Commonwealth Numbered Acts Commonwealth Numbered ActsTaxation Administration Act 1953
1 Section 45-1 in Schedule 1
Omit:
Generally, instalments are payable for each quarter of your income year.
substitute:
Generally, instalments are payable for each quarter of your income year. Alternatively, instalments could be payable monthly or annually.
2 Section 45-1 in Schedule 1
Omit:
If you are not required to be registered for GST purposes, you may be able to choose to pay an annual instalment after the end of the income year. (In this case, you are an annual payer).
substitute:
If your business or investment income exceeds a certain limit, you may have to pay an instalment after the end of each month. (In this case, you are a monthly payer).
If you are not required to be registered for GST purposes, you may be able to choose to pay an annual instalment after the end of the income year. (In this case, you are an annual payer).
3 After subsection 45-5(2) in Schedule 1
Insert:
(2A) Alternatively:
(a) you may be required to pay instalments after the end of each * instalment month worked out on the basis of your instalment income for that month; or
(b) you may be able to choose to pay an annual instalment for the income year.
4 After subsection 45-5(5) in Schedule 1
Insert:
(5A) If you are a * monthly payer, the amount of each of your instalments for an income year is the same proportion (as nearly as possible, subject to the principles in subsections (3) and (4)) of the total of those instalments as your * instalment income for that * instalment month is of your total instalment income for the income year.
5 After subsection 45-20(2) in Schedule 1
Insert:
(2A) If you are a * monthly payer for the period, you must give the notification electronically, unless the Commissioner otherwise approves.
Note: A penalty applies if you fail to give the notification electronically as required--see section 288-10.
(2B) The notification is given electronically if it is transmitted to the Commissioner in an electronic format approved by the Commissioner.
6 After subsection 45-50(2) in Schedule 1
Insert:
(2A) Subject to subsection (4), you are liable to pay an instalment for an * instalment month if, at the end of that month, you are a * monthly payer.
7 Subsection 45-50(4) in Schedule 1
After "an * instalment quarter", insert ", an * instalment month".
8 Paragraph 45-50(4)(b) in Schedule 1
After "quarter", insert ", month".
9 After section 45-61 in Schedule 1
Insert:
45-65 Meaning of instalment month
For an income year (whether it ends on 30 June or not), the following are instalment months :
(a) the month that starts on the first day of the income year;
(b) each subsequent month.
Note: For the meaning of month , see section 2G of the Acts Interpretation Act 1901 .
45-67 When monthly instalments are due--payers of monthly instalments
You are not a deferred BAS payer
(1) If you are a * monthly payer, the instalment for an * instalment month that you are liable to pay is due on or before the 21st day of the next instalment month.
(2) If:
(a) subsection (1) would, but for this subsection, have applied to you in relation to an * instalment month; but
(b) you are a * deferred BAS payer on the 21st day of the next instalment month;
the instalment for the month mentioned in paragraph (a) is instead due on or before:
(c) the 28th day of that next instalment month unless that next instalment month is January; or
(d) if that next instalment month is January--the next 28 February.
Note: If you are the head company of a consolidated group to which Subdivision 45-Q applies, the instalment is due on or before the 21st day of that next month: see section 45-715 (as it has effect because of section 45-703).
10 After section 45-70 in Schedule 1
Insert:
45-72 Means of payment of instalment
You must pay an instalment by * electronic payment, or any other means approved in writing by the Commissioner.
11 After section 45-112 in Schedule 1
Insert:
45-114 How to work out amount of monthly instalment
(1) Work out the amount of an instalment you are liable to pay for an * instalment month as follows if, at the end of that instalment month, you are a * monthly payer:
(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 month; or
(b) if you have chosen an instalment rate for that month under section 45-205--that rate; or
(c) if you have chosen an instalment rate under section 45-205 for an earlier * instalment month 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.
