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Taxation Administration Act 1953

Authoritative Version
  • - C2013C00574
  • In force - Superseded Version
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Act No. 1 of 1953 as amended, taking into account amendments up to Private Health Insurance Amendment (Lifetime Health Cover Loading and Other Measures) Act 2013
An Act to provide for the administration of certain Acts relating to Taxation, and for purposes connected therewith
Administered by: Treasury
Registered 27 Sep 2013
Start Date 01 Jul 2013
End Date 11 Mar 2014
Table of contents.

Taxation Administration Act 1953

No. 1, 1953 as amended

Compilation start date:                     1 July 2013

Includes amendments up to:            Act No. 124, 2013

This compilation has been split into 3 volumes

Volume 1:       sections 1–18

Volume 2:       Schedule

Volume 3:       Endnotes

Each volume has its own contents

 

About this compilation

This compilation

This is a compilation of the Taxation Administration Act 1953 as in force on 1 July 2013. It includes any commenced amendment affecting the legislation to that date.

This compilation was prepared on 27 September 2013.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.

Uncommenced amendments

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.

Provisions ceasing to have effect

If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.

  

  

  


Contents

Schedule 1—Collection and recovery of income tax and other liabilities               1

Chapter 2—Collection, recovery and administration of income tax      1

Part 2‑1—Introduction to the Pay as you go (PAYG) system                1

Division 6—Guide to Parts 2‑5 and 2‑10                                                              1

6‑1......................... What Parts 2‑5 and 2‑10 are about...................................... 1

6‑5......................... The Pay as you go (PAYG) system................................... 1

6‑10....................... How the amounts collected are dealt with........................... 2

Part 2‑5—Pay as you go (PAYG) withholding                                               3

Division 10—Guide to Part 2‑5                                                                               3

10‑1....................... What this Part is about........................................................ 3

10‑5....................... Summary of withholding payments.................................... 3

Division 11—Preliminary matters                                                                        6

11‑1....................... Object of this Part............................................................... 6

11‑5....................... Constructive payment......................................................... 6

Division 12—Payments from which amounts must be withheld                     7

Subdivision 12‑A—General rules                                                                           7

12‑1....................... General exceptions.............................................................. 7

12‑5....................... What to do if more than one provision requires a withholding 8

12‑7....................... Division does not apply to alienated personal services payments             10

12‑10..................... Division does not apply to non‑cash benefits................... 10

12‑20..................... Application of Division and regulations to non‑share dividends              11

Subdivision 12‑B—Payments for work and services                                      11

12‑35..................... Payment to employee........................................................ 11

12‑40..................... Payment to company director............................................ 11

12‑45..................... Payment to office holder................................................... 12

12‑47..................... Payment to religious practitioners..................................... 12

12‑50..................... Return to work payment................................................... 12

12‑55..................... Voluntary agreement to withhold...................................... 13

12‑60..................... Payment under labour hire arrangement, or specified by regulations       14

Subdivision 12‑C—Payments for retirement or because of termination of employment            14

12‑80..................... Superannuation income streams and annuities.................. 14

12‑85..................... Superannuation lump sums and payments for termination of employment              15

12‑90..................... Unused leave payments.................................................... 15

Subdivision 12‑D—Benefit and compensation payments                               15

12‑110................... Social Security or other benefit payment........................... 15

12‑115................... Commonwealth education or training payment................. 16

12‑120................... Compensation, sickness or accident payment................... 16

Subdivision 12‑E—Payments where TFN or ABN not quoted                      16

Payment in respect of investment                                                                         17

12‑140................... Recipient does not quote tax file number.......................... 17

12‑145................... Investor becoming presently entitled to income of a unit trust  18

12‑150................... Limited application of section 12‑140 to payment under financial arrangement       18

12‑155................... When investor may quote ABN as alternative.................. 19

12‑160................... Investment body unaware that exemption from quoting TFN has stopped applying                20

