Assessment Act 1936.
For exceptions, see section
12-1.
Table of sections
12-110 Social
Security or other benefit payment
12-115 Commonwealth education or training
payment
12-120 Compensation, sickness or accident
payment
(1) An entity must withhold an amount from a payment it makes to an
individual if the payment is specified in:
(a) an item of the table in section 52-10 of the Income Tax Assessment
Act 1997 (Social Security payments); or
(b) an item of the table in section 52-65 of that Act (Veterans’
Affairs payments); or
(c) section 52-105, 53-10, 55-5 or 55-10 of that Act.
Note: Payments specified in those provisions of the
Income Tax Assessment Act 1997 are made under various Commonwealth
laws.
(2) In working out the amount to be withheld, disregard so much of the
payment as is *exempt income of the
individual.
(1) An entity must withhold an amount from a
*Commonwealth education or training payment it
makes to an individual.
For exceptions, see subsection (2) and section
12-1.
(2) In working out the amount to be withheld, disregard so much of the
payment as is *exempt income of the
individual.
An entity must withhold an amount from a payment of compensation, or of
sickness or accident pay, it makes to an individual if the payment:
(a) is made because of that or another individual’s incapacity for
work; and
(b) is calculated at a periodical rate; and
(c) is not a payment made under an insurance policy to the policy
owner.
For exceptions, see section
12-1.
Table of sections
Payment
in respect of investment
12-140 Recipient does not quote tax file
number
12-145 Investor becoming presently entitled to income of a
unit trust
12-150 Limited application of section 12-140 to payment
under eligible deferred interest investment
12-155 When investor may quote ABN as
alternative
12-160 Investment body unaware that exemption from quoting
TFN has stopped applying
12-165 Exception for fully franked dividend
12-170 Exception for payments below thresholds set by
regulations
Payment for a supply
12-190 Recipient does not quote ABN
(1) An
*investment body must withhold an amount from a
payment it makes to another entity in respect of a
*Part VA investment if:
(a) all or some of the payment is
*ordinary income or
*statutory income of the other entity;
and
(b) if the investment is non-transferable—the other entity did not
*quote its
*tax file number in connection with the
investment before the time when the payment became payable; and
(c) if the investment is transferable—the other entity did not quote
its tax file number in connection with the investment before the time when the
other entity had to be registered with the investment body as the
*investor
to be entitled to the payment.
Payment in respect of units in a trust or investment-related betting
chance
(2) If a *Part VA investment consists
of:
(a) units in a unit trust (as defined in section 202A of the Income Tax
Assessment Act 1936); or
(b) an investment-related betting chance;
an entity (including the *investment body)
must withhold an amount from a payment it makes to another entity in respect of
the investment if the conditions in subsection (1) of this section are
met.
For exceptions to the rules in this section,
see sections 12-155 to 12-170.
(1) This section applies if:
(a) a *Part VA investment consists of
units in a unit trust (as defined in section 202A of the Income Tax
Assessment Act 1936); and
(b) the *investor becomes presently
entitled, for the purposes of Division 6 of Part III of the Income Tax
Assessment Act 1936, to a share of income of the trust at a time (the
entitlement time) before any of that share is paid to the
investor.
(2) The entity (including the *investment
body) that would have to pay that share to the
*investor if the share were due and payable at
the entitlement time must withhold from the share, at that time, the amount (if
any) that subsection 12-140(2) would have required it to withhold if it had paid
the share to the investor at that time.
For exceptions to the rules in this section,
see sections 12-155 to 12-170.
(3) This Part (except section 12-140 and this section) applies as if that
entity had paid that share to the *investor at
the entitlement time.
(4) If that entity withholds an amount from that share as required by
subsection (2), subsection 12-140(2) does not require an amount to be withheld
from a payment of all or part of that share to the
*investor.
Section 12-140 applies to a payment in respect of an eligible deferred
interest investment (as defined in subsection 221YHZA(1) of the Income Tax
Assessment Act 1936) only to the extent that is covered by one or both of
these paragraphs:
(a) so much of the payment as consists of a periodic interest payment
(within the meaning of Division 16E of Part III of that Act);
(b) if the payment became payable at the end of the term (within the
meaning of Division 16E of Part III of that Act) of the investment—so much
of the payment as does not exceed what section 159GQ of that Act would
include in the *investor’s assessable
income for the income year in which that term ended if the adoption (under
section 18 of that Act) of an accounting period ending on a day other than 30
June were disregarded for the purposes of this paragraph and that
Division.
Note: To the extent that section 12-140 does not apply to
the payment, TFN withholding tax may be payable on it. See Subdivision C of
Division 3B of Part VI of the Income Tax Assessment Act
1936.
Section 12-140 or 12-145 does not require an amount to be withheld
if:
(a) the other entity made the investment in the course or furtherance of
an *enterprise carried on by it; and
(b) the other entity has an *ABN, and has
*quoted it to the investment body, by the time
referred to in paragraph 12-140(1)(b) or (c).
Section 12-140 or 12-145 does not require an amount to be withheld
if:
(a) a provision of Division 5 of Part VA of the Income Tax Assessment
Act 1936 has applied to the other entity in relation to the investment, but
no longer applies when the payment is made; and
(b) when the payment is made, the
*investment body has not been informed of
anything that resulted in the provision no longer applying.
Note: Division 5 of Part VA of that Act provides, in certain
cases, that even though an entity has not quoted its tax file number it is taken
to have done so.
Section 12-140 does not require an amount to be withheld if:
(a) the investment consists of *shares in
a public company (as defined in section 202A of the Income Tax Assessment Act
1936); and
(b) the payment is a *dividend that has
been franked in accordance with section 160AQF of the Income Tax Assessment
Act 1936; and
(c) the franking percentage (within the meaning of section 160APA of that
Act) for the dividend is 100%.
(1) Section 12-140 or 12-145 does not require an amount to be withheld if
the payment is less than the amount worked out under the regulations.
(2) Regulations made for the purposes of this section may deal differently
with different payments.
(1) An entity (the payer) must withhold an amount from a
payment it makes to another entity if:
(a) the payment is for a *supply that the
other entity has made, or proposes to make, to the payer in the course or
furtherance of an *enterprise
*carried on in Australia by the other entity;
and
(b) none of the exceptions in this section applies.
ABN correctly quoted
(2) The payer need not withhold an amount under this section if, when the
payment is made:
(a) the other entity has given the payer an
*invoice that relates to the supply and
*quotes the other entity’s
*ABN; or
(b) the payer has some other document relating to the supply on which the
other entity’s ABN is *quoted.
Payer has no reason to believe that ABN has been incorrectly
quoted
(3) The payer also need not withhold an amount under this section if, when
the payment is made:
(a) the other entity has given the payer an
*invoice that relates to the supply and
purports to *quote the other entity’s
*ABN, or the payer has some other document that
relates to the supply and purports to *quote
the other entity’s ABN; and
(b) the other entity does not have an ABN, or the invoice or other
document does not in fact quote the other entity’s ABN; and
(c) the payer has no reasonable grounds to believe that the other entity
does not have an ABN, or that the invoice or other document does not quote the
other entity’s ABN.
No need to quote ABN
(4) The payer need not withhold an amount under this section if:
(a) the payer is an individual and the payment is, for the payer, wholly
of a private or domestic nature; or
(b) the payment does not exceed $50 or such higher amount as is specified
in regulations in force for the purposes of subsection 29-80(1) of the
*GST Act;
or
(c) the supply is made in the course or furtherance of an activity, or
series of activities, done as a member of a local governing body established by
or under a *State law or
*Territory law.
(5) The payer need not withhold an amount under this section if the
payment:
(a) is covered by section 12-140 or 12-145 (about not quoting
*tax file number in respect of an investment in
respect of which the payment is made); or
(b) would be covered by section 12-140 or 12-145 if the other entity had
not quoted as mentioned in subsection 12-140(1) or section 12-155; or
(c) would be covered by section 12-140 or 12-145 apart from section
12-160, 12-165 or 12-170 (which are exceptions to sections 12-140 and
12-145).
(6) The payer need not withhold an amount under this section if, when the
payment is made:
(a) the other entity is an individual and has given the payer a written
statement to the effect that:
(i) the supply is made in the course or
furtherance of an activity, or series of activities, done as a private
recreational pursuit or hobby; or
(ii) the supply is, for the other entity, wholly of a private or domestic
nature; and
(b) the payer has no reasonable grounds to believe that the statement is
false or misleading in a material particular.
Table of sections
Dividends
12-210 Dividend payment to overseas person
12-215 Dividend payment received for foreign
resident
12-220 Application to part of a dividend
12-225 Application to distribution by a liquidator or other
person
Interest
12-245 Interest payment to overseas person
12-250 Interest payment received for foreign
resident
12-255 Interest payment derived by lender in carrying on
business through overseas permanent establishment
12-260 Lender to notify borrower if interest derived through
overseas permanent establishment
Royalties
12-280 Royalty payment to overseas person
12-285 Royalty payment received for foreign
resident
General
12-300 Limits on amount withheld under this
Subdivision
A company that is an Australian resident must withhold an amount from a
*dividend it pays if:
(a) according to the register of the company’s members, the entity,
or any of the entities, holding the *shares on
which the dividend is paid has an address outside Australia; or
(b) that entity, or any of those entities, has authorised or directed the
company to pay the dividend to an entity or entities at a place outside
Australia.
For
limits on the amount to be withheld, see section 12-300.
Immediately after receiving a payment of a
*dividend of a company that is an Australian
resident, an entity must withhold an amount from the dividend if:
(a) the entity is a person in Australia or an
*Australian government agency; and
(b) a foreign resident is entitled:
(i) to receive the dividend or part of it from the entity, or to receive
the amount of the dividend or of part of it from the entity; or
(ii) to have the entity credit to the foreign resident, or otherwise deal
with on the foreign resident’s behalf or as the foreign resident directs,
the dividend or part of it, or the amount of the dividend or of part of
it.
For limits on the amount to be withheld, see
section 12-300.
This Part applies to a part of a
*dividend in the same way as to a
dividend.
This Part applies to a distribution that section 47 of the Income Tax
Assessment Act 1936 treats as a *dividend
paid by a company, in the same way as this Part applies to a dividend paid by
the company, and as if the liquidator or other person making the distribution
were the company.
An entity must withhold an amount from interest (within the meaning of
Division 11A of Part III of the Income Tax Assessment Act 1936) it pays
to an entity, or to entities jointly, if:
(a) the recipient or any of the recipients has an address outside
Australia according to any record that is in the payer’s possession, or is
kept or maintained on the payer’s behalf, about the transaction to which
the interest relates; or
(b) the payer is authorised to pay the interest at a place outside
Australia (whether to the recipient or any of the recipients or to anyone
else).
For
limits on the amount to be withheld, see section 12-300.
Immediately after receiving a payment of interest (within the meaning of
Division 11A of Part III of the Income Tax Assessment Act 1936), an
entity must withhold an amount from the payment if:
(a) the entity is a person in Australia or an
*Australian government agency; and
(b) a foreign resident is entitled:
(i) to receive the interest or part of it from the entity, or to receive
the amount of the interest or of part of it from the entity; or
(ii) to have the entity credit to the foreign resident, or otherwise deal
with on the foreign resident’s behalf or as the foreign resident directs,
the interest or part of it, or the amount of the interest or of part of
it.
For limits on the amount to be withheld, see
section 12-300.
An entity must withhold an amount from interest (within the meaning of
Division 11A of Part III of the Income Tax Assessment Act 1936) it pays
if it has been notified:
(a) under section 12-260 of this Act that this section applies to the
interest; or
(b) under subsection 221YL(2E) of the Income Tax Assessment Act
1936 that that subsection applies to the interest.
For limits on the amount to be withheld, see
section 12-300.
(1) If:
(a) interest (within the meaning of Division 11A of Part III of the
Income Tax Assessment Act 1936) is payable to:
(i) an entity that is, or entities at least one of whom is, an Australian
resident; or
(ii) an *Australian government agency;
and
(b) the entity liable to pay the interest is authorised to pay it at a
place in Australia (whether to any of those entities or the agency, or to anyone
else); and
(c) the interest is or will be *derived
by any of those entities or the agency in carrying on business in a country
outside Australia at or through a *permanent
establishment it has in that country;
those entities, or the agency, must notify the entity liable to pay the
interest that section 12-255 applies to the interest.
(2) The notice must be given in writing, before the entities, or the
agency, enter into the transaction in relation to which the interest is payable,
or within one month afterwards.
(3) Immediately after giving the notice, those entities, or the agency,
must notify the Commissioner of:
(a) the particulars of the transaction (including the dates on which
interest is payable under it); and
(b) the day when the notice was given to the entity liable to pay the
interest.
Failure to comply with this section may
contravene section 8C of this Act.
An entity must withhold an amount from a
*royalty it pays to an entity, or to entities
jointly, if:
(a) the recipient or any of the recipients has an address outside
Australia according to any record that is in the payer’s possession, or is
kept or maintained on the payer’s behalf, about the transaction to which
the royalty relates; or
(b) the payer is authorised to pay the royalty at a place outside
Australia (whether to the recipient or any of the recipients or to anyone
else).
For limits on the amount to be withheld, see
section 12-300.
Immediately after receiving a payment of a
*royalty, an entity must withhold an amount
from the royalty if:
(a) the entity is a person in Australia or an
*Australian government agency; and
(b) a foreign resident is entitled:
(i) to receive the royalty or part of it from the entity, or to receive
the amount of the royalty or of part of it from the entity; or
(ii) to have the entity credit to the foreign resident, or otherwise deal
with on the foreign resident’s behalf or as the foreign resident directs,
the royalty or part of it, or the amount of the royalty or of part of
it.
For limits on the amount to be withheld, see
section 12-300.
This Subdivision does not require an entity:
(a) to withhold an amount from a
*dividend, from interest (within the meaning of
Division 11A of Part III of the Income Tax Assessment Act 1936) or from a
*royalty if no
*withholding tax is payable in respect of the
dividend, interest or royalty; or
(b) to withhold from a dividend, from interest (within the meaning of that
Division) or from a royalty more than the withholding tax payable in respect of
the dividend, interest or royalty (reduced by each amount already withheld from
it under this Subdivision).
Note: Section 128B of the Income Tax Assessment Act
1936 deals with withholding tax liability.
Table of sections
12-320 Mining payment
Natural resources
12-325 Natural resource payment
12-330 Payer must ask Commissioner how much to
withhold
12-335 Commissioner may exempt from section 12-330, subject
to conditions
(1) An entity must withhold an amount from a
*mining payment that:
(a) it makes to another entity; or
(b) it applies for the benefit of another entity.
(2) Subsection (1) does not require the entity:
(a) to withhold an amount if no *mining
withholding tax is payable in respect of the
*mining payment; or
(b) to withhold more than the mining withholding tax payable in respect of
the mining payment.
Note: Section 128V of the Income Tax Assessment Act
1936 deals with mining withholding tax liability.
(1) An entity must withhold an amount from a payment it makes to a foreign
resident, or to 2 or more entities at least one of which is a foreign resident,
if the payment is worked out wholly or partly by reference to the value or
quantity of *natural resources produced or
recovered in Australia.
(2) The amount to be withheld is:
(a) the amount notified by the Commissioner under section 12-330;
or
(b) the amount worked out under a certificate in force under section
12-335 that covers the payment;
as appropriate.
Exception
(3) Subsection (1) does not apply if:
(a) the Commissioner has notified the entity under section 12-330 that the
entity does not need to withhold an amount from the payment; or
(b) a certificate in force under section 12-335 covers the payment and
does not require the entity to withhold an amount from it.
(1) An entity must not, intentionally or recklessly, make a payment from
which section 12-325 requires it to withhold an amount, unless:
(a) the entity has notified the Commissioner in writing of the amount of
the proposed payment; and
(b) the Commissioner has later notified the entity in writing of the
amount (if any) that the entity must withhold from the payment in respect of tax
that is or may become payable by a foreign resident to whom the payment is
made;
or the payment is covered by a certificate in force under section
12-335.
Penalty: 20 penalty units.
Note: See section 4AA of the Crimes Act 1914 for the
current value of a penalty unit.
Failure to notify not an offence against section 8C
(2) An entity that fails to notify the Commissioner as required by
subsection (1) does not commit an offence against section 8C.
(1) The Commissioner may give an entity a written certificate exempting
the entity from complying with section 12-330 for specified payments.
(2) A certificate is subject to:
(a) a condition that the entity must withhold from a payment covered by
the certificate the amount (if any) worked out in accordance with the
certificate in respect of tax that is or may become payable by a foreign
resident to whom the payment is made; and
(b) such other conditions as the certificate specifies.
However, the entity does not contravene subsection 12-330(1) because it
contravenes a condition.
(3) The Commissioner may, by written notice given to the entity:
(a) revoke a certificate, whether or not a condition of it has been
contravened; or
(b) vary a certificate by revoking, changing or adding to its
conditions.
Note: A person who is dissatisfied with a decision under
this section may object against the decision in the manner set out in Part
IVC.
[The next Division is Division 14.]
14-1 Object of this Division
14-5 Provider of non-cash benefit must pay amount to the
Commissioner if payment would be subject to withholding
14-10 Dividend, interest or royalty received, for a foreign
resident, in the form of a non-cash benefit
14-15 Payer can recover amount paid to the
Commissioner
The object of this Division is:
(a) to put entities that provide
*non-cash benefits, and entities that receive
them, in a position similar to their position under Division 12 if payments of
money had been made instead of the non-cash benefits being provided;
and
(b) in that way, to prevent entities from avoiding their obligations under
Division 12 by providing non-cash benefits.
(1) An entity (the payer) must pay an amount to the
Commissioner before providing a *non-cash
benefit to another entity (the recipient) if Division 12 would
require the payer to withhold an amount (the
notionally withheld amount) if,
instead of providing the benefit to the recipient, the payer made a payment to
the recipient in money equal to the *market
value of the benefit when the benefit is provided.
(2) The amount to be paid to the Commissioner is equal to the notionally
withheld amount.
Example: Nick is a building contractor who has entered into
a voluntary agreement with Mike for the purposes of section 12-55. Nick proposes
to give Mike his old utility van (whose market value is $1,000) as payment for
work Mike has done for him over a fortnight.
If Nick were instead to pay Mike $1,000, Nick would have
had to withhold $203 under Division 12 (in accordance with withholding rates
current at the time).
This section requires Nick to pay $203 to the Commissioner
before giving the van to Mike.
(3) This
section does not apply to providing:
(a) a *fringe benefit; or
(b) a benefit that is an exempt benefit under the Fringe Benefits Tax
Assessment Act 1986; or
(c) a benefit that would be an exempt benefit under that Act if paragraphs
(d) and (e) of the definition of employer in subsection 136(1) of
that Act were omitted; or
(d) a benefit constituted by the acquisition of a share or right under an
employee share scheme (within the meaning of Division 13A of Part III of the
Income Tax Assessment Act 1936).
If:
(a) an entity (the payer) receives in the form of a
*non-cash benefit:
(i) a *dividend of a company;
or
(ii) interest (within the meaning of Division 11A of Part III of the
Income Tax Assessment Act 1936); or
(iii) a *royalty; and
(b) section 12-215, 12-250 or 12-285 would have required the payer to
withhold an amount if the dividend, interest or royalty had been a payment in
money;
the payer must pay that amount to the Commissioner before providing the
benefit (or part of it) to another entity.
(1) The payer may recover from the recipient as a debt an amount that the
payer has paid to the Commissioner under section 14-5.
(2) If the payer has paid an amount to the Commissioner under section
14-10, the payer may:
(a) if the payer has provided all of the benefit to another entity—
recover the amount from that other entity as a debt; or
(b) if the payer has provided a part of the benefit to another
entity—recover from that other entity as a debt the corresponding
proportion of the amount paid to the Commissioner.
(3) If
the payer can recover an amount from another entity under this section, the
payer is entitled to set the amount off against debts due by the payer to the
other entity.
[The next Division is Division 16.]
Table of Subdivisions
Guide to Division 16
16-A To withhold
16-B To pay withheld amounts to the Commissioner
16-C To provide information
16-D Additional rights and obligations of entity that makes a dividend,
interest or royalty payment
This Division sets out the obligations and rights of an entity required to
withhold an amount under Division 12, or to pay an amount to the Commissioner
under Division 14.
Note: The entity may also have obligations under other
legislation. See, for example, the obligation to keep records under section 262A
of the Income Tax Assessment Act 1936.
Table of sections
When and how much to withhold
16-5 When to withhold an amount
16-10 How much to withhold
16-15 Variation of amounts required to be
withheld
16-20 Payer discharged from liability to recipient for
amount withheld
Penalties for not withholding
16-25 Failure to withhold: offence
16-30 Failure to withhold: civil penalty for entity other
than exempt Australian government agency
16-35 Failure to withhold: civil penalty for exempt
Australian government agency in relation to payment other than dividend,
interest or royalty
16-40 Failure to withhold: civil penalty for exempt
Australian government agency in relation to dividend, interest or royalty
payment
16-45 Remission of penalty under section 16-30, 16-35 or
16-40
16-50 General interest charge on unpaid
penalty
If Division 12 requires an entity to withhold an amount from a payment,
the entity must do so when making the payment.
Note 1: An entity is required to withhold an amount under
section 12-145 when an investor becomes presently entitled to income of a unit
trust.
Note 2: If section 12-215, 12-250 or 12-285 requires an
entity to withhold an amount from a payment received by the entity, the entity
must do so immediately after receiving the payment.
(1) The amount that Division 12 requires to be withheld from a payment
(except one covered by section 12-325) is to be worked out under the
regulations.
(2) Regulations made for the purposes of this section may deal differently
with different payments.
Note: The Commissioner may vary an amount required to be
withheld. See section 16-15.
(1) The Commissioner may, for the purposes of meeting the special
circumstances of a particular case or class of cases, vary the
*amount required to be withheld by an entity
from a *withholding payment (except a
withholding payment covered by section 12-140 or 12-145). If the Commissioner
does so, the amount is varied accordingly.
Note: Section 12-140 is about a payment arising from an
investment where the recipient does not quote its tax file number (or, in some
cases, its ABN). Section 12-145 is about an investor becoming presently entitled
to income of a unit trust.
(2) The Commissioner’s power to vary an amount includes the power to
reduce the amount to nil.
(3) A variation must be made by a written notice:
(a) if it applies to a particular entity— that is given to that
entity; or
(b) if it applies to a class of entities—that is given to each of
the entities, or a copy of which is published in the Gazette.
An entity that:
(a) withholds an amount as required by Division 12; or
(b) pays to the Commissioner an amount as required by Division
14;
is discharged from all liability to pay or account for that amount to any
entity except the Commissioner.
Note: The entity may be required to refund the amount in
some circumstances. See Subdivision 18-B.