(3) The Commissioner may, by legislative instrument, determine one or more specified additional methods by which a specified class of entity that is a * monthly payer at the end of an * instalment month may work out, in specified circumstances, the amount of an instalment that it is liable to pay for the instalment month.
Note: For specification by class, see subsection 13(3) of the Legislative Instruments Act 2003 .
(4) You may choose a method specified in the determination:
(a) unless paragraph (b) applies--for any * instalment month; or
(b) if the determination provides that that method can be chosen only for the first instalment month in an * instalment quarter--for the first instalment month in an instalment quarter.
(5) The determination may provide that an entity that chooses a method in accordance with paragraph (4)(b) for the first * instalment month in an * instalment quarter is taken to have chosen that method under subsection (4) for the other instalment months in that quarter. The determination has effect accordingly.
(6) Subsection (7) applies if:
(a) the Commissioner has made a determination under subsection (3); and
(b) at the end of an * instalment month, you are a * monthly payer; and
(c) you choose under subsection (4), for that month:
(i) if the determination specifies one additional method to work out that amount--that method; or
(ii) if the determination specifies more than one additional method to work out that amount--one of those methods.
(7) Despite subsection (1), work out the amount of an instalment you are liable to pay for that * instalment month in accordance with the method that you chose for that month under subsection (4).
12 Paragraph 45-125(1)(a) in Schedule 1
Omit "you are not an * annual payer", substitute "you are not a * monthly payer or an * annual payer".
13 Subsection 45-125(5) in Schedule 1
Repeal the subsection, substitute:
How and when you stop being such a payer
(5) If you are a * quarterly payer who pays on the basis of instalment income because of paragraph (1)(a), you stop being such a payer at the start of the first * instalment quarter in the next income year if:
(a) at the end of that quarter, you become:
(i) a quarterly payer who pays on the basis of GDP-adjusted notional tax; or
(ii) an * annual payer; or
(b) at the end of the first * instalment month of that quarter, you become a * monthly payer.
No quarterly payer status in quarter if monthly payer in following month
(5A) Despite subsections (1) and (3), you cannot be a * quarterly payer who pays on the basis of instalment income at a time in an * instalment quarter if you are a * monthly payer at a time in the first * instalment month that ends after that quarter.
14 Paragraph 45-130(1)(a) in Schedule 1
Omit "an * annual payer or a * quarterly payer", substitute "an * annual payer, a * monthly payer or a * quarterly payer".
15 After subparagraph 45-130(1)(c)(ii) in Schedule 1
Insert:
(iia) you are not a * monthly payer;
16 Subsection 45-130(4) in Schedule 1
Repeal the subsection, substitute:
(4) In addition, you stop being such a payer at the start of the first * instalment quarter in the next income year if:
(a) at the end of that quarter, you become:
(i) a * quarterly payer who pays on the basis of instalment income; or
(ii) an * annual payer; or
(b) at the end of the first * instalment month of that quarter, you become a * monthly payer.
No quarterly payer status in quarter if monthly payer in following month
(5) Despite subsections (1) and (2), you cannot be a * quarterly payer who pays on the basis of GDP-adjusted notional tax at a time in an * instalment quarter if you are a * monthly payer at a time in the first * instalment month that ends after that quarter.
17 Subsection 45-132(4) in Schedule 1
Repeal the subsection, substitute:
(4) In addition, you stop being such a payer at the start of the first * instalment quarter in the next income year if:
(a) at the end of that quarter, you become:
(i) a * quarterly payer who pays on the basis of instalment income; or
(ii) an * annual payer; or
(b) at the end of the first * instalment month of that quarter, you become a * monthly payer.
18 Subsection 45-134(4) in Schedule 1
Repeal the subsection, substitute:
(4) In addition, you stop being such a payer at the start of the first * instalment quarter in the next income year if:
(a) at the end of that quarter, you become:
(i) a * quarterly payer who pays on the basis of instalment income; or
(ii) an * annual payer; or
(b) at the end of the first * instalment month of that quarter, you become a * monthly payer.
