A New Tax System (Tax Administration) Act 1999
Act No. 179 of 1999 as amended
This compilation was prepared on 15 May 2003
[This Act was amended by Act No. 44 of 2000]
[Schedule 3 (item 4) amended subitem 2(4) of Schedule 2
Schedule 3 (item 4) commences on 22 December 1999]
[This Act was amended by Act No. 91 of 2000]
Schedule 2 (item 1A) amended Schedule 2 (subitem 2(3))
Schedule 3 (item 17) repealed Schedule 18 (items 26, 27)
For application see Schedule 3 (item 18)
Schedule 2 (item 1A) commenced on 1 July 2000
Schedule 3 (items 17, 18) commenced on 22 December 1999]
[This Act was amended by Act No. 57 of 2002]
Schedule 12 (item 41) amended Schedule 6 (item 22)
Schedule 12 (item 42) amended Schedule 11 (item 33)
Schedule 12 (item 41) commenced on 22 December 1999
Schedule 12 (item 42) commenced on 1 July 2000]
[This Act was amended by Act No. 30 of 2003]
Schedule 2 (item 90) repealed and substituted Schedule 5
(items 67 and 68)
Schedule 2 (item 90) commenced on 1 July 2000]
Prepared by the Office of Legislative Drafting,
Attorney‑General’s Department, Canberra
Contents
1 Short title...................................
2 Commencement...............................
3 Schedule(s)..................................
Schedule 1—Pay as you go (PAYG) withholding
Part 1—Amendment of the Taxation Administration Act 1953
Division 15—Working out the amount to withhold
Guide to Division 15
15‑1......................What this Division is about
Subdivision 15‑A—Working out how much to withhold
15‑10........................How much to withhold
15‑15...........Variation of amounts required to be withheld
Subdivision 15‑B—Withholding schedules and regulations
15‑25.....Commissioner’s power to make withholding schedules
15‑30.Matters to be considered when making withholding schedules
15‑35...................Regulations about withholding
Subdivision 15‑C—Declarations
15‑50..............................Declarations
When to withhold
Part 2—Amendment of A New Tax System (Family Assistance) (Administration) Act 1999
Part 3—Application and saving
Schedule 2—Collection and recovery rules
Part 1—Amendment of the Taxation Administration Act 1953
Part 4‑15—Collection and recovery of tax‑related liabilities and other amounts
Division 250—Introduction
Subdivision 250‑A—Guide to Part 4‑15
250‑1........................What this Part is about
250‑5................Some important concepts about tax‑related liabilities
250‑10...........................Summary of tax‑related liabilities
Subdivision 250‑B—Object of this Part
250‑25.................................Object
Division 255—General rules about collection and recovery
Subdivision 255‑A—Tax‑related liabilities
255‑1..............................Meaning of tax‑related liability
255‑5...........................Recovering a tax‑related liability that is due and payable
Subdivision 255‑B—Commissioner’s power to vary payment time
255‑10.....................To defer the payment time
255‑15................To permit payments by instalments
255‑20......To bring forward the payment time in certain cases
Subdivision 255‑C—Recovery proceedings
Guide to Subdivision 255‑C
255‑35..................What this Subdivision is about
Operative provisions
255‑40Service of documents if person absent from Australia or cannot be found
255‑45.......................Evidentiary certificate
255‑50..................Certain statements or averments
255‑55........................Evidence by affidavit
Division 260—Special rules about collection and recovery
Guide to Division 260
260‑1.....................What this Division is about
Subdivision 260‑A—From third party
260‑5......Commissioner may collect amounts from third party
260‑10..........Notice to Commonwealth, State or Territory
260‑15...............................Indemnity
260‑20................................Offence
Subdivision 260‑B—From liquidator
260‑40Subdivision does not apply to superannuation guarantee charge
260‑45.......................Liquidator’s obligation
260‑50................................Offence
260‑55..............Joint liability of 2 or more liquidators
260‑60.............Liquidator’s other obligation or liability
Subdivision 260‑C—From receiver
260‑75........................Receiver’s obligation
260‑80................................Offence
260‑85...............Joint liability of 2 or more receivers
260‑90..............Receiver’s other obligation or liability
Subdivision 260‑D—From agent winding up business for non‑resident principal
260‑105.......Obligation of agent winding up business for non‑resident principal
260‑110...............................Offence
260‑115................Joint liability of 2 or more agents
260‑120...............Agent’s other obligation or liability
Subdivision 260‑E—From deceased person’s estate
260‑140........................Administered estate
260‑145.......................Unadministered estate
260‑150....Commissioner may authorise amount to be recovered
Division 265—Other matters
Subdivision 265‑A—Right of person to seek recovery or contribution
Guide to Subdivision 265‑A
265‑35..................What this Subdivision is about
Operative provisions
265‑40...........Right of recovery if another person is liable
265‑45........Right of contribution if persons are jointly liable
Subdivision 265‑B—Application of laws
265‑65..................................Non‑application of certain taxation laws
265‑70..........................Application of the Criminal Code
Part 5‑1—The Australian Taxation Office
Division 353—Powers to obtain information and evidence
353‑10.......................Commissioner’s power
Part 5‑45—Application of taxation laws to certain entities
Division 444—Entities that are not legal persons
444‑5..............................Partnerships
444‑10.....................Unincorporated companies
444‑15........................Superannuation funds
Part 2—Consequential amendment of Acts
A New Tax System (Goods and Services Tax) Act 1999
Fringe Benefits Tax Assessment Act 1986
Income Tax Assessment Act 1936
Petroleum Resource Rent Tax Assessment Act 1987
Sales Tax Assessment Act 1992
Superannuation Contributions Tax (Assessment and Collection) Act 1997
Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997
Superannuation Guarantee (Administration) Act 1992
Taxation Administration Act 1953
20‑45Offences that would otherwise be committed by a partnership or unincorporated company
Termination Payments Tax (Assessment and Collection) Act 1997
Tobacco Charges Assessment Act 1955
Wool Tax (Administration) Act 1964
Part 3—Saving provisions
Schedule 3—Binding oral advice on income tax matters
Part 1—Amendment of the Taxation Administration Act 1953
Part 5‑5—Rulings
Division 360—Oral rulings for individuals
Guide to Division 360
360‑1.....................What this Division is about
360‑5.......................Outline of this Division
Subdivision 360‑A—Applying for an oral ruling
360‑20.........Application for oral ruling about your own tax
360‑25......Application for oral ruling about someone else’s tax
360‑30..................What the application can cover
360‑35................How the application is to be made
360‑40................Further information may be sought
Subdivision 360‑B—How the Commissioner is to deal with the application
Exercise of powers by delegate
360‑60.... Delegated power must be exercised at specified place
If the application relates only to basic categories
360‑65...........When Commissioner must make oral ruling
360‑70..............Basic categories of assessable income
360‑75................Basic categories of exempt income
360‑80...................Basic categories of deductions
360‑85...................Basic categories of tax offsets
If the application involves additional categories
360‑100When Commissioner must make oral ruling if satisfied that your tax affairs and inquiry are simple
360‑105..........Additional categories of assessable income
360‑110...............Additional categories of deductions
360‑115...............Additional categories of tax offsets
If the application is successful
360‑120.......................Making the oral ruling
Subdivision 360‑C—When Commissioner must or can refuse the application
360‑140.........Aspects of your tax affairs that disqualify you
360‑145.Other grounds on which application must or can be refused
360‑150...............Assumptions in making oral ruling
360‑155.....Effect on oral ruling if provisions not complied with
Subdivision 360‑D—Miscellaneous
360‑175Application for oral ruling does not affect obligations and powers
360‑180................Effect on oral ruling if tax law re‑enacted
Part 2—Consequential amendment of Act
Income Tax Assessment Act 1936
170BCA Effect of oral ruling on tax other than withholding tax.........
170BDA Assessment of tax other than withholding tax if public and oral rulings conflict
170BDB Assessment of tax other than withholding tax if private and oral rulings conflict
170BDC Assessment of tax other than withholding tax if public, private and oral rulings conflict
Schedule 4—Payment, ABN and identification verification system
Part 1—Amendment of the Taxation Administration Act 1953
Part 5‑30—Payment, ABN and identification verification system
Division 400—Guide to Part 5‑30
400‑1..............................What Part 5‑30 is about
400‑5...The payment, ABN and identification verification system
Division 405—Transaction reporting by purchasers
405‑5.............Payments to which this Division applies
405‑10.......................Reporting requirements
405‑15.................Invoices produced by purchasers
Division 410—Transaction reporting by suppliers
410‑5.............Payments to which this Division applies
410‑10.......................Reporting requirements
410‑15.................Invoices produced by purchasers
Division 415—Verification of suppliers’ ABNs by purchasers
415‑5.............Payments to which this Division applies
415‑10..................ABN verification requirements
415‑15..............Method of obtaining ABN verification
415‑20..............Verification applies to later payments
Division 417—Verification of suppliers’ identities by purchasers
417‑5.............Payments to which this Division applies
417‑10.................Identity verification requirements
417‑15............Method of obtaining identity verification
417‑20..............Verification applies to later payments
Division 420—Penalties for not reporting or verifying
420‑5..............Failing to report or verify: civil penalty
Division 425—Other matters
425‑20........................Constructive payment
425‑25..................................Non‑cash benefits
425‑30........Amounts to be expressed in Australian currency
Part 2—Application of amendments
Schedule 5—TFN declarations and certain annual reports
Part 1—Amendments
Income Tax Assessment Act 1936
202AA Definition of eligible PAYG payment
Division 3—Quotation of tax file numbers by recipients of eligible PAYG payments
202C TFN declarations by recipients of eligible PAYG payments.....
202CC Making a replacement TFN declaration in place of an ineffective declaration
202CF Payer must notify Commissioner if no TFN declaration by recipient
Social Security Act 1991
Social Security Administration Act 1999
Taxation Administration Act 1953
16‑153Annual reports about withholding payments and reportable fringe benefits
Veterans’ Entitlements Act 1986
Part 2—Application and transitional
Schedule 6—Shorter period of review (SPOR) taxpayers
Part 1—Income Tax Assessment Act 1936
6AD Shorter period of review taxpayer.....................
Part 2—Taxation Administration Act 1953
18‑100..............Obligation to keep payment summary
Part 3—Application of amendments
Schedule 7—Endorsement of deductible gift recipients
Income Tax Assessment Act 1997
30‑17................Requirements for certain recipients
Subdivision 30‑BA—Endorsement of deductible gift recipients
Guide to Subdivision 30‑BA
30‑115..................What this Subdivision is about
Endorsement as a deductible gift recipient
30‑120..................Endorsement by Commissioner
30‑125....................Entitlement to endorsement
30‑130.....................Applying for endorsement
30‑135..........Dealing with an application for endorsement
30‑140.......Notifying outcome of application for endorsement
30‑145...................Date of effect of endorsement
30‑150.................Review of refusal of endorsement
30‑155..............Checking entitlement to endorsement
30‑160.Telling Commissioner of loss of entitlement to endorsement
30‑165.............Partnerships and unincorporated bodies
30‑170.......................Revoking endorsement
30‑175..............Review of revocation of endorsement
Government entities treated like entities
30‑180.....How this Subdivision applies to government entities
Subdivision 30‑CA—Administrative requirements relating to ABNs
Guide to Subdivision 30‑CA
30‑226..................What this Subdivision is about
Requirements
30‑227............Entities to which this Subdivision applies
30‑228.....................Content of receipt for gift
30‑229Australian Business Register must show deductibility of gifts to deductible gift recipient
Schedule 8—Endorsing entities as exempt from income tax
Income Tax Assessment Act 1997
50‑52.......Special condition for items 1.1, 1.5, 1.5A and 1.5B
50‑57....................Special condition for item 1.5
Subdivision 50‑B—Endorsing charitable entities as exempt from income tax
Guide to Subdivision 50‑B
50‑100..................What this Subdivision is about
Endorsing charitable entities as exempt from income tax
50‑105..................Endorsement by Commissioner
50‑110....................Entitlement to endorsement
50‑115.....................Applying for endorsement
50‑120..........Dealing with an application for endorsement
50‑125.......Notifying outcome of application for endorsement
50‑130...................Date of effect of endorsement
50‑135.................Review of refusal of endorsement
50‑140..............Checking entitlement to endorsement
50‑145.Telling Commissioner of loss of entitlement to endorsement
50‑150.............Partnerships and unincorporated bodies
50‑155.......................Revoking endorsement
50‑160..............Review of revocation of endorsement
Schedule 9—ABNs
Part 1—ABNs for government entities
A New Tax System (Australian Business Number) Act 1999
Part 2—Changes relating to tax‑deductible gifts
A New Tax System (Australian Business Number) Act 1999
Part 3—Technical correction
A New Tax System (Australian Business Number) Act 1999
Schedule 10—Pay as you go (PAYG) system of collecting income tax etc. liabilities
Part 1—Amendment of the Taxation Administration Act 1953
12‑60Payment under labour hire arrangement, or specified by regulations
45‑130.............Individual stops paying on basis of GDP‑adjusted notional tax if he or she becomes GST registered
45‑230Liability to GIC on shortfall in quarterly instalment worked out on the basis of varied rate
45‑232Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated benchmark tax
45‑233...........Reduction in GIC liability under section 45‑232 if shortfall is made up in later instalment
Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax
45‑410................Working out amount of instalment
45‑415..................Estimating your benchmark tax
45‑420...Credit in certain cases where amount of instalment is nil
Part 2—Amendment of other Acts
A New Tax System (Pay As You Go) Act 1999
Income Tax Assessment Act 1936
Schedule 11—PAYG withholding consequential amendments
Aboriginal Land Rights (Northern Territory) Act 1976
Bankruptcy Act 1966
Child Support (Registration and Collection) Act 1988
Crimes (Taxation Offences) Act 1980
Defence Act 1903
Higher Education Funding Act 1988
Income Tax Assessment Act 1936
221YHZXAExtended operation of certain provisions of the Taxation Administration Act
221YHZXB.................Penalty for failure to pay within time
Division 8—Prompt recovery, through estimates and payment agreements, of certain amounts not remitted
Subdivision B—Company failing to remit deductions, amounts withheld etc.
222AOBADirectors to cause company to remit or to go into voluntary administration or liquidation—non‑cash benefits
Income Tax Assessment Act 1997
34‑5...........This Division applies to employees and others
900‑135................Evidence on a payment summary
Income Tax Rates Act 1986
Public Service Act 1922
Social Security Act 1991
Taxation Administration Act 1953
Taxation (Interest on Overpayments and Early Payments) Act 1983
Veterans’ Entitlements Act 1986
Schedule 12—Civil penalties
A New Tax System (Goods and Services Tax) Act 1999
Income Tax Assessment Act 1936
221AZKD....................Notification of deferred payments
Taxation Administration Act 1953
16‑45...............Remission of penalty under section 16‑30 or 16‑40
Part 4‑25—Charges and civil penalties for failing to meet obligations
Division 288—Electronic notification and payment
288‑5..............Electronic notification of BAS amounts
288‑10............................Penalty for non‑electronic notification
288‑15..................Electronic payment of tax debts
288‑20............................Penalty for non‑electronic payment
Division 298—Machinery provisions for civil penalties
298‑5...........................Scope of Division
298‑10.......................Notification of liability
298‑15.........................Due date for penalty
298‑20........................Remission of penalty
298‑25............General interest charge on unpaid penalty
Schedule 13—Delayed refund interest
Taxation (Interest on Overpayments and Early Payments) Act 1983
Part IIIAA—Delayed refund interest on running balance account (RBA) surpluses
12AA Entitlement to interest for RBA surpluses after notification of BAS amount
12AB Entitlement to interest for RBA surpluses after request for remission
12AC Entitlement to interest for RBA surpluses after request for refund..
12AD Period of interest for RBA surpluses...................
12AE Rate of interest for RBA surpluses....................
12AF Definitions..................................
Schedule 14—PAYG withholding registration
Taxation Administration Act 1953
Subdivision 16‑BA—To be registered
Registration of withholders
16‑140..................Withholders must be registered
16‑141...................Registration and cancellation
Branch registration
16‑142....................Branches may be registered
16‑143...........Separate amounts for entities and branches
16‑144................Cancellation of branch registration
16‑145...Effect on branches of cancelling the entity’s registration
Schedule 15—Consequential amendment of indirect tax law
A New Tax System (Goods and Services Tax) Act 1999
35‑5.........................Entitlement to refund
51‑60..............Refunds relating to GST joint ventures
54‑65.................Refunds relating to GST branches
A New Tax System (Wine Equalisation Tax) Act 1999
Taxation Administration Act 1953
Schedule 16—PAYG instalments consequential amendments
Crimes (Taxation Offences) Act 1980
Higher Education Funding Act 1988
Income Tax Assessment Act 1936
161AA Contents of returns of full self‑assessment taxpayers....
Income Tax Assessment Act 1997
Taxation (Interest on Overpayments and Early Payments) Act 1983
Schedule 17—Savings rebate
Income Tax Assessment Act 1936
Schedule 18—Consequential amendment of Chapter 6 (the Dictionary) of the Income Tax Assessment Act 1997
An Act to implement A New Tax System by amending the law about taxation and Australian Business Numbers, and for related purposes
This Act may be cited as the A New Tax System (Tax Administration) Act 1999.
(1) Subject to this section, this Act commences, or is taken to have commenced, immediately after the commencement of section 1 of the A New Tax System (Pay As You Go) Act 1999.
(2) Item 21 of Schedule 12 commences immediately after the commencement of item 1 of Schedule 2.
(3) Item 3 of Schedule 2 commences immediately after the commencement of item 21 of Schedule 12.
(4) Schedule 3 commences immediately after the commencement of item 3 of Schedule 2.
(5) Schedule 4 commences immediately after the commencement of Schedule 3.
(6) Item 4 of Schedule 2 commences immediately after the commencement of Schedule 4.
(7) The following provisions commence on the day on which this Act receives the Royal Assent:
(a) section 1, this section and section 3;
(b) Part 2 of Schedule 5, and the amendments of the Taxation Administration Act 1953 made by Part 1 of that Schedule;
(c) items 1 to 22 and 24 of Schedule 6;
(d) Schedules 7, 8, 9 and 17;
(e) items 16 and 20 of Schedule 18.
(8) Items 94 to 102 of Schedule 2 commence immediately after the commencement of the A New Tax System (Indirect Tax Administration) Act 1999.
(9) The following provisions commence on 1 July 2000:
(a) the provisions of Schedule 5 (other than Part 2 of that Schedule and the amendments of the Taxation Administration Act 1953 made by Part 1 of that Schedule);
(b) Schedule 11 (other than item 44).
(10) If item 4 of Schedule 7 would, apart from this subsection, commence after (or at the same time as) item 10 of Schedule 5 to the Taxation Laws Amendment Act (No. 8) 1999, it is taken to have commenced immediately before the commencement of item 10 of Schedule 5 to that Act. This has effect despite paragraph (7)(d).
(11) Subsection 2(1A) of the A New Tax System (Pay As You Go) Act 1999 (inserted by item 19 of Schedule 10 to this Act) commences, or is taken to have commenced, at the commencement of section 1 of that Act.