(1) An entity must not fail to withhold an amount as required by Division
12.
Penalty: 10 penalty units.
Note 1: See section 4AA of the Crimes Act 1914 for
the current value of a penalty unit.
Note 2: See sections 16-30, 16-35 and 16-40 for an
alternative civil penalty.
(2) An entity must not fail to pay to the Commissioner an amount as
required by Division 14.
Penalty: 10 penalty units.
Note 1: See section 4AA of the Crimes Act 1914 for
the current value of a penalty unit.
Note 2: See sections 16-30, 16-35 and 16-40 for an
alternative civil penalty.
(3) An offence against subsection (1) or (2) is a strict liability
offence.
(4) If a person is convicted of an offence in relation to:
(a) a failure by that person or someone else to withhold an amount as
required by Division 12; or
(b) a failure by that person or someone else to pay to the Commissioner an
amount as required by Division 14;
the court may order the convicted person to pay to the Commissioner an
amount up to the *amount required to be
withheld. The court may so order in addition to imposing a penalty on the
convicted person.
(1) An entity (except an *exempt
Australian government agency) that:
(a) fails to withhold an amount as required by Division 12; or
(b) fails to pay an amount to the Commissioner as required by Division
14;
is liable to pay to the Commissioner a penalty (the penalty
amount) equal to that amount.
(2) The penalty amount is due at the time when the entity would have had
to pay to the Commissioner the amount referred to in subsection (1).
Note: An entity may become liable under this section in
respect of a payment it made or received that is taken to have been subject to
withholding tax as a result of a Commissioner’s determination under
subsection 177F(2A) of the Income Tax Assessment Act 1936 (see also
subsection 177F(2F) of that Act).
(1) An *exempt Australian government
agency that:
(a) fails to withhold an amount as required by Division 12; or
(b) fails to pay to the Commissioner an amount as required by Division
14;
is liable to pay to the Commissioner a penalty of 20 penalty
units.
Note: See section 4AA of the Crimes Act 1914 for the
current value of a penalty unit.
(2) The Commissioner must give written notice to the agency about its
liability under this section. The notice may be included in any other notice the
Commissioner gives to the agency.
(3) The penalty becomes due for payment on the day specified in the
notice, which must be at least 14 days after the notice is given to the
agency.
Exception
(4) This section does not apply in relation to an
*amount required to be withheld from a
*withholding payment covered by Subdivision
12-F (about dividend, interest or royalty payment).
(1) An *exempt Australian government
agency that:
(a) fails to withhold an amount as required by Division 12 from a
*withholding payment covered by Subdivision
12-F (about dividend, interest or royalty payment); or
(b) fails to pay to the Commissioner an amount as required by Division 14
in respect of a withholding payment covered by that Subdivision;
is liable to pay to the Commissioner a penalty (the penalty
amount) equal to that amount.
(2) The penalty amount is due at the time when the entity would have had
to pay to the Commissioner the *amount required
to be withheld.
Note: An entity may become liable under this section in
respect of a payment it made or received that is taken to have been subject to
withholding tax as a result of a Commissioner’s determination under
subsection 177F(2A) of the Income Tax Assessment Act 1936 (see also
subsection 177F(2F) of that Act).
(1) The Commissioner may remit all or a part of a penalty under section
16-30, 16-35 or 16-40.
(2) If the Commissioner decides:
(a) to remit only part of a penalty; or
(b) not to remit any part of a penalty;
the Commissioner must give written notice of the decision to the entity
liable to pay the penalty.
Note: A person who is dissatisfied with a decision under
this section may object against the decision in the manner set out in Part
IVC.
If a penalty under section 16-30, 16-35 or 16-40 remains unpaid after it
is due, the entity liable to pay the penalty amount is liable to pay
*general interest charge on the unpaid amount
for each day in the period that:
(a) started at the beginning of the day by which the penalty amount was
due to be paid; and
(b) finishes at the end of the last day, at the end of which, any of the
following remains unpaid:
(i) the penalty amount;
(ii) general interest charge on any of the penalty amount.
Table of sections
When and how to pay amounts to the Commissioner
16-70 Entity to pay amounts to Commissioner
16-75 When amounts must be paid to
Commissioner
16-80 Penalty for failure to pay within
time
16-85 How amounts are to be paid
16-90 Large withholder—penalty for non-electronic
payment
Who is a large, medium or small withholder
16-95 Meaning of large withholder
16-100 Meaning of medium withholder
16-105 Meaning of small withholder
16-110 Commissioner may vary withholder’s status
downwards
16-115 Commissioner may vary withholder’s status
upwards
Special rules for 2000-01
16-120 When certain amounts must be paid to the
Commissioner
16-125 Meaning of large withholder
16-130 When and how some large withholders must pay amounts
for July and August 2000
16-135 Meaning of medium withholder
(1) An entity that withholds an amount under Division 12 must pay the
amount to the Commissioner in accordance with this Subdivision.
(2) An entity required to pay an amount to the Commissioner under Division
14 must pay that amount to the Commissioner in accordance with this Subdivision
(except sections 16-75 and 16-80).
Large withholder
(1) A *large withholder must pay to the
Commissioner as shown in the table an amount it withholds under Division 12
during a month.
|
Payments by large withholders |
||
|---|---|---|
|
Item |
If the amount is withheld on this day of week: |
It must be paid to the Commissioner on or before: |
|
1 |
Saturday or Sunday |
The second Monday after that day |
|
2 |
Monday or Tuesday |
The first Monday after that day |
|
3 |
Wednesday |
The second Thursday after that day |
|
4 |
Thursday or Friday |
The first Thursday after that day |
Note: A different rule applies for certain kinds of amounts
withheld during 2000-01. See section 16-120.
Medium withholders
(2) A *medium withholder must pay to the
Commissioner an amount that it withholds during a month under Division 12 by the
end of the 21st day of the next month.
Small withholders
(3) If a *small withholder withholds an
amount under Division 12 during a month in a
*quarter, it must pay the amount to the
Commissioner by the end of the 21st day of the month after the end of that
quarter.
Note: A
different rule applies for certain kinds of amounts withheld during 2000-01. See
section 16-120.
If an amount that an entity must pay to the Commissioner under subsection
16-70(1) remains unpaid after the time by which it is due to be paid, the entity
is liable to pay *general interest charge on
the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the unpaid amount was due
to be paid; and
(b) finishes at the end of the last day, at the end of which, any of the
following remains unpaid:
(i) the unpaid amount;
(ii) general interest charge on any of the unpaid amount.
Large withholder
(1) A *large withholder must pay to the
Commissioner by a means of *electronic
payment:
(a) an amount that it withholds under Division 12; and
(b) an amount that it pays to the Commissioner under Division 14.
Note: A different rule applies for some large withholders
for July and August 2000. See section 16-130.
Medium or small withholder
(2) A *medium withholder or
*small withholder must pay to the
Commissioner:
(a) any amount that it withholds under Division 12; and
(b) any amount that it pays to the Commissioner under Division
14;
by a means of *electronic payment, or any
other means approved in writing by the Commissioner.
Commissioner may vary payment method
(3) The Commissioner may, with an entity’s agreement, vary the means
by which the withholder pays amounts to the Commissioner under this Subdivision.
The variation must be by written notice given to the entity.
(1) A *large withholder that pays an
amount by a means that does not comply with this Division is liable to a penalty
of 5 penalty units.
Note: See section 4AA of the Crimes Act 1914 for the
current value of a penalty unit.
Remission
(2) However, the Commissioner may remit all or a part of the penalty
amount.
(3) If the Commissioner decides:
(a) to remit only part of a penalty amount; or
(b) not to remit any part of a penalty amount;
the Commissioner must give written notice of the decision to the entity
liable to pay the penalty amount.
Note: A person who is dissatisfied with a decision under
this section may object against the decision in the manner set out in Part
IVC.
(4) The Commissioner must give written notice to the
*large withholder about its liability under
this section. The notice may be included in any other notice the Commissioner
gives to the large withholder.
(5) The penalty becomes due for payment on the day specified in the
notice, which must be at least 14 days after the notice is given to the
*large withholder.
General interest charge
(6) If any of the penalty remains unpaid after it is due, the
*large withholder is liable to pay the
*general interest charge on the unpaid penalty
amount for each day in the period that:
(a) started at the beginning of the day by which the penalty amount was
due to be paid; and
(b) finishes at the end of the last day, at the end of which, any of the
following remains unpaid:
(i) the penalty amount;
(ii) general interest charge on any of the penalty amount.
Exception
(7) This section does not apply if:
(a) the *large withholder is an
*exempt Australian government agency;
or
(b) the Commissioner has varied under section 16-85 the means by which the
large withholder pays amounts to the Commissioner.
(1) An entity is a large withholder for a particular month
(the current month) in a
*financial year starting on or after 1 July
2001 if:
(a) it was a *large withholder for June
2001 because of section 16-125; or
(b) the *amounts withheld by the entity
during a financial year ending at least 2 months before the current month
exceeded $1 million; or
(c) both of the following apply:
(i) at the end of a financial year (the threshold year)
ending at least 2 months before the current month, the entity was one of a
number of companies that were at that time all members of the same
*wholly-owned group;
(ii) the amounts withheld by those companies during the threshold year
exceeded $1 million; or
(d) the Commissioner determines under section 16-115 that the entity is a
large withholder for the current month.
Note: Different rules apply for working out who is a large
withholder for a month in 2000-01. See section 16-125.
Exception
(2) However, the entity is not a *large
withholder if the Commissioner determines under section 16-110 that it is a
*medium withholder or a
*small withholder for the current
month.
(1) An entity is a medium withholder for a particular month
(the current month) in a
*financial year starting on or after 1 July
2001 if it is not a *large withholder for that
month and:
(a) it was a *medium withholder for June
2001 because of section 16-135; or
(b) the *amounts withheld by the entity
during a financial year ending before the current month exceeded $25,000;
or
(c) the Commissioner determines under section 16-110 or 16-115 that the
entity is a medium withholder for the current month.
Note: Different rules apply for working out who is a large
withholder for a month in 2000-01. See section 16-125.
(2) However, the entity is not a *medium
withholder if the Commissioner determines under section 16-110 or 16-115 that
the entity is a *large withholder or a
*small withholder for the current
month.
An entity is a small withholder for a particular month
if:
(a) there is at least one *amount
withheld by the entity during that month; and
(b) the entity is neither a *large
withholder nor a *medium withholder for that
month.
(1) The Commissioner may, by giving written notice to a
*withholder:
(a) make the following determinations:
(i) a determination that a *large
withholder is a *medium withholder or a
*small withholder;
(ii) a determination that a medium withholder is a small withholder;
or
(b) revoke or vary any such determination.
(2) The notice must state that the determination applies:
(a) for specified months; or
(b) for all months from and including a specified month.
(3) The determination has no effect for a particular month unless the
notice is given before that month.
(4) An entity that would otherwise be a
*large withholder or a
*medium withholder for a particular month may
apply in writing to the Commissioner for a determination under this
section.
Note: A person who is dissatisfied with a decision under
this section may object against the decision in the manner set out in Part
IVC.
(1) The Commissioner may, by giving written notice to a
*withholder:
(a) make the following determinations:
(i) a determination that a *small
withholder is a *medium withholder or a
*large withholder;
(ii) a determination that a medium withholder is a large withholder;
or
(b) revoke or vary any such determination.
(2) The notice must state that the determination applies:
(a) for specified months; or
(b) for all months from and including a specified month.
(3) A determination that a *small
withholder is a *medium withholder has no
effect for a particular month unless the notice is given before that
month.
(4) Any other determination under this section has no effect for a month
that is earlier than the second month after the month in which the notice is
given.
(5) The Commissioner may, in making a determination under this section,
have regard to the following:
(a) the sum of the amounts that the Commissioner considers to be likely to
be the *amounts required to be withheld by the
entity in the following 12 months;
(b) the extent (if any) to which the entity makes or receives
*withholding payments that were previously made
or received by another entity;
(c) any failure by the entity to comply with its obligations under this
Part;
(d) any *arrangement that was entered
into or carried out for the purpose of lengthening the intervals at which the
entity is required to pay to the Commissioner amounts withheld from withholding
payments;
(e) such other matters as the Commissioner considers relevant.
Note: A person who is dissatisfied with a decision under
this section may object against the decision in the manner set out in Part
IVC.
If an entity withholds an amount under a provision listed in the table
during a month in the *financial year starting
on 1 July 2000, it must pay the amount to the Commissioner by the end of the
21st day of the next month.
|
Provisions under which amounts are withheld during 2000-01 |
||
|---|---|---|
|
Item |
Provision |
Subject matter |
|
1 |
Payment arising from investment: recipient does not quote tax file
number |
|
|
2 |
Section 12-145 |
Investor becoming presently entitled to income of a unit trust |
|
3 |
Section 12-210 |
Dividend payment to overseas person |
|
4 |
Section 12-215 |
Dividend payment received for a foreign resident |
|
5 |
Section 12-245 |
Interest payment to overseas person |
|
6 |
Section 12-250 |
Interest payment received for a foreign resident |
|
Section 12-255 |
Interest payment derived by lender in carrying on business through overseas
permanent establishment |
|
|
8 |
Section 12-280 |
Royalty payment to overseas person |
|
9 |
Section 12-285 |
Royalty payment received for a foreign resident |
|
10 |
Section 12-320 |
Mining payment |
|
11 |
Section 12-325 |
Natural resource payment |
(1) An entity is a large withholder for a particular month
(the current month) in the
*financial year starting on 1 July 2000
if:
(a) the entity was a large remitter in relation to June 2000 because of
section 220AAB of the Income Tax Assessment Act 1936; or
(b) the total of the deductions that the entity made under Division 2 of
Part VI of that Act for the financial year ending on 30 June 2000 exceeded $1
million; or
(c) the total of the entity’s
*labour hire notional withheld amounts (see
subsections (2) to (4)) exceed $1 million; or
(d) at the end of 30 June 2000 the entity was included in a company group
as defined in section 220AAI of that Act, and:
(i) the total of the deductions under Division 2 of Part VI of that Act,
for the financial year ending on that day, made by the entities that were
included in that company group at the end of that day, exceeded $1 million;
or
(ii) the total of the labour hire notional withheld amounts (see
subsections (2) to (4)) of entities that were included in that company group at
the end of that day exceed $1 million; or
(e) the Commissioner determines under section 16-115 that the entity is a
large withholder for the current month.
Meaning of labour hire notional withheld amount
(2) If during the *financial year ending
on 30 June 2000 an entity made a payment from which section 12-60 (about
payments under labour hire arrangements) would have required it to withhold an
amount (if that section had applied to payments made during that financial
year), that amount is a labour hire notional withheld amount of
the entity.
(3) If:
(a) during the *financial year ending on
30 June 2000 an entity provided a *non-cash
benefit to an individual; and
(b) section 12-60 (about payments under labour hire arrangements) would
have required the entity to withhold an amount if:
(i) instead of providing the benefit, the entity had paid the individual
the *market value of the benefit; and
(ii) that section had applied to payments made during that financial
year;
that amount is a labour hire notional withheld amount of the
entity.
(4) For the purposes of subsections (2) and (3), disregard paragraph
12-60(b) (which allows the scope of section 12-60 to be extended by
regulations).
(5) However, an entity is not a *large
withholder for a month if the Commissioner determines under section 16-110 that
it is a *medium withholder or a
*small withholder for that month.
(1) This section applies to an entity that is a
*large withholder for July or August 2000
(otherwise than because of paragraph 16-125(1)(a)).
(2) The entity must pay to the Commissioner an amount that it withholds
during that month under Division 12 by the end of the 21st day after the end of
that month.
(3) The entity must pay to the Commissioner:
(a) any amount that it withholds under Division 12 during that month;
and
(b) any amount that it pays to the Commissioner under Division 14 during
that month;
by a means of *electronic payment, or any
other means approved in writing by the Commissioner.
(1) An entity is a medium withholder for a particular month
(the current month) in the
*financial year starting on 1 July 2000 if the
entity is not a *large withholder for that
month and:
(a) the entity:
(i) was a medium remitter in relation to June 2000 because of section
220AAJ of the Income Tax Assessment Act 1936;
and
(ii) would still have been a medium remitter in relation to June 2000
because of that section if the only deductions taken into account under that
section were deductions made under Division 2 of Part VI of that Act;
or
(b) the total of the deductions that the entity made under Division 2 of
Part VI of that Act for the *financial year
ending on 30 June 2000 exceeded $25,000; or
(c) the Commissioner determines under section 16-110 or 16-115 that the
entity is a medium withholder for the current month.
(2) However, the entity is not a *medium
withholder if the Commissioner determines under section 16-110 or 16-115 that
the entity is a *large withholder or a
*small withholder for the current
month.
Table of sections
16-150 Commissioner must be notified of
amounts
To recipients of withholding payments
16-155 Annual payment summary
16-160 Part-year payment summary
16-165 Payment summary for eligible termination
payment
16-170 Form and content of payment summary
16-175 Penalty for not providing payment
summary
(1) An entity that must pay an amount to the Commissioner under:
(a) subsection 16-70(1) (about amounts withheld under Division 12);
or
(b) Division 14 (about payments in respect of non-cash benefits);
must notify the Commissioner of the amount on or before the day on which
the amount is due to be paid (regardless of whether it is paid). The
notification must be in the *approved form and
lodged with the Commissioner.
(2) If the entity fails to do so, or notifies the Commissioner of an
amount that is less than the correct amount, the entity is liable to pay the
*failure to notify penalty on the amount, or on
the amount of the shortfall, for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be
paid; and
(b) finishes at the end of the day before the Commissioner receives
notification from the entity, or otherwise becomes aware, of the correct
amount.
(1) Within 14 days after the end of a
*financial year, an entity (the
payer) must give a *payment
summary (and a copy of it) to another entity (the recipient)
if:
(a) during the year the payer made one or more
*withholding payments (other than withholding
payments covered by section 12-85, 12-215, 12-250 or 12-285) to the recipient;
or
(b) during the year the payer received one or more withholding payments
covered by section 12-215, 12-250 or 12-285 and, in relation to each of them,
the recipient is the foreign resident mentioned in the section; or
(c) the recipient is an individual and has a
*reportable fringe benefits amount, for the
income year ending at the end of that financial year, in respect of his or her
employment (within the meaning of the Fringe Benefits Tax Assessment Act
1986) by the payer.
(2) The *payment summary must
cover:
(a) if paragraph (1)(a) or (b) applies—each of the
*withholding payments mentioned in that
paragraph, except one covered by a previous payment summary (and a copy of it)
given by the payer to the recipient under section 16-160; and
(b) if paragraph (1)(c) applies—the
*reportable fringe benefits amount, except so
much of it as is covered by a previous payment summary (and a copy of it) given
by the payer to the recipient under this section.
(1) An entity (the payer) must give a
*payment summary (and a copy of it) to another
entity (the recipient) if, not later than 21 days before the end
of a *financial year, the recipient asks in
writing for a payment summary covering:
(a) one or more *withholding payments
(other than withholding payments covered by section 12-85, 12-215, 12-250 or
12-285) that the payer made to the recipient during the year; or
(b) one or more withholding payments covered by section 12-215, 12-250 or
12-285, or a part of each such payment, that the payer received during the year
for the recipient, if the recipient is the foreign resident mentioned in the
section;
other than a payment covered by a previous payment summary (and a copy of
it) given under this section.
(2) The payer must comply with the request within 14 days after receiving
it, unless the recipient is an individual and has a
*reportable fringe benefits amount, for the
income year ending at the end of that
*financial year, in respect of his or her
employment (within the meaning of the Fringe Benefits Tax Assessment Act
1986) by the payer.
Within 14 days after an entity (the payer) makes a
*withholding payment covered by section 12-85
(about *eligible termination payments) to
another entity (the recipient), the payer must give the recipient
a *payment summary (and a copy of it) that
covers that payment. (The summary must cover only that payment.)
(1) A payment summary is a written statement that:
(a) names the payer and the recipient; and
(b) if the recipient has given the recipient’s
*tax file number or
*ABN to the payer—states the tax file
number or ABN; and
(c) states the total of the *withholding
payments (if any) that it covers, and the total of the
*amounts withheld by the payer from those
withholding payments; and
(d) specifies the *financial year in
which the withholding payments were made; and
(e) specifies the *reportable fringe
benefits amount (if any) that it covers and the income year to which that amount
relates; and
(f) includes other information that the Commissioner requires to be
included in the payment summary.
(2) The Commissioner may, in writing, require particular information to be
included in a *payment summary or a class of
payment summaries.
(3) A *payment summary may consist of 2
or more statements that each complies with subsection (1) and together cover
what section 16-155, 16-160 or 16-165 (as appropriate) requires the payment
summary to cover.
(4) The Commissioner may vary any requirements under subsection (1), (2)
or (3) by written notice given to an entity. The Commissioner may do so in such
instances and to such extent as the Commissioner thinks fit.
An entity must not fail to comply with any requirements under section
16-155, 16-160 or 16-165, or subsection 16-170(1), (2) or (3) (including any
requirements varied by the Commissioner under subsection 16-170(4)).
Penalty: 20 penalty units.
Note: See section 4AA of the Crimes Act 1914 for the
current value of a penalty unit.
Table of sections
16-195 Payer’s right to recover amounts of penalty:
withholding tax and mining withholding tax
16-200 Payer’s liability and right: additional
withholding tax
An entity that has paid an amount of penalty under section 16-30, 16-35
or 16-40 for a *withholding payment covered
by:
(a) Subdivision 12-F (about a dividend, interest or royalty payment);
or
(b) section 12-320 (about a mining payment);
may recover an amount equal to the amount of penalty from the person liable
to pay the *withholding tax, or
*mining withholding tax, for the withholding
payment.
Note Sections 16-30, 16-35 and 16-40 provide for a civil
penalty for failing to comply with Division 12 or 14.
Penalty
(1) An entity that is required:
(a) to withhold an amount from a
*withholding payment covered by Subdivision
12-F (about dividend, interest or royalty payment); or
(b) to pay to the Commissioner an amount under Division 14 for a
withholding payment covered by that Subdivision;
must pay to the Commissioner an amount of penalty equal to the amount of
penalty that a taxpayer is liable to pay under subsection 226(1A) of the
Income Tax Assessment Act 1936 in relation to that withholding
payment.
Note: Subsection 226(1A) of the Income Tax Assessment Act
1936 requires a taxpayer to pay additional withholding tax following a
calculation of the taxpayer’s withholding tax liability that takes into
account determinations made under subsection 177F(2A) of that
Act.
(2) The amount is due at the time when the taxpayer becomes liable to pay
the penalty.
(3) If the entity pays the amount to the Commissioner, it may recover an
amount equal to that amount from the taxpayer.