19 After Subdivision 45-D in Schedule 1
Insert:
Subdivision 45-DA -- Monthly payers
Table of sections
45-136 Monthly payer
45-138 Monthly payer requirement
(1) You are a monthly payer at a time if:
(a) you were a monthly payer immediately before that time; or
(b) if paragraph (a) does not apply--you satisfy the requirement in subsection 45-138(1) for the income year in which that time occurs.
Note: If paragraph (b) applies, see subsection (3) for the time at which you become a monthly payer.
(2) The starting instalment month in an income year (the current year ) is:
(a) if the Commissioner gives you an instalment rate for the first time during an * instalment month in the current year--the next instalment month in the current year; or
(b) if the Commissioner has given you an instalment rate during a previous income year and your instalment rate has not been withdrawn--the first instalment month in the current year.
How and when you become such a payer
(3) Despite subsection (1), if paragraph (1)(b) applies, you become a * monthly payer just before the end of the * starting instalment month in the income year.
How and when you stop being such a payer
(4) Despite subsection (1), you stop being a * monthly payer at the start of the first * instalment month in a later income year if:
(a) you do not satisfy the requirement in subsection 45-138(1) for that later income year; and
(b) you give the Commissioner a notice (the MP stop notice ) in the * approved form for that later income year before the start of that later income year.
45-138 Monthly payer requirement
(1) You satisfy the requirement in this subsection for an income year if at the start of your * MPR test day for that income year, your base assessment instalment income (within the meaning of section 45-320) for the * base year equals or exceeds:
(a) $20 million; or
(b) if regulations made for the purposes of this paragraph specify a different amount--that amount.
(2) However, you do not satisfy the requirement in subsection (1) for an income year if, at the start of your * MPR test day for that income year:
(a) you have (or, if you are a * member of a * GST group, the * representative member of the GST group has) an obligation to give the Commissioner a * GST return for a quarterly * tax period; and
(b) you are not the * head company of a * consolidated group nor the * provisional head company of a * MEC group; and
(c) your base assessment instalment income (within the meaning of section 45-320) for the * base year is less than $100 million.
(3) For the purposes of subsections (1) and (2), at the start of an entity's * MPR test day:
(a) determine the amount of the entity's base assessment instalment income (within the meaning of section 45-320) for the * base year only on the basis of the information provided by the Commissioner to the entity before that start of that day; and
(b) in determining on that day whether an entity has an obligation mentioned in paragraph (2)(a), disregard any creation or removal of such an obligation after that day (even if that change is made retrospective to that day).
(4) An entity's MPR test day for an income year is:
(a) if the Commissioner gives the entity an instalment rate for the first time during an * instalment month in the income year--the last day of that month; or
(b) otherwise--the first day of the third last month of the previous income year.
(5) Subsection (6) applies if, disregarding that subsection, an entity does not satisfy the requirement in subsection (1) for an income year.
(6) For the purposes of this section, in determining the entity's base assessment instalment income (within the meaning of section 45-320) for the * base year:
(a) disregard subsection 45-120(2C); and
(b) disregard paragraph (3)(a) of this section, to the extent that that paragraph relates to the operation of subsection 45-120(2C).
(7) If, because of subsection (6), the entity satisfies the requirement in subsection (1) for an income year, the entity must give the Commissioner a notice in the * approved form in respect of that income year before:
(a) if the * starting instalment month in the income year is determined under paragraph 45-136(2)(a)--the end of that starting instalment month; or
(b) if the starting instalment month in the income year is determined under paragraph 45-136(2)(b)--the start of that starting instalment month.
20 Subdivision 45-F in Schedule 1 (heading)
Repeal the heading, substitute:
21 Section 45-200 in Schedule 1
Before "This", insert "(1)".
22 At the end of section 45-200 in Schedule 1
Add:
(2) If you are a * monthly payer, this Subdivision has effect in relation to you in respect of an * instalment month in the same way in which it has effect in relation to a * quarterly payer in respect of an * instalment quarter.