(12) Schedules 12 (other than item 21) and 15 commence, or are taken to have commenced, at the commencement of the A New Tax System (Goods and Services Tax) Act 1999.
(13) Items 2, 3 and 4 of Schedule 13 commence immediately after the commencement of item 34 of Schedule 16.
(14) Items 4, 5, 17, 21 and 32 of Schedule 18 commence, or are taken to have commenced, at the commencement of the A New Tax System (Goods and Services Tax) 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.
Part 1—Amendment of the Taxation Administration Act 1953
1 Section 14‑15
Repeal the link note, substitute:
Table of Subdivisions
Guide to Division 15
15‑A Working out how much to withhold
15‑B Withholding schedules and regulations
15‑C Declarations
This Division is mainly about how to work out how much an entity must withhold under Division 12.
In most cases, the entity will need to use either the Commissioner’s withholding schedules or the regulations.
The entity will also need to take into account a TFN declaration or declaration under section 15‑50 it has been given because, under the schedules and regulations, the declaration may affect how to calculate the amount to withhold.
This Division also deals with when an individual can make such a declaration (other than a TFN declaration) so as to change the amount that must be withheld from payments to the individual.
Subdivision 15‑A—Working out how much to withhold
Table of sections
15‑10 How much to withhold
15‑15 Variation of amounts required to be withheld
15‑10 How much to withhold
(1) The amount that Subdivision 12‑B, 12‑C or 12‑D requires to be withheld from a payment is to be worked out under the withholding schedules made under section 15‑25. However, if the regulations prescribe how the amount is to be worked out, then it is to be worked out under the regulations.
Note 1: A TFN declaration, declaration under section 15‑50 or voluntary agreement may affect how much is required to be withheld under the withholding schedules or regulations.
Note 2: The Commissioner may vary an amount required to be withheld. See section 15‑15.
(2) The amount that Subdivision 12‑E, 12‑F or 12‑G (except one covered by section 12‑325) requires to be withheld from a payment is to be worked out under the regulations.
Note 1: The amount that section 12‑325 requires to be withheld is worked out under that section.
Note 2: The Commissioner may vary an amount required to be withheld. See section 15‑15.
15‑15 Variation of amounts required to be withheld
(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.
Subdivision 15‑B—Withholding schedules and regulations
Table of sections
15‑25 Commissioner’s power to make withholding schedules
15‑30 Matters to be considered when making withholding schedules
15‑35 Regulations about withholding
15‑25 Commissioner’s power to make withholding schedules
(1) For the purposes of collecting income tax and the other liabilities referred to in paragraphs 11‑1(b) and (c), the Commissioner may make one or more withholding schedules specifying the amounts, formulas and procedures to be used for working out the *amount required to be withheld by an entity from a *withholding payment covered by Subdivision 12‑B, 12‑C or 12‑D.
(2) A withholding schedule may deal differently with:
(a) different payments; and
(b) different circumstances of the recipients of those payments; and
(c) different periods in respect of which those payments are made.
This subsection does not limit subsection 33(3A) of the Acts Interpretation Act 1901.
(3) The Commissioner may withdraw a withholding schedule.
(4) A withholding schedule, or the withdrawal of a withholding schedule:
(a) only applies if a notice of it is published in the Gazette; and
(b) only applies in relation to payments made after the day the notice is published, or after such later day as is specified by the Commissioner in the notice.
(5) The Commissioner must make each withholding schedule publicly available.
15‑30 Matters to be considered when making withholding schedules
The Commissioner must have regard to the following matters when making a withholding schedule:
(a) the rates of income tax as specified in the Income Tax Rates Act 1986;
(b) the rates of Medicare levy as specified in the Medicare Levy Act 1986;
(c) the rates specified in section 106Q (about repayments of accumulated HEC debts) of the Higher Education Funding Act 1988;
(d) any prescribed *tax offsets;
(e) the family tax benefit (within the meaning of the A New Tax System (Family Assistance) Act 1999);
(f) the periods in respect of which *withholding payments are made;
(g) any other prescribed matter.
15‑35 Regulations about withholding
(1) For the purposes of collecting income tax and the other liabilities referred to in section 11‑1, the regulations may specify the amounts, formulas and procedures to be used for working out the *amount required to be withheld by an entity from a *withholding payment covered by Division 12 (except one covered by section 12‑325).
(2) The regulations may deal differently with:
(a) different payments; and
(b) different circumstances of the recipients of those payments; and
(c) different periods in respect of which those payments are made.
This subsection does not limit subsection 33(3A) of the Acts Interpretation Act 1901.
Subdivision 15‑C—Declarations
Table of sections
15‑50 Declarations
15‑50 Declarations
Declarations about prescribed matters
(1) An individual who:
(a) expects to receive a *withholding payment covered by Subdivision 12‑B, 12‑C or 12‑D from an entity; and
(b) wishes to have a prescribed matter relating to the individual’s income tax or other liability referred to in paragraph 11‑1(b) or (c) taken into account by the entity in working out the *amount required to be withheld from the payment;
may give the entity a declaration about the matter in the *approved form.
When declarations under subsection (1) can’t be given
(2) The individual cannot give a declaration under subsection (1) unless:
(a) a *TFN declaration is in effect between the individual and the entity, or a *voluntary agreement covers the payment; and
(b) if the individual has given another entity a declaration on a prescribed matter—that declaration is not in effect.
Declarations changing information given in TFN declaration
(3) If:
(a) an individual has given a *TFN declaration to an entity; and
(b) the individual made a statement about a prescribed matter in the TFN declaration; and
(c) the individual’s circumstances change in relation to the matter;
the individual may give the entity a declaration about the matter in the *approved form.
Regulations
(4) The regulations may prescribe:
(a) the matters about which a declaration under subsection (1) or (3) may be given; and
(b) when a declaration under subsection (1) or (3) starts or ceases to be in effect; and
(c) when a declaration under subsection (1) or (3) is taken to have been given.
(5) If:
(a) an individual gives an entity a declaration under subsection (1) or (3) about a matter; and
(b) the individual’s circumstances change in relation to the matter;
the regulations may also prescribe when the individual must give the entity a new declaration about the matter.
2 Group heading before section 16‑5 in Schedule 1
Repeal the heading, substitute:
When to withhold
3 Section 16‑10 in Schedule 1
Repeal the section.
4 Section 16‑15 in Schedule 1
Repeal the section.
Part 2—Amendment of A New Tax System (Family Assistance) (Administration) Act 1999
5 Paragraph 10(5)(a)
Omit “an employment”, substitute “a”.
6 Subparagraph 10(5)(a)(i)
Omit “the Income Tax Regulations”, substitute “section 15‑50 in Schedule 1 to the Taxation Administration Act 1953”.
Part 3—Application and saving
7 Application of amendments
(1) The amendments made by Part 1 apply in relation to a payment made on or after 1 July 2000.
(2) A declaration under section 15‑50 in Schedule 1 to the Taxation Administration Act 1953 can only be given on or after 1 July 2000.
(3) The amendments made by Part 2 apply to a declaration under section 15‑50 in Schedule 1 to the Taxation Administration Act 1953 that is given, or taken to have been given, on or after 1 July 2000.
8 Saving of declarations
A declaration that is effective under Subdivision 2 of Division 2 of Part 7 of the Income Tax Regulations 1936 immediately before 1 July 2000 continues to have effect as if it were a declaration under section 15‑50 in Schedule 1 to the Taxation Administration Act 1953 given on 1 July 2000.
Part 1—Amendment of the Taxation Administration Act 1953
1 At the end of Schedule 1
Add:
[The next Division is Division 250.]
Division 250—Introduction
Table of Subdivisions
250‑A Guide to Part 4‑15
250‑B Object of this Part
Subdivision 250‑A—Guide to Part 4‑15
250‑1 What this Part is about
This Part deals with the methods by which the Commissioner may collect and recover amounts of taxes and other liabilities.
These rules may affect you if you are liable to pay an amount of a tax‑related liability (see, for example, Division 255). Some of the rules may also affect you because of your relationship with someone else who is liable for such an amount (see Division 260).
Table of sections
250‑5 Some important concepts about tax‑related liabilities
250‑10 Summary of tax‑related liabilities
250‑5 Some important concepts about tax‑related liabilities
(1) A tax‑related liability may arise for an entity before it becomes due and payable by that entity.
Example: Under Part 2‑5, an entity’s liability to pay a withheld amount may arise before the amount is due and payable.
(2) For some tax‑related liabilities, an assessment needs to be made before the amount of the relevant liability becomes due and payable.
Example: Under Division 1 of Part VI of the Income Tax Assessment Act 1936, an amount of income tax needs to be assessed before it becomes due and payable.
(3) An amount of a tax‑related liability may become payable by an entity (for example, when the amount has been assessed) before it is due and payable by that entity.
250‑10 Summary of tax‑related liabilities
(1) The following table is an index of each tax‑related liability under the Income Tax Assessment Act 1936. The key provision for the liability, as set out in the table, specifies when the liability becomes due and payable.
Note: The Commissioner may vary the time at which the amount becomes due and payable. See Subdivision 255‑B.
Tax‑related liabilities under the Income Tax Assessment Act 1936 |
Item | Topic | Provision |
5 | ultimate beneficiary non‑disclosure tax | 102UO |
10 | withholding tax on dividend, interest or royalty | 128C(1) |
15 | special tax payable on dealings by offshore banking units | 128NB(3) |
20 | mining withholding tax | 128W(1) |
25 | untainting tax | 160ARDZ |
30 | franking deficit tax | 160ARU(1) |
35 | franking deficit tax—part year assessment | 160ARU(2) |
40 | deficit deferral tax | 160ARUA |
45 | franking additional tax | 160ARV |
50 | late lodgment penalty | 163A(3) |
55 | income tax, including any liability taken to be income tax for the purposes of section 204 | 204 |
60 | TFN withholding tax | 221YHZW |
65 | estimate of unremitted amounts | 222AGB(2) |
70 | amount payable under a payment agreement | 222ALA |
75 | penalty under Subdivision B of Part 9 | 222AOE |
80 | penalty under Subdivision C of Part 9 | 222APE |
85 | penalty for failing to ensure that a company complies with a payment agreement | 222AQA |
90 | family trust distribution tax | 271‑75 in Schedule 2F |
(2) The following table is an index of each tax‑related liability under other Acts. The key provision for the liability, as set out in the table, specifies when the liability becomes due and payable.
Note: The Commissioner may vary the time at which the amount becomes due and payable. See Subdivision 255‑B.
Tax‑related liabilities under other legislation |
Item | Topic | Provision | Act |
5 | net amount, including amounts in respect of luxury car tax and wine equalisation tax | 33‑5 | A New Tax System (Goods and Services Tax) Act 1999 |
10 | amount of GST on importations | 33‑15 | A New Tax System (Goods and Services Tax) Act 1999 |
15 | amount of luxury car tax on importation | 13‑20 | A New Tax System (Luxury Car Tax) Act 1999 |
20 | amount of wine tax on customs dealings | 23‑5 | A New Tax System (Wine Equalisation Tax) Act 1999 |
25 | fringe benefits tax | 90(1) | Fringe Benefits Tax Assessment Act 1986 |
30 | additional tax under Part VIII | 90(2) | Fringe Benefits Tax Assessment Act 1986 |
35 | fringe benefits tax instalments | 103 | Fringe Benefits Tax Assessment Act 1986 |
40 | petroleum resource rent tax and additional tax | 82 | Petroleum Resource Rent Tax Assessment Act 1987 |
45 | petroleum resource rent tax instalments | 95 | Petroleum Resource Rent Tax Assessment Act 1987 |
50 | superannuation contributions surcharge | 15(3) | Superannuation Contributions Tax (Assessment and Collection) Act 1997 |
55 | superannuation contributions surcharge | 15(8) | Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 |
60 | superannuation guarantee charge | 46 | Superannuation Guarantee (Administration) Act 1992 |
65 | additional superannuation guarantee charge | 47 | Superannuation Guarantee (Administration) Act 1992 |
70 | general interest charge | 8AAE | Taxation Administration Act 1953 |
75 | failure to notify penalty | 8AAL | Taxation Administration Act 1953 |
80 | late reconciliation statement penalty | 8AAR | Taxation Administration Act 1953 |
85 | RBA deficit debt | 8AAZH(1) | Taxation Administration Act 1953 |
90 | administrative overpayment made by Commissioner | 8AAZN | Taxation Administration Act 1953 |
95 | penalty under Division 4 of Part VI | 47 | Taxation Administration Act 1953 |
100 | penalty for failure to withhold | 16‑30(2) and 16‑40(2) in Schedule 1 | Taxation Administration Act 1953 |
105 | payment of withheld amount to Commissioner | 16‑75 in Schedule 1 | Taxation Administration Act 1953 |
110 | additional withholding tax | 16‑200(2) in Schedule 1 | Taxation Administration Act 1953 |
115 | quarterly PAYG instalment | 45‑60 in Schedule 1 | Taxation Administration Act 1953 |
120 | annual PAYG instalment | 45‑70 in Schedule 1 | Taxation Administration Act 1953 |
125 | general interest charge on shortfall in quarterly instalment worked out on basis of varied rate | 45‑230(4) in Schedule 1 | Taxation Administration Act 1953 |
130 | general interest charge on shortfall in quarterly instalment worked out on basis of estimated benchmark tax | 45‑232 in Schedule 1 | Taxation Administration Act 1953 |
135 | general interest charge on shortfall in annual instalment | 45‑235(5) in Schedule 1 | Taxation Administration Act 1953 |
140 | civil penalty expressed in penalty units | 298‑15 in Schedule 1 | Taxation Administration Act 1953 |
145 | termination payment surcharge | 11(2) | Termination Payments Tax (Assessment and Collection) Act 1997 |
150 | tobacco charge | 17(1) | Tobacco Charges Assessment Act 1955 |
155 | additional charge | 17(1A) | Tobacco Charges Assessment Act 1955 |
160 | wool tax | 36(1) | Wool Tax (Administration) Act 1964 |
165 | additional tax | 36(2) | Wool Tax (Administration) Act 1964 |
Subdivision 250‑B—Object of this Part
250‑25 Object
The object of this Part is to ensure that unpaid amounts of *tax‑related liabilities and other related amounts are collected or recovered in a timely manner.
[The next Division is Division 255.]
Division 255—General rules about collection and recovery
Table of Subdivisions
255‑A Tax‑related liabilities
255‑B Commissioner’s power to vary payment time
255‑C Recovery proceedings
Subdivision 255‑A—Tax‑related liabilities
Table of sections
255‑1 Meaning of tax‑related liability
255‑5 Recovering a tax‑related liability that is due and payable
255‑1 Meaning of tax‑related liability
A tax‑related liability is a pecuniary liability to the Commonwealth arising directly under a *taxation law (including a liability the amount of which is not yet due and payable).
Note 1: See section 250‑10 for an index of tax‑related liabilities.
Note 2: A taxation law, or a provision of it, may be excluded from being applied to this Part. See section 265‑65.
255‑5 Recovering a tax‑related liability that is due and payable
(1) An amount of a *tax‑related liability that is due and payable:
(a) is a debt due to the Commonwealth; and
(b) is payable to the Commissioner.
(2) The Commissioner, a Second Commissioner or a Deputy Commissioner may sue in his or her official name in a court of competent jurisdiction to recover an amount of a *tax‑related liability that remains unpaid after it has become due and payable.
Note: The tables in section 250‑10 set out each provision that specifies when an amount of a tax‑related liability becomes due and payable. The Commissioner may vary that time under Subdivision 255‑B.
Subdivision 255‑B—Commissioner’s power to vary payment time
Table of sections
255‑10 To defer the payment time
255‑15 To permit payments by instalments
255‑20 To bring forward the payment time in certain cases
255‑10 To defer the payment time
(1) The Commissioner may, having regard to the circumstances of your particular case, defer the time at which an amount of a *tax‑related liability is, or would become, due and payable by you (whether or not the liability has already arisen). If the Commissioner does so, that time is varied accordingly.
Note: General interest charge or any other relevant penalty, if applicable for any unpaid amount of the liability, will begin to accrue from the time as varied. See, for example, paragraph 204(3)(a) of the Income Tax Assessment Act 1936.
(2) The Commissioner must do so by written notice given to you.
255‑15 To permit payments by instalments
(1) The Commissioner may, having regard to the circumstances of your particular case, permit you to pay an amount of a *tax‑related liability by instalments under an *arrangement between you and the Commissioner (whether or not the liability has already arisen).
(2) The *arrangement does not vary the time at which the amount is due and payable.
Note: Despite an arrangement under this section, any general interest charge or other relevant penalty, if applicable for any unpaid amount of the liability, begins to accrue when the liability is due and payable under the relevant taxation law, or at that time as varied under section 255‑10 or 255‑20.
255‑20 To bring forward the payment time in certain cases
(1) If the Commissioner reasonably believes that you may leave Australia before the time at which an amount of a *tax‑related liability becomes due and payable by you, the Commissioner may bring that time forward. If the Commissioner does so, that time is varied accordingly.
Note: General interest charge or any other relevant penalty, if applicable for any unpaid amount of the liability, will begin to accrue from the time as varied. See, for example, paragraph 204(3)(a) of the Income Tax Assessment Act 1936.
(2) The Commissioner must do so by written notice given to you.
Subdivision 255‑C—Recovery proceedings
Guide to Subdivision 255‑C
255‑35 What this Subdivision is about
This Subdivision deals with procedural and evidentiary matters relating to proceedings to recover an amount of a tax‑related liability.
Table of sections
Operative provisions
255‑40 Service of documents if person absent from Australia or cannot be found
255‑45 Evidentiary certificate
255‑50 Certain statements or averments
255‑55 Evidence by affidavit
[This is the end of the Guide.]
Operative provisions
255‑40 Service of documents if person absent from Australia or cannot be found
(1) This section applies if a document needs to be served on a person in respect of a proceeding to recover an amount of a *tax‑related liability, and the Commissioner, after making reasonable inquiries, is satisfied that:
(a) the person is absent from Australia and does not have any agent in Australia on whom the document can be served; or
(b) the person cannot be found.
(2) The Commissioner may, without the court’s leave, serve the document by posting it, or a sealed copy of it, in a letter addressed to the person at any Australian address of the person (including the person’s Australian place of business or residence) that is last known to the Commissioner.
255‑45 Evidentiary certificate
(1) A certificate:
(a) stating one or more of the matters covered by subsection (2); and
(b) signed by the Commissioner, a Second Commissioner or a Deputy Commissioner;
is prima facie evidence of the matter or matters in a proceeding to recover an amount of a *tax‑related liability.
(2) A certificate may state:
(a) that a person named in the certificate has a *tax‑related liability; or
(b) that an *assessment relating to a tax‑related liability has been made, or is taken to have been made, under a *taxation law; or
(c) that notice of an assessment, or any other notice required to be served on a person in respect of an amount of a tax‑related liability, was, or is taken to have been, served on the person under a *taxation law; or
(d) that the particulars of a notice covered by paragraph (c) are as stated in the certificate; or
(e) that a sum specified in the certificate is, as at the date specified in the certificate, a debt due and payable by a person to the Commonwealth.