General interest charge
(4) If any of the amount payable by the entity under this section remains
unpaid after it is due, the entity is liable to pay
*general interest charge on the unpaid amount
for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be
paid; and
(b) finishes at the end of the last day, at the end of which, any of the
following remains unpaid:
(i) the amount;
(ii) general interest charge on any of the amount.
[The next Division is Division 18.]
Table of Subdivisions
18-A Crediting withheld amounts against liability for income tax, withholding
tax or mining withholding tax
18-B Refund of certain withheld amounts
18-C Recipient’s obligations
In general, an entity:
• that receives a withholding payment (except one covered by section
12-215, 12-250 or 12-285); or
• that is the foreign resident for which a withholding payment
covered by section 12-215, 12-250 or 12-285 (or a part of it) is
received;
is entitled to a credit for the amount withheld from the withholding
payment.
However, if that entity is a partnership or trust, a partner, beneficiary
or trustee may be entitled to the credit.
This Subdivision tells you:
• who is entitled to a credit; and
• how to work out the amount of the credit.
How a credit is applied is set out in Division 3 of Part IIB.
General exception
18-5 No credit for refunded amount
Entitlement to credits: income tax liability
18-10 Application of sections 18-15, 18-20 and
18-25
18-15 Tax credit for recipient of withholding
payments
18-20 Tax credit where recipient is a
partnership
18-25 Tax credit where recipient is a trust
Entitlement to credits: dividend, interest or royalty
18-30 Credit: dividend, interest or royalty
18-35 Credit: penalty under section 16-30 or 16-40 or
related general interest charge
18-40 Credit: liability under section
16-200
Entitlement to credit: mining payment
18-45 Credit—mining payment
[This is the end of the Guide.]
A person is not entitled to a credit under this Subdivision for an
*amount withheld from a
*withholding payment to the extent that the
amount must be refunded under Subdivision 18-B.
The rules set out in sections 18-15, 18-20 and 18-25 do not apply
to an *amount withheld from a
*withholding payment that is covered by
Subdivision 12-F (about dividend, interest or royalties) or section 12-320
(about mining payments).
A person is entitled to a credit equal to the total of the
*amounts withheld from
*withholding payments made to the person during
an income year if:
(a) an assessment has been made of the income tax payable by the person
for the income year; or
(b) the Commissioner is satisfied that no income tax is payable by the
person for the income year.
(1) A person is entitled to a credit in respect of
*amounts withheld from
*withholding payments made to a partnership
during an income year if:
(a) the person has an individual interest in the net income or partnership
loss of the partnership for that income year that is wholly or partly
attributable to those withholding payments; and
(b) the
*income tax return of the partnership for the
income year has been lodged with the Commissioner; and
(c) either an assessment has been made of the tax payable by the person
for the income year, or the Commissioner is satisfied that no tax is
payable.
(2) The amount of the credit is worked out using the formula:
where:
amounts withheld means the sum of the
*amounts withheld from the
*withholding payments.
individual interest means so much of the individual interest
of the partner as is attributable to the
*withholding payments.
net income/partnership loss means so much of the net income
or partnership loss for that income year as is attributable to the
*withholding payments.
(1) A person is entitled under subsection (2), (4), (6) or (8) to a credit
in respect of *amounts withheld (the
amounts withheld) from
*withholding payments made to the trustee of a
trust during an income year.
Trust—section 97
(2) A beneficiary of the trust is entitled to a credit if:
(a) an amount is included in the assessable income of the beneficiary
under section 97 of the Income Tax Assessment Act 1936 in respect of a
share of the net income of the trust; and
(b) the share is wholly or partly attributable to the
*withholding payments; and
(c) either an assessment has been made of the tax payable by the
beneficiary for the income year, or the Commissioner is satisfied that no tax is
payable.
(3) The amount of the credit is worked out using the formula:
where:
net income means so much of the net income as is attributable
to the *withholding payments.
share of net income means so much of that share of the net
income as is attributable to the *withholding
payments.
Trust—section 98
(4) The trustee of the trust is entitled to a credit if:
(a) under section 98 of the Income Tax Assessment Act 1936 the
trustee is liable to be assessed, and to pay tax, on an amount in respect of a
share of the net income of the trust to which a beneficiary is presently
entitled; and
(b) the share is wholly or partly attributable to the
*withholding payments; and
(c) either an assessment has been made of that tax, or the Commissioner is
satisfied that no tax is payable.
(5) The amount of the credit is worked out using the formula:
where:
net income means so much of the net income as is attributable
to the *withholding payments.
share of net income means so much of that share of the net
income as is attributable to the *withholding
payments.
Trust—section 99 or 99A
(6) The trustee of the trust is entitled to a credit under this subsection
if:
(a) under section 99 or 99A of the Income Tax Assessment Act 1936,
the trustee is liable to be assessed, and to pay tax, on the net income of the
trust, or on part of it; and
(b) the net income or that part of it is wholly or partly attributable to
the *withholding payments; and
(c) either an assessment has been made of that tax, or the Commissioner is
satisfied that no tax is payable.
(7) The amount of the credit is worked out using the formula:
where:
net income means so much of the net income as is attributable
to the *withholding payments.
part of net income means so much of the net income, or of
that part of it, as is attributable to the
*withholding payments.
Trust—no net income
(8) If there is no net income of the trust for the income year, the
trustee is entitled to a credit equal to the sum of the
*amounts withheld from the
*withholding payments.
(1) A person is entitled to a credit if:
(a) the person’s *ordinary income
or *statutory income includes a
*dividend (or a part of it), interest (within
the meaning of Division 11A of Part III of the Income Tax Assessment Act
1936) or a *royalty; and
(b) the person has borne all or part of an
*amount withheld from the dividend, interest or
royalty.
(2) The amount of the credit is that amount or part.
Note: A taxpayer may also be entitled to a credit in
relation to payment of interest under, or in relation to the transfer of, a
qualifying security. See section 221YSA of the Income Tax Assessment Act
1936.
(1) If an entity has paid:
(a) an amount of penalty under section 16-30 or 16-40 to the Commissioner
for a *withholding payment covered by
Subdivision 12-F; or
(b) an amount of *general interest charge
under section 16-50 for the penalty;
the person liable to pay the *withholding
tax for the withholding payment is entitled to a credit equal to the amount of
penalty, or general interest charge, as appropriate.
Remission
(2) If:
(a) an entity has paid to the Commissioner an amount of penalty mentioned
in paragraph (1)(a); and
(b) the Commissioner remits the whole or a part of the amount of the
penalty under section 16-45;
then:
(c) any credit under subsection (1) relating to the amount paid to the
Commissioner is reduced by the amount that is remitted; and
(d) the Commissioner must pay to the entity an amount equal to the amount
that is remitted.
(3) If:
(a) an entity has paid to the Commissioner an amount of
*general interest charge mentioned in paragraph
(1)(b); and
(b) the Commissioner remits the whole or a part of the amount of the
charge under section 8AAG;
then:
(c) any credit under subsection (1) relating to the amount is reduced by
the amount that is remitted; and
(d) the Commissioner must pay to the entity an amount equal to the amount
that is remitted.
(1) If an entity has paid to the Commissioner:
(a) an amount under subsection 16-200(1) in relation to a penalty payable
under subsection 226(1A) of the Income Tax Assessment Act 1936 for a
*withholding payment; or
(b) an amount of *general interest charge
under subsection 16-200(4) in relation to that amount;
the person liable to pay the *withholding
tax for that withholding payment is entitled to a credit equal to the amount
paid by the entity.
Remission
(2) If:
(a) an entity has paid an amount under subsection 16-200(1) in relation to
a penalty mentioned in paragraph(1)(a); and
(b) the Commissioner remits the whole or a part of the amount of the
penalty under subsection 227(3) of the Income Tax Assessment Act
1936;
then:
(c) any credit under subsection (1) relating to the amount paid by the
entity is reduced by the amount that is remitted; and
(d) the Commissioner must pay to the entity an amount equal to the amount
that is remitted.
(3) If:
(a) an entity has paid to the Commissioner an amount of
*general interest charge mentioned in paragraph
(1)(b); and
(b) the Commissioner remits the whole or a part of the amount of the
charge under section 8AAG;
then:
(c) any credit under subsection (1) relating to the amount is reduced by
the amount that is remitted; and
(d) the Commissioner must pay to the entity an amount equal to the amount
that is remitted.
Credit—amount withheld
(1) If there is an *amount withheld from
a *withholding payment that is covered by
section 12-320 (mining payment):
(a) if paragraph (b) does not apply—the person liable to pay
*mining withholding tax under section 128V of
the Income Tax Assessment Act 1936 on the payment is entitled to a credit
of an amount equal to the amount withheld; or
(b) if, under subsection 128U(4) of that Act, separate mining payments are
taken to have been made to, or applied for the benefit of, 2 or more persons
because of that payment—each of those persons is entitled to a credit
equal to the amount worked out using the formula:
Credit—penalty amount
(2) If an entity has paid to the Commissioner a penalty amount under
section 16-30 or 16-35 in relation to an
*amount required to be withheld under section
12-320 (mining payment):
(a) if paragraph (1)(a) applies—the person mentioned in that
paragraph is entitled to a credit equal to the penalty amount; or
(b) if paragraph (1)(b) applies—each of the persons mentioned in
that paragraph is entitled to a credit of an amount worked out using the
formula:
Remission
(3) If the Commissioner remits the whole or a part of the amount of
penalty under section 16-45 that has been paid to the Commissioner by the
entity:
(a) any credit that relates to the amount is reduced by the amount that is
remitted; and
(b) the Commissioner must pay to the entity an amount equal to the amount
that is remitted.
Table of sections
18-65 Refund
of withheld amounts by the payer to the recipient
18-70 Refund of withheld amounts by the Commissioner to the
recipient
18-75 Refund of withheld amounts relating to eligible
termination payment
18-80 Refund by Commissioner of amount withheld from payment
in respect of investment
(1) An entity (the payer) must refund to another entity
(the recipient) an amount if:
(a) the payer:
(i) withheld the amount purportedly under Division 12 from a payment made
to, or received for, the recipient (whether the amount has been paid to the
Commissioner or not); or
(ii) paid the amount to the Commissioner purportedly under Division 14 for
a *non-cash benefit provided to, or received
for, the recipient; and
(b) the amount was so withheld, or paid to the Commissioner, in error;
and
(c) either:
(i) the payer becomes aware of the error; or
(ii) the recipient applies to the payer for the refund;
before the end of 21 July in the financial year after the one in which
the amount was so withheld or paid to the Commissioner; and
(d) any information requested by the payer under subsection (3) has been
given to the payer, or the time for making the request (see subsection (4)) has
passed without such a request being made.
(2) The amount that must be refunded under subsection (1) is a debt
recoverable by the recipient from the payer.
Request for tax file number (or in some cases, ABN)
(3) The payer may request the recipient to give to the payer:
(a) in any case—the recipient’s
*tax file number; or
(b) in any case—evidence of the basis on which the recipient is
taken to have quoted its tax file number to the payer; or
(c) if the payment or *non-cash benefit
was in respect of a *Part VA investment made by
the recipient in the course or furtherance of an
*enterprise carried on by it—the
recipient’s *ABN;
if:
(d) the payment or non-cash benefit was in respect of Subdivision 12-B
(payments for work or services) or 12-C (retirement payments and eligible
termination payments) or 12-D (benefits and compensation payments) or section
12-140 or 12-145 (recipient does not quote tax file number or ABN);
and
(e) when the application for the refund is made, or when the payer
otherwise becomes aware of the error, the payer has a record of none of the
following:
(i) the recipient’s tax file number;
(ii) the basis on which the recipient is taken to have quoted the tax file
number to the payer;
(iii) if paragraph (c) applies—the recipient’s ABN.
When must the request be made
(4) The request must be made within 7 working days (of the payer) after
the payer receives the application for the refund or after the payer otherwise
becomes aware of the error (as appropriate).
Recovery of refunded amount
(5) If a payer refunds an amount under subsection (1), the payer may
recover from the Commissioner as a debt due to the payer so much of the
amount:
(a) which is withheld as mentioned in subparagraph (1)(a)(i) and paid to
the Commissioner, or which is paid to the Commissioner as mentioned in
subparagraph (1)(a)(ii); and
(b) which the payer has not recorded as being offset under subsection
(6).
Offsetting a refunded amount
(6) If:
(a) a payer refunds an amount (the refunded amount) under
subsection (1); and
(b) the amount withheld as mentioned in subparagraph (1)(a)(i) that the
payer has paid to the Commissioner, or the amount paid to the Commissioner as
mentioned in subparagraph (1)(a)(ii), is equal to all or a part of the refunded
amount; and
(c) apart from this subsection, the payer would be required to pay to the
Commissioner another amount or amounts under Division 14 or subsection 16-70(1)
(the payment to the Commissioner); and
(d) the payer records in writing that it offsets all or a part of the
amount paid to the Commissioner (as mentioned in paragraph (b)) against the
payment to the Commissioner;
the payment to the Commissioner is reduced by so much of the amount as the
payer so recorded as being offset.
(7) The payer must not record that it offsets any part of an amount
that:
(a) the payer has previously recorded under subsection (6); or
(b) the payer has sought to recover from the Commissioner under subsection
(5).
(1) An entity (the recipient) may apply in writing to the
Commissioner for the refund of an amount if:
(a) another entity (the payer):
(i) withheld an amount purportedly under Division 12 from a payment made
to, or received for, the recipient; or
(ii) paid to the Commissioner an amount purportedly under Division 14 for
a *non-cash benefit provided to, or received
for, the recipient; and
(b) the amount was so withheld, or paid to the Commissioner, in error;
and
(c) section 18-65 does not apply because the payer did not become aware of
the error, or the recipient did not apply for a refund, as mentioned in
subsection 18-65(1); and
(d) if subparagraph (a)(i) applies—the payer has already paid the
withheld amount to the Commissioner.
(2) The Commissioner must refund the amount if the application sets
out:
(a) if the recipient has a *tax file
number—that tax file number; or
(b) if the recipient does not have a tax file number but was taken to have
quoted a tax file number to the payer before the amount was withheld or paid to
the Commissioner—the basis on which the recipient was taken to have quoted
the tax file number; or
(c) if the payment or *non-cash benefit
was in respect of a *Part VA investment made by
the recipient in the course or furtherance of an
*enterprise carried on by it—the
recipient’s *ABN;
and the Commissioner is satisfied that it would be fair and reasonable to
refund the amount, having regard to:
(d) the circumstances that gave rise to the withholding obligation (if
any); and
(e) the nature of the error; and
(f) any other matter the Commissioner considers relevant.
Note: A person who is dissatisfied with a decision under
this section may object against the decision in the manner set out in Part
IVC.
(1) The Commissioner must refund all or part of an
*amount withheld from a
*withholding payment covered by section 12-85
(about eligible termination payment) if:
(a) the Commissioner is satisfied that an amount (the applied
amount) that is the whole or a part of the
*eligible termination payment:
(i) is taken to have been rolled-over for the purposes of Subdivision AA
of Division 2 of Part III of the Income Tax Assessment Act 1936;
or
(ii) will be taken to have been rolled-over because of an amount or
amounts being paid to a person or persons (the payee or
payees) as mentioned in subsection 27A(12) of that Act;
and
(b) if the applied amount is a part of the eligible termination
payment—the withheld amount exceeds the amount that would have been the
*amount required to be withheld if the eligible
termination payment had not included the applied amount.
(3) The amount refundable is:
(a) if the applied amount is the whole of the
*eligible termination payment—the
*amount withheld from the
*withholding payment; or
(b) if the applied amount is a part of the eligible termination
payment—the excess referred to in paragraph (2)(b).
(4) The Commissioner must refund that amount:
(a) by paying the refundable amount to the recipient of the
*eligible termination payment; or
(b) by paying to the recipient, and the payee or payees on behalf of the
recipient, amounts equal in the aggregate to the refundable amount; or
(c) by paying to the payee or payees on behalf of the recipient the
refundable amount, or amounts equal in the aggregate to the refundable
amount;
as appropriate.
The Commissioner must refund to an entity all or part of an
*amount withheld from a
*withholding payment covered by section 12-140
or 12-145 that was made to that entity if:
(a) the entity applies in writing for the refund; and
(b) the Commissioner is satisfied that the entity was entitled to give
*the investment body a declaration under
Division 5 of Part VA of the Income Tax Assessment Act 1936 in relation
to the *Part VA investment in respect of which
the withholding payment was made, but did not do so; and
(c) the Commissioner is also satisfied it is fair and reasonable to make
the refund, having regard to the purposes of this Part and any other matters
that the Commissioner considers appropriate.
Note: A person who is dissatisfied with a decision under
this section may object against the decision in the manner set out in Part
IVC.
An entity that is given a *payment
summary and a copy of it in any financial year under this Part must retain that
copy for 5 years after the end of that year.
Penalty: 30 penalty units.
Note: See section 4AA of the Crimes Act 1914 for the
current value of a penalty unit.
[The next Division is Division 20.]
Table of Subdivisions
20-A How this Part applies to certain entities
20-B Offences
20-C Commissioner’s power to obtain information and
evidence
20-D Review of decisions
20-10 Unincorporated companies
20-15 Superannuation funds
(1) This Part applies to a partnership as if the partnership were a
person, but with the changes set out in this section.
(2) An obligation that would otherwise be imposed on the partnership under
this Part:
(a) is imposed on each partner instead; but
(b) may be discharged by any of the partners.
(3) The partners are jointly and severally liable to pay an amount that
would otherwise be payable by the partnership under this Part.
(4) An offence against this Part that would otherwise be committed by the
partnership is taken to have been committed by each partner who:
(a) aided, abetted, counselled or procured the relevant act or omission;
or
(b) was in any way knowingly concerned in, or party to the relevant act or
omission (whether directly or indirectly or whether by any act or omission of
the partner).
(1) This Part applies to a company that is not incorporated as if the
company were a person, but with the changes set out in this section.
(2) An obligation that would otherwise be imposed on the company under
this Part:
(a) is imposed on each member of the committee of management of the
company instead; but
(b) may be discharged by any of those members.
(3) An offence against this Part that would otherwise be committed by the
company is taken to have been committed by each member of the committee of
management of the company who:
(a) aided, abetted, counselled or procured the relevant act or omission;
or
(b) was in any way knowingly concerned in, or party to, the relevant act
or omission (whether directly or indirectly and whether by any act or omission
of the member).
If a *superannuation fund does not have
a trustee of the fund, then, for the purposes of this Part:
(a) the person who manages the fund is taken to be the trustee of the
fund; or
(b) each of the persons who manage the fund is taken to be a trustee of
the fund.
Note: The trustee of a superannuation fund is an entity. See
subsection 960-100(2) of the Income Tax Assessment Act
1997.
Table of sections
20-35 Offences
20-40 Joining of charges
(1) A person must not:
(a) present a document issued by the Commissioner that specifies a person
(the specified person); and
(b) falsely pretend to be the specified person with the intention of
obtaining under this Part a credit for, or a payment of, an
*amount withheld from a
*withholding payment.
(2) A person must not attempt to obtain for the person a credit under this
Part for an *amount withheld from a
*withholding payment if:
(a) the payment is not covered by section 12-215, 12-250 or 12-285 and was
made to another person; or
(b) the payment is covered by section 12-215, 12-250 or 12-285 and the
person is not the foreign resident in respect of which all or a part of the
payment is received as mentioned in that section.
(3) A person must not, with the intention of obtaining a credit, a payment
or any other benefit, present:
(a) a copy of a *payment summary;
or
(b) a document purporting to be a copy of a payment summary;
which is not a copy duly given to the person.
Penalty: 60 penalty units, or imprisonment for 12 months, or
both.
Note: See section 4AA of the Crimes Act 1914 for the
current value of a penalty unit.
(1) Charges against the same person for a number of offences against this
Part may be joined in one complaint, information or summons if those
charges:
(a) are founded on the same facts; or
(b) form a series of offences of the same or a similar character;
or
(c) are part of a series of offences of the same or similar
character.
(2) Particulars of each offence charged must be set out in a separate
paragraph if 2 or more of the charges are included in the same complaint,
information or summons.
(3) If the charges are joined, the charges must be tried together unless
the court:
(a) considers it just that any of the charges should be tried separately;
and
(b) makes an order to that effect.
(4) If a person is convicted of 2 or more of the offences:
(a) the court may impose one penalty for both or all of those offences;
but
(b) the penalty must not exceed the sum of the maximum penalties that
could be imposed in respect of each offence separately.
(1) The Commissioner may require any person:
(a) to give information to the Commissioner covering any matters relevant
to the administration or operation of this Part; and
(b) to attend and to give evidence before the Commissioner or an officer
authorised by the Commissioner covering any matters relevant to the
administration or operation of this Part; and
(c) to produce any documents in the person’s custody or under the
person’s control that relate to these matters.
(2) The Commissioner may require the information or evidence:
(a) to be given on oath; and
(b) to be given orally or in writing.
For that purpose, the Commissioner or the officer may administer an
oath.
(3) The regulations may prescribe scales of expenses to be allowed to
persons required to attend before the Commissioner or the officer.
A person who is dissatisfied with any of the following decisions of the
Commissioner may object against the decision in the manner set out in Part
IVC.
|
Reviewable decisions |
|
|---|---|
|
Item |
Description |
|
1 |
Decision not to give a certificate under subsection 12-335(1) exempting an
entity from notifying the Commissioner about a natural resource
payment |
|
5 |
Decision to revoke a certificate under subsection 12-335(3) |
|
10 |
Decision to vary a certificate under subsection 12-335(3) |
|
15 |
Decision under section 16-45 (about the remission of all or a part of a
penalty payable under section 16-30, 16-35 or 16-40) |
|
20 |
Decision under section 16-90 (about the remission of all or a part of the
penalty that a *large withholder is liable to
pay because of subsection 16-90(1)) |
|
25 |
Refusal to determine under subsection 16-110(1) that a large withholder is
a *medium withholder or a
*small withholder for a particular month or
particular months |
|
30 |
Refusal to determine under subsection 16-110(1) that a medium withholder is
a small withholder for a particular month or particular months |
|
35 |
Decision to revoke a determination made under subsection
16-110(1) |
|
40 |
Decision to vary a determination made under subsection 16-110(1) for a
particular month or particular months |
|
45 |
Determination under subsection 16-115(1) that a small withholder is a
medium withholder or a large withholder for a particular month or particular
months |
|
50 |
Determination under subsection 16-115(1) that a medium withholder is a
large withholder |
|
55 |
Decision not to revoke a determination made under subsection
16-115(1) |
|
60 |
Decision not to vary a determination made under subsection 16-115(1) for a
particular month or particular months |
|
65 |
Decision not to refund an amount under section 18-70 |
|
70 |
Decision not to refund an amount under section 18-80 |
Guide to Division 45
45-A Basic rules
45-B When instalments are due
45-C Working out instalment amounts
45-D Quarterly payers who pay on the basis of GDP-adjusted notional
tax
45-E Annual payers
45-F Varying the instalment rate for quarterly instalments
45-G General interest charge payable in certain cases if instalments are
too low
45-H Partnership income
45-I Trust income
45-J How Commissioner works out your instalment rate and notional
tax
45-K How Commissioner works out your benchmark instalment rate and
benchmark tax
45-L How Commissioner works out amount of quarterly instalment on basis of
GDP-adjusted notional tax
If you have business or investment income, you must pay instalments towards
your income tax liability: usually within 21 days after the end of each quarter.