23 At the end of section 45-205 in Schedule 1
Add:
(5) Subsection (6) applies if you are a monthly payer.
(6) Treat the references in subsections (1) and (4) to section 45-110 as instead being references to section 45-114.
24 Before section 45-230 in Schedule 1
Insert:
45-225 Effect of Subdivision in relation to monthly payers
If you are a * monthly payer, this Subdivision has effect in relation to you in respect of an * instalment month in the same way in which it has effect in relation to a * quarterly payer in respect of an * instalment quarter.
25 After section 45-595 in Schedule 1
Insert:
45-597 Effect of Subdivision in relation to instalment months
This Subdivision has effect in relation to an * instalment month in the same way in which it has effect in relation to an * instalment quarter.
26 Before section 45-705 in Schedule 1
Insert:
45-703 Effect of this Subdivision and Subdivision 45-R in relation to monthly payers
(1) If:
(a) a company is the * head company of a * consolidated group; and
(b) the company is a * monthly payer;
this Subdivision and Subdivision 45-R have effect in relation to the company as the head company of the group in respect of an * instalment month in the same way in which they have effect in relation to a company that is a * quarterly payer as the head company of a consolidated group in respect of an * instalment quarter.
(2) If:
(a) an entity is a * subsidiary member of a * consolidated group; and
(b) the entity is a * monthly payer;
this Subdivision and Subdivision 45-R have effect in relation to the entity in respect of an * instalment month in the same way in which they have effect in relation to an entity that is a * quarterly payer in respect of an * instalment quarter.
(3) However, those effects are subject to any modifications set out in those Subdivisions.
Note: Subdivision 45-S can also have effect in relation to a monthly payer because of the operation of this section and section 45-910.
27 After subsection 45-705(4) in Schedule 1
Insert:
When the period begins--modified timing for head company that is monthly payer
(4A) Subsection (4B) applies if:
(a) apart from subsection (4B), this Subdivision starts to apply to a company as the * head company of a * consolidated group at a particular time because of the operation of subsection (2), (3) or (4); and
(b) the company is a * monthly payer; and
(c) the Commissioner gave the * initial head company instalment rate as mentioned in subsection (2), subparagraph (3)(c)(ii), subparagraph (4)(d)(ii) or subparagraph (4)(d)(iv) in an * instalment month.
(4B) Treat subsection (2), (3) or (4) (as the case requires) as providing that this Subdivision starts to apply to the company as the * head company of the group at the start of the next * instalment month.
Note: For the application of this Subdivision to a monthly payer, see section 45-703.
28 Section 45-715 in Schedule 1
Before "If", insert "(1)".
29 At the end of section 45-715 in Schedule 1
Add:
(2) Subsection (3) applies if section 45-703 applies to the * head company of the * consolidated group (because it is a * monthly payer).
(3) Treat the reference in subsection (1) to subsection 45-61(2) as instead being a reference to subsection 45-67(2).
30 Paragraph 45-860(1)(b) in Schedule 1
Omit "ends before the end", substitute "starts before the start".
31 At the end of section 45-870 in Schedule 1
Add:
(5) Subsections (6) and (7) apply if:
(a) the * head company of the * consolidated group is a * monthly payer at a time in an * instalment month (the current month ); and
(b) any of the other * members of the group (the subsidiary quarterly payers ) are * quarterly payers at a time in the * instalment quarter (the current quarter ) in which the current month starts.
(6) Apply the following rules:
(a) treat the reference in subsection (1) to an * instalment quarter as being a reference to the current month;
(b) treat the references in this section to that quarter (or that instalment quarter) as being references to the current month.