255‑50 Certain statements or averments
(1) In a proceeding to recover an amount of a *tax‑related liability, a statement or averment about a matter in the plaintiff’s complaint, claim or declaration is prima facie evidence of the matter.
(2) This section applies even if the matter is a mixed question of law and fact. However, the statement or averment is prima facie evidence of the fact only.
(3) This section applies even if evidence is given in support or rebuttal of the matter or of any other matter.
(4) Any evidence given in support or rebuttal of the matter stated or averred must be considered on its merits. This section does not increase or diminish the credibility or probative value of the evidence.
(5) This section does not lessen or affect any onus of proof otherwise falling on a defendant.
255‑55 Evidence by affidavit
In a proceeding to recover an amount of a *tax‑related liability:
(a) a person may give evidence by affidavit; and
(b) the court may require the person to attend before it:
(i) to be cross‑examined on that evidence; or
(ii) to give other evidence relating to the proceedings.
[The next Division is Division 260.]
Division 260—Special rules about collection and recovery
Table of Subdivisions
Guide to Division 260
260‑A From third party
260‑B From liquidator
260‑C From receiver
260‑D From agent winding up business for non‑resident principal
260‑E From deceased person’s estate
Guide to Division 260
260‑1 What this Division is about
This Division deals with the collection and recovery of an amount from a person who is not personally liable to pay that amount. Apart from Subdivision 260‑A, which covers a wider range of amounts, this Division primarily deals with amounts of tax‑related liabilities.
Subdivision 260‑A—From third party
Table of sections
260‑5 Commissioner may collect amounts from third party
260‑10 Notice to Commonwealth, State or Territory
260‑15 Indemnity
260‑20 Offence
260‑5 Commissioner may collect amounts from third party
Amount recoverable under this Subdivision
(1) This Subdivision applies if any of the following amounts (the debt) is payable to the Commonwealth by an entity (the debtor) (whether or not the debt has become due and payable):
(a) an amount of a *tax‑related liability;
(b) a judgment debt for a *tax‑related liability;
(c) costs for such a judgment debt;
(d) an amount that a court has ordered the debtor to pay to the Commissioner following the debtor’s conviction for an offence against a *taxation law.
Commissioner may give notice to an entity
(2) The Commissioner may give a written notice to an entity (the third party) under this section if the third party owes or may later owe money to the debtor.
Third party regarded as owing money in these circumstances
(3) The third party is taken to owe money (the available money) to the debtor if the third party:
(a) is an entity by whom the money is due or accruing to the debtor; or
(b) holds the money for or on account of the debtor; or
(c) holds the money on account of some other entity for payment to the debtor; or
(d) has authority from some other entity to pay the money to the debtor.
The third party is so taken to owe the money to the debtor even if:
(e) the money is not due, or is not so held, or payable under the authority, unless a condition is fulfilled; and
(f) the condition has not been fulfilled.
How much is payable under the notice
(4) A notice under this section must:
(a) require the third party to pay to the Commissioner the lesser of, or a specified amount not exceeding the lesser of:
(i) the debt; or
(ii) the available money; or
(b) if there will be amounts of the available money from time to time—require the third party to pay to the Commissioner a specified amount, or a specified percentage, of each amount of the available money, until the debt is satisfied.
When amount must be paid
(5) The notice must require the third party to pay an amount under paragraph (4)(a), or each amount under paragraph (4)(b):
(a) immediately after; or
(b) at or within a specified time after;
the amount of the available money concerned becomes an amount owing to the debtor.
Debtor must be notified
(6) The Commissioner must send a copy of the notice to the debtor.
Setting‑off amounts
(7) If an entity other than the third party has paid an amount to the Commissioner that satisfies all or part of the debt:
(a) the Commissioner must notify the third party of that fact; and
(b) any amount that the third party is required to pay under the notice is reduced by the amount so paid.
260‑10 Notice to Commonwealth, State or Territory
If the third party is the Commonwealth, a State or a Territory, the Commissioner may give the notice to a person who:
(a) is employed by the Commonwealth, or by the State or Territory (as appropriate); and
(b) has the duty of disbursing public money under a law of the Commonwealth, or of the State or Territory (as appropriate).
260‑15 Indemnity
An amount that the third party pays to the Commissioner under this Subdivision is taken to have been authorised by:
(a) the debtor; and
(b) any other person who is entitled to all or a part of the amount;
and the third party is indemnified for the payment.
260‑20 Offence
(1) The third party must not fail to comply with the Commissioner’s notice.
Penalty: 20 penalty units
Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.
Note 2: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
(2) The court may, in addition to imposing a penalty on a person convicted of an offence against subsection (1) in relation to failing to pay an amount under the notice, order the person to pay to the Commissioner an amount not exceeding that amount.
Subdivision 260‑B—From liquidator
Table of sections
260‑40 Subdivision does not apply to superannuation guarantee charge
260‑45 Liquidator’s obligation
260‑50 Offence
260‑55 Joint liability of 2 or more liquidators
260‑60 Liquidator’s other obligation or liability
260‑40 Subdivision does not apply to superannuation guarantee charge
This Subdivision does not apply to a *tax‑related liability that is superannuation guarantee charge imposed by the Superannuation Guarantee Charge Act 1992.
260‑45 Liquidator’s obligation
(1) This Subdivision applies to a person who becomes a liquidator of a company.
(2) Within 14 days after becoming liquidator, the liquidator must give written notice of that fact to the Commissioner.
(3) The Commissioner must, as soon as practicable, notify the liquidator of the amount (the notified amount) that the Commissioner considers is enough to discharge any *outstanding tax‑related liabilities that the company has when the notice is given.
(4) The liquidator must not, without the Commissioner’s permission, part with any of the company’s assets before receiving the Commissioner’s notice.
(5) However, subsection (4) does not prevent the liquidator from parting with the company’s assets to pay debts of the company not covered by either of the following paragraphs:
(a) the *outstanding tax‑related liabilities;
(b) any debts of the company which:
(i) are unsecured; and
(ii) are not required, by an *Australian law, to be paid in priority to some or all of the other debts of the company.
(6) After receiving the Commissioner’s notice, the liquidator must set aside, out of the assets available for paying amounts covered by paragraph (5)(a) or (b) (the ordinary debts), assets with a value calculated using the following formula:
where:
amount of remaining ordinary debts means the sum of the company’s ordinary debts other than the *outstanding tax‑related liabilities.
(7) The liquidator must, in his or her capacity as liquidator, discharge the *outstanding tax‑related liabilities, to the extent of the value of the assets that the liquidator is required to set aside.
(8) The liquidator is personally liable to discharge the liabilities, to the extent of that value, if the liquidator contravenes this section.
260‑50 Offence
The liquidator must not fail to comply with subsection 260‑45(2), (4), (5), (6) or (7).
Penalty: 10 penalty units.
Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.
Note 2: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
260‑55 Joint liability of 2 or more liquidators
If there are 2 or more persons who become liquidators of the company, the obligations and liabilities under this Subdivision:
(a) apply to all the liquidators; but
(b) may be discharged by any of them.
260‑60 Liquidator’s other obligation or liability
This Subdivision does not reduce any obligation or liability of a liquidator arising elsewhere.
Subdivision 260‑C—From receiver
Table of sections
260‑75 Receiver’s obligation
260‑80 Offence
260‑85 Joint liability of 2 or more receivers
260‑90 Receiver’s other obligation or liability
260‑75 Receiver’s obligation
(1) This Subdivision applies to a person (the receiver) who, in the capacity of receiver, or of receiver and manager, takes possession of a company’s assets for the company’s debenture holders.
(2) Within 14 days after taking possession of the assets, the receiver must give written notice of that fact to the Commissioner.
(3) The Commissioner must, as soon as practicable, notify the receiver of the amount (the notified amount) that the Commissioner considers is enough to discharge any *outstanding tax‑related liabilities that the company has when the notice is given.
(4) The receiver must not, without the Commissioner’s permission, part with any of the company’s assets before receiving the Commissioner’s notice.
(5) However, subsection (4) does not prevent the receiver from parting with the company’s assets to pay debts of the company not covered by either of the following paragraphs:
(a) the *outstanding tax‑related liabilities;
(b) any debts of the company which:
(i) are unsecured; and
(ii) are not required, by an *Australian law, to be paid in priority to some or all of the other debts of the company.
(6) After receiving the Commissioner’s notice, the receiver must set aside, out of the assets available for paying amounts covered by paragraph (5)(a) or (b) (the ordinary debts), assets with a value calculated using the following formula:
where:
amount of remaining ordinary debts means the sum of the company’s ordinary debts other than the *outstanding tax‑related liabilities.
(7) The receiver must, in his or her capacity as receiver, or as receiver and manager, discharge the *outstanding tax‑related liabilities, to the extent of the value of the assets that the receiver is required to set aside.
(8) The receiver is personally liable to discharge the liabilities, to the extent of that value, if the receiver contravenes this section.
260‑80 Offence
The receiver must not fail to comply with subsection 260‑75(2), (4), (5), (6) or (7).
Penalty: 10 penalty units.
Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.
Note 2: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
260‑85 Joint liability of 2 or more receivers
If 2 or more persons (the receivers) take possession of a company’s assets, for the company’s debenture holders, in the capacity of receiver, or of receiver and manager, the obligations and liabilities under this Subdivision apply to:
(a) all the receivers; but
(b) may be discharged by any of them.
260‑90 Receiver’s other obligation or liability
This Subdivision does not reduce any obligation or liability of the receiver or receivers arising elsewhere.
Subdivision 260‑D—From agent winding up business for non‑resident principal
Table of sections
260‑105 Obligation of agent winding up business for non‑resident principal
260‑110 Offence
260‑115 Joint liability of 2 or more agents
260‑120 Agent’s other obligation or liability
260‑105 Obligation of agent winding up business for non‑resident principal
(1) This Subdivision applies to an agent whose principal:
(a) is not an Australian resident; and
(b) has instructed the agent to wind up so much of the principal’s business as is carried on in Australia.
(2) Within 14 days after receiving the instructions, the agent must give written notice of that fact to the Commissioner.
(3) The Commissioner must, as soon as practicable after receiving the notice, notify the agent of the amount (the notified amount) that the Commissioner considers is enough to discharge any *outstanding tax‑related liabilities that the principal has when the notice is given.
(4) Before receiving the Commissioner’s notice, the agent must not, without the Commissioner’s permission, part with any of the principal’s assets that are available for discharging the *outstanding tax‑related liabilities.
(5) After receiving the notice, the agent must set aside:
(a) out of the assets available for discharging the *outstanding tax‑related liabilities, assets to the value of the notified amount; or
(b) all of the assets so available, if their value is less than the notified amount.
(6) The agent must, in that capacity, discharge the *outstanding tax‑related liabilities, to the extent of the value of the assets that the agent is required to set aside.
(7) The agent is personally liable to discharge the liabilities, to the extent of that value, if the agent contravenes this section.
260‑110 Offence
A person must not fail to comply with subsection 260‑105(2), (4), (5) or (6).
Penalty: 10 penalty units.
Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.
Note 2: See section 4AA of the Crimes Act 1914 for the current value of penalty units.
260‑115 Joint liability of 2 or more agents
If 2 or more agents are jointly instructed by the principal to wind up the business, the obligations and liabilities under this Subdivision:
(a) apply to all the agents; but
(b) may be discharged by any of them.
260‑120 Agent’s other obligation or liability
This Subdivision does not reduce any obligation or liability of the agent or agents arising elsewhere.
Subdivision 260‑E—From deceased person’s estate
Table of sections
260‑140 Administered estate
260‑145 Unadministered estate
260‑150 Commissioner may authorise amount to be recovered
260‑140 Administered estate
(1) This section applies if:
(a) a person has an *outstanding tax‑related liability when the person dies; and
(b) either of the following is granted after the death:
(i) probate of the person’s will;
(ii) letters of administration of the person’s estate.
(2) The Commissioner may, in respect of the liability, deal with the trustee of the deceased person’s estate as if:
(a) the deceased person were still alive; and
(b) the trustee were the deceased person.
(3) Without limiting subsection (2), the trustee must:
(a) provide any returns and other information that the deceased person was liable to provide, or would have been liable to provide if he or she were still alive; and
(b) provide any additional returns or other information relating to the liability that the Commissioner requires; and
(c) in the trustee’s representative capacity, discharge the liability and any penalty imposed in respect of the liability under a *taxation law (including any *general interest charge) for which the deceased person would be liable if he or she were still alive.
(4) If:
(a) the amount of the liability requires an *assessment under a *taxation law but the assessment has not been made; and
(b) the trustee fails to provide a return or other information in relation to assessing that amount as required by the Commissioner;
the Commissioner may assess that amount. If the Commissioner does so, the assessment has the same effect as if it were made under that taxation law.
(5) A trustee who is dissatisfied with an *assessment under subsection (4) may object in the manner set out in Part IVC.
(6) Part IVC applies in relation to the objection as if the trustee were the deceased person.
260‑145 Unadministered estate
(1) This section applies if neither of the following is granted within 6 months after a person’s death:
(a) probate of the person’s will;
(b) letters of administration of the person’s estate.
(2) The Commissioner may determine the total amount of *outstanding tax‑related liabilities that the person had at the time of death.
(3) The Commissioner must publish notice of the determination twice in a daily newspaper circulating in the State or Territory in which the person resided at the time of death.
(4) A notice of the determination is conclusive evidence of the *outstanding tax‑related liabilities, unless the determination is amended.
(5) A person who is dissatisfied with the determination may object in the manner set out in Part IVC if the person:
(a) claims an interest in the estate; or
(b) is granted probate of the deceased person’s will or letters of administration of the estate.
(6) Part IVC applies in relation to the objection as if the person making it were the deceased person.
260‑150 Commissioner may authorise amount to be recovered
(1) The Commissioner may, in writing, authorise a person (the authorised person) who is:
(a) a member or a special member of the Australian Federal Police; or
(b) a member of the police force of a State or Territory; or
(c) any other person;
to recover:
(d) the total amount of the *outstanding tax‑related liabilities of a deceased person as determined under section 260‑145 (about unadministered estates); and
(e) any reasonable costs incurred by the authorised person in recovering that amount;
by seizing and disposing of any property of the deceased person.
(2) The authorised person may seize and dispose of the property as prescribed by the regulations.
[The next Division is Division 265.]
Division 265—Other matters
Table of Subdivisions
265‑A Right of person to seek recovery or contribution
265‑B Application of laws
Subdivision 265‑A—Right of person to seek recovery or contribution
Guide to Subdivision 265‑A
265‑35 What this Subdivision is about
This Division deals with a person’s right to recover from another person an amount paid in discharge of a tax‑related liability if:
• the person has paid the amount for or on behalf of the other person;
• the persons are jointly liable to pay the amount.
Table of sections
Operative provisions
265‑40 Right of recovery if another person is liable
265‑45 Right of contribution if persons are jointly liable
[This is the end of the Guide.]
Operative provisions
265‑40 Right of recovery if another person is liable
A person who has paid an amount of a *tax‑related liability for or on behalf of another person may:
(a) recover that amount from the other person as a debt (together with the costs of recovery) in a court of competent jurisdiction; or
(b) retain or deduct the amount out of money held by the person that belongs to, or is payable to, the other person.
265‑45 Right of contribution if persons are jointly liable
(1) If 2 or more persons are jointly liable to pay an amount of a *tax‑related liability, they are each liable for the whole of the amount.
(2) If one of the persons has paid an amount of the liability, the person may recover in a court of competent jurisdiction, as a debt, from another of those persons:
(a) an amount equal to so much of the amount paid; and
(b) an amount equal to so much of the costs of recovery under this section;
as the court considers just and equitable.
Subdivision 265‑B—Application of laws
Table of sections
265‑65 Non‑application of certain taxation laws
265‑70 Application of the Criminal Code
265‑65 Non‑application of certain taxation laws
This Part does not apply in relation to a *taxation law, or a provision of a taxation law, that is prescribed by the regulations.
265‑70 Application of the Criminal Code
The Criminal Code applies to all offences against this Part.
2 Application of Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953
(1) Section 255‑5 in Schedule 1 to the Taxation Administration Act 1953 applies in relation to an amount of a tax‑related liability that becomes due and payable on or after 1 July 2000.
(2) Subdivision 255‑B in Schedule 1 to the Taxation Administration Act 1953 applies in relation to any tax‑related liability (whether arising before, on or after 1 July 2000).
(3) Subdivision 255‑C in Schedule 1 to the Taxation Administration Act 1953 applies in relation to:
(a) a proceeding commenced on or after 1 July 2000 under section 255‑5 in that Schedule; and
(b) a proceeding to recover an amount of a tax‑related liability if it commenced before 1 July 2000 and is continuing on or after that day, as if it were a proceeding commenced under that section; and
(c) a proceeding to recover an amount of a tax‑related liability that became due and payable before 1 July 2000 if the proceeding commences on or after that day, as if it were a proceeding commenced under that section.
(4) Subdivision 260‑A in Schedule 1 to the Taxation Administration Act 1953 applies in relation to any debt (whether payable before, on or after 1 July 2000).
(4A) Despite subitems (2), (3) and (4), nothing can be done under Subdivision 255‑B, 255‑C or 260‑A in Schedule 1 to the Taxation Administration Act 1953 before 1 July 2000.
(5) Subdivision 260‑B in Schedule 1 to the Taxation Administration Act 1953 applies in relation to a person who becomes a liquidator on or after 1 July 2000 (whether the outstanding tax‑related liabilities concerned arise before, on or after that day).
(6) Subdivision 260‑C in Schedule 1 to the Taxation Administration Act 1953 applies in relation to a receiver, or receiver and manager, who takes possession of a company’s assets on or after 1 July 2000 (whether the outstanding tax‑related liabilities concerned arise before, on or after that day).
(7) Subdivision 260‑D in Schedule 1 to the Taxation Administration Act 1953 applies in relation to an agent who is instructed, on or after 1 July 2000, to wind‑up the principal’s business in Australia (whether the outstanding tax‑related liabilities concerned arise before, on or after that day).
(8) Subdivision 260‑E in Schedule 1 to the Taxation Administration Act 1953 applies in relation to a person who dies on or after 1 July 2000 (whether the outstanding tax‑related liabilities concerned arise before, on or after that day).
(9) Section 265‑40 in Schedule 1 to the Taxation Administration Act 1953 applies in relation to an amount of a tax‑related liability that is paid on or after 1 July 2000 (whether the liability concerned arises before, on or after that day).
(10) Section 265‑45 in Schedule 1 to the Taxation Administration Act 1953 applies in relation to any tax‑related liability arising on or after 1 July 2000.
3 At the end of Schedule 1
Add:
[The next Division is Division 353.]
Part 5‑1—The Australian Taxation Office
Division 353—Powers to obtain information and evidence
353‑10 Commissioner’s power
(1) The Commissioner may by notice in writing require any person:
(a) to give information to the Commissioner covering any matters relevant to the administration or operation of this Schedule; 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 Schedule; 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.
4 At the end of Schedule 1
Add:
[The next Division is Division 444.]