If you are not registered for GST purposes, you may be able to choose to pay an
annual instalment on 21 October after the end of the income year.
You do not have to pay instalments unless the Commissioner has given you an
instalment rate.
The amount of a quarterly instalment is worked out by multiplying your
instalment income for the quarter by the rate the Commissioner gave you, or by a
rate you choose yourself. If you are an individual who is not registered for GST
purposes, you may be able to choose to have the amount of your instalment worked
out on the basis of your previous year’s income tax liability and notified
to you by the Commissioner.
The amount of an annual instalment can be your instalment income for the
income year multiplied by the rate the Commissioner gave you; or an amount based
on your previous year’s income tax liability and notified to you by the
Commissioner; or your own estimate of your income tax liability for the income
year.
45-5 Object of this Part
45-10 Application of Part
45-15 Liability for instalments
45-20 Information to be given to the
Commissioner
45-25 Penalty for failure to notify
Commissioner
45-30 Credit for instalments payable
The object of this Part is to ensure the efficient collection
of:
(a) income tax; and
(b) Medicare levy; and
(c) amounts of liabilities to the Commonwealth under Chapter 5A of the
Higher Education Funding Act 1988.
This Part applies to individuals, companies, and the entities listed in
items 3 and 4, and 6 to 12, of the table in section 9-1 of the Income Tax
Assessment Act 1997 (which lists the entities that must pay income
tax).
Note: This
Part applies to a trustee covered by item 5 in that table only to the extent set
out in section 45-300.
(1) The Commissioner may give you an instalment rate from time to time, by
giving you written notice of the rate.
(2) You are liable to pay instalments under this Division if the
Commissioner has given you an instalment rate.
Note 1: The instalment rate that
the Commissioner gives you is worked out under section 45-320.
Note 2: If your assessable income has always consisted
wholly of withholding payments (other than non-quotation withholding payments),
the Commissioner will not give you an instalment rate.
Note 3: Work out the amount of your instalments under
Subdivision 45-C.
Note
4: If the Commissioner withdraws the rate under section 45-90, you are not
liable to pay further instalments.
(1) If you are liable to pay an instalment for
a period (even if it is a nil amount), you must notify the Commissioner of the
amount of your *instalment income for the
period.
(2) You must notify the Commissioner in the
*approved form and on or before the day when
the instalment is due (regardless of whether it is paid).
Exceptions
(3) Subsection (1) does not apply to:
(a) a quarterly instalment worked out under section 45-112 (on the basis
of GDP-adjusted notional tax); or
(b) an annual instalment, unless it is worked out under paragraph
45-115(1)(a) (based on the Commissioner’s rate and your instalment income
for the income year).
If you fail to notify the Commissioner of an amount as required by
section 45-20, or you notify an amount that is less than the correct amount, you
are liable to pay the *failure to notify
penalty on the amount, or on the shortfall, multiplied by the instalment rate
that you are required to use to work out the instalment for the period, for each
day in the period that:
(a) started at the beginning of the day by which the amount was due to be
paid; and
(b) finishes at the end of the day before you notify the Commissioner of
the correct amount, or he or she otherwise becomes aware of it.
(1) You are entitled to a credit when the Commissioner:
(a) makes an assessment of the income tax you are liable to pay for an
income year; or
(b) determines that you do not have a taxable income for an income year,
or that no income tax is payable on it.
(2) The credit is equal to:
• the total of each instalment payable by you for the income year
(even if you have not yet paid it);
reduced by:
• the total of each credit that you have claimed under section
45-215 in respect of such an instalment.
Note: You can claim a credit under section 45-215 in certain
cases where you choose a rate for working out an instalment.
(3) The making of the assessment or determination, and the resulting
credit entitlement, do not affect the liability to pay an instalment.
Note: How
the credit is applied is set out in Division 3 of Part IIB.
45-50 Liability to pay first instalment
45-55 Subsequent quarterly instalments
45-60 When quarterly instalments are due
45-65 Subsequent annual instalments
45-70 When annual instalments are due
45-72 Electronic payment
45-75 Instalments recoverable in same way as income
tax
45-80 General interest charge on late
payment
45-85 Commissioner may extend time for
payment
45-90 Commissioner may withdraw instalment
rate
(1) Your first instalment is payable:
(a) for the *instalment quarter in which
the Commissioner first gives you an instalment rate (even if it is not the first
instalment quarter in an income year); or
(b) if at the end of that quarter you become an
*annual payer under Subdivision 45-E—for
the income year in which the Commissioner first gives you an instalment
rate;
unless the Commissioner withdraws your instalment rate under section 45-90
during that quarter or income year.
(2) However, if paragraph (1)(b) applies but during a later
*instalment quarter in that income year you
stop being an *annual payer under section
45-150, your first instalment is payable for that later instalment quarter,
unless the Commissioner withdraws your instalment rate under section 45-90
during it.
If you are liable to pay an instalment for an
*instalment quarter, you are liable to pay an
instalment for the next one unless:
(a) at the end of that next instalment quarter you become an
*annual payer under Subdivision 45-E;
or
(b) during that next quarter the Commissioner withdraws your instalment
rate under section 45-90.
(1) If your income year ends on 30 June, the table sets out your
instalment quarters and the days on which the instalments for
those quarters are due:
|
Instalment quarters: entity with 1 July to 30 June income
year |
||
|---|---|---|
|
For the *quarter ending
on: |
The instalment is due on or before the next: |
|
|
1 |
30 September |
21 October |
|
2 |
31 December |
21 January |
|
3 |
31 March |
21 April |
|
4 |
30 June |
21 July |
(2) If your income year ends on a day other than 30 June:
(a) your first instalment quarter consists of the first 3
months of the income year; and
(b) your second instalment quarter consists of the fourth,
fifth and sixth months of the income year; and
(c) your third instalment quarter consists of the seventh,
eighth and ninth months of the income year; and
(d) your fourth instalment quarter consists of the tenth,
11th and 12th months of the income year.
(3) If subsection (2) applies, an instalment for an
*instalment quarter is due on or before the
21st day of the month after the end of that quarter.
If you are liable to pay an instalment for an income year (the
previous year), you must pay an instalment for the next income
year unless:
(a) during the previous year you stopped being an
*annual payer because of section 45-150, 45-155
or 45-180; or
(b) during that next income year the Commissioner withdraws your
instalment rate under section 45-90.
Note 1: Sections 45-150 and 45-180 cover cases where an
annual payer becomes registered for GST, becomes a partner in a partnership that
is registered for GST, is a partner in a partnership that becomes registered for
GST, becomes a participant in a GST joint venture, or becomes a company group
member.
Note 2: Section 45-155 covers cases where an annual
payer’s notional tax is $8,000 or more, or the entity chooses to pay
quarterly.
(1) This section applies if you are liable to pay an annual instalment for
the 2002-03 income year or a later income year.
For an instalment you are liable to pay for
2000-01 or 2001-02,
see section 45-170.
(2) If the income year ends on 30 June, the instalment is due on or before
the next 21 October.
(3) If the income year ends on a day other than 30 June, the instalment is
due on or before the 21st day of the fourth month after the end of the income
year.
You must pay an instalment by
*electronic payment if you are required to pay
by electronic payment the amount of any other liability to the Commissioner that
is due on the same day as the instalment.
Instalments are to be treated as income tax for the purposes of sections
208, 209, 214, 254, 255, 258 and 259 of the Income Tax Assessment Act
1936.
If you fail to pay some or all of an instalment by the time by which the
instalment is due to be paid, you are liable to pay the
*general interest charge on the unpaid amount
for each day in the period that:
(a) started at the beginning of the day by which the instalment was due to
be paid; and
(b) finishes at the end of the last day on which, at the end of the day,
any of the following remains unpaid:
(i) the instalment;
(ii) general interest charge on any of the instalment.
(1) The Commissioner may, in a particular case, grant such extension of
time for payment of an instalment as he or she considers the circumstances
warrant.
(2) If the Commissioner grants an extension of time under subsection (1),
the instalment is due to be paid on or before the day or days specified by the
Commissioner.
(1) The Commissioner may:
(a) by giving you written notice, withdraw your instalment rate;
or
(b) by notice published in the Gazette, withdraw the instalment
rate of a class of entities that includes you.
Note: If the Commissioner does so, you are not liable to pay
further instalments (even if you have chosen a rate under section 45-205). See
paragraphs 45-55(b) and 45-65(b).
(2) If the Commissioner withdraws your instalment rate and later gives
you another one, your first instalment after the withdrawal is payable under
section 45-50 as if it were your first instalment, and as if that rate were your
first instalment rate.
45-110 How to work out amount of quarterly
instalment
45-112 Amount of instalment for quarterly payer who pays on
basis of GDP-adjusted notional tax
45-115 How to work out amount of annual
instalment
45-120 Meaning of instalment income
(1) Work out the amount of an instalment you are liable to pay for an
*instalment quarter as follows:
(2) For the purposes of the formula in subsection (1):
Applicable instalment rate means:
(a) unless paragraph (b) or (c) applies—the most recent instalment
rate given to you by the Commissioner under section 45-15 before the end of that
quarter; or
(b) if you have chosen an instalment rate for that quarter under section
45-205—that rate; or
(c) if you have chosen an instalment rate under section 45-205 for an
earlier *instalment quarter in that income year
(and paragraph (b) does not apply)—that rate.
Note: If you believe the Commissioner’s rate is not
appropriate for the current income year, you may choose a different instalment
rate under Subdivision 45-F.
(1) If at the end of an
*instalment quarter in an income year you are a
*quarterly payer who pays on the basis of
GDP-adjusted notional tax, the amount of your instalment for that quarter is the
amount notified to you by the Commissioner before the end of that
quarter.
Note: The Commissioner works out that amount under
Subdivision 45-L.
(2) If the Commissioner notifies you of the amount of the instalment
after the end of that quarter, the instalment is due on or before the
21st day after the day on which the notice is given.
(1) The amount of an instalment you are liable to pay for the 2002-03
income year or a later income year is whichever of the following you
choose:
(a) the amount worked out using the formula:
(b) your most recent *notional tax
notified by the Commissioner before the end of the income year under subsection
45-320(5);
(c) the amount that you estimate will be your
*benchmark tax for the income year.
Note 1: You cannot choose a
different instalment rate under Subdivision 45-F if you are an annual payer.
Instead you can work out the amount of your instalment under paragraph
(c).
Note 2: You may be liable to general interest charge under
section 45-235 if working out your instalment under paragraph (c) leads you to
pay an instalment that is less than 85% of your benchmark tax for the income
year (worked out by the Commissioner under section 45-365).
For the amount of an instalment you are liable
to pay
for 2000-01 or 2001-02, see section
45-175.
(2) Commissioner’s instalment rate for an income year
means the most recent instalment rate given to you by the Commissioner before
the end of the income year.
(3) If
you choose to work out your instalment under paragraph (1)(c), you must notify
the Commissioner, in the *approved form, of the
amount of the instalment on or before the day when it is due.
General rule
(1) Your instalment income for a period includes your
*ordinary income
*derived during that period, but only to the
extent that it is assessable income of the income year that is or includes that
period.
Note 1: An amount of statutory income is not instalment
income unless it is covered by another provision of this section or by
Subdivision 45-H or 45-I.
Note 2: If during that period you are a partner in a
partnership, or a beneficiary of a trust, your instalment income also includes
some of the partnership’s or trust’s instalment income for the
period. See Subdivision 45-H or 45-I.
Statutory income included for some entities
(2) The instalment income of:
(a) an eligible ADF (as defined in section 267 of the Income Tax
Assessment Act 1936); or
(b) an eligible superannuation fund (as defined in that section);
or
(c) a pooled superannuation trust (as defined in that section);
for a period also includes the entity’s
*statutory income, to the extent
that:
(d) it is reasonably attributable to that period; and
(e) it is assessable income of the income year that is or includes that
period.
Exclusion:
amounts in respect of withholding payments
(3) Your instalment income for a period does not
include amounts in respect of *withholding
payments (except *non-quotation withholding
payments) made to you during that period.
Farm management deposits: effect of making and repayment
(4) Your instalment income for a period is reduced (but not
below nil) by a *farm management deposit made
during that period, but only to the extent that, at the end of that period, you
can reasonably expect to be able to deduct the deposit under section 393-10 in
Schedule 2G to the Income Tax Assessment Act 1936 for the income year
that is or includes that period.
(5) Your instalment income for a period also includes an
amount that section 393-15 in Schedule 2G to the Income Tax Assessment Act
1936 includes in your assessable income, for the income year that is or
includes that period, because of a repayment during that period of all or some
of a *farm management deposit.
Instalment income of entity that is not liable for
instalments
(6) An entity can have *instalment income
for a period even if the entity is not liable to pay an instalment for that
period.
Note: For example, although a partnership does not pay
instalments, it is necessary to work out the partnership’s instalment
income in order to work out instalments payable by the partners. See Subdivision
45-H.
Table of sections
45-125 Choosing to pay quarterly instalments on basis of
GDP-adjusted notional tax
45-130 Individual stops paying on basis of GDP-adjusted
notional tax if he or she chooses to stop, or becomes GST
registered
45-135 Individual stops paying on basis of GDP-adjusted
notional tax if his or her notional tax is less than $8,000
(1) You may choose to pay quarterly instalments on the basis of your
*GDP-adjusted notional tax if you are an
individual and, at the end of the first
*instalment quarter in an income year for which
you are liable to pay an instalment, you satisfy the following
conditions:
(a) you are neither *registered, nor
*required to be registered, under Part 2-5 of
the *GST Act; and
(b) you are not a partner in a partnership that is registered, or required
to be registered, under that Part; and
(c) your most recent *notional tax
notified by the Commissioner is $8,000 or more.
Note: This means that you cannot choose to pay quarterly
instalments on the basis of your GDP-adjusted notional tax if you are eligible
to pay annual instalments.
(2) You must make the choice by notifying the Commissioner, in the
*approved form, on or before the day on which
that instalment is due.
(3) You are a quarterly payer who pays on the basis of GDP-adjusted
notional tax if you satisfy the conditions in subsection (1), and you
choose to pay quarterly instalments on the basis of your
*GDP-adjusted notional tax. You are taken to
have become such a payer just before the end of that
*instalment quarter.
Note: You stop being such a payer if section 45-130 or
45-135 applies to you.
(1) You stop being a *quarterly payer who
pays on the basis of GDP-adjusted notional tax if, during an
*instalment quarter in an income
year:
(a) you choose to stop being a *quarterly
payer who pays on the basis of GDP-adjusted notional tax; or
(b) you become *registered, or
*required to be registered, under Part 2-5 of
the *GST Act; or
(c) you become a partner in a partnership that is registered, or required
to be registered, under that Part; or
(d) a partnership in which you are a partner becomes registered, or
required to be registered, under that Part.
(2) You must work out the amount of your instalment for that
*instalment quarter, and each later instalment
quarter, under section 45-110 (on the basis of your instalment income and the
applicable instalment rate).
(3) You may again become a *quarterly
payer who pays on the basis of GDP-adjusted notional tax if:
(a) you again satisfy the conditions in section 45-125; and
(b) you again choose under that section to pay quarterly instalments on
the basis of your *GDP-adjusted notional
tax.
Note: You cannot so choose until the next income
year.
(1) If, during an income year the Commissioner notifies you of your
*notional tax, and it is less than $8,000, you
stop being a *quarterly payer who pays on the
basis of GDP-adjusted notional tax at the start of the next income
year.
(2) You must work out the amount of your instalment for the first
*instalment quarter of that next income year,
and each later instalment quarter, under section 45-110 (on the basis of your
instalment income and the applicable instalment rate).
(3) You may again become a *quarterly
payer who pays on the basis of GDP-adjusted notional tax if:
(a) you again satisfy the conditions in section 45-125; and
(b) you again choose under that section to pay quarterly instalments on
the basis of your *GDP-adjusted notional
tax.
Note: You can so choose on or before the day on which your
first instalment for that next income year is due.
When you start and stop being an annual payer
45-140 Choosing to pay annual instalments
45-145 Meaning of instalment group
45-150 Entity that becomes GST registered, participant in
GST joint venture, or company group member, stops being annual
payer
45-155 Entity stops being annual payer if notional tax is
$8,000 or more, or entity chooses to pay quarterly
Special rules for 2000-01 and 2001-02
45-170 Due date for annual instalment
45-175 Amount of annual instalment
45-180 Entity that becomes GST registered, participant in
GST joint venture, or company group member stops being annual
payer
(1) You may choose to pay instalments annually instead of quarterly if, at
the end of the first *instalment quarter in an
income year for which you would otherwise be liable to pay a quarterly
instalment, you satisfy the following conditions:
(a) you are
neither *registered, nor
*required to be registered, under Part 2-5 of
the *GST Act; and
(b) you are not a partner in a partnership that is registered, or required
to be registered, under that Part; and
(c) your most recent *notional tax
notified by the Commissioner is less than $8,000; and
(d) in the case of a company—the company is not a
*participant in a
*GST joint venture under Division 51 of that
Act; and
(e) in the case of a company—the company is not part of an
*instalment group.
(2) You must make the choice by notifying the Commissioner, in the
*approved form, on or before the day on which
that instalment would otherwise be due.
(3) You are an annual payer if you satisfy the conditions in
subsection (1), and you choose to pay instalments annually. You are taken to
have become an annual payer at the end of that
*instalment quarter.
Note: You stop being an annual payer if section 45-150,
45-155 or 45-180 applies to you.
(1) An instalment group consists of:
(a) a company:
(i) that has *majority control of at
least one other company; but
(ii) of which no other company has
*majority control; and
(b) any other company of which the first-mentioned company has
*majority control.
(2) A company has majority control of another company if,
and only if:
(a) the first company is in a position to cast, or control the casting of,
more than 50% of the maximum number of votes that might be cast at a general
meeting of the other company; or
(b) the first company has the power to appoint or remove the majority of
the directors of the other company; or
(c) the other company is, or a majority of its directors are, accustomed
or under an obligation, whether formal or informal, to act according to the
directions, instructions or wishes of the first company.
(1) You stop being an *annual payer if,
during an *instalment quarter in the 2002-03
income year or a later income year:
(a) you become *registered, or
*required to be registered, under Part 2-5 of
the *GST Act; or
(b) you become a partner in a partnership that is registered, or required
to be registered, under that Part; or
(c) a partnership in which you are a partner becomes registered, or
required to be registered, under that Part; or
(d) in the case of a company—the company becomes a
*participant in a
*GST joint venture under Division 51 of that
Act; or
(e) in the case of a company—the company becomes part of an
*instalment group.
Note: If one of those things happens in 2000-01 or 2001-02,
see section 45-180.
(2) You must pay an instalment for that
*instalment quarter, and later instalment
quarters, in accordance with Subdivision 45-B.
(3) If the *instalment quarter referred
to in subsection (1) is not the first one in the income year, you must also pay
an annual instalment for that income year. The amount of the annual instalment
is reduced (but not below nil) by the amount of each instalment for an
instalment quarter in that income year that you must pay under subsection
(2).
(4) You may again become an *annual payer
if:
(a) you again satisfy the conditions in section 45-140; and
(b) you again choose under that section to pay instalments
annually.
(1) You stop being an *annual payer at
the end of an income year if, during that income year:
(a) the Commissioner notifies you of your
*notional tax, and it is $8,000 or more;
or
(b) you choose to pay instalments quarterly instead of annually.
(2) You must pay an instalment for the first
*instalment quarter of the next income
year, and later instalment quarters, in accordance with Subdivision
45-B.
(3) You must still pay an annual instalment for the income year referred
to in subsection (1).
(4) You may again become an *annual payer
if:
(a) you again satisfy the conditions in section 45-140; and
(b) you again choose under that section to pay instalments
annually.
(1) This section applies if you are liable to pay an annual instalment for
the 2000-01 or 2001-02 income year.
(2) The instalment is due on or before a day that is notified to you in
writing by the Commissioner and is at least 30 days after the Commissioner gives
you the notice. If that day is earlier than 31 March in that income year, the
instalment is due on or before that 31 March.
(3) However, in the case of an entity that is an instalment taxpayer for
that income year (as defined by subsection 221AZK(1) of the Income Tax
Assessment Act 1936), the instalment is due on or before the 15th day of the
6th month after the end of that income year.
(1) Unless subsection (2) applies, the amount of an annual instalment you
are liable to pay for the 2000-01 or 2001-02 income year is whichever of the
following you choose:
(a) your most recent *notional tax
notified by the Commissioner at least 30 days before the day on which the
instalment is due;
(b) the
amount that you estimate will be your
*benchmark tax for the income year.
Note: You may be liable to general interest charge under
section 45-235 if working out your instalment under paragraph (b) leads you to
pay an instalment that is less than 85% of your benchmark tax for the income
year (worked out by the Commissioner under section 45-365).
(2) If
an entity is an instalment taxpayer (as defined by subsection 221AZK(1) of the
Income Tax Assessment Act 1936) for the 2000-01 or 2001-02 income year,
the amount of an annual instalment that the entity is liable to pay for that
income year is worked out under section 45-115, as if that section applied to
that income year.
(1) You stop being an *annual payer if,
during an *instalment quarter in the 2000-01 or
2001-02 income year:
(a) you become *registered, or
*required to be registered, under Part 2-5 of
the *GST Act; or
(b) you become a partner in a partnership that is registered, or required
to be registered, under that Part; or
(c) a partnership in which you are a partner becomes registered, or
required to be registered, under that Part; or
(d) in the case of a company—the company becomes a
*participant in a
*GST joint venture under Division 51 of that
Act; or
(e) in the case of a company—the company becomes part of an
*instalment group.
(2) You must pay an instalment for the first
*instalment quarter of the next income
year, and later instalment quarters, in accordance with Subdivision
45-B.
(3) You must still pay an annual instalment for the income year referred
to in subsection (1).
(4) You may again become an *annual payer
if:
(a) you again satisfy the conditions in section 45-140; and
(b) you again choose under that section to pay instalments
annually.
45-200 Application
45-205 Choosing a varied instalment rate
45-210 Notifying Commissioner of varied instalment
rate
45-215 Credit on using varied rate in certain
cases
This Subdivision applies if you are a
*quarterly payer.
(1) You may choose an instalment rate for working out under section 45-110
the amount of your instalment for an
*instalment quarter in an income
year.