(7) Also apply the following rules, for the purposes of subsections (1) to (5):
(a) treat the subsidiary quarterly payers as * monthly payers for each * instalment month (a notional instalment month ) that starts (disregarding paragraph (6)(a)) in the current quarter;
(b) apply this section separately in relation to each of those notional instalment months;
(c) treat the amount of instalment or credit for a subsidiary quarterly payer in respect of a notional instalment month as being the extent to which the amount of instalment or credit for the subsidiary quarterly payer for the current quarter is attributable to that notional instalment month.
32 After subsection 45-915(4) in Schedule 1
Insert:
When the period begins--modified timing for provisional head company that is monthly payer
(4A) Subsection (4B) applies if:
(a) apart from subsection (4B), Subdivision 45-Q starts to apply to a company as the * provisional head company of a * MEC group at a particular time because of the operation of subsection (2), (3) or (4); and
(b) the company is a * monthly payer; and
(c) the Commissioner gave the * initial head company instalment rate as mentioned in subsection (2), subparagraph (3)(c)(ii), subparagraph (4)(b)(ii) or subparagraph (4)(b)(iv) in an * instalment month.
(4B) Treat subsection (2), (3) or (4) (as the case requires) as providing that Subdivision 45-Q starts to apply to the company as the * provisional head company of the * MEC group at the start of the next * instalment month.
Note: For the application of this Subdivision to a monthly payer, see sections 45-703 and 45-910.
33 Subsection 250-10(2) in Schedule 1 (after table item 115)
Insert:
|
115A |
monthly PAYG instalment |
45-67 in Schedule 1 |
34 After paragraph 288-10(a) in Schedule 1
Insert:
(aa) under subsection 45-20(2A) in this Schedule, is required to give a notification electronically; or
35 Subsection 288-10(a) in Schedule 1
Omit "lodges or notifies", substitute "lodges, gives or notifies".
36 Paragraph 288-20(b) in Schedule 1
After "or subsection 16-85(1)", insert "or section 45-72".
Part 2 -- Consequential amendments
Income Tax Assessment Act 1997
37 Subsection 721-10(2) (after table item 30)
Insert:
|
32 |
section 45-67 in Schedule 1 to the Taxation Administration Act 1953 (monthly * PAYG instalment) |
the * instalment month to which the * instalment relates |
38 After subsection 721-10(3)
Insert:
(3A) Item 32 of the table in subsection (2) is taken not to include a * PAYG instalment of the * head company if the Commissioner gave the head company its * initial head company instalment rate on or after the start of the * instalment month of the head company to which the PAYG instalment relates.
39 Subsection 721-10(2) (table item 45)
Repeal the item, substitute:
|
45 |
subsection 45-230(4) in Schedule 1 to the Taxation Administration Act 1953 (general interest charge on shortfall in instalment worked out on basis of varied rate) |
the * instalment quarter or * instalment month to which the general interest charge relates |
40 Subsection 721-10(2) (table item 60)
Repeal the item, substitute:
|
60 |
subsection 45-875(2) in Schedule 1 to the Taxation Administration Act 1953 (head company's liability to GIC on shortfall in instalment) |
the * instalment quarter or * instalment month to which the general interest charge relates |
41 Subsection 995-1(1)
Insert:
"instalment month" has the meaning given by section 45-65 in Schedule 1 to the Taxation Administration Act 1953 .
42 Subsection 995-1(1)
Insert:
"monthly payer" has the meaning given by section 45-136 in Schedule 1 to the Taxation Administration Act 1953 .
43 Subsection 995-1(1)
Insert:
"MPR test day" has the meaning given by subsection 45-138(4) in Schedule 1 to the Taxation Administration Act 1953 .
44 Subsection 995-1(1) (definition of quarterly payer )
Omit " * annual payer", substitute " * annual payer or * monthly payer".
Part 3 -- Application and transitional provisions
45 General application of amendments
The amendments made by this Schedule apply to starting instalment months that start on or after 1 January 2014.
46 Delayed application to non-corporate tax entities
Despite subsection 45-138(1) in Schedule 1 to the Taxation Administration Act 1953 , an entity cannot be a monthly payer at a time if:
(a) the entity is not a corporate tax entity at the time; and
(b) the time is before 1 January 2016.