12‑165................... Exception for fully franked dividend................................ 20

12‑170................... Exception for payments below thresholds set by regulations 20

Payment of income of closely held trust where TFN not quoted                  21

12‑175................... Trustee distributes income of closely held trust................ 21

12‑180................... Beneficiary becomes presently entitled to income of closely held trust    22

12‑185................... Exception for payments below thresholds set by regulations 24

Payment for a supply                                                                                              24

12‑190................... Recipient does not quote ABN......................................... 24

Subdivision 12‑F—Dividend, interest and royalty payments                        27

Dividends           28

12‑210................... Dividend payment to overseas person.............................. 28

12‑215................... Dividend payment received for foreign resident............... 28

12‑220................... Application to part of a dividend....................................... 29

12‑225................... Application to distribution by a liquidator or other person 29

Interest               29

12‑245................... Interest payment to overseas person................................. 29

12‑250................... Interest payment received for foreign resident.................. 29

12‑255................... Interest payment derived by lender in carrying on business through overseas permanent establishment 30

12‑260................... Lender to notify borrower if interest derived through overseas permanent establishment        30

Royalties            31

12‑280................... Royalty payment to overseas person................................. 31

12‑285................... Royalty payment received for foreign resident.................. 31

General              32

12‑300................... Limits on amount withheld under this Subdivision........... 32

Subdivision 12‑FA—Departing Australia superannuation payments         32

12‑305................... Departing Australia superannuation payment................... 33

12‑310................... Limits on amount withheld under this Subdivision........... 33

Subdivision 12‑FAA—Excess untaxed roll‑over amount                               33

12‑312................... Untaxed roll‑over superannuation benefits....................... 33

12‑313................... Limits on amount withheld under this Subdivision........... 33

Subdivision 12‑FB—Payments to foreign residents etc.                                 34

12‑315................... Payment to foreign resident etc......................................... 34

12‑317................... Payment received for foreign resident etc......................... 35

12‑319................... Exemptions from withholding obligations under this Subdivision           36

Subdivision 12‑FC—Seasonal Labour Mobility Program                            37

12‑319A................ Payment to employee........................................................ 37

Subdivision 12‑G—Payments in respect of mining on Aboriginal land, and natural resources                38

Mining on Aboriginal land                                                                                    38

12‑320................... Mining payment................................................................ 38

Natural resources                                                                                                     38

12‑325................... Natural resource payment................................................. 38

12‑330................... Payer must ask Commissioner how much to withhold..... 39

12‑335................... Commissioner may exempt from section 12‑330, subject to conditions   40

Subdivision 12‑H—Distributions of managed investment trust income     40

Guide to Subdivision 12‑H                                                                                     40

12‑375................... What this Subdivision is about......................................... 40

Operative provisions                                                                                               42

12‑385................... Withholding by managed investment trusts...................... 42

12‑390................... Withholding by custodians and other entities.................... 43

12‑395................... Requirement to give notice or make information available 47

12‑400................... Meaning of managed investment trust.............................. 49

12‑401................... Trusts with wholesale membership................................... 51

12‑402................... Widely‑held requirements—ordinary case........................ 52

12‑402A................ Widely‑held requirements for registered MIT—special case for entities covered by subsection 12‑402(3).......................................................................................... 54

12‑402B................ Closely‑held restrictions................................................... 55

12‑403................... Licensing requirements for unregistered MIS................... 56

12‑404................... MIT participation interest.................................................. 57

12‑405................... Meaning of fund payment................................................. 57

12‑410................... Entity to whom payment is made...................................... 59

12‑415................... Failure to give notice or make information available: administrative penalty            60

12‑420................... Agency rules..................................................................... 60

12‑425................... Meaning of clean building managed investment trust...... 60

12‑430................... Meaning of clean building................................................ 61

Division 13—Alienated personal services payments                                       63

13‑1....................... Object of this Division...................................................... 63