(2) If you do so, you must use that instalment rate to work out the amount
of that instalment. (You cannot later choose another instalment rate for working
out that amount.)
Note 1: If choosing a rate leads you to pay an instalment
that is too low, you may be liable to general interest charge under section
45-230.
Note 2: If you choose a rate under this section, you must
use it even if the Commissioner later gives you a new instalment
rate.
(3) You must also use that instalment rate to work out the amount of the
instalment that you are liable to pay for each later
*instalment quarter in that income year, unless
you choose another instalment rate under subsection (1) for working out that
amount.
Note 1: If you choose a rate under this section, you must
use it even if the Commissioner later gives you a new instalment
rate.
Note 2: If a rate you have chosen for an instalment quarter
is not appropriate for a later instalment quarter in the same income year, you
should choose another rate under subsection (1) for the later quarter. If the
earlier rate is too low, you may be liable to general interest charge under
section 45-230.
(4) However, for working out under section 45-110 the amount of your
instalment for an *instalment quarter in a
later income year, you must use the most recent instalment rate given to you by
the Commissioner before the end of that quarter, unless you again choose another
instalment rate under subsection (1).
If you work out the amount of an instalment using an instalment rate you
have chosen under section 45-205, you must specify that rate in the notice about
your instalment income that you must give the Commissioner under section
45-20.
(1) You are entitled to claim a credit if:
(a) the amount of your instalment for an
*instalment quarter (the current
quarter) in an income year is to be worked out using an instalment rate
you chose under section 45-205; and
(b) either:
(i) that rate is lower than the instalment rate you used to work out the
amount of your instalment for the previous instalment quarter (if any) in the
same income year; or
(ii) the amount of your instalment for a previous instalment quarter in
the same income year was the amount notified to you by the Commissioner under
section 45-112 (because you were a quarterly payer on the basis of GDP-adjusted
notional tax); and
(c) the amount worked out using the method statement is greater than
nil.
Method statement
Step 1. Add up the instalments you are liable to pay for the earlier
*instalment quarters in the income year (even
if you have not yet paid all of them).
Step 2. Subtract from the step 1 amount each earlier credit that you
have claimed under this section in respect of the income year.
Step 3. Multiply the total of your
*instalment income for those earlier
*instalment quarters by the instalment rate to
be used for the current quarter.
Step 4. Subtract the step 3 amount from the step 2 amount.
Step 5. If the result is a positive amount, it is the amount of the
credit you can claim.
(2) A claim for a credit must be made in the
*approved form on or before the day on which
the instalment for the current quarter is due.
Note: How
the credit is applied is set out in Division 3 of Part IIB.
(3) The credit entitlement does not affect
your liability to pay an instalment.
45-230 Liability to GIC on shortfall in quarterly instalment
and on any excess credit under section 45-215
45-235 Liability to GIC on shortfall in annual
instalment
45-240 Commissioner may remit general interest
charge
(1) You are liable to pay the *general
interest charge under this section if:
(a) you use an instalment rate (the varied rate)
under section 45-205 to work out the amount of your instalment for an
*instalment quarter (the variation
quarter) in an income year; and
(b) the varied rate is less than 85% of your
*benchmark instalment rate for that income year
that the Commissioner works out under Subdivision 45-K.
(2) You are liable to pay the *general
interest charge on the amount worked out as follows:
where:
rate discrepancy means the difference between the varied rate
and the lesser of:
(a) the most recent instalment rate given to you by the Commissioner
before the end of the variation quarter; and
(b) your *benchmark instalment rate for
that income year.
credit adjustment means:
(a) if, as a result of using the varied rate for the variation quarter,
you claimed a credit under section 45-215—the amount worked out as
follows:
or the amount of the credit, whichever is less; and
(b) otherwise—nil.
(3) You are liable to pay the charge for each day in the period
that:
(a) started at the beginning of the day by which the instalment for the
variation quarter was due to be paid; and
(b) finishes at the end of the earlier of the following days:
(i) the day on which your assessed tax for the income year is due to be
paid;
(ii) the last day on which you pay any of that tax.
(4) The Commissioner must give you written notice of the
*general interest charge to which you are
liable under subsection (2). You must pay the charge within 14 days after the
notice is given to you.
(5) If any of the *general interest
charge to which you are liable under subsection (2) remains unpaid at the end of
the 14 days referred to in subsection (4), you are also liable to pay the
*general interest charge on the unpaid amount
for each day in the period that:
(a) starts at the end of those 14 days; and
(b) finishes at the end of the last day on which, at the end of the day,
any of the following remains unpaid:
(i) the unpaid amount;
(ii) general interest charge on the unpaid amount.
(1) You are liable to pay the *general
interest charge under this section if:
(a) you choose to estimate the amount of your instalment (the
estimated instalment amount) for an income year under paragraph
45-115(1)(c) or 45-175(1)(b); and
(b) that amount is less than 85% of your
*benchmark tax for the income year (which the
Commissioner works out under section 45-365).
(2) If you estimated the amount of the instalment under paragraph
45-175(1)(b), you are liable to pay the
*general interest charge on the difference
between the estimated instalment amount and the lower of the following
amounts:
(a) your most recent *notional tax
notified by the Commissioner at least 30 days before the day on which the
instalment was due;
(b) your *benchmark tax for the income
year.
(3) If you estimated the amount of the instalment under paragraph
45-115(1)(c), you are liable to pay the
*general interest charge on the difference
between the estimated instalment amount and the lowest of the following
amounts:
(a) the amount of your instalment worked out using the most recent
instalment rate given to you by the Commissioner before the end of the income
year;
(b) your most recent *notional tax
notified by the Commissioner before the end of the income year under subsection
45-320(5);
(c) your *benchmark tax for the income
year.
(4) You are liable to pay the charge for each day in the period
that:
(a) started at the beginning of the day by which the instalment for the
income year was due to be paid; and
(b) finishes at the end of the earlier of the following days:
(i) the day on which your assessed tax for the income year is due to be
paid;
(ii) the last day on which you pay any of that tax.
(5) The Commissioner must give you written notice of the
*general interest charge to which you are
liable under subsection (2) or (3). You must pay the charge within 14 days after
the notice is given to you.
(6) If any of the *general interest
charge to which you are liable under subsection (2) or (3) remains unpaid at the
end of the 14 days referred to in subsection (5), you are also liable to pay the
*general interest charge on the unpaid amount
for each day in the period that:
(a) starts at the end of those 14 days; and
(b) finishes at the end of the last day on which, at the end of the day,
any of the following remains unpaid:
(i) the unpaid amount;
(ii) general interest charge on the unpaid amount.
The Commissioner may, if he or she is satisfied that because special
circumstances exist it would be fair and reasonable to do so, remit the whole or
any part of any *general interest charge
payable under subsection 45-230(2) or subsection 45-235(2) or (3).
(1) Your instalment income for a period (the
current period) includes an amount for
each partnership in which you are a partner at any time during the current
period. The amount is worked out using the formula:
(2) For the purposes of the formula in subsection (1):
your assessable income from the partnership for the last income
year means so much of your individual interest in the
partnership’s net income for an income year as was included by section 92
of the Income Tax Assessment Act 1936 in your assessable income for the
most recent income year:
(a) that ended before the start of the current period; and
(b) for which you have an assessment, or for which the Commissioner has
notified you that you do not have a taxable income.
(3) However,
if for any reason the component defined in subsection (2) does not exist
or is a nil amount, or the partnership had no
*instalment income for that income year, your
instalment income for the current period includes, for that
partnership, an amount that is fair and reasonable having regard to:
(a) the extent of your interest in the partnership during the current
period; and
(b) the partnership’s *instalment
income for the current period; and
(c) any other relevant circumstances.
Instalment income of trust beneficiary
45-280 Instalment income for a period in which you are a
beneficiary of a trust
Application of Part to trustees
45-300 Trustees to whom this Part applies
(1) Your instalment income for a period (the current
period) includes an amount for each trust of which you are a beneficiary
at any time during the current period. The amount is worked out using the
formula:
(2) For the purposes of the formula in subsection (1):
your assessable income from the trust for the last income
year means so much of a share of the net income of the trust for an
income year as was included by Division 6 of Part III of the Income Tax
Assessment Act 1936 in your assessable income for the most recent income
year:
(a) that ended before the start of the current period; and
(b) for which you have an assessment, or for which the Commissioner has
notified you that you do not have a taxable income.
(3) However, if for any reason the component defined in
subsection (2) does not exist or is a nil amount, or the trust had no
*instalment income for that income year, your
instalment income for the current period includes, for that trust,
an amount that is fair and reasonable having regard to:
(a) the extent of your interest in the trust, and your interest in the
income of the trust, during the current period; and
(b) the trust’s *instalment income
for the current period; and
(c) any other relevant circumstances.
(1) This Part applies to a trustee covered by any of items 6 to 12 in the
table in section 9-1 of the Income Tax Assessment Act 1997.
(2) This Part also applies for an income year to the trustee of a trust if
for the previous income year the trustee was liable to be assessed, and to pay
tax, under section 98 (except subsection 98(3) or (4)) or section 99 or 99A of
the Income Tax Assessment Act 1936.
45-320 Working out instalment rate
45-325 Working out your notional tax
45-330 Working out your adjusted taxable
income
45-335 Working out your adjusted withholding
income
45-340 Adjusted tax on adjusted taxable income or on
adjusted withholding income
(1) An instalment rate that the Commissioner gives you must be the
percentage worked out to 2 decimal places (rounding up if the third decimal
place is 5 or more) using the formula:
However, the instalment rate must be a nil rate if either component of the
formula is nil.
(2) For the purposes of the formula in subsection (1):
base assessment instalment income means so much of your
assessable income, as worked out for the purposes of the
*base assessment, as the Commissioner
determines is *instalment income for the
*base year.
(3) The base assessment is the latest assessment for your
most recent income year for which an assessment has been made. However, if the
Commissioner is satisfied that there is a later income year for which you do not
have a taxable income, the base assessment is the latest return or
other information from which an assessment for that income year would have been
made.
(4) The base year is the income year to which the
*base assessment relates.
(5) When the Commissioner gives you the instalment rate, he or she must
also notify you of the amount of your *notional
tax, as worked out for the purposes of working out the instalment
rate.
(6) The Commissioner may incorporate notice of
the instalment rate and the amount of your
*notional tax in notice of your
assessment.
Notional tax if you have no withholding income
(1) Your notional tax is your
*adjusted tax (worked out under section 45-340)
on your *adjusted taxable income (worked out
under section 45-330) for the *base
year.
Notional tax if you have withholding income
(2) However, your notional tax (as worked out under
subsection (1)) is reduced if your assessable income for the
*base assessment includes amounts in respect of
*withholding payments (except
*non-quotation withholding payments).
(3) It is reduced (but not below nil) by your
*adjusted tax (worked out under section 45-340)
on your *adjusted withholding income (worked
out under section 45-335) for the *base
year.
Commissioner
may take into account effect of the law, as applying to income years after base
year
(4) For the purposes of working out your
*notional tax, the Commissioner may work out an
amount as if provisions of an Act or regulations, as they may reasonably be
expected to apply for the purposes of your assessment for a later income year,
had applied for the purposes of the base assessment.
Commissioner
may take into account proposed changes to the law so as to reduce instalment
rate
(5) For the purposes of working out your
*notional tax, the Commissioner may work out an
amount as if provisions of an Act or regulations that, in the
Commissioner’s opinion, are likely to be enacted or made had applied for
the purposes of the *base assessment. But the
Commissioner may do so only if, as a result, the instalment rate given to you is
reduced.
(1) Your adjusted taxable income for the
*base year is your total assessable income for
the *base assessment, reduced by:
(a) any *net capital gain included in
that assessable income; and
(b) your deductions for the base year (except
*tax losses), as used in making that
assessment; and
(c) the amount of any tax loss, to the extent that you can carry it
forward to the next income year.
Exception: superannuation entities and net capital gains
(2) Paragraph (1)(a) does not apply in the
case of:
(a) an eligible ADF (as defined in section 267 of the Income Tax
Assessment Act 1936) for the *base year;
or
(b) an eligible superannuation fund (as defined in that section) for that
year; or
(c) a pooled superannuation trust (as defined in that section) for that
year.
Your adjusted withholding income for the
*base year is:
• the total of the amounts included in your assessable income for
the *base assessment in respect of
*withholding payments (except
*non-quotation withholding payments);
reduced by:
• your deductions for that year, as used in making that assessment,
to the extent that they reasonably relate to those amounts.
Your adjusted tax on your
*adjusted taxable income, or on your
*adjusted withholding income, for the
*base year is worked out as follows:
Method statement
Step 1. The income tax payable on your
*adjusted taxable income, or on your
*adjusted withholding income, for the
*base year is worked out disregarding any
*tax offset under:
(a) Subdivision 61-H of the Income Tax Assessment Act 1997 (for a
premium under a private health insurance policy); or
(b) section 159N of the Income Tax Assessment Act 1936 (for certain
low income individuals); or
(c) section 159T of the Income Tax Assessment Act 1936 (for
individuals who make superannuation contributions for a spouse).
Step 2. The Medicare levy payable on
your *adjusted taxable income, or on your
*adjusted withholding income, for the
*base year is worked out disregarding sections
8B, 8C, 8D, 8E, 8F and 8G of the Medicare Levy Act 1986 (which increase
Medicare levy in certain cases).
Step 3. The amount (if any) that you would have been liable to pay
for the *base year in respect of an accumulated
HEC debt under the Higher Education Funding Act 1988 if your taxable
income for the base year had been your
*adjusted taxable income, or your
*adjusted withholding income, for that year is
worked out.
Step 4. The results of steps 1, 2 and 3 are added together, and
reduced by what would have been your *FTB
amount (if any) for the *base year if your
taxable income for the base year had been your
*adjusted taxable income, or your
*adjusted withholding income, for that
year. The result is your adjusted tax
on your *adjusted taxable income, or on
your *adjusted withholding income.
45-355 When Commissioner works out benchmark instalment rate
and benchmark tax
45-360 How Commissioner works out benchmark instalment
rate
45-365 Working out your benchmark
tax
45-370 Working out your adjusted assessed taxable
income for the variation year
45-375 Adjusted assessed tax on adjusted assessed
taxable income
(1) The Commissioner may work out your
*benchmark instalment rate for an income year
(the variation year) if, under section 45-205, you choose an
instalment rate to work out the amount of your instalment for an
*instalment quarter in that year.
(2) The Commissioner may work out your
*benchmark tax for an income year (the
variation year) if, under paragraph 45-115(1)(c) or 45-175(1)(b),
you estimate the amount of your annual instalment for that year.
(1) Your benchmark instalment rate for the variation year is
the percentage worked out to 2 decimal places (rounding up if the third decimal
place is 5 or more) using the formula:
However, your benchmark instalment
rate is a nil rate if either component of the formula is nil.
(2) For the purposes of the formula in subsection (1):
variation year instalment income means so much of your
assessable income for the variation year as the Commissioner determines is
*instalment income for that year.
Benchmark tax if you had no withholding income
(1) Your benchmark tax is your
*adjusted assessed tax (worked out under
section 45-375) on your *adjusted assessed
taxable income (worked out under section 45-370) for the variation
year.
Benchmark tax if you had withholding income
(2) However, your benchmark tax (as worked out under
subsection (1)) is reduced if your assessable income for the variation year
includes amounts in respect of *withholding
payments.
(3) It is reduced (but not below nil) by the total amount of the credits
to which you are entitled for the variation year under section 18-15 (for
amounts withheld from withholding payments made to you during the variation
year).
(1) Your adjusted assessed taxable income for the variation
year is your taxable income for the year, reduced by any
*net capital gain included in your assessable
income for the year.
Exception: superannuation entities and net capital gains
(2) In working out the adjusted assessed taxable income,
taxable income is not reduced by any *net
capital gain in the case of:
(a) an eligible ADF (as defined in section 267 of the Income Tax
Assessment Act 1936) for the variation year; or
(b) an eligible superannuation fund (as defined in that section) for the
variation year; or
(c) a pooled superannuation trust (as defined in that section) for the
variation year.
Your adjusted assessed tax on your
*adjusted assessed taxable income for the
variation year is worked out as
follows:
Method statement
Step 1. The income tax payable on your
*adjusted assessed taxable income for the
variation year is worked out disregarding any
*tax offset under:
(a) Subdivision 61-H of the Income Tax Assessment Act 1997 (for a
premium under a private health insurance policy); or
(b) section 159N of the Income Tax Assessment Act 1936 (for certain
low income individuals); or
(c) section 159T of the Income Tax Assessment Act 1936 (for
individuals who make superannuation contributions for a spouse).
Step 2. The Medicare levy payable on your
*adjusted assessed taxable income for the
variation year is worked out disregarding sections 8B, 8C, 8D, 8E, 8F and 8G of
the Medicare Levy Act 1986 (which increase Medicare levy in certain
cases).
Step 3. The amount (if any) that you would have been liable to pay
for the variation year in respect of an accumulated HEC debt under the Higher
Education Funding Act 1988 if your taxable income for that year had been
your *adjusted assessed taxable income for that
year is worked out.
Step 4. The results of steps 1, 2 and 3 are added together, and
reduced by what would have been your *FTB
amount (if any) for the variation year if your taxable income for that year had
been your *adjusted assessed taxable income for
that year. The result is your adjusted tax on your
*adjusted assessed taxable income for the
variation year.
Table of sections
45-400 Working out amount of instalment
45-405 Working out your GDP-adjusted notional
tax
The Commissioner must work out in accordance with the table an amount
that he or she notifies to you under section 45-112 as the amount of your
instalment for an *instalment quarter in an
income year (the current year).
|
Amount of quarterly instalment worked out on basis of GDP-adjusted
notional tax |
||
|---|---|---|
|
Item |
If the instalment quarter is: |
The amount of the instalment is: |
|
1 |
the first in that income year for which you are liable to pay an
instalment |
25% of your *GDP-adjusted notional
tax |
|
2 |
the second in that income year for which you are liable to pay an
instalment |
50% of your *GDP-adjusted notional tax,
reduced by the amount of your instalment for the earlier
*instalment quarter in that income
year |
|
3 |
the third in that income year for which you are liable to pay an
instalment |
75% of your *GDP-adjusted notional tax,
reduced by the total of your instalments for earlier
*instalment quarters in that income
year |
|
4 |
the fourth in that income year for which you are liable to pay an
instalment |
100% of your *GDP-adjusted notional tax,
reduced by the total of your instalments for earlier
*instalment quarters in that income
year |
(1) Your GDP-adjusted notional tax is worked out in the same
way as your *notional tax would be worked out
under Subdivision 45-J for the purposes of working out an instalment rate if
that instalment rate were to be given to you at the same time as notice of the
amount of the instalment referred to in section 45-400.
(2) However, in applying Subdivision 45-J for the purposes of subsection
(1):
(a) your *adjusted taxable income for the
*base year; and
(b) your *adjusted withholding income (if
any) for the *base year;
are each increased in accordance with the formula:
(3) For the purposes of the formula in subsection (2):
original amount means the amount that, apart from subsection
(2), would be your *adjusted taxable income for
the *base year, or your
*adjusted withholding income for the
*base year, as appropriate.
GDP adjustment means the percentage (rounded to the nearest
whole number, rounding down a number ending in .5) worked out using the
formula:
or 0% if the percentage worked out using the formula is negative.
(4) For the purposes of the formula in subsection (3):
sum of GDP amounts (current year) means the sum of the
*GDP amounts, for the
*quarters in the last calendar year (the
later calendar year) ending at least 3 months before
the start of the current year, specified in the document referred to in
subsection (6).
sum of GDP amounts (previous year) means the sum of the
*GDP amounts, for the
*quarters in the calendar year (the
earlier calendar year) before the later calendar year, specified
in the document referred to in subsection (6).
(5) The GDP amount for a
*quarter is the amount published by the
Australian Statistician as the original gross domestic product at current prices
for that quarter.
(6) The GDP adjustment must be worked out on the basis of
the first document that:
(a) is published by the Australian Statistician after the end of the later
calendar year; and
(b) sets out the *GDP amounts for all the
*quarters in both the later calendar year and
the earlier calendar year.
(7) To avoid doubt, subsections 45-325(4) and (5) also have effect for the
purposes of working out your *GDP-adjusted
notional tax.
3
Application of Part 2-5 in Schedule 1 to the
Taxation Administration Act
1953
(1) Division 12 in Schedule 1 to the Taxation Administration Act
1953 applies to a payment made on or after 1 July 2000.
(2) Section 12-215, 12-250 or 12-285 in Schedule 1 to the Taxation
Administration Act 1953 applies to an amount received on or after 1 July
2000.
(3) Section 12-260 in Schedule 1 to the
Taxation Administration Act 1953 applies to
interest (within the meaning of Division 11A of Part III of the
Income Tax Assessment Act 1936) if the
transaction in relation to which the interest is payable is entered into on or
after 1 July 2000, unless paragraph 221YL(2E)(a) of the Income Tax Assessment
Act 1936 has been complied with in relation to the interest before the
transaction is entered into.
(4) Division 14 in Schedule 1 to the Taxation Administration Act
1953 applies to a non-cash benefit provided on or after 1 July
2000.
(5) Subdivision 16-C in Schedule 1 to the
Taxation Administration Act 1953 applies to the financial year starting
on 1 July 2000 and to later financial years.
4
Application of Part 2-10 in Schedule 1 to the
Taxation Administration Act
1953
(1) Part 2-10 in Schedule 1 to the Taxation Administration Act 1953
applies to the 2000-2001 income year and later income years.
(2) However, the Commissioner may give an entity an instalment rate before
the start of the 2000-2001 income year. In that case, section 45-50 in that
Schedule applies as if the rate had been given on the first day of that income
year.
Part
2—Consequential
amendment
of Acts
Income
Tax Assessment Act 1997
Insert:
(1) You cannot deduct under this Act a payment of interest (within the
meaning of Division 11A of Part III of the Income Tax Assessment Act
1936) or a *royalty if:
(a) you are required to withhold an amount from the interest or royalty
under Division 12 in Schedule 1 to the Taxation Administration Act 1953;
and
(b) either:
(i) you fail to withhold the amount; or
(ii) after withholding the amount, you fail to comply with section 16-70
in that Schedule in relation to that amount.
(2) You cannot deduct under this Act a payment of interest (within the
meaning of Division 11A of Part III of the Income Tax Assessment Act
1936), or a *royalty, that is in the form
of a *non-cash benefit if:
(a) you are required to pay to the Commissioner an amount under section
14-5 or 14-10 in Schedule 1 to the Taxation Administration Act 1953 for
that payment; and
(b) you fail to do so.