Part 5‑45—Application of taxation laws to certain entities
Division 444—Entities that are not legal persons
Table of sections
444‑5 Partnerships
444‑10 Unincorporated companies
444‑15 Superannuation funds
444‑5 Partnerships
(1) This Schedule applies to a partnership as if the partnership were a person, but with the changes set out in this section.
(2) An obligation that this Schedule would otherwise impose on the partnership:
(a) is imposed instead on each partner; 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 Schedule.
444‑10 Unincorporated companies
An obligation that this Schedule would otherwise impose on a company that is not incorporated:
(a) is imposed instead on each member of the company’s committee of management; but
(b) may be discharged by any of those members.
444‑15 Superannuation funds
If a *superannuation fund does not have a trustee of the fund, this Schedule applies to the fund as if:
(a) the person who manages the fund were the trustee of the fund; or
(b) each of the persons who manage the fund were 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.
Part 2—Consequential amendment of Acts
A New Tax System (Goods and Services Tax) Act 1999
5 Section 33‑1 (before the note)
Insert:
For provisions about collection and recovery of GST, see
Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953 and Division 3 of Part VI of that Act.
6 Section 33‑20
Repeal the section.
7 Section 33‑25
Repeal the section.
8 Section 33‑30
Repeal the section.
Fringe Benefits Tax Assessment Act 1986
9 At the end of subsection 90(2)
Add:
Note: For provisions about collection and recovery of tax and additional tax, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
10 Section 91
Repeal the section.
11 Section 92
Repeal the section.
12 Section 94
Repeal the section.
13 Section 95
Repeal the section.
14 Section 96
Repeal the section.
15 Section 97
Repeal the section.
16 Section 98
Repeal the section.
17 Section 99
Repeal the section.
18 Section 130
Repeal the section.
19 Section 131
Repeal the section.
Income Tax Assessment Act 1936
20 At the end of section 102UO
Add:
Application
(4) Subsections (2) and (3) do not apply in relation to any ultimate beneficiary non‑disclosure tax that becomes due and payable on or after 1 July 2000.
Note: For provisions about collection and recovery of ultimate beneficiary non‑disclosure tax and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
21 At the end of section 128C
Add:
Application
(9) Subsections (2) and (5) do not apply in relation to any withholding tax that becomes due and payable on or after 1 July 2000.
Note: For provisions about collection and recovery of withholding tax and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
22 At the end of section 128W
Add:
Application
(7) Subsections (2) and (3) do not apply in relation to any mining withholding tax that becomes due and payable on or after 1 July 2000.
Note: For provisions about collection and recovery of mining withholding tax and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
23 At the end of section 205
Add:
Application
(3) The Commissioner must not exercise his or her power under this section (including the extended operation that this section has because of any other provision of this Act) on or after 1 July 2000.
Example: Subsection 163A(8) provides for an extended operation of this section in respect of a penalty under section 163A. The Commissioner therefore must not exercise his or her power under this section because of that extended operation on or after 1 July 2000.
Note: For provisions about collection and recovery of tax and other amounts on or after 1 July 2000 (including provisions about the variation of the time for paying an amount), see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
24 At the end of section 206
Add:
Application
(3) The Commissioner must not exercise his or her power under this section (including the extended operation that this section has because of any other provision of this Act) on or after 1 July 2000.
Example: Subsection 163A(8) provides for an extended operation of this section in respect of a penalty under section 163A. The Commissioner therefore must not exercise his or her power under this section because of that extended operation on or after 1 July 2000.
Note: For provisions about collection and recovery of tax and other amounts on or after 1 July 2000 (including provisions about the variation of the time for paying an amount), see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
25 At the end of section 208
Add:
Application
(3) This section does not apply in relation to:
(a) income tax that becomes due and payable on or after 1 July 2000; or
(b) any other amount that becomes due and payable on or after that day, and that is taken to be income tax for the purposes of this section because of any other provision of this Act.
Example: Subsection 160ARW(1) provides that in section 208 income tax includes franking deficit tax, deficit deferral tax and franking additional tax. This section therefore does not apply in relation to any franking deficit tax, deficit deferral tax or franking additional tax that becomes due and payable on or after 1 July 2000.
Note: For provisions about collection and recovery of income tax and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
26 At the end of section 209
Add:
Application
(3) This section does not apply in relation to:
(a) any tax that becomes due and payable on or after 1 July 2000; or
(b) any other amount that becomes due and payable on or after that day, and that is taken to be tax for the purposes of this section because of any other provision of this Act.
Example: Subsection 160ARW(1) provides that in section 209 tax includes franking deficit tax, deficit deferral tax and franking additional tax. This section therefore does not apply in relation to any franking deficit tax, deficit deferral tax or franking additional tax that becomes due and payable on or after 1 July 2000.
Note: For provisions about collection and recovery of tax and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
27 At the end of section 214
Add:
Application
(3) A process must not be served under this section (including the extended operation that this section has because of any other provision of this Act) on or after 1 July 2000.
Example: Subsection 163A(8) provides for an extended operation of this section in respect of a penalty under section 163A. A process therefore must not be served on or after 1 July 2000 under this section because of that extended operation.
Note: For provisions about collection and recovery of income tax and other amounts on or after 1 July 2000 (including provisions about substituted service), see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
28 At the end of section 215
Add:
Application
(7) This section (including the extended operation that this section has because of any other provision of this Act) does not apply in relation to:
(a) a person who, on or after 1 July 2000, becomes the liquidator of a company; or
(b) a person who, on or after 1 July 2000, takes possession of assets of a company as a receiver for any debenture holders of the company; or
(c) an agent who, on or after 1 July 2000, is instructed to wind up the principal’s business or realise the principal’s assets.
Example: Subsection 163A(8) provides for an extended operation of this section in respect of a penalty under section 163A. However, despite that extended operation, this section does not apply in relation to a person mentioned in a paragraph of subsection (7).
Note: For provisions about collection and recovery of tax and other amounts on or after 1 July 2000 (including provisions about liquidators, receivers and agents), see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
29 At the end of section 216
Add:
Application
(4) This section (including the extended operation that this section has because of any other provision of this Act) does not apply in relation to a person who dies on or after 1 July 2000.
Example: Subsection 163A(8) provides for an extended operation of this section in respect of a penalty under section 163A. However, despite that extended operation, this section does not apply in relation to a person who dies on or after 1 July 2000.
Note: For provisions about collection and recovery of tax and other amounts on or after 1 July 2000 (including provisions about the estate of a deceased taxpayer), see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
30 At the end of section 218
Add:
Application
(8) The Commissioner must not issue a notice under this section (including the extended operation that this section has because of any other provision of this Act) on or after 1 July 2000.
Example: Subsection 160ARW(1) provides for an extended operation of this section in respect of franking deficit tax, deficit deferral tax or franking additional tax. The Commissioner therefore must not exercise his or her power under this section because of that extended operation on or after 1 July 2000.
Note: For provisions about collection and recovery of tax and other amounts on or after 1 July 2000 (including provisions on collecting an amount from a third person), see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
31 At the end of section 220
Add:
Application
(9) This section does not apply in relation to a person who dies on or after 1 July 2000.
Note: For provisions about collection and recovery of tax and other amounts on or after 1 July 2000 (including provisions about the estate of a deceased taxpayer), see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
32 At the end of section 220AAH
Add:
Application
(2) The Commissioner must not exercise his or her power under paragraph (1)(a) on or after 1 July 2000.
Note: For provisions about collection and recovery of amounts on or after 1 July 2000 (including provisions about the extension of the time for paying an amount), see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
33 At the end of section 220AAP
Add:
Application
(2) The Commissioner must not exercise his or her power under paragraph (1)(a) on or after 1 July 2000.
Note: For provisions about collection and recovery of amounts on or after 1 July 2000 (including provisions about the extension of the time for paying an amount), see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
34 At the end of section 220AAU
Add:
Application
(2) The Commissioner must not exercise his or her power under paragraph (1)(a) on or after 1 July 2000.
Note: For provisions about collection and recovery of amounts on or after 1 July 2000 (including provisions about the extension of time for paying an amount), see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
35 At the end of section 220AAZA
Add:
Application
(12) This section applies or has effect as follows:
(a) subsections (2), (3) and (4) do not apply in relation to a recoverable amount that becomes due and payable on or after 1 July 2000;
(b) an averment must not be made because of subsection (6) on or after 1 July 2000;
(c) a certificate must not be made under subsection (7) on or after 1 July 2000.
Note: For provisions about collection and recovery of recoverable amounts and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
36 At the end of section 220AY
Add:
Application
(8) This section applies or has effect as follows:
(a) subsections (2), (3) and (4) do not apply in relation to a recoverable amount that becomes due and payable on or after 1 July 2000;
(b) an averment must not be made because of subsection (6) on or after 1 July 2000;
(c) a certificate must not be made under subsection (7) on or after 1 July 2000.
Note: For provisions about collection and recovery of recoverable amounts and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
37 After subsection 221R(1)
Insert:
Application
(1A) Subsection (1) does not apply in relation to an amount that becomes due and payable on or after 1 July 2000.
Note: For provisions about collection and recovery of amounts payable under this Division and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
38 At the end of section 221YHN
Add:
Application
(3) This section applies or has effect as follows:
(a) subsection (1), to the extent of its operation apart from paragraph (1)(b), does not apply in relation to an amount that becomes due and payable on or after 1 July 2000;
(b) an averment must not be made because of the operation of subsection (2) on or after 1 July 2000.
Note: For provisions about collection and recovery of amounts payable under this Division and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
39 After subsection 221YHZD(1AA)
Insert:
Application
(1AAA) The Commissioner must not exercise his or her power under subsection (1AA) on or after 1 July 2000.
Note: For provisions about collection and recovery of amounts on or after 1 July 2000 (including provisions about the variation of the time for paying an amount), see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
40 At the end of section 221YHZJ
Add:
Application
(7) This section applies or has effect as follows:
(a) subsection (1), to the extent of its operation apart from paragraph (1)(b), does not apply in relation to an amount that becomes due and payable on or after 1 July 2000;
(b) an averment must not be made because of the operation of subsection (2) on or after 1 July 2000.
Note: For provisions about collection and recovery of amounts payable under this Division and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
41 At the end of section 221YR
Add:
Application
(6) This section applies or has effect as follows:
(a) subsection (1), to the extent of its operation apart from paragraph (1)(b), does not apply in relation to an amount that becomes due and payable on or after 1 July 2000;
(b) an averment must not be made because of the operation of subsection (2) on or after 1 July 2000.
Note: For provisions about collection and recovery of amounts payable under this Division and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
42 At the end of section 221ZE
Add:
Application
(3) This section applies or has effect as follows:
(a) subsection (1), to the extent of its operation apart from paragraph (1)(b), does not apply in relation to an amount that becomes due and payable on or after 1 July 2000;
(b) an averment must not be made because of the operation of subsection (2) on or after 1 July 2000.
Note: For provisions about collection and recovery of amounts payable under this Division and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
43 At the end of section 221ZR
Add:
Application
(3) This section applies or has effect as follows:
(a) subsection (1), to the extent of its operation apart from paragraph (1)(b), does not apply in relation to an amount that becomes due and payable on or after 1 July 2000;
(b) an averment must not be made because of the operation of subsection (2) on or after 1 July 2000.
Note: For provisions about collection and recovery of amounts payable under this Division and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
44 At the end of section 258
Add:
Application
(3) This section does not apply in relation to:
(a) tax paid on or after 1 July 2000; or
(b) any other amount paid on or after 1 July 2000, and that is taken to be tax for the purposes of this section because of any other provision of this Act.
Example: Subsection 163A(8) provides that in section 258 tax includes a penalty under section 163A. This section therefore does not apply in relation to such a penalty that is paid on or after 1 July 2000.
Note: For provisions about collection and recovery of tax and other amounts on or after 1 July 2000 (including provisions about recovery of tax paid on behalf of another person), see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
45 At the end of section 259
Add:
Application
(3) This section does not apply in relation to:
(a) a liability for tax that arises on or after 1 July 2000; or
(b) any other amount of liability that arises on or after that day, and that is taken to be tax for the purposes of this section because of any other provision of this Act.
Example: Subsection 163A(8) provides that in section 259 tax includes a penalty under section 163A. This section therefore does not apply in relation to such a penalty that arises on or after 1 July 2000.
Note: For provisions about collection and recovery of tax and other amounts on or after 1 July 2000 (including provisions about contribution from joint‑taxpayers), see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
46 At the end of section 271‑75 in Schedule 2F
Add:
Application
(5) Subsection (4) does not apply in relation to any family trust distribution tax that becomes due and payable on or after 1 July 2000.
Note: For provisions about collection and recovery of family trust distribution tax and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
47 At the end of section 271‑85 in Schedule 2F
Add:
Application
(2) Subsection (1) does not apply in relation to any family trust distribution tax or additional tax that becomes due and payable on or after 1 July 2000.
Note: For provisions about collection and recovery of family trust distribution tax, additional tax and other amounts on or after 1 July 2000, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
Petroleum Resource Rent Tax Assessment Act 1987
48 At the end of subsection 82(2)
Add:
Note: For provisions about collection and recovery of tax and additional tax, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
49 Section 83
Repeal the section.
50 Section 84
Repeal the section.
51 Section 86
Repeal the section.
52 Section 87
Repeal the section.
53 Section 88
Repeal the section.
54 Section 89
Repeal the section.
55 Section 90
Repeal the section.
56 Section 91
Repeal the section.
57 Section 110
Repeal the section.
58 Section 111
Repeal the section.
Sales Tax Assessment Act 1992
59 Section 65
Repeal the section.
60 Section 66
Repeal the section.
61 Section 69
Repeal the section.
62 Section 70
Repeal the section.
63 Section 71
Repeal the section.
64 Section 72
Repeal the section.
65 Section 73
Repeal the section.
66 Section 74
Repeal the section.
67 Section 75
Repeal the section.
68 Section 123
Repeal the section.
69 Section 124
Repeal the section.
Superannuation Contributions Tax (Assessment and Collection) Act 1997
70 Section 26
Repeal the section.
71 Section 27
Repeal the section.
72 Section 40A
Repeal the section.
Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997
73 Section 22
Repeal the section.
74 Section 23
Repeal the section.
75 Section 35
Repeal the section.
Superannuation Guarantee (Administration) Act 1992
76 At the end of section 46
Add:
Note: For provisions about collection and recovery of superannuation guarantee charge, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
77 At the end of section 47
Add:
Note: For provisions about collection and recovery of additional superannuation guarantee charge, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
78 Section 48
Repeal the section.
79 Section 50
Repeal the section.
80 Section 51
Repeal the section.
81 Section 53
Repeal the section.
82 Section 54
Repeal the section.
83 Section 55
Repeal the section.
84 Section 56
Repeal the section.
85 Section 78
Repeal the section.
Taxation Administration Act 1953
86 Section 8AAE (note)
Repeal the note, substitute:
Note: For provisions about collection and recovery of the charge, see Part 4‑15 in Schedule 1.
87 At the end of section 8AAF
Add:
(4) A notice given to a person by the Commissioner under this section is prima facie evidence of the matters stated in the notice.
88 Subsection 8AAL(3) (note)
Repeal the note.
89 At the end of section 8AAL
Add:
(4) A notice given to a person by the Commissioner under this section is prima facie evidence of the matters stated in the notice.
Note: For provisions about collection and recovery of the penalty, see Part 4‑15 in Schedule 1.
90 Subsection 8AAR(3) (note)
Repeal the note.
91 At the end of section 8AAR
Add:
(4) A notice given to a person by the Commissioner under this section is prima facie evidence of the matters stated in the notice.
Note: For provisions about collection and recovery of the penalty, see Part 4‑15 in Schedule 1.
92 Division 4 of Part IIA
Repeal the Division.
93 Subsection 8AAZH(1)
Repeal the subsection, substitute:
(1) If there is a deficit on an RBA at the end of a day, the tax debtor is liable to pay the amount to the Commonwealth. The amount is due and payable at the end of that day.
Note: The heading to section 8AAZH is replaced by the heading “Liability for RBA deficit”.
94 Section 28
Repeal the section.
95 Section 30
Repeal the section.
96 Section 31
Repeal the section.
97 Section 32
Repeal the section.
98 Section 33
Repeal the section.
99 Section 34
Repeal the section.
100 At the end of section 47
Add:
(4) A notice under this section that the Commissioner gives to an entity is prima facie evidence of the matters stated in the notice.
101 Section 55
Repeal the section.
102 Section 58
Repeal the section.
103 Subdivision 20‑A in Schedule 1
Repeal the Subdivision.
104 At the end of Subdivision 20‑B in Schedule 1
Add:
20‑45 Offences that would otherwise be committed by a partnership or unincorporated company
(1) An offence against this Part that would otherwise be committed by a 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, and whether by any act or omission of the partner).
(2) An offence against this Part that would otherwise be committed by a company that is not incorporated is taken to have been committed by each member of the company’s committee of management 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).
105 Subdivision 20‑C in Schedule 1
Repeal the Subdivision.
106 Section 45‑85 in Schedule 1
Repeal the section.
107 Application of amendment
The amendment made by item 93 applies to a deficit on an RBA at the end of 1 July 2000 or a later day.
Termination Payments Tax (Assessment and Collection) Act 1997
108 Section 17
Repeal the section.
109 Section 18
Repeal the section.
110 Section 28A
Repeal the section.
Tobacco Charges Assessment Act 1955
111 At the end of subsection 17(1A)
Add:
Note: For provisions about collection and recovery of charge and additional charge, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
112 Subsections 17(2) and (3)
Repeal the subsections.
113 Section 21
Repeal the section.
114 Section 23
Repeal the section.
115 Section 27
Repeal the section.
116 Section 28
Repeal the section.
Wool Tax (Administration) Act 1964
117 At the end of subsection 36(2)
Add:
Note: For provisions about collection and recovery of tax and additional tax, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
118 Section 37
Repeal the section.
119 At the end of section 42
Add:
Note: For provisions about collection and recovery of the tax, see Part 4‑15 in Schedule 1 to the Taxation Administration Act 1953.
120 Section 44
Repeal the section.
121 Section 46
Repeal the section.
122 Section 47
Repeal the section.
123 Section 48
Repeal the section.
124 Section 49
Repeal the section.
125 Section 50
Repeal the section.
126 Section 51
Repeal the section.
127 Section 52
Repeal the section.
128 Section 53
Repeal the section.
129 Section 54
Repeal the section.
Part 3—Saving provisions
130 Recovery of a tax‑related liability that is due and payable
Despite its repeal, a provision listed in the table continues to have effect in relation to an amount that became due and payable before 1 July 2000.
Tax‑related liability that became due and payable before 1 July 2000 |
Item | Act | Provision |
1 | Fringe Benefits Tax Assessment Act 1986 | section 94 |
2 | Petroleum Resource Rent Tax Assessment Act 1987 | section 86 |
3 | Sales Tax Assessment Act 1992 | section 69 |
4 | Superannuation Contributions Tax (Assessment and Collection) Act 1997 | section 26 or 27 |
5 | Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 | section 22 or 23 |
6 | Superannuation Guarantee (Administration) Act 1992 | section 50 |
7 | Termination Payments Tax (Assessment and Collection) Act 1997 | section 17 or 18 |
8 | Taxation Administration Act 1953 | subsection 8AAV(1) or (2) |
9 | Tobacco Charges Assessment Act 1955 | section 21 |
10 | Wool Tax (Administration) Act 1964 | section 44 |
131 Time for payment etc. of a tax‑related liability
Despite the repeal of a provision listed in the table, anything done under that provision before 1 July 2000 continues to have effect on and after that day as if the provision had not been repealed.