47 Transitional MPR thresholds
(1) Subitem (2) applies if an entity is a corporate tax entity.
(2) If the entity's MPR test day for an income year mentioned in subsection 45-138(1) in Schedule 1 to the Taxation Administration Act 1953 is before 1 October 2015, treat the reference in paragraph (a) of that subsection to $20 million as a reference to:
(a) if that MPR test day is before 1 October 2014--$1 billion; or
(b) otherwise--$100 million.
(3) Subitem (4) applies if an entity is not a corporate tax entity.
(4) If the entity's MPR test day for an income year mentioned in subsection 45-138(1) in Schedule 1 to the Taxation Administration Act 1953 is before 1 October 2016, treat the reference in paragraph (a) of that subsection to $20 million as a reference to $1 billion.
(5) Disregard subitems (2) and (4) for the purposes of subsection 45-136(4) in Schedule 1 to the Taxation Administration Act 1953 (MP stop notice).
48 Additional MPR test days
(1) This item applies if:
(a) (apart from this item) there is a time in an income year when you are not a monthly payer; and
(b) either:
(i) if you are a corporate tax entity at the time--the income year includes 1 January 2014, 1 January 2015 or 1 January 2016; or
(ii) if you are not a corporate tax entity at the time--the income year includes 1 January 2016 or 1 January 2017.
Note: This item may have a separate application for each of a number of income years.
(2) In determining whether you satisfy the requirement in subsection 45-138(1) in Schedule 1 to the Taxation Administration Act 1953 for the income year, treat your MPR test day for that income year as being:
(a) in a case where subparagraph (1)(b)(i) applies:
(i) if the income year includes 1 January 2014--1 October 2013; or
(ii) if the income year includes 1 January 2015--1 October 2014; or
(iii) if the income year includes 1 January 2016--1 October 2015; or
(b) in a case where subparagraph (1)(b)(ii) applies:
(i) if the income year includes 1 January 2016--1 October 2015; or
(ii) if the income year includes 1 January 2017--1 October 2016.
(3) If you are a monthly payer at a time in an income year because of subitem (2), treat the starting instalment month in the income year as being:
(a) unless paragraph (b) applies--the first instalment month that starts on or after the following day (the application day ):
(i) if subparagraph (2)(a)(i) applies--1 January 2014;
(ii) if subparagraph (2)(a)(ii) applies--1 January 2015;
(iii) if subparagraph (2)(a)(iii) applies--1 January 2016;
(iv) if subparagraph (2)(b)(i) applies--1 January 2016;
(v) if subparagraph (2)(b)(ii) applies--1 January 2017; or
(b) if:
(i) apart from subitem (2), you are a quarterly payer; and
(ii) the application day is not the first day of an instalment quarter;
the first instalment month that starts on or after the start of the next instalment quarter.
(4) If you would (apart from subitem (2)) be an annual payer and you would (apart from this subitem) become a monthly payer at a time in the income year under paragraph (3)(a):
(a) you are taken not to satisfy the requirement in subsection 45-138(1) in Schedule 1 to the Taxation Administration Act 1953 for the income year because of the operation of subitem (2); and
(b) instead, you are taken to satisfy that requirement for the next income year.
Note: In this case, you become a monthly payer in that next income year at the time specified in subsection 45-136(3) in Schedule 1 to the Taxation Administration Act 1953 .
49 Deadline for TOFA BAII calculation notice
(1) Subitem (2) applies if an entity must give the Commissioner a notice under subsection 45-138(7) in Schedule 1 to the Taxation Administration Act 1953 in respect of an income year because its MPR test day for that income year is treated under item 48 as being a particular day (the additional MPR test day ).
(2) Despite subsection 45-138(7) in Schedule 1 to the Taxation Administration Act 1953 , the entity must give the notice before the 1 January that follows the additional MPR test day.
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