(3) If:
(a) apart from subsection (1) or (2), you can deduct a payment of interest
(within the meaning of Division 11A of Part III of the Income Tax Assessment
Act 1936) or a *royalty, for an income
year; and
(b) the *withholding tax payable for the
interest or the royalty is paid;
you can deduct the interest or royalty for that income year.
Repeal the section, substitute:
Application to recipients
(1) If an individual receives, or is entitled to receive,
*withholding payments covered by subsection
(3), this Subdivision applies to him or her:
(a) in the same way as it applies to an employee; and
(b) as if an entity (a notional employer) that makes (or is
liable to make) such payments to him or her were his or her employer;
and
(c) as if any other individual who receives, or is entitled to receive,
such payments from a notional employer were also an employee of the notional
employer.
Application to payers
(2) This Division applies to an entity that makes, or is liable to make,
*withholding payments covered by subsection
(3):
(a) in the same way as it applies to an employer; and
(b) as if an individual to whom the entity makes (or is liable to make)
such payments were the entity’s employee.
Withholding payments covered
(3) This subsection covers a *withholding
payment covered by any of the provisions in Schedule 1 to the
Taxation Administration Act 1953 listed in
the table.
|
Withholding payments covered |
||
|---|---|---|
|
Item |
Provision |
Subject matter |
|
1 |
Section 12-35 |
Payment to employee |
|
2 |
Section 12-40 |
Payment to company director |
|
3 |
Section 12-45 |
Payment to office holder |
|
4 |
Section 12-50 |
Return to work payment |
|
5 |
Subdivision 12-C |
Retirement payments, eligible termination payments and annuities |
|
6 |
Subdivision 12-D |
Benefit and compensation payments |
Repeal the Parts.
Repeal the section, substitute:
Application to recipients
(1) If an individual receives, or is entitled to receive,
*withholding payments covered by subsection
(3), this Division applies to him or her:
(a) in the same way as it applies to an employee; and
(b) as if an entity that makes (or is liable to make) such payments to him
or her were his or her employer; and
(c) as if the withholding payments covered by subsection (3) that he or
she receives (or is entitled to receive) were salary or wages.
Application to payers
(2) This Division applies to an entity that makes, or is liable to make,
*withholding payments covered by subsection
(3):
(a) in the same way as it applies to an employer; and
(b) as if an individual to whom the entity makes (or is liable to make)
such payments were the entity’s employee.
Withholding payments covered
(3) This subsection covers a *withholding
payment covered by any of the provisions in Schedule 1 to the Taxation
Administration Act 1953 listed in the table.
|
Withholding payments covered |
||
|---|---|---|
|
Item |
Provision |
Subject matter |
|
1 |
Section 12-35 |
Payment to employee |
|
2 |
Section 12-40 |
Payment to company director |
|
3 |
Section 12-45 |
Payment to office holder |
|
4 |
Section 12-50 |
Return to work payment |
|
5 |
Subdivision 12-C |
Retirement payments, eligible termination payments and annuities |
|
6 |
Subdivision 12-D |
Benefit and compensation payments |
Income
Tax Assessment Act 1936
Omit all the words after “(the 1997 Act)”,
substitute “, or for the purposes of Schedule 1 to the Taxation
Administration Act 1953, except as provided in the 1997 Act or in that
Schedule”.
10 Subsection 6(1)
(at the end of the definition of this
Act)
Add:
; and (c) Schedule 1 to the Taxation Administration Act
1953.
After “1994”, insert “and before 1 July
2000”.
After “financial year”, insert “ending on or before 30
June 2000”.
After “first person”, insert “on or before 30 June
2000”.
After “form”, insert “, and on or before 30 June
2000”.
15 At the end of
section 221AKA
Add:
(3) This Division does not apply to a taxpayer for the 2000-01 income year
or a later income year.
Note: For the 2000-01 income year a taxpayer may be liable
to pay PAYG instalments: see Division 45 in Schedule 1 to the Taxation
Administration Act 1953.
Insert in Subdivision B of Division 1C of Part VI:
A taxpayer is not liable to pay instalments under this Division for the
2000-01 income year or a later income year.
Note: For the 2000-01 income year a taxpayer may be liable
to pay PAYG instalments: see Division 45 in Schedule 1 to the Taxation
Administration Act 1953.
After “subsection (3A)”, insert “of this section and to
sections 221AZJA, 221AZKB, 221AZKC and 221AZKE”.
Insert:
(1) For the 1999-2000 year of income, a medium taxpayer is not liable to
pay the instalment that would otherwise be due on the 1st day of month
18.
(2) For the 1999-2000 year of income, a small taxpayer is not liable to
pay the instalment that would otherwise be due on the 15th day of month
18.
Note: This subsection does not cover a small taxpayer whose
assessed tax for the 1999-2000 is more than $300,000. See subsection
221AZK(3A).
To qualify, taxpayer must be quarterly instalment payer
(3) However, subsection (1) or (2) applies only if the taxpayer is liable
to pay an instalment for the first instalment quarter of the 2000-01 year of
income under Division 45 in Schedule 1 to the Taxation Administration Act
1953 (even if the amount of that instalment is nil).
Note: This means that an entity that becomes an annual payer
at the end of that instalment quarter under Subdivision 45-E in Schedule 1 to
the Taxation Administration
Act 1953 does not qualify.
Effect on amount of final instalment
(4) In working out the amount of the final instalment of a small or medium
taxpayer for the 1999-2000 year of income, disregard a previous instalment that
the taxpayer is not liable to pay because of this section.
(1) Depending on the amount of its assessed tax for the 1999-2000 year of
income, an instalment taxpayer may defer payment of all or some of its final
instalment for that year.
(2) However, subsection (1) applies only if the taxpayer is liable to pay
a quarterly instalment for the first instalment quarter of the 2000-01 year of
income under Division 45 in Schedule 1 to the Taxation Administration Act
1953 (even if the amount of that instalment is nil).
Note: This means that an entity that becomes an annual payer
at the end of that instalment quarter under Subdivision 45-E in Schedule 1 to
the Taxation Administration Act 1953 does not qualify.
How much can be deferred, and for how long?
(3) The table shows:
(a) how much of the final instalment can be deferred (the deferred
amount); and
(b) the number of equal quarterly payments by which the taxpayer must pay
off the deferred amount.
However, the deferred amount cannot be more than the whole of the
instalment (reduced by any credits or offsets specified in paragraph
221AZP(1)(b)).
|
Paying off final instalment for 1999-2000 |
|||
|---|---|---|---|
|
Item |
Amount of assessed tax for 1999-2000 |
Maximum amount deferred |
Number of equal quarterly payments |
|
1 |
less than $8,000 |
100% of the assessed tax |
21 |
|
2 |
$8,000 to $300,000 |
42% of the assessed tax |
21 |
|
3 |
more than $300,000 |
20% of the assessed tax |
10 |
Note: The amount of each quarterly payment is the deferred
amount divided by the number of payments.
(4) If only some of the final instalment can be deferred, the rest is
still due on the day on which the whole of the instalment would otherwise be
due. Section 221AZMAA (which applies the general interest charge to unpaid
amounts) applies as if the rest of the final instalment were the whole of the
final instalment.
When the quarterly payments are due
(5) The first of the quarterly payments is due:
(a) if (disregarding anything the Commissioner does under section 206) the
final instalment would otherwise be due on the 1st day of month 18 for the
1999-2000 year of income—on the 21st day of month 19 for that year;
and
(b) if (disregarding anything the Commissioner does under section 206) the
final instalment would otherwise be due on the 1st or 15th day of month 21 for
the 1999-2000 year of income—on the 21st day of month 22 for that
year.
Note: The due date for the first quarterly payment is the
same as for the taxpayer’s next quarterly instalment for the 2000-01 year
of income under Division 45 in Schedule 1 to the Taxation Administration Act
1953. If the taxpayer’s year of income ends on 30 June 2000, the due
date will be 21 January or 21 April 2001.
(6) Each of the remaining quarterly payments is due 3 months after the day
on which the previous quarterly payment is due (or would be due apart from
anything the Commissioner does under section 206).
(7) A quarterly payment is due on a particular day even if no quarterly
instalment of the taxpayer is due on that day under Division 45 in Schedule 1 to
the Taxation Administration Act 1953.
Note: If some or all of a quarterly payment is not paid on
time, the taxpayer is liable to pay the general interest charge on the unpaid
amount: see section 221AZMAA.
(8) Quarterly payments are to be treated as tax for the purposes of
sections 206, 208, 209, 214, 254, 255, 258 and 259.
Sections 221AZKB and 221AZKC apply to an entity with modifications that
the Commissioner determines in writing if the Commissioner has granted the
entity leave under section 18 to adopt an accounting period ending on a day
other than 30 June and, as a result:
(a) the entity’s 1999-2000 year of income will end on a day of a
calendar year that does not correspond to the last day of the entity’s
1998-99 year of income; or
(b) the entity’s 2000-01 year of income will end on a day of a
calendar year that does not correspond to the last day of the entity’s
1999-2000 year of income.
After “instalment” (second occurring), insert “or
quarterly payment”.
After “the instalment” (wherever occurring), insert “or
quarterly payment”.
After “221AZK”, insert “or 221AZKC”.
After “salary or wages” (first occurring), insert “before
1 July 2000”.
After “at any time”, insert “before 1 July
2000”.
After “times”, insert “before 1 July
2000”.
Insert:
(2A) An arrangement under subsection (1), or an authorisation under
subsection (2), does not apply to a payment of salary or wages made after 30
June 2000.
26 At the end of
subsection 221YB(2)
Add “(except the 2000-01 year of income and later income
years)”.
27
At the end of subsection 221YB(2)
Add:
Note: For the 2000-01 income year you may be liable to pay
PAYG instalments: see Division 45 in Schedule 1 to the Taxation
Administration Act 1953.
28
At the end of subsection 221YBA(1)
Add “(except the 2000-01 year of income
and later income years)”.
29 At the end of
subsection 221YBA(1)
Add:
Note: For the 2000-01 income year you may be liable to pay
PAYG instalments: see Division 45 in Schedule 1 to the Taxation
Administration Act 1953.
Insert:
This Division does not apply to a prescribed payment made after 30 June
2000.
Before “a person”, insert “before 1 July
2000,”.
32 After subsection
221YHDD(4)
Insert:
(4A) If:
(a) this section applies; and
(b) the project or part is not completed by the end of 30 June
2000;
the householder must, within 6 weeks after that day:
(c) in accordance with subsection (5), complete and sign, in respect of
the project, the part of a householder payment summary form relating to the
householder; and
(d) make a copy of the form; and
(e) send the form to the Commissioner.
(The completed form does not need to cover prescribed payments made after
30 June 2000.)
33 After subsection
221YHDD(6)
Insert:
(6A) Subject to subsection (7), the householder must keep the copy that
paragraph (4A)(d) requires to be made for 6 months after it is made.
After “(6)”, insert “, (6A)”.
After “non-resident” (second occurring), insert “before 1
July 2000”.
36 After subsection
221YHZC(1)
Insert:
(1AAAA) Subsection (1A) does not apply to a payment made after 30 June
2000.
Note: Instead, the investment body must withhold an amount
under section 12-140 or 12-145 in Schedule 1 to the
Taxation Administration Act
1953.
After “202DA”, insert “and before 1 July
2000”.
Omit “until”, substitute “unless”.
Repeal the paragraph, substitute:
(b) if the investment body had paid the deemed payment amount to the
investor in money, and section 12-150 in Schedule 1 to the Taxation
Administration Act 1953 had not been enacted, section 12-140 in that
Schedule would have required the investment body to withhold an amount (the
notional deduction) from the payment; and
Insert:
(1A) This section (except subsections (2D), (2DA) and (2E)) does not apply
to a dividend, interest or a royalty paid after 30 June 2000.
Note: Instead, see Subdivision 12-F in Schedule 1 to the
Taxation Administration Act 1953.
Insert:
(2DA) However, subsection (2E) does not apply in relation to the interest
if the transaction in relation to which it is payable is entered into on or
after 1 July 2000, unless the lender complied with paragraph (2E)(a) in relation
to the interest before the transaction is entered into.
Note: Instead, the lender must notify the borrower under
section 12-260 in Schedule 1 to the Taxation Administration Act
1953.
Omit “until”, substitute “before 1 July 2000
unless”.
Omit “until”, substitute “before 1 July 2000
unless”.
Omit “until”, substitute “before 1 July 2000
unless”.
After “shall not”, insert “before 1 July
2000”.
Insert in Division 6 of Part VI:
This Division does not apply to a withdrawal from a film account made
after 30 June 2000.
After “if”, insert “, before 1 July
2000,”.
Insert:
(2A) If an entity is required to withhold an amount under Division 12 in
Schedule 1 to the Taxation Administration Act 1953, or to pay an amount
to the Commissioner under Division 14 of that Schedule, the entity must keep
records that record and explain all transactions and other acts engaged in by
the entity that are relevant for the purposes of that Schedule.
Insert:
(4AAA) Subsection (4) does not apply to any record required to be kept by
a provision in Schedule 1 to the Taxation Administration Act
1953.
A
New Tax System (Goods and Services Tax) Act 1999
Repeal the paragraph, substitute:
(a) by a person as an employee or in connection with earning
*withholding
payments covered by subsection (3) (unless the activity or series is done in
supplying services as the holder of an office that the person has accepted in
the course of or in connection with an activity or series of activities of a
kind mentioned in subsection (1)); or
Note: Acts done as mentioned in paragraph (a) will still
form part of the activities of the enterprise to which the person provides work
or services.
Repeal the paragraph, substitute:
(d) as a member of a local governing body established by or under a
*State law or
*Territory law (except a local governing body
to which subsection 12-45(3) in Schedule 1 to the Taxation Administration Act
1953 applies).
Add:
(3) This subsection covers a *withholding
payment covered by any of the provisions in Schedule 1 to the Taxation
Administration Act 1953 listed in the table.
|
Withholding payments covered |
||
|---|---|---|
|
Item |
Provision |
Subject matter |
|
1 |
Section 12-35 |
Payment to employee |
|
2 |
Section 12-40 |
Payment to company director |
|
3 |
Section 12-45 |
Payment to office holder |
|
4 |
Section 12-60 |
Payment under labour hire arrangement, or specified by
regulations |
53
Section 9-39 (at the end of the table)
Add:
|
11 |
Supply under arrangement covered by PAYG voluntary agreement |
Division 113 |
54
Section 37-1 (after table item 33)
|
33A |
Supply under arrangement covered by PAYG voluntary agreement |
Division 113 |
Omit “, other *PAYE
earner”.
Omit “, PAYE earner”.
Omit “, PAYE earner” (last occurring).
58
At the end of subsection 111-5(1)
Add:
Note: This section also applies if you reimburse the
recipient of certain withholding payments: see section 111-20.
Omit “, *PAYE
earner”.
Omit “, PAYE earner”.
Omit “, *PAYE
earner”.
Omit “, PAYE earner”.
Insert:
(1) If you make, or are liable to make,
*withholding
payments covered by subsection (2), this Division applies to you as
if:
(a) an individual to whom you make (or are liable to make) such payments
were your employee; and
(b) his or her activities in connection with earning such payments were
activities as your employee.
(2) This subsection covers a *withholding
payment covered by any of the provisions in Schedule 1 to the Taxation
Administration Act 1953 listed in the table.
|
Withholding payments covered |
||
|---|---|---|
|
Item |
Provision |
Subject matter |
|
1 |
Section 12-35 |
Payment to employee |
|
2 |
Section 12-40 |
Payment to company director |
|
3 |
Section 12-45 |
Payment to office holder |
|
4 |
Section 12-55 |
|
|
5 |
Section 12-60 |
Payment under labour hire arrangement, or specified by
regulations |
Add:
A supply is not a taxable supply if:
(a) an amount must be withheld from payment for the supply because of
section 12-55 in Schedule 1 to the Taxation Administration Act 1953
(about voluntary agreements to withhold); and
(b) the acquisition of the thing supplied would be a creditable
acquisition if the supply were a taxable supply.
(1) A supply that you make is not a
*taxable supply to the extent that you make it
under an arrangement (within the meaning of the Income Tax Assessment Act
1997) if:
(a) the arrangement the performance of which, in whole or in part,
involves the performance of work or services (whether or not by you); and
(b) an agreement is in force that:
(i) complies with section 12-55 in Schedule 1 to the Taxation
Administration Act 1953 (about voluntary agreements to withhold);
and
(ii) states that the section covers payments under the arrangement, or
payments under a series of arrangements that includes the arrangement;
and
(c) you, and the entity acquiring what you supply under the arrangement,
are parties to that agreement; and
(d) you have an *ABN that is in force and
is quoted in the agreement; and
(e) the acquisition, by that entity, of what you supply under the
arrangement would be a *creditable acquisition
(and not *partly creditable) if the supply were
a *taxable supply.
(2) This section has effect despite section 9-5 (about what is a taxable
supply.)
Insert:
non-cash benefit has the meaning given by subsection 995-1(1)
of the Income Tax Assessment Act 1997.
66
Section 195-1 (definition of PAYE
earner)
Repeal the definition.
67
Section 195-1 (note at the end of the definition of
taxable supply)
Omit “and 90-5”, substitute “, 90-5 and
113-1”.
Insert:
withholding payment has the meaning given by
subsection 995-1(1) of the Income Tax Assessment
Act 1997.
Insert:
withholding payment covered by a particular provision in
Schedule 1 to the Taxation Administration Act 1953 has the meaning given
by subsection 995-1(1) of the Income Tax Assessment Act 1997.
A
New Tax System (Goods and Services Tax Administration) Act
1999
Omit “At the end of the Act”, substitute “After Part
V”.
Omit “Add:”, substitute “Insert:”.
A
New Tax System (Australian Business Number) Act 1999
Repeal the paragraph, substitute:
(a) by a person as an employee or in connection with earning
*withholding payments covered by subsection (3)
(unless the activity or series is done in supplying services as the holder of an
office that the person has accepted in the course of or in connection with an
activity or series of activities of a kind mentioned in subsection (1));
or
Note: Acts done as mentioned in paragraph (a) will still
form part of the activities of the enterprise to which the person provides work
or services.
Repeal the paragraph, substitute:
(d) as a member of a local governing body established by or under a
*State law or
*Territory law (except a local governing body
to which subsection 12-45(3) in Schedule 1 to the Taxation Administration Act
1953 applies).
Add:
(3) This subsection covers a *withholding
payment covered by any of the provisions in Schedule 1 to the Taxation
Administration Act 1953 listed in the table.
|
Withholding payments covered |
||
|---|---|---|
|
Item |
Provision |
Subject matter |
|
1 |
Section 12-35 |
Payment to employee |
|
2 |
Section 12-40 |
Payment to company director |
|
3 |
Section 12-45 |
Payment to office holder |
|
4 |
Section 12-60 |
Payment under labour hire arrangement, or specified by
regulations |
Insert:
non-cash benefit has the meaning given by subsection 995-1(1)
of the Income Tax Assessment Act 1997.
76 Section 41
(definition of PAYE
earner)
Repeal the definition.
Insert:
withholding payment has the meaning given by subsection
995-1(1) of the Income Tax Assessment Act 1997.
Insert:
withholding payment covered by a particular provision in
Schedule 1 to the Taxation Administration Act 1953 has the meaning given
by subsection 995-1(1) of the Income Tax Assessment Act 1997.
Fringe
Benefits Tax Assessment Act 1986
79
Subsection 136(1) (definition of current
employee)
Repeal the definition, substitute:
current employee means a person who receives, or is entitled
to receive, salary or wages.
80
Subsection 136(1) (definition of current
employer)
Repeal the definition, substitute:
current employer means a person (including a government body)
who pays, or is liable to pay, salary or wages, and includes:
(a) in the case of a partnership—each partner; and
(b) in the case of any other unincorporated association or body of
persons—its manager or other principal officer.
81
Subsection 136(1) (definition of salary
or wages)
Repeal the definition, substitute:
salary or wages means a payment from which an amount must be
withheld (even if the amount is not withheld) under a provision in Schedule 1 to
the Taxation Administration Act 1953 listed in the table, to the extent
that the payment is assessable income.
|
Withholding payments covered |
||
|---|---|---|
|
Item |
Provision |
Subject matter |
|
1 |
Section 12-35 |
Payment to employee |
|
2 |
Section 12-40 |
Payment to company director |
|
3 |
Section 12-45 |
Payment to office holder |
|
4 |
Section 12-115 |
Commonwealth education or training payment |
|
5 |
Section 12-120 |
Compensation, sickness or accident payment |
Note: Section 137 extends the meaning of salary or
wages for some purposes.
Omit “section 221A of the Income Tax Assessment Act
1936”, substitute “a definition in subsection
136(1)”.
Repeal the subsection.
The amendments of the Fringe Benefits Tax Assessment Act 1986 made
by this Part apply to a payment made, or a benefit provided, on or after 1 July
2000.
Taxation
Administration Act 1953
85 Subsection
8AAB(5) (after table item 17)
Insert:
|
17A |
16-50 in Schedule 1 |
Taxation Administration Act 1953 |
|
17B |
16-80 in Schedule 1 |
Taxation Administration Act 1953 |
|
17C |
16-90 in Schedule 1 |
Taxation Administration Act 1953 |
|
17D |
16-200 in Schedule 1 |
Taxation Administration Act 1953 |
|
17E |
45-80 in Schedule 1 |
Taxation Administration Act 1953 |
|
17F |
45-230 in Schedule 1 |
Taxation Administration Act 1953 |
|
17G |
45-235 in Schedule 1 |
Taxation Administration Act 1953 |
Repeal the subsection, substitute:
(1) There are certain provisions of Acts that make persons liable to pay
the failure to notify penalty. Subsections (4) and (5) list the
provisions.
Omit “Sections 91Z and 95A of the Sales Tax Assessment Act
1992 also deal with liability to the penalty.”.
Add:
(5) The following table is an index of the provisions of Acts other than
the Income Tax Assessment Act 1936 that deal with liability to the
penalty.
|
Liability to the penalty under other Acts |
||
|---|---|---|
|
Item |
Section |
Act |
|
1 |
91Z |
Sales Tax Assessment Act 1992 |
|
2 |
95A |
Sales Tax Assessment Act 1992 |
|
3 |
16-150 in Schedule 1 |
Taxation Administration Act 1953 |
|
4 |
45-25 in Schedule 1 |
Taxation Administration Act 1953 |
Part
1—Running balance
accounts
Division
1—Amendment of Part IIB of the Taxation Administration Act
1953
1 Section 8AAZA (definition of
deficit)
Repeal the definition.
2 Section 8AAZA
Insert:
excess non-RBA credit means a credit that arises under
section 8AAZLA or 8AAZLB.
3 Section 8AAZA (definition of RBA
class)
Repeal the definition.
4 Section 8AAZA (definition of RBA
deficit)
Repeal the definition.