Time for payment etc. of a tax‑related liability |
Item | Act | Provision |
1 | Fringe Benefits Tax Assessment Act 1986 | section 91 or 92 |
2 | Petroleum Resource Rent Tax Assessment Act 1987 | section 83 or 84 |
3 | Sales Tax Assessment Act 1992 | section 65 or 66 |
4 | Superannuation Guarantee (Administration) Act 1992 | section 48 |
5 | Taxation Administration Act 1953 | section 45‑85 in Schedule 1 |
6 | Tobacco Charges Assessment Act 1955 | subsection 17(2) or (3) or section 23 |
7 | Wool Tax (Administration) Act 1964 | section 37 |
132 Collecting amounts from third parties
Despite the repeal of a provision listed in the table:
(a) anything done under that provision before 1 July 2000 continues to have effect on and after that day as if the provision had not been repealed; and
(b) anything done on or after that day, under that provision as it continues to have effect because of this item, has effect as if the provision had not been repealed.
Collecting amounts from third parties |
Item | Act | Provision |
1 | Fringe Benefits Tax Assessment Act 1986 | section 99 |
2 | Petroleum Resource Rent Tax Assessment Act 1987 | section 91 |
3 | Sales Tax Assessment Act 1992 | section 74 |
4 | Superannuation Contributions Tax (Assessment and Collection) Act 1997 | section 40A |
5 | Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 | section 35 |
6 | Superannuation Guarantee (Administration) Act 1992 | section 56 |
7 | Termination Payments Tax (Assessment and Collection) Act 1997 | section 28A |
8 | Wool Tax (Administration) Act 1964 | section 54 |
133 Liquidators, receivers and agents
Despite its repeal, a provision listed in the table continues to have effect in relation to:
(a) a person who becomes a liquidator before 1 July 2000; or
(b) a receiver, or receiver and manager, who takes possession of a company’s assets before 1 July 2000; or
(c) an agent who is instructed, before 1 July 2000, to wind up the principal’s business in Australia;
as appropriate.
Liquidators, receivers and agents before 1 July 2000 |
Item | Act | Provision |
1 | Fringe Benefits Tax Assessment Act 1986 | section 96 |
2 | Petroleum Resource Rent Tax Assessment Act 1987 | section 88 |
3 | Sales Tax Assessment Act 1992 | section 123 or 124 |
4 | Superannuation Guarantee (Administration) Act 1992 | section 53 |
5 | Tobacco Charges Assessment Act 1955 | section 27 |
6 | Wool Tax (Administration) Act 1964 | section 47 or 48 |
134 Deceased estates
Despite its repeal, a provision listed in the table continues to have effect in relation to a person who dies before 1 July 2000.
Person who dies before 1 July 2000 |
Item | Act | Provision |
1 | Fringe Benefits Tax Assessment Act 1986 | section 97 or 98 |
2 | Petroleum Resource Rent Tax Assessment Act 1987 | section 89 or 90 |
3 | Sales Tax Assessment Act 1992 | section 72 or 73 |
4 | Superannuation Guarantee (Administration) Act 1992 | section 54 or 55 |
5 | Tobacco Charges Assessment Act 1955 | section 28 |
6 | Wool Tax (Administration) Act 1964 | section 49, 50 or 51 |
135 Amount of tax‑related liability paid for someone else
Despite its repeal, a provision listed in the table continues to have effect in relation to an amount that was paid before 1 July 2000.
Amount paid before 1 July 2000 |
Item | Act | Provision |
1 | Fringe Benefits Tax Assessment Act 1986 | section 130 |
2 | Petroleum Resource Rent Tax Assessment Act 1987 | section 110 |
3 | Sales Tax Assessment Act 1992 | section 70 |
4 | Wool Tax (Administration) Act 1964 | section 52 |
136 Right of contribution if entities are jointly liable
Despite its repeal, a provision listed in the table continues to have effect in relation to a liability that arose before 1 July 2000.
Tax‑related liability that became due and payable before 1 July 2000 |
Item | Act | Provision |
1 | Fringe Benefits Tax Assessment Act 1986 | section 131 |
2 | Petroleum Resource Rent Tax Assessment Act 1987 | section 111 |
3 | Sales Tax Assessment Act 1992 | section 71 |
4 | Superannuation Guarantee (Administration) Act 1992 | section 78 |
5 | Wool Tax (Administration) Act 1964 | section 53 |
Part 1—Amendment of the Taxation Administration Act 1953
1 At the end of Schedule 1
Add:
[The next Division is Division 360.]
Part 5‑5—Rulings
Division 360—Oral rulings for individuals
Table of Subdivisions
Guide to Division 360
360‑A Applying for an oral ruling
360‑B How the Commissioner is to deal with the application
360‑C When Commissioner must or can refuse the application
360‑D Miscellaneous
Guide to Division 360
360‑1 What this Division is about
An individual can apply to the Commissioner for an oral ruling about a limited range of matters under an income tax law.
360‑5 Outline of this Division
(1) The procedure you need to follow in applying for an oral ruling is set out in Subdivision 360‑A.
(2) Before making the ruling, the Commissioner must be satisfied that your tax affairs, and your inquiry, meet certain tests.
See sections 360‑65 and 360‑100.
(3) There are further matters that may prevent the Commissioner from making the ruling. Important examples are:
(a) during the relevant period you were carrying on a business;
(b) during the relevant period you made payments from which you had to withhold amounts under Part 2‑5 (PAYG withholding).
See Subdivision 360‑C.
(4) An oral ruling is binding on the Commissioner, but only you can rely on it.
See sections 170BCA, 170BDA, 170BDB and 170BDC
of the Income Tax Assessment Act 1936.
(5) You are not bound by an oral ruling.
Subdivision 360‑A—Applying for an oral ruling
Table of sections
360‑20 Application for oral ruling about your own tax
360‑25 Application for oral ruling about someone else’s tax
360‑30 What the application can cover
360‑35 How the application is to be made
360‑40 Further information may be sought
360‑20 Application for oral ruling about your own tax
If you are an individual, you may apply to the Commissioner for a ruling on the way in which, in the Commissioner’s opinion, an *income tax law would apply to you in respect of an income year in relation to an *oral ruling arrangement.
360‑25 Application for oral ruling about someone else’s tax
(1) You may apply to the Commissioner, on another person’s behalf, for a ruling on the way in which, in the Commissioner’s opinion, an *income tax law would apply to the other person in respect of an income year in relation to an *oral ruling arrangement.
(2) However, you may do so only if the other person is an individual, and:
(a) the other person is under 18 and is your *child; or
(b) the other person is under 18 and you have in relation to him or her all the duties, powers, responsibilities and authority which, by law, a parent has in relation to his or her child; or
(c) the other person is under a legal disability because of a mental impairment, and you hold an enduring power of attorney in relation to him or her; or
(d) the other person:
(i) is under 18; or
(ii) has a physical or mental impairment;
and an *Australian law authorises you to act on his or her behalf in matters including his or her *tax affairs.
(3) If you apply on another person’s behalf, the rest of this Division has effect as if the other person had made the application himself or herself, but:
(a) you may communicate with the Commissioner, and otherwise deal with him or her, as if you were the other person; and
(b) the Commissioner may communicate with you, and otherwise deal with you, as if you were the other person.
360‑30 What the application can cover
(1) The application may relate to:
(a) a past income year; or
(b) the income year in which the application is made.
It cannot relate to a future income year, or to more than one income year.
(2) An oral ruling arrangement is:
(a) an action; or
(b) a course of action; or
(c) a course of conduct; or
(d) a transaction;
that has been, is being, or is proposed to be, engaged in, entered into or carried out, but only if none of the parties to it is an *associate of any of the others.
(3) The application may be for a ruling on the way in which the Commissioner would act under the *income tax law to which the application relates.
(4) Subsection (3) covers the following kinds of acts:
(a) forming an opinion; or
(b) refusing or failing to form an opinion; or
(c) attaining a state of mind; or
(d) refusing or failing to attain a state of mind; or
(e) making a determination; or
(f) refusing or failing to make a determination; or
(g) exercising a power; or
(h) refusing or failing to exercise a power.
360‑35 How the application is to be made
(1) You must make the application orally, either in person or by live 2‑way conversation using a method of communication approved by the Commissioner.
(2) When making the application, you must:
(a) identify yourself to the Commissioner’s satisfaction; and
(b) if you make the application on behalf of another person, identify the other person to the Commissioner’s satisfaction; and
(c) give whatever information, in whatever form, the Commissioner requires in order to make the ruling.
(3) You may withdraw the application before the ruling is made. You must do so orally, either in person or by live 2‑way conversation using a method of communication approved by the Commissioner.
360‑40 Further information may be sought
If the Commissioner considers that:
(a) the ruling cannot be made without further information; and
(b) if that information were given, there would be no reason for the Commissioner not to comply with your application;
the Commissioner must request you to give that information to him or her.
Subdivision 360‑B—How the Commissioner is to deal with the application
Table of sections
Exercise of powers by delegate
360‑60 Delegated power must be exercised at specified place
If the application relates only to basic categories
360‑65 When Commissioner must make oral ruling
360‑70 Basic categories of assessable income
360‑75 Basic categories of exempt income
360‑80 Basic categories of deductions
360‑85 Basic categories of tax offsets
If the application involves additional categories
360‑100 When Commissioner must make oral ruling if satisfied that your tax affairs and inquiry are simple
360‑105 Additional categories of assessable income
360‑110 Additional categories of deductions
360‑115 Additional categories of tax offsets
If the application is successful
360‑120 Making the oral ruling
Exercise of powers by delegate
360‑60 Delegated power must be exercised at specified place
(1) If the Commissioner delegates to a person a function or power the Commissioner has under this Division, the person must perform the function, or exercise the power, only at places specified in the delegation.
(2) If the person is at such a place, he or she may, in order to perform the function or exercise the power, communicate with a person who is not at such a place by live 2‑way conversation using a method approved by the Commissioner.
If the application relates only to basic categories
360‑65 When Commissioner must make oral ruling
(1) The Commissioner must comply with your application if he or she is satisfied that:
(a) your application complies with Subdivision 360‑A; and
(b) your assessable income for the inquiry period consisted only of one or more items covered by section 360‑70; and
(c) during the inquiry period no *CGT event happened from which you could have made a *capital gain or *capital loss (even if you did not make one from the event); and
Note: You are not disqualified by having an unapplied net capital loss for a previous income year.
(d) your *exempt income (if any) for the inquiry period consisted only of one or more items covered by section 360‑75; and
(e) your deductions for the inquiry period consisted only of one or more items covered by section 360‑80; and
(f) your *tax offsets for the inquiry period consisted only of one or more items covered by section 360‑85; and
(g) your application relates only to an item covered by section 360‑70, 360‑75, 360‑80 or 360‑85;
unless Subdivision 360‑C prevents the Commissioner from complying with the application.
Note: For an alternative basis on which the Commissioner must comply with your application, see section 360‑100.
(2) The inquiry period is:
(a) if your application relates to an earlier income year—that income year; or
(b) if your application relates to the income year during which the application is made—so much of the income year as elapses up to and including the day on which you make the application.
360‑70 Basic categories of assessable income
(1) This section covers a payment from which an amount must be withheld (even if the amount is not withheld) under a provision listed in the table, to the extent that the payment is assessable income.
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 |
(2) This section also covers a payment specified in a provision of the Income Tax Assessment Act 1997 listed in the table, to the extent that the payment is assessable income.
Social security or other benefit payment |
Item | Provision | Subject matter |
1 | Section 52‑10 | Social security payments |
2 | Section 52‑65 | Veterans’ affairs payments |
3 | Section 52‑105 | Payments under the Repatriation Act 1920 |
4 | Section 55‑10 | Education entry payments |
(3) This section also covers interest payable by a *financial institution or a government body (as defined by section 202A of the Income Tax Assessment Act 1936), to the extent that the interest is assessable income.
(4) This section also covers a *dividend (to the extent that it is assessable income), if the company that pays it is an Australian resident, and a *listed public company whose shares are listed for quotation in the official list of the Australian Stock Exchange Limited, at the earliest of the following times:
(a) if the liability to pay the dividend arises when the dividend is declared—that time;
(b) when the dividend becomes due and payable;
(c) when the dividend is paid.
360‑75 Basic categories of exempt income
This section covers *ordinary income, or *statutory income, to the extent that it is *exempt income because of:
(a) subsection 23L(1) of the Income Tax Assessment Act 1936 (about fringe benefits); or
(b) a provision of the Income Tax Assessment Act 1997 listed in the table.
Exempt income |
Item | Provision | Subject matter |
1 | section 51‑5 | Payments to defence personnel |
5 | item 2.1, 2.1A or 2.1B of the table in section 51‑10 | Educational grants and payments |
10 | section 51‑30 | Welfare payments |
15 | section 52‑10 | Social security payments |
20 | section 52‑65 | Veterans’ affairs payments |
25 | section 52‑105 | Payments under the Repatriation Act 1920 |
30 | section 52‑110 | Payments made because of subsection 4(6) of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986 |
35 | section 52‑120 | Child care assistance and child care rebate |
40 | section 52‑125 | Private health insurance incentive payments |
45 | section 52‑130 | Bonuses for older Australians |
50 | section 52‑140 | Commonwealth education and training payment |
55 | item 1 of the table in section 53‑10 | Disability services payment |
60 | item 2 of the table in section 53‑10 | Domiciliary nursing care benefit |
65 | item 5 of the table in section 53‑10 | Wounds and disability pension |
70 | section 53‑20 | Payments similar to certain veterans’ payments |
360‑80 Basic categories of deductions
This section covers a deduction for:
(a) an amount of expenditure you incur for managing your *tax affairs as mentioned in paragraph 25‑5(1)(a) of the Income Tax Assessment Act 1997; or
(b) an amount of an account‑keeping fee charged by a *financial institution; or
(c) an amount of a tax imposed under an *Australian law on an account kept with a financial institution (for example, financial institutions duty, debits tax or a similar tax); or
(d) an amount of money that is a gift or contribution to which item 1, 2 or 3 of the table in section 30‑15 of the Income Tax Assessment Act 1997 applies.
360‑85 Basic categories of tax offsets
This section covers a *tax offset to which you are entitled because of:
(a) Subdivision 61‑H of the Income Tax Assessment Act 1997 (about premiums under a private health insurance policy); or
(b) a provision of the Income Tax Assessment Act 1936 listed in the table.
Tax offsets |
Item | Provision | Subject matter | |
1 | Section 159J | Child of taxpayer who is wholly engaged in keeping house for the taxpayer Invalid relative Parents/parents in law Spouse | |
5 | Section 159L | Housekeeper, caring for child, invalid relative or disabled spouse | |
10 | Section 159K | Sole parent | |
15 | Section 160AQU | Franked dividend of shareholder (other than a partnership or trustee mentioned in paragraph 160AQU(1)(b)) | |
20 | Section 159SZ | Personal superannuation contributions | |
25 | Section 159T | Superannuation contributions for a spouse | |
30 | Section 159P | Medical expenses | |
35 | Section 160AAAA | Low income aged person | |
40 | Section 159N | Low income individuals | |
45 | Subsection 160AAA(2) | Rebate for certain social security pensions, allowances or benefits, veterans’ pensions, allowances or benefits | |
50 | Subsection 160AAA(3) | Rebate for certain social security benefits or payments | |
55 | Section 79A | Residents of isolated areas | |
| | | |
If the application involves additional categories
360‑100 When Commissioner must make oral ruling if satisfied that your tax affairs and inquiry are simple
(1) The Commissioner must also comply with your application if:
(a) he or she is satisfied that your application complies with Subdivision 360‑A; and
(b) in his or her opinion, your *tax affairs were simple throughout the *inquiry period; and
(c) in his or her opinion, your inquiry is simple; and
(d) he or she is satisfied that your assessable income for the inquiry period consisted only of one or more items, each of which is covered by section 360‑70 or 360‑105; and
(e) he or she is satisfied that your *exempt income (if any) for the inquiry period consisted only of one or more items covered by section 360‑75; and
(f) he or she is satisfied that your deductions for the inquiry period consisted only of one or more items, each of which is covered by section 360‑80 or 360‑110; and
(g) he or she is satisfied that your *tax offsets for the inquiry period consisted only of one or more items, each of which is covered by section 360‑85 or 360‑115; and
(h) he or she is satisfied of the matters in subsections (2), (3) and (4) (about your capital gains tax situation);
unless Subdivision 360‑C prevents the Commissioner from complying with the application.
CGT events
(2) The Commissioner must be satisfied that during the inquiry period no *CGT event happened from which you could have made a *capital gain or *capital loss (even if you did not make one from the event), except a CGT event from which you could have made a *capital gain or *capital loss covered by subsection (3).
Capital gains and losses
(3) The Commissioner must be satisfied that each *capital gain (if any), and each *capital loss (if any), that you made during the inquiry period:
(a) is to be disregarded because of section 118‑5 of the Income Tax Assessment Act 1997 (about cars, motor cycles and valour decorations); or
(b) resulted from *CGT event A1 happening in relation to shares in a company that was an Australian resident and a *listed public company, and whose shares were listed for quotation in the official list of the Australian Stock Exchange Limited, throughout the period when you owned the first‑mentioned shares; or
(c) resulted from *CGT event A1 or E4 happening in relation to units in a unit trust that was a *resident trust for CGT purposes and a *listed widely held trust, and whose units were listed for quotation in the official list of the Australian Stock Exchange Limited, throughout the period when you owned the first‑mentioned units.
Note: Similarly, you are not disqualified if CGT event E4 results in a reduction in the cost base of your units, rather than in a capital gain.
Net capital loss for an earlier income year
(4) If during the *inquiry period you made one or more *capital gains each of which is covered by paragraph 360‑100(3)(b) or (c), the Commissioner must be satisfied that you have no unapplied *net capital loss for an earlier income year.
Note: You are not otherwise disqualified by having an unapplied net capital loss for a previous income year.
360‑105 Additional categories of assessable income
This section covers the following, to the extent that they are assessable income:
(a) a payment from which an amount must be withheld (even if the amount is not withheld) under a provision listed in the table;
Payments covered |
Item | Provision | Subject matter |
1 | Section 12‑80 | Payment of pension or annuity |
2 | Section 12‑120 | Compensation, sickness or accident payment |
(b) a payment of a pension specified in subsection 55‑5(1) (about occupational superannuation schemes) of the Income Tax Assessment Act 1997;
(c) an amount in respect of a distribution made by a unit trust that is a *resident trust for CGT purposes and a *listed widely held trust, and whose units are listed for quotation in the official list of the Australian Stock Exchange Limited, at the earliest of the following times:
(ii) when the distribution becomes due and payable;
(iii) when the distribution is made;
(d) a *net capital gain resulting solely from one or more *capital gains covered by subsection 360‑100(3).
360‑110 Additional categories of deductions
This section covers a deduction that you have and that relates to a payment to you from which an amount must be withheld (even if the amount is not withheld) under a provision listed in the table.
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 |
360‑115 Additional categories of tax offsets
This section covers a *tax offset to which you are entitled because of a provision of the Income Tax Assessment Act 1936 listed in the table.
Tax offsets |
Item | Provision | Subject matter | |
1 | Section 79B | Member of the Defence Force serving overseas | |
5 | Section 160AQX | Franked dividends received by beneficiaries of a trust | |
10 | Section 159SU | Rebateable ETP annuity | |
15 | Section 159SM | Rebateable superannuation pension | |
20 | Section 160AF | Credit for foreign tax paid on foreign income | |
25 | Section 159UQ | Heritage conservation rebate | |
35 | Section 160AB | Loan interest received on securities issued before 1 November 1968 | |
40 | Sections 159ZRA and 159ZRB | Lump sum payment in arrears | |
45 | Subsection 23AB(7) | Salary, wages and allowances for service as a member of United Nations forces | |
| | | |
If the application is successful
360‑120 Making the oral ruling
(1) The Commissioner makes the ruling by communicating its contents to you orally, either in person or by live 2‑way conversation using a method approved by the Commissioner. The ruling is made at the time of the communication.
(2) The communication must:
(a) set out the matter ruled on; and
(b) identify the person to whom, and the *income tax law, the income year and the *oral ruling arrangement to which, the ruling relates; and
(c) indicate that the ruling is an *oral ruling; and
(d) if the correctness of the ruling depends on an assumption—set out details of the assumption; and
(e) include a registration identifier for the ruling.
(3) You are not entitled to receive a written record of the communication.
Note: However, you may be able to apply for a private ruling on the matter under Part IVAA.
(4) Neither you nor anyone else is entitled to object against the ruling under Part IVC. The ruling is not a taxation decision for the purposes of that Part.
Note: However, you may be able to apply for a private ruling on the matter under Part IVAA. A rulee who is dissatisfied with a private ruling may object against it under Part IVC.
Subdivision 360‑C—When Commissioner must or can refuse the application
Table of sections
360‑140 Aspects of your tax affairs that disqualify you
360‑145 Other grounds on which application must or can be refused
360‑150 Assumptions in making private ruling
360‑155 Effect on oral ruling if provisions not complied with
360‑140 Aspects of your tax affairs that disqualify you
(1) The Commissioner must not comply with your application unless he or she is satisfied that:
(a) throughout the *inquiry period you were an Australian resident; and
(b) at no time during the inquiry period did you carry on a *business; and
(c) at no time during the inquiry period were you a *withholder; and
(d) your assessable income for the inquiry period did not include an amount in respect of a *non‑cash benefit.
(2) The Commissioner must not comply with your application if:
(a) your assessable income or *exempt income for the *inquiry period included an amount arising from a transaction with your *associate; or
(b) your deductions for the inquiry period included an amount you paid to your *associate; or
(c) an anti‑avoidance provision applies to you in relation to the income year to which your application relates.
360‑145 Other grounds on which application must or can be refused
(1) The Commissioner must not comply with your application if:
(a) there is already an *oral ruling, in respect of the same income year, on the matter sought to be ruled on; or
(b) there is already a *private ruling on the matter sought to be ruled on; or
(c) the matter sought to be ruled on has been decided for the purposes of a *Commissioner assessment; or
(d) there is being carried out a *tax audit:
(i) of which you have been informed; and
(ii) that, in the opinion of the Commissioner, will require the Commissioner to decide the matter sought to be ruled on; or
(e) the matter sought to be ruled on is the subject of an objection against a *self assessment; or
(f) you are not a *SPOR taxpayer for the income year to which the application relates, and the application is made later than 4 years after the last day allowed to you for lodging an *income tax return for that income year; or
(g) you are a *SPOR taxpayer for the income year to which the application relates, and the application is made later than 2 years after the last day allowed to you for lodging an *income tax return for that income year.
(2) The Commissioner must not comply with your application if, in his or her opinion:
(a) the application is frivolous or vexatious; or
(b) the *oral ruling arrangement to which the application relates has not been, and is not being, carried out and is not seriously contemplated by you; or
(c) you have not given sufficient information, despite a request under section 360‑40, to enable the ruling to be made; or
(d) it would be unreasonable to comply, or continue to attempt to comply, having regard to the extent of the Commissioner’s resources that would be required to comply.
(3) The Commissioner must not comply with your application in so far as it involves calculating an amount.
(4) The Commissioner need not comply with your application if he or she is satisfied that, had your application been for a *private ruling, he or she would not have been required to comply with it.
360‑150 Assumptions in making oral ruling
If the Commissioner considers that the correctness of an *oral ruling would depend on which assumptions were made about a future event or other matter, the Commissioner may:
(a) decline to make the ruling; or
(b) make such of the assumptions as the Commissioner considers to be most appropriate.
360‑155 Effect on oral ruling if provisions not complied with
(1) An *oral ruling is taken never to have been made, and never to have been communicated, if any of these provisions applied to the application for the ruling:
(a) subsection 360‑140(2); or
(b) subsection 360‑145(1).
(2) The validity of an *oral ruling is not affected because any other provision of this Act has not been complied with.
Subdivision 360‑D—Miscellaneous
Table of sections
360‑175 Application for oral ruling does not affect obligations and powers
360‑180 Effect on oral ruling if tax law re‑enacted
360‑175 Application for oral ruling does not affect obligations and powers
The fact that there has been an application for an *oral ruling does not in the meantime affect:
(a) your obligation to lodge a return or do any other act; or
(b) the Commissioner’s power to make or amend an assessment.
360‑180 Effect on oral ruling if tax law re‑enacted
If:
(a) the Commissioner makes an *oral ruling about an *income tax law (the old law); and
(b) that law is re‑enacted or remade (with or without modifications, and whether or not the old law is repealed);
the ruling is taken also to be an oral ruling about that law as re‑enacted or remade (the new law), but only so far as the new law expresses the same ideas as the old law.
Note: Ideas in tax laws are not necessarily different just because different forms of words are used. See:
- section 15AC of the Acts Interpretation Act 1901; and
- section 1‑3 of the Income Tax Assessment Act 1997.
2 Application of Division 360 in Schedule 1 to the Taxation Administration Act 1953
Division 360 in Schedule 1 to the Taxation Administration Act 1953 applies to the 2000‑2001 income year and later income years.
Part 2—Consequential amendment of Act
Income Tax Assessment Act 1936
3 Subsection 170BA(3)
Omit “Subject to section 170BC,”, substitute “Subject to sections 170BC and 170BDA,”.
4 Paragraph 170BA(3)(c)
Omit “section 170BC”, substitute “sections 170BC and 170BDA”.
5 After section 170BB
Insert:
170BCA Effect of oral ruling on tax other than withholding tax
(1) In this section:
final tax has the same meaning as in section 170BA.
(2) Expressions used in this section have the same meanings as in Division 360 (Oral rulings) in Schedule 1 to the Taxation Administration Act 1953.
(3) If:
(a) there is an oral ruling on the way in which an income tax law applies to a person in respect of a year of income in relation to an oral ruling arrangement (ruled way); and
(b) that law applies to that person in respect of that year in relation to that arrangement in a different way; and
(c) the amount of final tax under an assessment in relation to that person would (apart from this section and sections 170BDA, 170BDB and 170BDC) exceed what it would have been if that law applied in the ruled way;
the assessment and amount of final tax must be what they would be if that law applied in the ruled way.
(4) This section has effect subject to sections 170BDA, 170BDB and 170BDC.
Note: The heading to section 170BC is replaced by the heading “Assessment of tax other than withholding tax if public or private rulings conflict”.
6 After section 170BC
Insert:
170BDA Assessment of tax other than withholding tax if public and oral rulings conflict
(1) In this section:
final tax has the same meaning as in section 170BA.
(2) If:
(a) there is a public ruling on the way in which an income tax law applies to a person in relation to an arrangement; and
(b) there is an oral ruling on the way in which the same income tax law applies to the same person in relation to the same arrangement; and
(c) those ways are different; and
(d) apart from this section, because of there being those different ways, there are conflicting requirements under section 170BA or 170BC and section 170BCA of what the assessment and amount of final tax in relation to that person are to be;
the assessment and amount of final tax must be what they would be if that law so applied in whichever of those ways would result in the lowest amount of final tax.
(3) Expressions used in paragraph (2)(a) have the same meanings as in section 170BA.
(4) Expressions used in paragraph (2)(b) have the same meanings as in Division 360 (Oral rulings) in Schedule 1 to the Taxation Administration Act 1953.
170BDB Assessment of tax other than withholding tax if private and oral rulings conflict
(1) In this section:
final tax has the same meaning as in section 170BA.
(2) If:
(a) there is a private ruling on the way in which an income tax law applies to a person in relation to an arrangement (private ruling way); and
(b) there is an oral ruling on the way in which the same income tax law applies to the same person in relation to the same arrangement; and
(c) those ways are different; and
(d) apart from this section, because of there being those different ways, there are conflicting requirements under section 170BB or 170BC and section 170BCA of what the assessment and amount of final tax in relation to that person are to be;
the assessment and amount of final tax must be what they would be if that law applied in the private ruling way.
(3) Expressions used in paragraph (2)(a) have the same meanings as in section 170BB.
(4) Expressions used in paragraph (2)(b) have the same meanings as in Division 360 (Oral rulings) in Schedule 1 to the Taxation Administration Act 1953.
170BDC Assessment of tax other than withholding tax if public, private and oral rulings conflict
(1) In this section:
final tax has the same meaning as in section 170BA.
(2) If:
(a) there is a public ruling on the way in which an income tax law applies to a person in relation to an arrangement; and
(b) there is a private ruling on the way in which the same income tax law applies to the same person in relation to the same arrangement; and
(c) there is an oral ruling on the way in which the same income tax law applies to the same person in relation to the same arrangement; and
(d) those ways are different;
the assessment and amount of final tax must be what they would be if the oral ruling had not been made.
(3) Expressions used in paragraph (2)(a) have the same meanings as in section 170BA.
(4) Expressions used in paragraph (2)(b) have the same meanings as in section 170BB.
(5) Expressions used in paragraph (2)(c) have the same meanings as in Division 360 (Oral rulings) in Schedule 1 to the Taxation Administration Act 1953.
Part 1—Amendment of the Taxation Administration Act 1953
1 At the end of Schedule 1
Add:
[The next Division is Division 400]
Part 5‑30—Payment, ABN and identification verification system
Division 400—Guide to Part 5‑30
400‑1 What Part 5‑30 is about
To improve compliance with the tax laws that relate to payments for certain supplies, this Part imposes additional requirements on purchasers and suppliers.
The additional requirements relate to verification of ABNs and to reporting information about payments.
Regulations will specify the supplies that are covered and the additional requirements that apply to payments for those supplies.
400‑5 The payment, ABN and identification verification system
(1) There are 4 components in the payment, ABN and identification verification system:
(a) transaction reporting by purchasers (Division 405);
(b) transaction reporting by suppliers (Division 410);
(c) verification of suppliers’ *ABNs by purchasers (Division 415);
(d) verification of suppliers’ identities by purchasers (Division 417);
One or more of the components may apply to a particular payment. The regulations will specify which components apply.
(2) Where a component of the system applies to a payment, the requirements of that component must be complied with.
Division 405—Transaction reporting by purchasers
Table of sections
405‑5 Payments to which this Division applies
405‑10 Reporting requirements
405‑15 Invoices produced by purchasers
405‑5 Payments to which this Division applies
(1) This Division applies to any payments made, or liable to be made, for a *supply where the supply is specified in regulations made for the purpose of this section.
(2) A payment is liable to be made if the obligation to make the payment is notified in an *invoice.
(3) Payments to which this Division applies are called Division 405 payments.
(4) Without limiting the ways in which the regulations may specify a *supply, the regulations may specify a supply by reference to:
(a) the goods or services supplied; or
(b) the supplier; or
(c) the purchaser.
405‑10 Reporting requirements
(1) Any entity (the purchaser) that makes, or is liable to make, a *Division 405 payment during a *quarter must give a *Division 405 report to the Commissioner within 21 days after the end of the quarter.
(2) A Division 405 report is a written statement in the *approved form that names the purchaser and, for each supplier in relation to whom the purchaser made, or was liable to make, a *Division 405 payment during the *quarter:
(a) names the supplier; and
(b) specifies the supplier’s *ABN (if known by the purchaser); and
(c) specifies the total of the Division 405 payments that the purchaser made, or was liable to make, to the supplier during the quarter that:
(i) were notified in an invoice during the quarter (unless the payment was reported in an earlier Division 405 report); or
(ii) were made during the quarter but for which no invoice had been received before the end of the quarter.
The report must also include any other information that the Commissioner requires.
(3) The Commissioner may, in writing, require particular information to be included in a *Division 405 report or a class of Division 405 reports.
(4) The Commissioner may, by written notice, vary any requirements under subsection (1), (2) or (3) in relation to a purchaser or class of purchaser. The Commissioner may do so in such instances and to such extent as the Commissioner thinks fit.
405‑15 Invoices produced by purchasers
If a purchaser produces an *invoice that notifies the purchaser’s obligation to make a payment, the purchaser is taken to have been notified of the payment at the time that the invoice is produced.
Division 410—Transaction reporting by suppliers
Table of sections
410‑5 Payments to which this Division applies
410‑10 Reporting requirements
410‑15 Invoices produced by purchasers
410‑5 Payments to which this Division applies
(1) This Division applies to any payments received, or entitled to be received, for a *supply where the supply is specified in regulations made for the purpose of this section.
(2) A payment is entitled to be received if the obligation to make the payment is notified in an *invoice.
(3) Payments to which this Division applies are called Division 410 payments.
(4) Without limiting the ways in which the regulations may specify a *supply, the regulations may specify a supply by reference to:
(a) the goods or services supplied; or
(b) the supplier; or
(c) the purchaser.
410‑10 Reporting requirements
(1) Any entity (the supplier) that receives, or is entitled to receive, a *Division 410 payment during a *quarter must give a *Division 410 report to the Commissioner within 21 days after the end of the quarter.
(2) A Division 410 report is a written statement in the *approved form that names the supplier and, for each purchaser in relation to whom the supplier received, or was entitled to receive, a *Division 410 payment during the *quarter:
(a) names the purchaser; and
(b) specifies the purchaser’s *ABN (if known by the supplier); and
(c) specifies the total of the Division 410 payments that the supplier received, or was entitled to receive, from the purchaser during the quarter that:
(i) were notified in an invoice during the quarter (unless the payment was reported in an earlier Division 410 report); or
(ii) were received during the quarter but for which no invoice had been provided before the end of the quarter.
The report must also include any other information that the Commissioner requires.
(3) The Commissioner may, in writing, require particular information to be included in a *Division 410 report or a class of Division 410 reports.
(4) The Commissioner may, by written notice, vary any requirements under subsection (1), (2) or (3) in relation to a supplier or class of supplier. The Commissioner may do so in such instances and to such extent as the Commissioner thinks fit.
410‑15 Invoices produced by purchasers
If a purchaser produces an *invoice that notifies the purchaser’s obligation to make a payment, the supplier is taken to have notified the purchaser of the payment at the time that the invoice is produced.
Division 415—Verification of suppliers’ ABNs by purchasers
Table of sections
415‑5 Payments to which this Division applies
415‑10 ABN verification requirements
415‑15 Method of obtaining ABN verification
415‑20 Verification applies to later payments
415‑5 Payments to which this Division applies
(1) This Division applies if:
(a) a payment is made, or is liable to be made, by an entity (the purchaser) to another entity (the supplier) for a *supply; and
(b) the supply is specified in regulations made for the purpose of this section; and
(c) the supplier has purported to *quote his or her *ABN to the purchaser.
(2) Payments to which this Division applies are called Division 415 payments.
(3) Without limiting the ways in which the regulations may specify a *supply, the regulations may specify a supply by reference to:
(a) the goods or services supplied; or
(b) the supplier; or
(c) the purchaser.
415‑10 ABN verification requirements
Before the purchaser makes a *Division 415 payment to the supplier, the purchaser must obtain verification that the *ABN *quoted by the supplier is the ABN entered in the *Australian Business Register with the name given by the supplier.
Note: If the purchaser has reasonable grounds to believe that the supplier has not correctly quoted his or her ABN, the purchaser is required to withhold an amount under section 12‑190.
415‑15 Method of obtaining ABN verification
(1) To obtain verification of a supplier’s *ABN, a purchaser must seek the verification in a manner approved in writing by the Commissioner.
(2) Without limiting the Commissioner’s power under subsection (1), the Commissioner may approve verifications being sought orally or by way of electronic transmission.
(3) Verification of an *ABN may be obtained in such form, including orally or by way of electronic transmission, as the Commissioner approves in writing.
(4) The Commissioner may, by written notice, vary any requirements under subsection (1) in relation to:
(a) a purchaser or class of purchaser; or
(b) a supplier or class of supplier.
The Commissioner may do so in such instances and to such extent as the Commissioner thinks fit.
415‑20 Verification applies to later payments
(1) Verification of a supplier’s ABN applies to all later *Division 415 payments by the purchaser to the supplier unless there is a period of 2 years during which no *Division 415 payment is made by the purchaser to the supplier. If this occurs, the verification continues to apply to any purchases before 1 July first occurring after the end of the 2 year period.
(2) However, verification of a supplier’s *ABN does not apply to a *Division 415 payment if the purchaser has reasonable grounds to believe that the *ABN *quoted by the supplier is no longer the ABN entered in the *Australian Business Register with the name given by the supplier.
Division 417—Verification of suppliers’ identities by purchasers
Table of sections
417‑5 Payments to which this Division applies
417‑10 Identity verification requirements
417‑15 Method of obtaining identity verification
417‑20 Verification applies to later payments
417‑5 Payments to which this Division applies
(1) This Division applies if:
(a) a payment is made, or liable to be made, by an entity (the purchaser) to another entity (the supplier) for a *supply; and
(b) the supply is specified in regulations made for the purpose of this section.
(2) Payments to which this Division applies are called Division 417 payments.
(3) Without limiting the ways in which the regulations may specify a *supply, the regulations may specify a supply by reference to:
(a) the goods or services supplied; or
(b) the supplier; or
(c) the purchaser.
417‑10 Identity verification requirements
Before the purchaser makes a *Division 417 payment, the purchaser must obtain verification of the supplier’s identity.
Note: If the purchaser has reasonable grounds to believe that the supplier has not correctly quoted his or her ABN, the purchaser is required to withhold an amount under section 12‑190.
417‑15 Method of obtaining identity verification
(1) To obtain verification of a supplier’s identity, a purchaser must carry out the identity verification procedure that is determined, in writing, by the Commissioner.
(2) The Commissioner may determine different identity verification procedures for:
(a) different purchasers or classes of purchasers; or
(b) different suppliers or classes of suppliers.