5 Section 8AAZA (definition of RBA
deficit debt)
Repeal the definition, substitute:
RBA deficit debt, in relation to an RBA of an entity, means a
balance in favour of the Commissioner, based on:
(a) primary tax debts that have been allocated to the RBA and that are
currently payable; and
(b) payments made in respect of current or anticipated primary tax debts
of the entity, and credits to which the entity is entitled under a taxation law,
that have been allocated to the RBA.
6 Section 8AAZA
Insert:
RBA surplus, in relation to an RBA of an entity, means a
balance in favour of the entity, based on:
(a) primary tax debts that have been allocated to the RBA; and
(b) payments made in respect of current or anticipated primary tax debts
of the entity, and credits to which the entity is entitled under a taxation law,
that have been allocated to the RBA.
7 Section 8AAZA (definition of special
priority credit)
Repeal the definition.
8 Subsection 8AAZC(1)
Repeal the subsection, substitute:
(1) The Commissioner may establish one or more systems of accounts for
primary tax debts.
Note: This section does not prevent the Commissioner from
establishing other accounts that are not RBAs.
9 Subsection 8AAZC(4)
Omit “Within an RBA class,”.
10 After subsection
8AAZC(4)
Insert:
(4A) Without limiting subsection (4), separate RBAs may be established for
different types of primary tax debts.
11 Subsection 8AAZD(1)
Repeal the subsection, substitute:
(1) The Commissioner may allocate a primary tax debt to an RBA that has
been established for that type of tax debt.
Note: General interest charge on an RBA deficit debt is not
allocated to the RBA: it accrues automatically under section
8AAZF.
Separate RBAs for one entity
(1A) If 2 or more RBAs for an entity have been established for that kind
of tax debt, the Commissioner may allocate the debt to any one of those RBAs, or
between any 2 or more of those RBAs, in the manner the Commissioner
determines.
Note: Separate RBAs may be established for different
businesses or undertakings conducted by the same entity, for different parts of
the same business or undertaking or for different periods: see subsection
8AAZC(5).
Note: The following heading to subsection 8AAZD(2) is
inserted “Definition”.
12 Section 8AAZE
Repeal the section.
13 Subsection 8AAZF(1)
Omit “a deficit on an RBA”, substitute “an RBA deficit
debt”.
Note: The heading to section 8AAZF is altered by adding at
the end “debt”.
14 Subsection 8AAZF(1)
Omit “that deficit”, substitute “that RBA deficit
debt”.
15 Subsection 8AAZF(2)
Repeal the subsection, substitute:
(2) The balance of the RBA is altered in the Commissioner’s favour
by the amount of the general interest charge payable.
16 Subsection 8AAZH(1)
After “deficit”, insert “debt”.
Note: The heading to section 8AAZH is altered by adding at
the end “debt”.
17 Subsection 8AAZH(2)
(example)
Omit “deficit on the RBA”, substitute “RBA deficit
debt”.
18 Paragraph 8AAZJ(1)(a)
After “deficit”, insert “debt”.
19 Paragraph 8AAZJ(1)(b)
Omit “was allocated to the RBA”, substitute “is payable
on the RBA deficit debt”.
20 Paragraph 8AAZJ(1)(d)
After “deficit”, insert “debt”.
21 Section 8AAZK
Repeal the section.
22 Division 3 of Part IIB
Repeal the Division, substitute:
(1) This Division sets out how the Commissioner must treat the following
kinds of amount:
(a) a payment the Commissioner receives in respect of a current or
anticipated tax debt or tax debts of an entity;
(b) a credit (including an excess non-RBA credit) that an entity is
entitled to under a taxation law;
(c) an RBA surplus of an entity.
(2) The Commissioner must treat each such amount using the method set out
in section 8AAZLA or 8AAZLB (but not both).
Note: In either case, section 8AAZLC has some additional
rules that apply to RBA surpluses and to certain excess non-RBA
credits.
(1) The Commissioner may, in the manner he or she determines, allocate the
amount to an RBA of the entity.
(2) The Commissioner must then also apply the amount against the following
kinds of debts (if there are any):
(a) tax debts that have been allocated to that RBA;
(b) general interest charge on such tax debts.
(3) To the extent that the amount is not applied under subsection (2), it
gives rise to an excess non-RBA credit in favour of the entity
that:
(a) is equal to the part of the amount that is not applied; and
(b) relates to the RBA to which the amount was allocated.
(1) The Commissioner may, in the manner he or she determines, apply the
amount against a non-RBA tax debt of the entity.
(2) If the non-RBA tax debt is:
(a) a tax debt that has been allocated to an RBA; or
(b) general interest charge on such a tax debt;
the Commissioner must then also allocate the amount to that RBA.
(3) To the extent that the amount is not applied under subsection (1), it
gives rise to an excess non-RBA credit in favour of the entity
that is equal to the part of the amount that is not applied.
(4) The excess non-RBA credit relates to the RBA (if any) that the
Commissioner determines and the balance of that RBA is adjusted in the
entity’s favour by the amount of that credit.
Separate RBAs for one entity
(5) If the non-RBA tax debt mentioned in subsection (1) has been allocated
to 2 or more RBAs, the Commissioner must allocate the amount applied between
those RBAs in the proportions in which the tax debt was allocated.
Note: Separate RBAs may be established for different
businesses or undertakings conducted by the same entity, for different parts of
the same business or undertaking or for different periods: see subsection
8AAZC(5).
RBA surpluses
(1) If an RBA surplus is allocated or applied under this Division, the
Commissioner must reduce by the same amount excess non-RBA credits that relate
to the RBA.
Excess non-RBA credits
(2) If, under this Division, an excess non-RBA credit that relates to an
RBA (the related RBA) is:
(a) allocated to an RBA; or
(b) applied against a non-RBA tax debt;
the related RBA is adjusted in the Commissioner’s favour by the same
amount.
If, under this Division, the Commissioner is to apply a credit that
arises under Schedule 1 to this Act (the PAYG system), the Commissioner must
apply it, whether under section 8AAZLA or 8AAZLB:
(a) first, against any HEC assessment debt of the entity; and
(b) then against any FS assessment debt of the entity;
before applying it against other non-RBA tax debts of the entity.
In doing anything under this Division, the Commissioner is not required
to take account of any instructions of any entity.
(1) The Commissioner must refund to an entity so much of:
(a) an RBA surplus of the entity; or
(b) a credit (including an excess non-RBA credit) in the entity’s
favour;
as the Commissioner does not allocate or apply under Division 3.
Voluntary payments only to be refunded on request
(2) However, the Commissioner is not required to refund an RBA surplus or
excess non-RBA credit that arises because a payment is made in respect of an
anticipated tax debt of an entity unless the entity later requests, in the
approved manner, that the Commissioner do so.
(3) On receiving such a request, the Commissioner must refund so much of
the amount as the Commissioner does not allocate or apply under Division
3.
Effect of refunding RBA surplus
(4) If the Commissioner refunds an RBA surplus under this section, the
Commissioner must reduce by the same amount excess non-RBA credits that relate
to the RBA.
Effect of refunding credit that relates to an RBA
(5) If, under this section, the Commissioner refunds an excess non-RBA
credit that relates to an RBA, the RBA is adjusted in the Commissioner’s
favour by the same amount.
(1) The Commissioner may retain an amount that he or she otherwise would
have to refund to an entity under section 8AAZLF, if the entity has not given
the Commissioner a notification:
(a) that affects or may affect the amount that the Commissioner refunds to
the entity; and
(b) that the entity is required to give the Commissioner under any of the
following provisions:
|
Provisions under which notification required |
||
|---|---|---|
|
Item |
These provisions: |
which deal with: |
|
1 |
Part VII of the Fringe Benefits Tax Assessment Act 1986 |
collection and recovery of fringe benefits tax |
|
2 |
the indirect tax law (within the meaning of Part VI of this Act) |
goods and services tax, luxury car tax and wine equalisation tax |
|
3 |
Schedule 1 to this Act |
the PAYG system—withholding and instalments |
(2) The Commissioner may retain the amount until the entity has given the
Commissioner that notification.
(1) This section applies to refunds payable to an entity of RBA surpluses,
or excess non-RBA credits that relate to an RBA, if primary tax debts arising
under any of the provisions set out in paragraph 8AAZLG(1)(b) have been
allocated to that RBA.
(2) The Commissioner must pay those refunds to the credit of a financial
institution account nominated by the entity.
(3) However, the Commissioner may direct that any such refunds be paid to
the entity in a different way.
(4) If an entity has not nominated a financial institution account for the
purposes of this section and the Commissioner has not directed that any such
refunds be paid in a different way, the Commissioner is not obliged to refund
any amount to the entity until the entity does so.
Division
2—Consequential amendments
23 Multiple amendments
The specified provisions of the Acts listed in this Division are amended by
omitting “section 8AAZL” and substituting “Division 3 of Part
IIB”.
Income
Tax Assessment Act 1936
24 Subsection 160AN(3)
25 Subsection 160AN(4)
26 Paragraph 160APYBB(b)
27 Subsection 163B(10) (definition of income
tax crediting amount)
28 Subsection 220AZC(6)
29 Subsection 221YHG(5)
30 Subsection 221YHZL(6)
31 Subsection 221YT(3)
32 Subsection 221ZG(3)
33 Section 56
Taxation
(Interest on Overpayments and Early Payments) Act 1983
34 Subsection 3(1) (paragraph (a) of the
definition of income tax crediting amount)
Division
3—Application and transitional
35 Application
(1) The amendments made by this Part, so far as they relate to the
establishment, operation and effect of RBAs, apply to all tax debts owing on or
after 1 July 2000, regardless of when the debts arose.
(2) The amendments made by this Part, so far as they relate to the
treatment of payments and credits by the Commissioner, apply to the treatment of
payments or credits by the Commissioner on or after 1 July 2000, regardless of
when the payments were made or when the credits arose.
36 Transitional—existing
RBAs
Although item 8 repeals and substitutes subsection 8AAZC(1) of the
Taxation Administration Act 1953, an RBA system established under the old
version of that subsection continues in existence after the commencement of that
item as if it had been established under the new version of that
subsection.
Part
2—General interest
charge
Crimes
(Taxation Offences) Act 1980
37 Subsection 3(1) (paragraph (b) of the
definition of income tax)
Omit “section 207, 221AG, 221AY, 221AZE or”, substitute
“section 163AA, section 170AA, subsection 204(3), subsection 221AZMAA(1),
subsection 221AZP(1), subsection 221YD(3), section”.
38 Subsection 3(1) (paragraph (d) of the
definition of income tax)
Omit “221EAA(1), section 220AAE, 220AAM or 220AAR or subsection
220AAV(3)”, substitute “221EAA(1) or section 220AAE, 220AAM or
220AAR”.
39 Subsection 3(1) (paragraph (g) of the
definition of income tax)
Omit “220AS(2)”, substitute “220AS(1)”.
Income
Tax Assessment Act 1936
40 At the end of section
102UO
Add:
(3) Any unpaid ultimate beneficiary non-disclosure tax may be sued for and
recovered in a court of competent jurisdiction by the Commissioner suing in his
or her official name.
41 Sections 102UP and 102UQ
Repeal the sections, substitute:
If any of the ultimate beneficiary non-disclosure tax which a person is
liable to pay remains unpaid 60 days after the day by which it is due to be
paid, the person is liable to pay the general interest charge on the unpaid
amount for each day in the period that:
(a) started at the beginning of the 60th day after the day by which the
ultimate beneficiary non-disclosure tax was due to be paid; and
(b) finishes at the end of the last day on which, at the end of the day,
any of the following remains unpaid:
(i) the ultimate beneficiary non-disclosure tax;
(ii) general interest charge on any of the ultimate beneficiary
non-disclosure tax.
Note: The general interest charge is worked out under
Division 1 of Part IIA of the Taxation Administration Act
1953.
42 Subsections 163B(5) and
(6)
Repeal the subsections.
43 Subsection 163B(8)
Omit “170, 172, 174”, substitute “204”.
44 Paragraph 214A(2)(e)
After “section 8C, 8I,”, insert “8P, 8T, 8X,
8ZB,”.
45 Paragraphs 214A(2)(f), (fa) and
(g)
Repeal the paragraphs.
46 Section 220AAF
Omit “the general interest charge”, substitute “a
penalty”.
47 Section 220AAF (note)
Repeal the note.
48 Section 220AAW
Repeal the section, substitute:
(1) A large remitter that pays an amount other than by electronic transfer
is liable to a penalty of the greater of:
(a) $500; or
(b) assuming that the general interest charge applied to the amount that
was paid other than by electronic transfer—an amount equal to the general
interest charge that would be payable for each day in a period of 7 days
starting at the beginning of the day on which the payment became due.
Note: The general interest charge is worked out under
Division 1 of Part IIA of the Taxation Administration Act
1953.
(2) However, the Commissioner may remit some or all of the
penalty.
(3) The penalty becomes due for payment on the day the payment was
made.
(4) If any of the penalty remains unpaid after the time by which it is due
to be paid, the large remitter is liable to pay the general interest charge on
the unpaid penalty amount for each day in the period that:
(a) started at the beginning of the day by which the penalty amount was
due to be paid; and
(b) finishes at the end of the last day on which, at the end of the day,
any of the following remains unpaid:
(i) the penalty amount;
(ii) general interest charge on any of the penalty amount.
(5) This section does not apply to an exempt Australian government agency
(as defined in subsection 995-1(1) of the Income Tax Assessment Act
1997).
49 Paragraph 220AAZF(g)
Omit “220AAX(5)”, substitute “220AAW(2)”.
50 At the end of section
221AZM
Add “The credit arises when the Commissioner makes an assessment of
the income tax payable by the taxpayer or determines that no income tax is
payable.”
51 At the end of section
221N
Add:
(3) A person who is dissatisfied with a decision of the Commissioner under
subsection (1) in relation to the person may object against it in the manner set
out in Part IVC of the Taxation Administration Act 1953.
52 At the end of section
221YDB
Add:
(3) If any of the additional tax payable under this section remains unpaid
after the last day for which it is payable, the taxpayer is liable to pay the
general interest charge on the unpaid additional tax for each day in the period
that:
(a) started at the beginning of the next day; and
(b) finishes at the end of the last day on which, at the end of the day,
any of the following remains unpaid:
(i) the additional tax;
(ii) general interest charge on any of the additional tax.
Note: The general interest charge is worked out under
Division 1 of Part IIA of the Taxation Administration Act
1953.
53 Before subsection
221YHZD(1)
Insert:
(1AAA) A person who deducts, or purports to deduct, under subsection
221YHZC(1), an amount from a payment to a non-resident must pay the amount to
the Commissioner within 14 days after the end of the month in which the person
makes the payment to the non-resident.
54 Paragraph 221YHZD(1)
(penalty)
After “Penalty”, insert “for a contravention of this
subsection”.
55 Subsection 221YHZD(2)
Omit “subsection (1)”, substitute “subsection
(1AAA)”.
56 Subsection 254(2)
Omit “a provision of this Act”, substitute “section
163AA, section 170AA, subsection 204(3), subsection 221AZMAA(1), subsection
221AZP(1), subsection 221YD(3) or section 221YDB”.
57 Subsection 255(4)
Omit “a provision of this Act”, substitute “section
163AA, section 170AA, subsection 204(3), subsection 221AZMAA(1), subsection
221AZP(1), subsection 221YD(3) or section 221YDB”.
58 Subsection 258(2)
Omit “a provision of this Act”, substitute “section
163AA, section 170AA, subsection 204(3), subsection 221AZMAA(1), subsection
221AZP(1), subsection 221YD(3) or section 221YDB”.
59 Subsection 259(2)
Omit “a provision of this Act”, substitute “section
163AA, section 170AA, subsection 204(3), subsection 221AZMAA(1), subsection
221AZP(1), subsection 221YD(3) or section 221YDB”.
60 Subsection 265(12)
Omit “a provision of this Act”, substitute “section
163AA, section 170AA, subsection 204(3), subsection 221AZMAA(1), subsection
221AZP(1), subsection 221YD(3) or section 221YDB”.
61 Section 271-80 of Schedule
2F
Repeal the section, substitute:
If any of the family trust distribution tax which a person is liable to
pay remains unpaid 60 days after the day by which it is due to be paid, the
person is liable to pay the general interest charge on the unpaid amount for
each day in the period that:
(a) started at the beginning of the 60th day after the day by which the
family trust distribution tax was due to be paid; and
(b) finishes at the end of the last day on which, at the end of the day,
any of the following remains unpaid:
(i) the family trust distribution tax;
(ii) general interest charge on any of the family trust distribution
tax.
Note: The general interest charge is worked out under
Division 1 of Part IIA of the Taxation Administration Act
1953.
62 Section 271-85 of Schedule
2F
Omit “, and any unpaid additional tax is payable under section
271-80,”.
Income
Tax Assessment Act 1997
63 Paragraph 20-25(2A)(a)
Omit “general interest charge”, substitute
“*general interest
charge”.
64 Paragraph 25-5(1)(c)
Omit “general interest charge”, substitute
“*general interest
charge”.
65 At the end of section
25-5
Add:
No double deduction for general interest charge on a running balance
account
(7) If you deduct *general interest
charge that applies to an RBA deficit debt, you can’t also deduct the
corresponding general interest charge on tax debts that have been allocated to
the RBA.
Note: RBAs (running balance accounts) are dealt with in Part
IIB of the Taxation Administration Act 1953.
66 Section 56
Omit “Taxation Administration Act 1955”, substitute
“Taxation Administration Act 1953”.
67 Subsection 95A(1)
After “fails to notify”, insert “the amount of tax
payable on”.
Note: The heading to section 95A is altered by omitting
“of” and substituting “amount of tax payable
on”.
68 Subsection 95A(1)
Omit “the assessable dealing”, substitute “the tax
payable”.
69 Subsection 95A(2)
Omit “an amount of”, substitute “the amount of tax
payable on”.
70 Subsection 95A(2)
Omit “the assessable dealing”, substitute “the tax
payable”.
71 At the end of subsection
99(1)
Add “(other than failure to notify penalty under section
95A)”.
72 Subsection 99(3)
After “this Part”, insert “(other than section
95A)”.
73 Section 100
After “this Part”, insert “(other than failure to notify
penalty under section 95A)”.
74 At the end of section
100
Add:
Note: The Commissioner may remit failure to notify penalty
under section 8AAM of the Taxation Administration Act
1953.
Taxation
Administration Act 1953
75 Subsection 8AAB(4) (before table item
1)
Insert:
|
1AA |
102UP |
payment of ultimate beneficiary non-disclosure tax |
76 Subsection 8AAB(4) (at the end of the
table)
Add:
|
31 |
271-80 of Schedule 2F |
payment of family trust distribution tax |
77 Subsection 8AAF(2)
Repeal the subsection.
78 After section 8AAG
Insert:
If the amount of the charge payable for any period is not a multiple of 5
cents, the Commissioner may round it down to the nearest multiple of 5
cents.
79 Subsection 8AAP(4) (table item 3, entry
headed “Topic”)
Omit “PPS payment summary”, substitute “PPS payment
reconciliation statement form”.
80 Subsection 8AAQ(2)
Omit “reconciliation statement”, substitute “statement,
report or form”.
81 Paragraph 8AAZD(2)(b)
Omit “debt; or”, substitute “debt.”.
82 Paragraph 8AAZD(2)(c)
Repeal the paragraph.
Taxation
(Interest on Overpayments and Early Payments) Act 1983
83 Subsection 3(1) (paragraphs (baa), (ba) and
(bb) of the definition of relevant tax)
Repeal the paragraphs, substitute:
(baa) an amount payable to the Commissioner under subsection 220AS(1) of
the Tax Act;
(ba) an amount payable to the Commissioner under subsection 221EAA(1) of
the Tax Act;
(bb) an amount payable to the Commissioner under subsection 221YHH(1) of
the Tax Act;
84 Subsection 3(1) (paragraph (caa) of the
definition of relevant tax)
Repeal the paragraph.
85 Subparagraph
12A(1)(a)(i)
After “under”, insert “section 163AA, section
170AA,”.
86 Subparagraph
12A(1)(a)(i)
Omit “subsection 221AZP(1)”, substitute “subsection
204(3), subsection 221AZMAA(1), subsection 221AZP(1), subsection
221YD(3)”.
Taxation
Laws Amendment Act (No. 3) 1999
87 Items 84 and 85 of Schedule
1
Repeal the items.
Note: These items contained misdescribed amendments. The
correct amendments are in items 44 and 45 of this Schedule.
88 Items 355, 356 and 357 of Schedule
1
Repeal the items.
Note: These items contained misdescribed amendments. The
correct amendment is in item 83 of this Schedule.
89 Subitems 398(3), (4) and (5) of Schedule
1
Repeal the subitems.
90 Subitem 399(2) of Schedule
1
Omit “where”, substitute “to the extent
that”.
91 Subitem 399(2) of Schedule
1
Omit “starts”, substitute “occurs”.
92 Application of
amendments
The amendments made by this Part apply in relation to amounts that are due
to be paid on or after 1 July 1999.
93 Transitional—pre-1 July 1999
debts
(1) This item applies to an amount (including an amount of penalty or
interest) that a person owes to the Commonwealth directly under a taxation law
(including a law that has been repealed or amended) and that became payable at
any time before 1 July 1999, if all or some of the amount (the unpaid
debt) remains unpaid at the beginning of 1 July 1999.
(2) The person is liable, and is taken to have been liable, to pay general
interest charge on the unpaid debt for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be
paid; and
(b) finishes at the end of the last day on which, at the end of the day,
any of the following remains unpaid:
(i) the unpaid debt;
(ii) general interest charge on any of the unpaid debt.
(3) The general interest charge is worked out under Division 1 of Part IIA
of the Taxation Administration Act 1953.
(4) For the purposes of this item, the general interest charge
rate for a day before 1 July 1999 is taken to have been 12.72% divided
by the number of days in the calendar year that the day was in.
(5) If this item results in a person being liable, or being taken to have
been liable, to pay both general interest charge and some other penalty or
interest in respect of the same debt, the Commissioner must remit either that
general interest charge or that other penalty or interest (the Commissioner
chooses which).
Fringe
Benefits Tax Assessment Act 1986
94 Subparagraphs 9(2)(c)(i) and
(ii)
Repeal the subparagraphs, substitute:
(i) if the annualised number of whole kilometres the car travelled during
the year of tax was more than 40,000—0.07; or
(ii) if the annualised number of whole kilometres the car travelled during
the year of tax was not less than 25,000 and not more than 40,000—0.11;
or
(iii) if the annualised number of whole kilometres the car travelled
during the year of tax was not less than 15,000 and not more than
24,999—0.20; or
(iv) in any other case—0.26;
95 Subsection 11(1) (definition of
D)
Repeal the definition, substitute:
D is the number of days in the year of tax.