417‑20 Verification applies to later payments
(1) Verification of a supplier’s identity applies to all later *Division 417 payments by the purchaser to the supplier unless there is a period of 2 years during which no *Division 417 payment is made by the purchaser to the supplier. If this occurs, the verification continues to apply to any purchases before 1 July first occurring after the end of the 2 year period.
(2) However, verification of a supplier’s identity does not apply to a later *Division 417 payment if the purchaser has reasonable grounds to believe that the verified identity is not the supplier’s true identity.
Division 420—Penalties for not reporting or verifying
Table of sections
420‑5 Failing to report: civil penalty
420‑5 Failing to report or verify: civil penalty
An entity that fails to:
(a) give a *Division 405 report to the Commissioner as required by section 405‑10; or
(b) give a *Division 410 report to the Commissioner as required by section 410‑10; or
(c) verify a supplier’s *ABN as required by section 415‑10; or
(d) verify a supplier’s identity as required by section 417‑10;
is liable to pay to the Commissioner a penalty of 20 penalty units.
Note 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
Note 2: Division 298 contains machinery provisions for civil penalties.
Division 425—Other matters
Table of sections
425‑20 Constructive payment
425‑25 Non‑cash benefits
425‑30 Amounts to be expressed in Australian currency
425‑20 Constructive payment
(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.
425‑25 Non‑cash benefits
For the purposes of this Part, if an entity (the payer) provides a *non‑cash benefit to another entity (the recipient), the payer is taken to have made a payment of an amount equal to the *market value of the benefit provided.
425‑30 Amounts to be expressed in Australian currency
If this Part requires a payment made in foreign currency to be reported, the payment:
(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 paid.
Part 2—Application of amendments
2 Application
The amendments made by this Schedule apply to payments made, liable to be made, received or entitled to be received on or after 1 July 2000.
Part 1—Amendments
Income Tax Assessment Act 1936
1 Section 202A
Insert:
approved form has the same meaning as in the Income Tax Assessment Act 1997.
2 Section 202A
Insert:
eligible PAYG payment means:
(a) a payment from which an amount must be withheld under Subdivision 12‑B (other than section 12‑55), Subdivision 12‑C or Subdivision 12‑D in Schedule 1 to the Taxation Administration Act 1953; or
(b) a non‑cash benefit in respect of which an amount is payable to the Commissioner under section 14‑5 in Schedule 1 to the Taxation Administration Act 1953 because of the application of that section in relation to Subdivision 12‑B, 12‑C or 12‑D of that Schedule;
and has a meaning affected by section 202AA.
3 Section 202A (definition of employee)
Repeal the definition.
4 Section 202A (definition of employer)
Repeal the definition.
5 Section 202A (definition of employment declaration)
Repeal the definition.
6 Section 202A
Insert:
payer means a person who makes an eligible PAYG payment, or is likely to make an eligible PAYG payment.
7 Section 202A
Insert:
recipient means a person who receives an eligible PAYG payment, or is likely to receive an eligible PAYG payment.
8 Section 202A
Insert:
TFN declaration means a declaration made for the purposes of section 202C.
9 After section 202A
Insert:
202AA Definition of eligible PAYG payment
In applying the definition of eligible PAYG payment in section 202A:
(a) a requirement to withhold a nil amount is treated as a requirement to withhold an amount; and
(b) a requirement to pay a nil amount to the Commissioner is treated as a requirement to pay an amount to the Commissioner; and
(c) the following provisions in Schedule 1 to the Taxation Administration Act 1953 are to be disregarded, namely: section 12‑1, subsection 12‑45(2), subsection 12‑110(2) and subsection 12‑115(2).
10 Subsection 202BC(2)
Omit “employers”, substitute “payers”.
11 Subsection 202BC(2)
Omit “employer”, substitute “payer”.
12 Subsection 202BD(1)
Omit “an employer”, substitute “a payer”.
13 Subsection 202BD(1)
Omit “the employer”, substitute “the payer”.
14 Subsection 202BD(5)
Omit “employer”, substitute “payer”.
15 Subsection 202BD(6)
Omit “an employer of the employee (being an employer whose name and address is not stated on the application), the employer’s”, substitute “a payer of the applicant (being a payer whose name and address is not stated on the application), the payer’s”.
16 Division 3 of Part VA (heading)
Repeal the heading, substitute:
Division 3—Quotation of tax file numbers by recipients of eligible PAYG payments
17 Section 202C
Repeal the section, substitute:
202C TFN declarations by recipients of eligible PAYG payments
(1) A person who is a recipient of a payer, or expects to become a recipient of a payer, may make a TFN declaration in relation to the payer.
(2) To be effective, the declaration must be made in the approved form.
18 Subsection 202CA(1)
Repeal the subsection, substitute:
(1) Subject to this Division, a TFN declaration commences to have effect when it is made.
Note: Under section 202CB, a TFN declaration is not effective unless the tax file number of the recipient is stated in the declaration.
(1A) A TFN declaration ceases to have effect when the recipient makes another TFN declaration in relation to the payer.
(1B) A TFN declaration ceases to have effect 12 months after it is made if no eligible PAYG payment is made by the payer to the recipient during that 12 month period.
(1C) If:
(a) the payer makes an eligible PAYG payment to the recipient after the TFN declaration is made; and
(b) a period of 12 months then elapses without any further eligible PAYG payment being made by the payer to the recipient;
then the TFN declaration ceases to have effect at the end of that period of 12 months.
Note: The heading to section 202CA is altered by omitting “employment declaration” and substituting “TFN declaration”.
19 Subsection 202CA(2)
Omit “An employment declaration”, substitute “A TFN declaration”.
20 Subsection 202CA(3)
Omit “employment declarations” (wherever occurring), substitute “TFN declarations”.
21 Subsections 202CB(1) to (5)
Repeal the subsections, substitute:
(1) Subject to subsections (2) and (4) and subsection 202CE(2), a TFN declaration is not effective for the purposes of this Part unless the tax file number of the recipient is stated in the declaration.
(2) For the purposes of this Part, a recipient is taken to have stated his or her tax file number in a TFN declaration if the declaration includes a statement:
(a) that an application by the recipient for a tax file number is pending; or
(b) that the recipient has a tax file number but does not know what it is and has asked the Commissioner to inform him or her of the number.
(3) Where:
(a) a TFN declaration includes such a statement; and
(b) the recipient who made the declaration fails to inform the payer of the recipient’s tax file number within 28 days after making the declaration;
subsection (2) does not apply to the declaration in respect of any time after the end of the period of 28 days.
(4) For the purposes of this Part, a recipient is taken to have stated his or her tax file number in a TFN declaration in relation to a payer while a notice under section 202BD given to the payer in relation to the recipient is in force.
(5) If:
(a) the tax file number of a recipient is withdrawn under section 202BF; and
(b) at the time of the withdrawal, the number is stated in a TFN declaration;
the declaration is taken to state the tax file number of the recipient in spite of the withdrawal of the number.
Note: The heading to section 202CB is altered by omitting “employment declaration” and substituting “TFN declaration”.
22 Subsection 202CB(6)
Omit “an employment declaration”, substitute “a TFN declaration”.
23 Paragraph 202CB(6)(b)
Repeal the paragraph, substitute:
(b) by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, a payment referred to in paragraph (a).
24 Subsection 202CB(7)
Omit “an employment declaration”, substitute “a TFN declaration”.
25 Paragraph 202CB(7)(b)
Repeal the paragraph, substitute:
(b) by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, such a pension or allowance.
26 Section 202CC
Repeal the section, substitute:
202CC Making a replacement TFN declaration in place of an ineffective declaration
Nothing in this Division prevents a recipient making a new TFN declaration in place of a TFN declaration that is ineffective under subsection 202CB(1).
27 Subsection 202CD(1)
Omit “an employee gives an employer an employment declaration, the employer”, substitute “a recipient gives a payer a TFN declaration, the payer”.
Note: The heading to section 202CD is altered by omitting “employment declaration” and substituting “TFN declaration”.
28 Paragraph 202CD(1)(b)
Omit “within the forwarding period for the declaration”, substitute “within 14 days after the declaration is made”.
29 Subsections 202CD(2) and (3)
Repeal the subsections.
30 Paragraphs 202CD(4)(a) and (b)
Repeal the paragraphs, substitute:
(a) a TFN declaration, when given to a payer, does not quote the recipient’s tax file number; and
(b) before the payer sends the declaration to the Deputy Commissioner, the recipient informs the payer of the recipient’s tax file number;
31 Subsection 202CD(4)
Omit “the employer” (last occurring), substitute “the payer”.
32 Subsection 202CD(5)
Omit “employee”, substitute “recipient”.
33 After subsection 202CD(5)
Insert:
(5A) A payer who fails to comply with subsection (1) or (4) is liable to pay to the Commissioner a penalty of 10 penalty units.
Note 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
Note 2: Division 298 in Schedule 1 to the Taxation Administration Act 1953 contains machinery provisions relating to civil penalties.
34 Subsection 202CD(6)
Omit “employer”, substitute “payer”.
35 Subsection 202CD(6)
Omit “an employment declaration”, substitute “a TFN declaration”.
36 Paragraph 202CE(1)(a)
Omit “an employment declaration”, substitute “a TFN declaration”.
37 Paragraph 202CE(1)(b)
Omit “employee”, substitute “recipient”.
38 Subsection 202CE(1)
Omit “employer”, substitute “payer”.
39 Subsection 202CE(1)
Omit “employee’s”, substitute “recipient’s”.
40 Subsection 202CE(2)
Omit “employment declaration”, substitute “TFN declaration”.
41 Subsection 202CE(2)
Omit “employee’s”, substitute “recipient’s”.
42 Paragraph 202CE(3)(a)
Omit “an employment declaration”, substitute “a TFN declaration”.
43 Subparagraph 202CE(3)(a)(ii)
Omit “employee’s”, substitute “recipient’s”.
44 Paragraph 202CE(3)(b)
Omit “employee”, substitute “recipient”.
45 Subsection 202CE(3)
Omit “employer” (wherever occurring), substitute “payer”.
46 Subsection 202CE(4)
Omit “employee”, substitute “recipient”.
47 Subsection 202CE(5)
Omit “employee”, substitute “recipient”.
48 Subsection 202CE(6)
Omit “employment declaration”, substitute “TFN declaration”.
49 Subsection 202CE(6)
Omit “employee”, substitute “recipient”.
50 Subsection 202CE(7)
Omit “an employment declaration”, substitute “a TFN declaration”.
51 Paragraph 202CE(7)(b)
Repeal the paragraph, substitute:
(b) by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, a payment referred to in paragraph (a).
52 Subsection 202CE(8)
Omit “an employment declaration”, substitute “a TFN declaration”.
53 Paragraph 202CE(8)(b)
Repeal the paragraph, substitute:
(b) by a person who is a recipient for the purposes of this Part because the person receives, or expects to receive, such a pension or allowance.
54 After section 202CE
Insert:
202CF Payer must notify Commissioner if no TFN declaration by recipient
(1) If, after the commencement of this section, a person (the payer) commences a relationship with another person under which, or as a result of which, the payer will make (or will be likely to make) eligible PAYG payments to a person (the recipient), whether or not the recipient is a party to the relationship, the payer must give notice to the Commissioner in the approved form, within 14 days after the commencement of the relationship, unless a TFN declaration made by the recipient to the payer is in effect at the end of that 14 day period.
(2) If, at the commencement of this section, a person (the payer) has a relationship with another person under which, or as a result of which, the payer will make (or will be likely to make) eligible PAYG payments to a person (the recipient), whether or not the recipient is a party to the relationship, the payer must give notice to the Commissioner in the approved form, not later than 31 October 2000, unless a TFN declaration made by the recipient to the payer is in effect on 31 October 2000.
(3) A payer who fails to comply with subsection (1) or (2) is liable to pay to the Commissioner a penalty of 10 penalty units.
Note 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
Note 2: Division 298 in Schedule 1 to the Taxation Administration Act 1953 contains machinery provisions relating to civil penalties.
55 Subsection 202EA(1)
Omit “an employee as a result of being paid”, substitute “a recipient because the person receives, or expects to receive,”.
56 Subsection 202EA(1)
Omit “an employment declaration”, substitute “a TFN declaration”.
57 Subsection 202EA(2)
Omit “an employment declaration”, substitute “a TFN declaration”.
58 Subsection 202EA(2)
Omit “an employer”, substitute “a payer”.
59 Subsection 202EA(3)
Omit “an employment declaration”, substitute “a TFN declaration”.
60 Subsection 202EF(1)
Repeal the subsection, substitute:
(1) For the purposes of this Part, a recipient is taken to have quoted the recipient’s tax file number in a TFN declaration given to the payer concerned under section 202C if all eligible PAYG payments by the payer to the recipient would be exempt from income tax because of Division 1A of Part III.
61 Subsection 202EF(3)
Repeal the subsection, substitute:
(3) Subsection (1) or (2) continues to have effect until the end of one month after the payments or income would no longer be exempt from income tax because of Division 1A of Part III.
62 Paragraph 202EF(4)(a)
Omit “employment”, substitute “payments”.
63 Paragraph 202EF(4)(b)
Omit “income derived from the employment, or from the investment”, substitute “the payments, or income derived from the investment”.
64 Subsection 202EF(4)
Omit “employer”, substitute “payer”.
Social Security Act 1991
65 Subsection 23(1) (definition of employment declaration)
Repeal the definition.
66 Subsection 23(1)
Insert:
TFN declaration has the same meaning as in Part VA of the Income Tax Assessment Act 1936.
Social Security Administration Act 1999
67 Paragraph 76(2)(a)
Omit “an employment declaration”, substitute “a TFN declaration”.
68 Paragraph 76(3)(a)
Omit “an employment declaration”, substitute “a TFN declaration”.
Taxation Administration Act 1953
69 After section 16‑150 in Schedule 1
Insert:
16‑153 Annual reports about withholding payments and reportable fringe benefits
(1) An entity must give a report to the Commissioner in the *approved form, not later than 31 October after the end of a *financial year, if during the financial year:
(a) the entity made any payment from which an amount was required to be withheld under section 12‑190, Subdivision 12‑F (other than section 12‑215, 12‑250 or 12‑285) or Subdivision 12‑G; or
(b) the entity provided any *non‑cash benefit in respect of which an amount was required to be paid to the Commissioner under Division 14 because of the application of that Division in relation to section 12‑190, Subdivision 12‑F (other than section 12‑215, 12‑250 or 12‑285) or Subdivision 12‑G; or
(c) the entity received any payment from which an amount was required to be withheld under section 12‑215, 12‑250 or 12‑285; or
(d) the entity received any non‑cash benefit in respect of which an amount was required to be paid to the Commissioner under Division 14 because of the application of that Division in relation to section 12‑215, 12‑250 or 12‑285.
(2) An entity must give a report to the Commissioner in the form required by subsection (3), not later than 14 August after the end of a *financial year, if during the financial year:
(a) the entity made any payment from which an amount was required to be withheld under Subdivision 12‑B, 12‑C or 12‑D; or
(b) the entity provided any *non‑cash benefit in respect of which an amount was required to be paid to the Commissioner under Division 14 because of the application of that Division in relation to Subdivision 12‑B, 12‑C or 12‑D; or
(c) any person has a *reportable fringe benefit amount for the income year ending at the end of the financial year in respect of the person’s employment by the entity.
(3) The report under subsection (2) must be either:
(a) a report in the *approved form; or
(b) a report consisting of:
(i) copies of all the summaries that the entity gave in relation to the *financial year under section 16‑155 in respect of payments, *non‑cash benefits and *reportable fringe‑benefit amounts covered by subsection (2) of this section; and
(ii) an accompanying statement in the approved form.
(4) An entity that fails to comply with subsection (1) or (2) is liable to pay to the Commissioner a penalty of 10 penalty units.
Note 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
Note 2: Division 298 contains machinery provisions relating to civil penalties.
(5) In applying this section:
(a) a requirement to pay a nil amount to the Commissioner is to be treated as a requirement to pay an amount to the Commissioner; and
(b) a requirement to withhold a nil amount is to be treated as a requirement to withhold an amount.
(6) The Commissioner may, to meet the special circumstances of a particular case or class of cases, vary the requirements of this section.
(7) 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.
Veterans’ Entitlements Act 1986
70 Subsection 128A(1) (definition of employment declaration)
Repeal the definition.
71 Subsection 128A(1)
Insert:
TFN declaration has the same meaning as in Part VA of the Income Tax Assessment Act 1936.
72 Subparagraph 128A(4)(a)(i)
Omit “an employment declaration”, substitute “a TFN declaration”.
Part 2—Application and transitional
73 Application of new annual reporting rules
Section 16‑153 in Schedule 1 to the Taxation Administration Act 1953 applies for the financial year commencing on 1 July 2000, and for all later financial years.
74 Transitional rules for TFN declarations
(1) Any employment declaration that is effective under Part VA of the Income Tax Assessment Act 1936 immediately before 1 July 2000 continues to have effect as if it were a TFN declaration given on 1 July 2000 under that Part (as amended by this Act).
(2) For such a declaration, subsection 202CD(1) of the Income Tax Assessment Act 1936 applies as if that subsection specified 28 days instead of 14 days.
Part 1—Income Tax Assessment Act 1936
1 Subsection 6(1)
Insert:
shorter period of review taxpayer or SPOR taxpayer has the meaning given by section 6AD.
2 After section 6AC
Insert:
6AD Shorter period of review taxpayer
(1) For the purposes of this Act, a taxpayer is a shorter period of review taxpayer or a SPOR taxpayer for a year of income if the taxpayer is an individual, other than an individual in the capacity of a trustee, who, for that year of income:
(a) satisfies the SPOR income test under subsection (2); and
(b) satisfies the SPOR deduction test under subsection (3); and
(c) is not ineligible to be a SPOR taxpayer under subsection (4).
(2) A taxpayer satisfies the SPOR income test for a year of income if the taxpayer’s assessable income for that year of income consists only of one or more of the following amounts:
(a) an amount that is salary or wages for the purposes of Subdivision AB of Division 17 of Part III;
(b) an amount of interest payable by a financial institution or a government body (as defined by section 202A);
(c) an amount that is a dividend, if the company that paid it was a resident, and a listed public company (as defined by subsection 995‑1(1) of the Income Tax Assessment Act 1997) whose shares were listed for quotation in the official list of the Australian Stock Exchange Limited, at the earliest of the following times:
(i) if the liability to pay the dividend arose when the dividend was declared—that time;
(ii) when the dividend became due and payable;
(iii) when the dividend was paid.
(3) A taxpayer satisfies the SPOR deduction test for a year of income if the only amounts that are deducted from the taxpayer’s assessable income in the Commissioner’s determination of the amount of the taxpayer’s taxable income (if any) for that year of income are one or more of the following amounts:
(a) an amount to the extent that it was expenditure incurred for managing tax affairs as mentioned in paragraph 25‑5(1)(a) of the Income Tax Assessment Act 1997;
(b) an amount that was paid in respect of:
(i) an account‑keeping fee charged by a financial institution; or
(ii) a tax imposed under a law of the Commonwealth, of a State or of a Territory in relation to an account kept with such an institution (for example, financial institutions duty, debits tax or a similar tax);
(c) an amount of a gift of money, or an amount of a contribution of money, to which item 1, 2 or 3 in the table in section 30‑15 of the Income Tax Assessment Act 1997 applies.
(4) A taxpayer is ineligible to be a SPOR taxpayer for a year of income if any of the following circumstances exist in relation to the taxpayer for that year of income:
(a) the taxpayer is not a resident of Australia for the whole of that year of income;
(b) the taxpayer is entitled to a credit under Division 18 or 18A of Part III;
(c) an amount of expenditure incurred to an associate (as defined by subsection 318(1)) was deducted from the taxpayer’s assessable income in the Commissioner’s determination of the amount of the taxpayer’s taxable income (if any);
(d) the taxpayer derived income from an associate (as defined by subsection 318(1));
(e) the taxpayer added up a capital gain or capital loss made during that year of income under step 1 of the method statement in subsection 102‑5(1) or 102‑10(1) of the Income Tax Assessment Act 1997;
(f) the taxpayer derived an amount of income that is exempt from tax under section 23AF or 23AG.
3 Subsections 161E(1) and (2)
Repeal the subsections, substitute:
(1) The taxpayer must retain the declaration:
(a) if the taxpayer is not a SPOR taxpayer for the year of income to which the return or application for amendment relates—for 5 years after the declaration is made; or
(b) if the taxpayer is a SPOR taxpayer for the year of income to which the return or application for amendment relates—until the end of 2 years starting on:
(i) the day on which tax is due and payable under the taxpayer’s assessment or amended assessment for that year of income; or
(ii) if no tax is due and payable for that year of income—the 30th day after the day on which notice from the Commissioner containing a statement to that effect is served on the taxpayer.
(2) The taxpayer must produce the declaration if requested to do so by the Commissioner within the period of 5 years or 2 years, as the case requires.
(2A) If:
(a) either of the following subparagraphs applies:
(i) the taxpayer is not a SPOR taxpayer for the year of income to which the return or application for amendment relates but had reasonable grounds to believe that he or she was a SPOR taxpayer for that year of income;
(ii) the taxpayer was a SPOR taxpayer for that year of income but ceased to be a SPOR taxpayer for that year of income as a result of an amended assessment notice of which was served on the taxpayer after the 2 years referred to in paragraph (1)(b); and
(b) if the Commissioner served on the taxpayer within the 2 years referred to in paragraph (1)(b) a notice requiring him or her to produce the declaration and the taxpayer was capable of doing so—the taxpayer complied with the notice;
the taxpayer is not guilty of an offence for:
(c) failing to retain the declaration for the 5 years referred to in paragraph (1)(a); or
(d) failing to produce the declaration within that period because the declaration had not been retained.
4 Subsection 170(1A)
Omit all the words after paragraph (b), substitute:
the Commissioner may:
(c) if the taxpayer is not a SPOR taxpayer for the year of income to which the amended assessment relates—within 4 years after the day on which notice of the amended assessment was served; or
(d) if the taxpayer is a SPOR taxpayer for the year of income to which the amended assessment relates—within 2 years after the day on which tax is due and payable under the amended assessment;
further amend the assessment in, or in respect of, that particular in a way that increases the taxpayer’s liability to the extent that the Commissioner thinks necessary.
5 Paragraphs 170(2)(a) and (b)
Repeal the paragraphs, substitute:
(a) if the Commissioner is of the opinion that the avoidance of tax is due to fraud or evasion—at any time; or
(b) if paragraph (a) does not apply, the taxpayer is a relevant entity within the meaning of Division 1B of Part VI and the assessment is taken by section 166A to have been made—within 4 years after the day on which the assessment is so taken to have been made; or
(c) if neither paragraph (a) nor (b) applies and the taxpayer is not a SPOR taxpayer for the year of income to which the assessment relates—within 4 years after the day on which tax became due and payable under the assessment; or
(d) if neither paragraph (a) nor (b) applies and the taxpayer is a SPOR taxpayer for the year of income to which the assessment relates—within 2 years after the day on which tax became due and payable under the assessment;
6 Subsection 170(3)
Repeal the subsection, substitute:
(3) An amendment effecting a reduction in a taxpayer’s liability under an assessment is not to be made:
(a) if the taxpayer is a relevant entity within the meaning of Division 1B of Part VI and the assessment is taken by section 166A to have been made—after the end of 4 years after the day on which the assessment is so taken to have been made; or
(b) if paragraph (a) does not apply and the taxpayer is not a SPOR taxpayer for the year of income to which the assessment relates—after the end of 4 years after the day on which tax became due and payable under the assessment; or
(c) if paragraph (a) does not apply and the taxpayer is a SPOR taxpayer for the year of income to which the assessment relates—after the end of 2 years after the day on which tax became due and payable under the assessment.
7 Subsection 170(5)
Repeal the subsection, substitute:
(5) If an assessment has, under this section, been amended in any particular, the Commissioner may:
(a) if the taxpayer is not a SPOR taxpayer for the year of income to which the assessment relates—within 4 years after the day on which tax became due and payable under the amended assessment; or
(b) if the taxpayer is a SPOR taxpayer for the year of income to which the assessment relates—within 2 years after the day on which tax became due and payable under the amended assessment;
make, in or in respect of that particular, such further amendment of the assessment as, in the Commissioner’s opinion, is necessary to effect such reduction in the taxpayer’s liability under the assessment as is just.
8 Subsection 170(6)
Repeal the subsection, substitute:
(6) If:
(a) a taxpayer applies for an amendment of his or her assessment; and
(b) either of the following subparagraphs applies:
(i) if the taxpayer is not a SPOR taxpayer for the year of income to which the assessment relates—the application is made within 4 years after the day on which tax became due and payable under the assessment;
(ii) if the taxpayer is a SPOR taxpayer for the year of income to which the assessment relates—the application is made within 2 years after the day on which tax became due and payable under the assessment; and
(c) the taxpayer has supplied to the Commissioner within the period applicable under subparagraph (b)(i) or (ii), as the case may be, all information needed by the Commissioner for the purpose of deciding the application;
the Commissioner may amend the assessment when he or she decides the application even though that period has elapsed.
9 Paragraph (b) of subsection 170(6A) (second occurring)
Repeal the paragraph, substitute:
(b) either of the following subparagraphs applies:
(i) if the taxpayer is not a SPOR taxpayer for the year of income to which the application relates—the application is made within 4 years after the last day allowed to the taxpayer for lodging a return in relation to the taxpayer’s income for that year of income;
(ii) if the taxpayer is a SPOR taxpayer for the year of income to which the application relates—the application is made within 2 years after the last day allowed to the taxpayer for lodging a return in relation to the taxpayer’s income for that year of income; and
10 Subsection 170(6A) (second occurring)
Renumber as subsection (6AA).
11 After subsection 170(9D)
Insert:
(9E) Nothing in this section prevents the amendment of an assessment within 4 years after the day on which tax became due and payable under the assessment if:
(a) the amendment relates wholly to one of the following:
(i) an amount included in the taxpayer’s assessable income other than an amount referred to in subsection 6AD(2);
(ii) an amount (other than an amount referred to in subsection 6AD(3)) that was deducted from the taxpayer’s assessable income in the Commissioner’s determination of the amount of the taxpayer’s taxable income;
(iii) an amount (other than an amount referred to in subsection 6AD(3)) that the taxpayer was entitled to deduct, but was not deducted, from the taxpayer’s assessable income in the Commissioner’s determination of the amount of the taxpayer’s taxable income; or
(b) the amendment is necessary because circumstances referred to in subsection 6AD(4) that were previously believed to exist in relation to the taxpayer for a year of income have been found not to exist; or
(c) the amendment is necessary, in the Commissioner’s opinion, to make a correct assessment solely because of an amendment made under paragraph (a) or (b).
(9F) If:
(a) the Commissioner makes an amendment of an assessment on the assumption that the taxpayer was not a SPOR taxpayer for the year of income to which the assessment related; and
(b) the Commissioner would not have been authorised under this Act to make the amendment if the taxpayer had been a SPOR taxpayer for that year of income; and
(c) the Commissioner afterwards becomes aware that the taxpayer is a SPOR taxpayer for that year of income;
nothing in this section prevents the Commissioner from making a further amendment of the assessment for the purpose of reversing the effect of the earlier amendment.
12 Subsection 251R(6D)
Omit “subsection (6F)”, substitute “subsections (6F) and (6FA)”.
13 Subsection 251R(6F)
Repeal the subsection, substitute:
(6F) Subject to subsection (6FA), subsection (6D) does not apply, and is taken never to have applied, if the first person fails to retain the family agreement until the end of:
(a) if the first person is not a SPOR taxpayer for the year of income concerned—5 years beginning on the date of lodgment of the first person’s return of income for that year of income; or
(b) if the first person is a SPOR taxpayer for the year of income concerned—2 years beginning on:
(i) the day on which tax is due and payable under the first person’s assessment for that year of income; or
(ii) if no tax is due and payable for that year of income—the 30th day after the day on which notice from the Commissioner containing a statement to that effect is served on the first person.
(6FA) If:
(a) either of the following subparagraphs applies:
(i) the first person is not a SPOR taxpayer for the year of income concerned but had reasonable grounds to believe that he or she was a SPOR taxpayer for that year of income;
(ii) the first person was a SPOR taxpayer for the year of income concerned but ceased to be a SPOR taxpayer for that year of income as a result of an amended assessment notice of which was served on that person after the 2 years referred to in paragraph (6F)(b); and
(b) if the Commissioner served on the first person within the period of 2 years referred to in paragraph (6F)(b) a notice requiring him or her to produce the family agreement and that person was capable of doing so—that person complied with the notice;
subsection (6F) applies as if the first person were a SPOR taxpayer for the year of income concerned.
Part 2—Taxation Administration Act 1953
14 Section 2
Insert:
SPOR taxpayer has the meaning given by section 6AD of the Income Tax Assessment Act 1936.
15 Subsection 14ZAL(2)
After “14ZAN(f)”, insert “or (fa)”.
16 Paragraph 14ZAN(f)
Repeal the paragraph, substitute:
(f) where the rulee is not a SPOR taxpayer for the year of income to which the application relates—the application is made later than 4 years after the last day allowed to the rulee for lodging a return in relation to the rulee’s income for that year of income; or
(fa) where the rulee is a SPOR taxpayer for the year of income to which the application relates—the application is made later than the end of 2 years after the last day allowed to the rulee for lodging a return in relation to the rulee’s income for that year of income; or
17 Paragraph 14ZW(1)(aa)
After “if”, insert “the person is not a SPOR taxpayer for the year of income in respect of which the assessment, determination, notice or decision to which the taxation objection relates was made and”.
18 After paragraph 14ZW(1)(aa)
Insert:
(aaa) if the person is a SPOR taxpayer for the year of income to which the taxation objection relates and the taxation objection is made under section 175A of the Income Tax Assessment Act 1936—2 years after notice of the taxation decision to which it relates has been served on the person; or
19 Subsection 14ZW(1A)
Repeal the subsection, substitute:
(1A) If a private ruling relates to a year of income for which a person is not a SPOR taxpayer, the person cannot lodge a taxation objection against the ruling after the end of whichever of the following ends last:
(a) 60 days after the private ruling was made;
(b) 4 years after the last day allowed to the person for lodging a return in relation to the person’s income for that year of income.
(1AA) If a private ruling relates to a year of income for which a person is a SPOR taxpayer, the person cannot lodge a taxation objection against the ruling after the end of whichever of the following ends last:
(a) 60 days after the private ruling was made;
(b) 2 years after the last day allowed to the person for lodging a return in relation to the person’s income for that year of income.
20 After subsection 14ZW(1B)
Insert:
(1BA) If:
(a) section 14ZV applies to a taxation objection; and
(b) apart from this subsection, paragraph (1)(aaa) would apply to the taxation objection;
the person must lodge the taxation objection before the end of whichever of the following ends last:
(c) 2 years after notice of the assessment or determination that has been amended by the amended assessment or amended determination to which the taxation objection relates has been served on the person;
(d) 60 days after the notice of the amended assessment to which the taxation objection relates has been served on the person.
21 Subsection 14ZW(2)
Repeal the subsection, substitute:
(2) If the period within which an objection by a person is required to be lodged has passed, the person may nevertheless lodge the objection with the Commissioner together with a written request asking the Commissioner to deal with the objection as if it had been lodged within that period.
22 Subsections 14ZW(3), 14ZX(3), 14ZY(1) and 14ZYA(1)
Omit “the 4 years or the 60 days”, substitute “the required period”.
23 Section 18‑100
Repeal the section, substitute:
18‑100 Obligation to keep payment summary
(1) An entity that is given a *payment summary and a copy of it in any financial year under this Part must retain the copy:
(a) if the entity is not a *SPOR taxpayer for the income year constituted by that financial year—for 5 years after the end of that financial year; or
(b) if the entity is a SPOR taxpayer for that income year—for 2 years after:
(i) the day on which tax is due and payable under the entity’s assessment for that income year; or
(ii) if no tax is due and payable for that income year—the 30th day after the day on which notice by the Commissioner containing a statement to that effect is served on the entity.
Penalty: 30 penalty units.
Note: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
(2) An entity is not guilty of an offence for failing to retain a copy of a *payment summary given to the entity in a financial year if:
(a) either of the following subparagraphs applies:
(i) the entity was not a *SPOR taxpayer for the income year constituted by that financial year but had reasonable grounds to believe that the entity was a SPOR taxpayer for that income year;
(ii) the entity was a SPOR taxpayer for that income year but ceased to be a SPOR taxpayer for that income year as a result of an amended assessment notice of which was served on the entity after the 2 years referred to in paragraph (1)(b); and
(b) if the Commissioner served on the entity within the 2 years referred to in paragraph (1)(b) a notice requiring the entity to produce the summary—the entity complied with the notice.
Part 3—Application of amendments
24 Application
(1) The amendment made by item 2 applies in respect of the year of income commencing on 1 July 2000 or a later year of income.
(2) The amendment made by item 3 applies to declarations made on or after 1 July 2000 in respect of returns given or applications for amendments made in respect of the year of income commencing on that day or a later year of income.
(3) The amendments made by items 4 to 9 and 11 apply to amendments made on or after 1 July 2000 in respect of assessments for the year of income commencing on that day or a later year of income.
(4) The amendments made by items 12 and 13 apply to family agreements entered into on or after 1 July 2000 in respect of the year of income commencing on that day or a later year of income.
(5) The amendments made by items 15 and 16 apply in respect of applications made on or after 1 July 2000 for private rulings for the year of income commencing on that day or a later year of income.
(6) The amendments made by items 17 to 22 apply in respect of taxation objections made on or after 1 July 2000 in respect of assessments or private rulings for the year of income commencing on that day or a later year of income.
Income Tax Assessment Act 1997
1 After subsection 30‑5(4)
Insert:
(4AA) Subdivision 30‑BA provides for the Commissioner to endorse as a deductible gift recipient an entity that is, or operates, a fund, authority or institution. The relevance of the Subdivision to you is that generally you can deduct only a gift you make to a recipient that is endorsed or named in:
(a) this Division; or
(b) regulations made for the purposes of this Division.
Note: The fact that gifts to a recipient registered in the Australian Business Register are deductible will be shown in the Register.
(4AB) Subdivision 30‑CA sets out administrative rules which do not directly affect whether you can deduct a gift you make. The rules require:
(a) a receipt issued by an entity for a gift to the entity or to a fund, authority or institution operated by the entity to show the entity’s ABN; and
(b) the Australian Business Registrar to enter in the Australian Business Register a statement in relation to an entity entered in the Register if:
(i) gifts to the entity are deductible; or
(ii) gifts to a fund, authority or institution operated by the entity are deductible.
2 Subsection 30‑15(2) (table item 1, after paragraph (a) in the column headed “Special conditions”)
Insert:
| | | (aa) the fund, authority or institution must either meet the requirements of section 30‑17 or be mentioned by name in the relevant table item in Subdivision 30‑B; and |
3 Subsection 30‑15(2) (table item 2, paragraph (a) in the column headed “Recipient”)
Repeal the paragraph, substitute:
(a) the purpose of providing money, property or benefits: • to a fund, authority or institution gifts to which are deductible under item 1 of this table; and • for any purposes set out in the item of the table in Subdivision 30‑B that covers the fund, authority or institution; or | | | |
4 Subsection 30‑15(2) (table item 2, at the end of the column headed “Special conditions”)
Add:
| | | ; and (c) the fund must meet the requirements of section 30‑17, unless the fund is a *prescribed private fund. |
5 Subsection 30‑15(2) (table item 4, after paragraph (b) in the column headed “Special conditions”)
Insert:
| | | (ba) the institution must meet the requirements of section 30‑17, unless it is the Australiana Fund; and |
6 At the end of Subdivision 30‑A
Add:
30‑17 Requirements for certain recipients
(1) This section sets out requirements to be met for you to be able to deduct a gift you make to a fund, authority or institution described in the column headed “Recipient” of item 1, 2 or 4 of the table in section 30‑15. However, this section does not apply to:
(a) a fund, authority or institution that is mentioned by name in an item of a table in Subdivision 30‑B; or
(b) a *prescribed private fund; or
(c) the Australiana Fund.
(2) The fund, authority or institution must:
(a) be an entity or *government entity that is endorsed under Subdivision 30‑BA as a *deductible gift recipient; or
(b) in the case of a fund—either:
(i) be owned legally by an entity that is endorsed under Subdivision 30‑BA as a *deductible gift recipient for the operation of the fund; or
(ii) be under the control of one or more persons who constitute a *government entity that is endorsed under Subdivision 30‑BA as a *deductible gift recipient for the operation of the fund; or
(c) in the case of an authority or institution—be part of an entity or *government entity that is endorsed under Subdivision 30‑BA as a *deductible gift recipient for the operation of the authority or institution.
Example: A public fund that is established and maintained for constructing a building to be used by a State school and is controlled by the principal of the school would be an example of a fund under the control of one or more persons who constitute a government entity that is endorsed as a deductible gift recipient for the operation of the fund, if the school were so endorsed.
7 After Subdivision 30‑B
Insert:
Subdivision 30‑BA—Endorsement of deductible gift recipients
Guide to Subdivision 30‑BA
30‑115 What this Subdivision is about
This Subdivision sets out rules about endorsement of entities and government entities as deductible gift recipients. Endorsement of an entity described (except by name) in Subdivision 30‑A, 30‑B or 30‑D lets you deduct a gift you make to a fund, authority or institution that is, or is operated by, the entity.
Table of sections
Endorsement as a deductible gift recipient
30‑120 Endorsement by Commissioner
30‑125 Entitlement to endorsement
30‑130 Applying for endorsement
30‑135 Dealing with an application for endorsement
30‑140 Notifying outcome of application for endorsement
30‑145 Date of effect of endorsement
30‑150 Review of refusal of endorsement
30‑155 Checking entitlement to endorsement
30‑160 Telling Commissioner of loss of entitlement to endorsement
30‑165 Partnerships and unincorporated bodies
30‑170 Revoking endorsement
30‑