96 Subsection 11(2) (definition of
D)
Repeal the definition, substitute:
D is the number of days in the year of tax.
Repeal the section, substitute:
(1) In this Subdivision, the depreciated value of a car at a
particular time (the relevant time) is the amount worked out using
the formula:
where:
A is:
(a) if the car was owned by the person at the start of 1 July
1986—the depreciated value worked out under subsection (2); or
(b) in any other case—the cost price of the car to the
person.
B is the total amount of depreciation (if any) that would
have been taken to have been incurred by the person in respect of the car for
the period after the start of 1 July 1986 and before the relevant time when the
person owned the car, if the depreciation taken to have been incurred for that
period were calculated in accordance with subsection 11(1).
(2) The depreciated value of a car owned by a person at the
start of 1 July 1986 is the cost price of the car to that person, reduced by the
total amount of depreciation that would have been taken to have been incurred by
the person in respect of the car for the period before that time when it was
owned by the person if:
(a) the depreciation taken to have been incurred for that period were
calculated in accordance with subsection 11(1); and
(b) each year starting on 1 July were a year of tax.
98 Paragraph 19(1)(b)
Omit all the words from and including “both”, substitute
“a once-only deduction (in this subsection called the gross
deduction), other than a foreign income deduction, would, or would if
not for section 82A, and Subdivisions F, GA and G of Division 3 of Part III, of
the Income Tax Assessment Act 1936, and Divisions 28 and 900 of the
Income Tax Assessment Act 1997, have been allowable to the recipient
under either of those Acts in respect of the gross interest”.
99 Subparagraph
19(1)(ba)(ii)
Omit all the words from and including “allowable”, substitute
“allowable as a once-only deduction other than a foreign income deduction
to the recipient under the Income Tax Assessment Act 1936 or the
Income Tax Assessment Act 1997 in respect of that interest if that
interest had been incurred and paid by the recipient on the last day of the loan
period”.
100 Subparagraph
19(1)(ca)(i)
Repeal the subparagraph.
101 Subparagraph
19(1)(ca)(ii)
Omit “in the case of the second standard year of tax or a subsequent
year of tax—”.
102 Paragraph 19(1)(d)
Omit all the words and subparagraphs after “apply” to and
including “recipient gives”, substitute “and the loan fringe
benefit is a car loan benefit in respect of a car held by the recipient during a
period (in this subsection also called the holding period) in the
year of tax, the recipient gives”.
103 Paragraphs 19(2)(a) and
(b)
Repeal the paragraphs, substitute:
(a) purchase a particular car; or
(b) pay a Division 28 car expense;
104 Paragraph 24(1)(b)
Omit all the words and subparagraphs from and including “both”,
substitute “a once-only deduction (in this subsection called the
gross deduction), other than a foreign income deduction, would, or
would if not for section 82A, and Subdivisions F, GA and G of Division 3 of Part
III, of the Income Tax Assessment Act 1936, and Divisions 28 and 900 of
the Income Tax Assessment Act 1997, have been allowable to the recipient
under either of those Acts in respect of the gross expenditure”.
105 Subparagraph
24(1)(ba)(ii)
Omit all the words and sub-subparagraphs from and including
“allowable” to and including “recipient under”,
substitute “allowable as a once-only deduction other than a foreign income
deduction to the recipient under”.
106 Paragraph 26(1)(c) (definition of
C)
Repeal the definition, substitute:
C is the number of days in the year of tax;
107 Paragraph 26(2)(a) (definition of
B)
Repeal the definition, substitute:
B is the number of days in the current year of tax;
and
108 Paragraph 26(3)(a)
Repeal the paragraph.
109 Paragraph 29(1)(a) (definition of
DYT)
Repeal the definition, substitute:
DYT is the number of days in the current year of
tax;
110 Subsection 29(3A)
Repeal the subsection, substitute:
(3A) For the purposes of this section:
(a) the single quarters statutory amount in relation to a
year of tax is the amount calculated:
(i) by multiplying the indexation factor for that year of tax by the
single quarters statutory amount in relation to the immediately preceding year
of tax; or
(ii) if the amount ascertained that way is not an amount of whole
dollars—by rounding the amount to the nearest dollar (rounding 50 cents
upwards); and
(b) the standard statutory amount in relation to a year of
tax is the amount calculated:
(i) by multiplying the indexation factor for that year of tax by the
standard statutory amount in relation to the immediately preceding year of tax;
or
(ii) if the amount ascertained that way is not an amount of whole
dollars—by rounding the amount to the nearest dollar (rounding 50 cents
upwards).
111 Paragraph 44(1)(b)
Omit all the words and subparagraphs from and including “both”,
substitute “a once-only deduction (in this subsection called the
gross deduction), other than a foreign income deduction, would, or
would if not for section 82A, and Subdivisions F, GA and G of Division 3 of Part
III, of the Income Tax Assessment Act 1936, and Divisions 28 and 900 of
the Income Tax Assessment Act 1997, have been allowable to the recipient
under either of those Acts in respect of the gross expenditure”.
112 Subparagraph
44(1)(ba)(ii)
Omit all the words and subparagraphs from and including
“allowable”, substitute “allowable as a once-only deduction
other than a foreign income deduction to the recipient under either of those
Acts in respect of that consideration if that consideration had been incurred
and paid by the recipient at the provision time”.
113 Paragraph 47(6)(aa)
Omit “in the case of a standard year of tax—”.
114 Paragraph 52(1)(b)
Omit all the words and subparagraphs from and including “both”,
substitute “a once-only deduction (in this subsection called the
gross deduction), other than a foreign income deduction, would, or
would if not for section 82A, and Subdivisions F, GA and G of Division 3 of Part
III, of the Income Tax Assessment Act 1936, and Divisions 28 and 900 of
the Income Tax Assessment Act 1997, have been allowable to the recipient
under either of those Acts in respect of the gross expenditure”.
115 Subparagraph
52(1)(ba)(ii)
Omit all the words and sub-subparagraphs from and including
“allowable”, substitute “allowable as a once-only deduction
other than a foreign income deduction to the recipient under either of those
Acts in respect of so much of that consideration as was taken into account for
the purposes of section 48, 49, 50 or 51 of the Income Tax Assessment Act
1936, or section 4-15 or 8-1 of the Income Tax Assessment Act 1997,
if that consideration had been incurred and paid by the recipient at the
comparison time”.
116 Subparagraph
61C(3)(b)(i)
Repeal the subparagraph.
117 Paragraphs 62(1)(a) and
(b)
Repeal the paragraphs, substitute:
(a) if the taxable value or the sum of the taxable values does not exceed
$500—an amount equal to the taxable value or the sum of the taxable
values; or
(b) in any other case—$500.
118 Section 68
Omit “28 days after the end of the year”, substitute “21
May in the next year of tax”.
119 Subsection 90(1)
Omit “the twenty-eighth day after the end of the”, substitute
“21 May in the next”.
120 Section 102
Omit all the words and paragraphs after “pay”, substitute
“, in accordance with this Division, 4 instalments of tax in respect of
each year of tax.”.
121 Sections 103, 104 and
105
Repeal the sections, substitute:
Subject to this Division, the 4 instalments of tax payable in respect of
a year of tax are due and payable as follows:
|
When instalments of tax are due and payable |
||
|---|---|---|
|
Item |
This instalment ... |
is due and payable on: |
|
1 |
first instalment |
21 July in that year of tax |
|
2 |
second instalment |
21 October in that year of tax |
|
3 |
third instalment |
21 January in that year of tax |
|
4 |
fourth instalment |
21 April in the next year of tax |
An employer must notify the Commissioner, in the approved form, of the
amount of an instalment on or before the day on which the instalment is due and
payable.
(1) If:
(a) an employer is or was liable to pay an instalment of tax in respect of
a year of tax; and
(b) the Commissioner makes an assessment of the tax payable, or determines
that no tax is payable, by the employer in respect of that year of
tax;
the employer is entitled to a credit equal to the amount of the instalment
when the assessment or determination is made.
Note: How the credit is applied is set out in Division 3 of
Part IIB of the Taxation Administration Act 1953.
(2) The making of the assessment or determination, and the resulting
credit entitlement, do not affect the liability to pay the instalment.
122 Subdivision B of Division 2 of Part
VII
Repeal the Subdivision.
123 Subdivision C of Division 2 of Part VII
(heading)
Repeal the heading, substitute:
124 Section 109 (definition of
employer’s estimate)
Omit “standard”.
125 Section 109 (definition of estimated
tax)
Omit “standard”.
126 Section 109 (definition of GIC
period)
Repeal the definition, substitute:
GIC period, in relation to an instalment in relation to a
year of tax, means:
(a) for a first instalment—the period starting at the beginning of
21 July, and finishing at the end of 20 October, in the year of tax;
or
(b) for a second instalment—the period starting at the beginning of
21 October, and finishing at the end of 20 January, in the year of tax;
or
(c) for a third instalment—the period starting at the beginning of
21 January in the year of tax and finishing at the end of 20 April in the next
year of tax; or
(d) for a fourth instalment—the period starting at the beginning of
21 April, and finishing at the end of 20 May, in the next year of tax.
127 Section 109 (definition of relevant
fraction)
Repeal the definition, substitute:
relevant fraction, in relation to an instalment,
means:
(a) 0.25 for a first instalment; or
(b) 0.50 for a second instalment; or
(c) 0.75 for a third instalment; or
(d) 1.00 for a fourth instalment.
128 Subsection 110(1)
Repeal the subsection, substitute:
(1) Subject to this section, the notional tax amount of an employer in
respect of a year of tax is the amount of the tax that was assessed in respect
of the employer in respect of the immediately preceding year of tax.
129 Paragraph 110(2)(a)
Omit “standard”.
130 Subsection 110(5)
Omit “standard year of tax, being an instalment that becomes due and
payable on the twenty-eighth”, substitute “year of tax, being an
instalment that becomes due and payable on the 21st”.
131 Subsection 111(1)
Omit “standard”.
132 Subsection 111(1)
Omit “twenty-eighth”, substitute “21st”.
133 Subsection 111(2)
Omit “standard”.
134 Subsection 112(1)
Omit “standard”.
135 Subsection 112(1)(b)
Omit “statement in writing”, substitute “written
statement, in the approved form,”.
136 Subsection 136(1)
Insert:
approved form has the meaning given by subsection 995-1(1) of
the Income Tax Assessment Act 1997.
137 Subsection 136(1) (definition of standard
year of tax)
Repeal the definition.
138 Subsection 136(1) (definition of
transitional year of tax)
Repeal the definition.
139 Subsection 136(1) (definition of year of
tax)
Repeal the definition, substitute:
year of tax means the year starting on 1 April 1987, and each
later year starting on 1 April.
140 Application of
amendments
The amendments made by this Part apply in relation to the year of tax
starting on 1 April 2000 and all later years of tax.
1 Subsection 995-1(1)
Insert:
ABN has the meaning given by the A New Tax System
(Australian Business Number) Act 1999.
2 Subsection 995-1(1)
Insert:
adjusted assessed tax has the meaning given by section 45-375
in Schedule 1 to the Taxation Administration Act 1953.
3 Subsection 995-1(1)
Insert:
adjusted assessed taxable income has the meaning given by
section 45-370 in Schedule 1 to the Taxation Administration Act
1953.
4 Subsection 995-1(1)
Insert:
adjusted taxable income has the meaning given by section
45-330 in Schedule 1 to the Taxation Administration Act 1953.
5 Subsection 995-1(1)
Insert:
adjusted withholding income has the meaning given by section
45-335 in Schedule 1 to the Taxation Administration Act 1953.
6 Subsection 995-1(1)
Insert:
amount required to be withheld by an entity from a
*withholding payment means:
(a) the amount that the entity must withhold from the payment under
Division 12 in Schedule 1 to the Taxation Administration Act 1953;
or
(b) the amount that Division 14 in that Schedule requires the entity to
pay to the Commissioner in respect of the
*non-cash benefit of which the withholding
payment consists;
or that amount as varied by the Commissioner under section 16-15 in the
Schedule.
7 Subsection 995-1(1)
Insert:
amount withheld by an entity from a
*withholding payment means:
(a) an amount that the entity withheld from the payment under Division 12
in Schedule 1 to the Taxation Administration Act 1953; or
(b) an amount that the entity paid to the Commissioner under Division 14
in that Schedule in respect of the *non-cash
benefit of which the withholding payment consists.
8 Subsection 995-1(1)
Insert:
annual payer means an entity that has become an annual payer
under section 45-140 in Schedule 1 to the Taxation Administration Act
1953, and has not since ceased to be an annual payer under section 45-150,
45-155 or 45-180 in that Schedule.
9 Subsection 995-1(1)
Insert:
approved form: a notice, application or other document is in
the approved form if, and only if:
(a) it is in the form approved in writing by the Commissioner in relation
to that kind of notice, application or other document; and
(b) it is signed by a person or persons as the form requires;
and
(c) it contains the information that the form requires, and any further
information or statement as the Commissioner requires; and
(d) for a notice, application or document that is required to be lodged
with the Commissioner—it is lodged at the place and in the manner that the
Commissioner requires.
The Commissioner may combine in the same approved form more than one
notice, application or other document.
10 Subsection 995-1(1)
Insert:
Australian Business Register means the Australian Business
Register established and maintained under the A New Tax System (Australian
Business Number) Act 1999.
11 Subsection 995-1(1)
Insert:
Australian Business Registrar means the Registrar of the
*Australian Business Register.
12 Subsection 995-1(1)
Insert:
Australian legislature means:
(a) the Parliament of the Commonwealth of Australia; or
(b) the Parliament of a State; or
(c) the Legislative Assembly for the Australian Capital Territory;
or
(d) the Legislative Assembly of the Northern Territory of
Australia.
13 Subsection 995-1(1)
Insert:
base assessment has the meaning given by section 45-320 in
Schedule 1 to the Taxation Administration Act 1953.
14 Subsection 995-1(1)
Insert:
base year has the meaning given by section 45-320 in Schedule
1 to the Taxation Administration Act 1953.
15 Subsection 995-1(1)
Insert:
benchmark instalment rate has the meaning given by section
45-360 in Schedule 1 to the Taxation Administration Act 1953.
16 Subsection 995-1(1)
Insert:
benchmark tax has the meaning given by section 45-365 in
Schedule 1 to the Taxation Administration Act 1953.
17 Subsection 995-1(1)
Insert:
carried on in Australia, in
relation to an *enterprise, has the meaning
given by subsection 9-25(6) of the *GST
Act.
18 Subsection 995-1(1)
Insert:
carrying on an *enterprise
includes doing anything in the course of the commencement or termination of the
enterprise.
19 Subsection 995-1(1)
Insert:
electronic payment means a payment by way of electronic
transmission, in an electronic format approved by the Commissioner.
20 Subsection 995-1(1)
Insert:
electronic signature of a person means a unique
identification of the person in electronic form that is approved by the
Commissioner for the purposes of the definition of electronic
signature in section 6 of the Income Tax Assessment Act
1936.
21 Subsection 995-1(1)
Insert:
enterprise has the meaning given
by section 9-20 of the *GST Act.
22 Subsection 995-1(1)
Insert:
failure to notify penalty means the penalty worked out under
Division 2 of Part IIA of the Taxation Administration Act 1953.
23 Subsection 995-1(1)
Insert:
farm management deposit has the same meaning as in Schedule
2G to the Income Tax Assessment Act 1936.
24 Subsection 995-1(1)
Insert:
foreign resident means a person who is not a resident of
Australia for the purposes of the Income Tax Assessment Act
1936.
Note: Foreign resident is not asterisked in
this Act.
25 Subsection 995-1(1)
Insert:
FTB amount for an income year means an amount of family tax
benefit (within the meaning of the A New Tax System (Family Assistance)
(Administration) Act 1999) to which an individual is entitled in respect of
the income year.
Insert:
GDP-adjusted notional tax has the meaning given by section
45-405 in Schedule 1 to the Taxation Administration Act 1953.
27 Subsection 995-1(1)
Insert:
GDP amount for a *quarter
has the meaning given by section 45-405 in Schedule 1 to the Taxation
Administration Act 1953.
28 Subsection 995-1(1)
Insert:
GST Act means the A New Tax System (Goods and Services
Tax) Act 1999.
29 Subsection 995-1(1)
Insert:
GST joint venture has the meaning given by section 51-5 of
the *GST Act.
30 Subsection 995-1(1)
Insert:
instalment group has the meaning given by section 45-145 in
Schedule 1 to the Taxation Administration Act 1953.
31 Subsection 995-1(1)
Insert:
instalment income has the meaning given by sections 45-120,
45-260 and 45-280 in Schedule 1 to the Taxation Administration Act
1953.
32 Subsection 995-1(1)
Insert:
instalment quarter has the meaning given by section
45-60 in Schedule 1 to the Taxation
Administration Act 1953.
33 Subsection 995-1(1)
Insert:
investment body for a *Part
VA investment has the meaning given by section 202D of the Income Tax
Assessment Act 1936.
34 Subsection 995-1(1)
Insert:
investor for a *Part VA
investment has the meaning given by section 202D of the Income Tax Assessment
Act 1936.
35 Subsection 995-1(1)
Insert:
invoice means a document notifying an obligation to make a
payment.
36 Subsection 995-1(1)
Insert:
labour hire notional withheld amount has the meaning given by
section 16-160 in Schedule 1 to the Taxation Administration Act
1953.
37 Subsection 995-1(1)
Insert:
large withholder has the meaning given by sections 16-95 and
16-125 in Schedule 1 to the Taxation Administration Act 1953.
38 Subsection 995-1(1)
Insert:
market value of a *non-cash
benefit: in working out the market value of a
*non-cash benefit, disregard anything that
would prevent or restrict conversion of the benefit to money.
39 Subsection 995-1(1)
Insert:
medium withholder has the meaning given by section 16-100 and
16-135 in Schedule 1 to the Taxation Administration Act 1953.
40 Subsection 995-1(1)
Insert:
mining withholding tax means income tax payable under section
128V of the Income Tax Assessment Act 1936.
41 Subsection 995-1(1)
Insert:
natural resource has the meaning given by section 6 of the
Income Tax Assessment Act 1936.
42 Subsection 995-1(1)
Insert:
non-cash benefit is property or services in any form except
money. If a non-cash benefit is dealt with on behalf of an entity, or is
provided or dealt with as an entity directs, the benefit is taken to be provided
to the entity.
43 Subsection 995-1(1)
Insert:
non-quotation withholding payment means a
*withholding payment covered by Subdivision
12-E in Schedule 1 to the Taxation Administration Act 1953.
Note: Subdivision 12-E and Division 14 in that Schedule deal
with collecting amounts on account of income tax payable by recipients of
certain payments or non-cash benefits who have not quoted their tax file number
or ABN, as appropriate.
44 Subsection 995-1(1)
Insert:
notional tax has the meaning given by section 45-325 in
Schedule 1 to the Taxation Administration Act 1953.
45 Subsection 995-1(1)
Insert:
Part VA investment means an investment of a kind mentioned in
section 202D of the Income Tax Assessment Act 1936.
46 Subsection 995-1(1)
Insert:
participant, in relation to a
*GST joint venture, has the meaning given by
section 51-5 or paragraph 51-70(1)(a) of the
*GST Act.
47 Subsection 995-1(1)
Insert:
PAYG instalment means an instalment payable under Division 45
in Schedule 1 to the Taxation Administration Act 1953.
48 Subsection 995-1(1)
Insert:
payment summary has the meaning given by section 16-170 in
Schedule 1 to the Taxation Administration Act 1953.
49 Subsection 995-1(1)
Insert:
quarter means a period of 3 months ending on 31 March, 30
June, 30 September or 31 December.
50 Subsection 995-1(1)
Insert:
quarterly payer means an entity that is liable to pay
*PAYG instalments and is not an
*annual payer.
51 Subsection 995-1(1)
Insert:
quarterly payer who pays on the basis of GDP-adjusted notional
tax means an individual who has become such a payer under section 45-125
in Schedule 1 to the Taxation Administration Act 1953, and has not since
ceased to be one under section 45-130 or 45-135 in that Schedule.
52 Subsection 995-1(1)
Insert:
quote an entity’s *ABN
means quote in a form and manner approved by the Commissioner.
53 Subsection 995-1(1)
Insert:
quoted: an entity has quoted its
*tax file number in connection with a
*Part VA investment if the entity is taken, for
the purposes of Part VA of the Income Tax Assessment Act 1936, to have
quoted its tax file number in connection with the investment.
54 Subsection 995-1(1)
Insert:
reportable fringe benefits amount for an income year in
respect of an employee’s employment by an employer has the same meaning as
in the Fringe Benefits Tax Assessment Act 1986 (as it applies of its own
force or because of the Fringe Benefits Tax (Application to the Commonwealth)
Act 1986).
55 Subsection 995-1(1)
Insert:
required to be registered has the meaning given by the
*GST Act.
56 Subsection 995-1(1)
Insert:
small withholder has the meaning given by section
16-105.
57 Subsection 995-1(1)
Insert:
supply has the meaning given by section 9-10 of the
*GST Act.
58 Subsection 995-1(1)
Insert:
tax file number means a tax file number as defined in section
202A of the Income Tax Assessment Act 1936.
59 Subsection 995-1(1)
Insert:
withholder means a *large
withholder, a *medium withholder or a
*small withholder.
60 Subsection 995-1(1)
Insert:
withholding payment means:
(a) a payment from which an amount must be withheld under Division 12 in
Schedule 1 to the Taxation Administration Act 1953 (even if the amount is
not withheld); or
(b) a *non-cash benefit in respect of
which Division 14 in that Schedule requires an amount to be paid to the
Commissioner.
(A withholding payment that consists of a non-cash benefit is made when the
benefit is provided. The amount of the withholding payment is taken to be the
*market value of the benefit at that
time.)
Note: Divisions 12 and 14 in Schedule 1 to the Taxation
Administration Act 1953 deal with collecting amounts on account of income
tax payable by the recipient of the payment or non-cash
benefit.
61 Subsection 995-1(1)
Insert:
withholding payment covered by a particular provision in
Schedule 1 to the Taxation Administration Act 1953 means a
*withholding payment consisting of:
(a) a payment from which an amount must be withheld under that provision
(even if the amount is not withheld); or
(b) a *non-cash benefit provided by an
entity if that provision would have required the entity to withhold an amount
if, instead of providing the benefit, the entity had paid the
*market value of the benefit; or
(c) a non-cash benefit provided to an entity if that provision would have
required the entity to withhold an amount if the benefit had been a payment of
an amount equal to the market value of the benefit.
62 Subsection 995-1(1)
Insert:
withholding tax means income tax payable under section 128B
of the Income Tax Assessment Act 1936.
63 Subsection 995-1(1) (after paragraph (b) of
the definition of this Act)
Insert:
and (c) Schedule 1 to the Taxation Administration Act
1953;