13‑5....................... Payment to the Commissioner in respect of alienated personal services payments   63

13‑10..................... Alienated personal services payments............................... 66

13‑15..................... Personal services payment remitters................................. 66

13‑20..................... Time for payments to Commissioner for alienated personal services payments made during 2000‑01    67

Division 14—Non‑cash benefits, and accruing gains, for which amounts must be paid to the Commissioner       69

Subdivision 14‑A—Non‑cash benefits                                                                 69

14‑1....................... Object of this Subdivision................................................ 69

14‑5....................... Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding....................................................................... 69

14‑10..................... Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit              70

14‑15..................... Payer can recover amount paid to the Commissioner........ 71

Subdivision 14‑B—Accruing gains                                                                      71

14‑50..................... Object of this Subdivision................................................ 71

14‑55..................... Liability for TFN withholding tax..................................... 71

14‑60..................... Investment body may recover TFN withholding tax from investor          73

14‑65..................... Application of rules in Division 18................................... 73

14‑75..................... Overpayment of TFN withholding tax.............................. 74

14‑85..................... Other laws do not exempt from TFN withholding tax...... 74

Subdivision 14‑C—Shares and rights under employee share schemes       74

14‑155................... Liability for TFN withholding tax (ESS).......................... 74

14‑160................... Employer may give individual tax file numbers to provider 76

14‑165................... Provider may recover TFN withholding tax (ESS) from individual         76

14‑170................... Application of rules in Division 18................................... 76

14‑175................... Overpayment of TFN withholding tax (ESS)................... 76

14‑180................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997  77

Division 15—Working out the amount to withhold                                         78

Guide to Division 15                                                                                                78

15‑1....................... What this Division is about............................................... 78

Subdivision 15‑A—Working out how much to withhold                                78

15‑10..................... How much to withhold..................................................... 78

15‑15..................... Variation of amounts required to be withheld................... 79

Subdivision 15‑B—Withholding schedules and regulations                          80

15‑25..................... Commissioner’s power to make withholding schedules... 80

15‑30..................... Matters to be considered when making withholding schedules                81

15‑35..................... Regulations about withholding......................................... 81

Subdivision 15‑C—Declarations                                                                          82

15‑50..................... Declarations...................................................................... 82

Division 16—Payer’s obligations and rights                                                     84

Guide to Division 16                                                                                                84

16‑1....................... What this Division is about............................................... 84

Subdivision 16‑A—To withhold                                                                            84

When to withhold                                                                                                      85

16‑5....................... When to withhold an amount............................................ 85

16‑20..................... Payer discharged from liability to recipient for amount withheld             85

Penalties for not withholding                                                                                85

16‑25..................... Failure to withhold: offence.............................................. 85

16‑30..................... Failure to withhold: administrative penalty for entity other than exempt Australian government agency 86

16‑35..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment other than dividend, interest or royalty.............................. 87

16‑40..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment................................................ 87

16‑43..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment to foreign resident etc............................................................ 88

Subdivision 16‑B—To pay withheld amounts to the Commissioner           88

When and how to pay amounts to the Commissioner                                      89

16‑70..................... Entity to pay amounts to Commissioner........................... 89

16‑75..................... When amounts must be paid to Commissioner................. 89

16‑80..................... Penalty for failure to pay within time................................ 91

16‑85..................... How amounts are to be paid............................................. 91

Who is a large, medium or small withholder                                                    92

16‑95..................... Meaning of large withholder............................................ 92

16‑100................... Meaning of medium withholder........................................ 93

16‑105................... Meaning of small withholder............................................ 93

16‑110................... Commissioner may vary withholder’s status downwards 94

16‑115................... Commissioner may vary withholder’s status upwards..... 94

Subdivision 16‑BA—To be registered                                                                 95

Registration of withholders                                                                                   96

16‑140................... Withholders must be registered......................................... 96

16‑141................... Registration and cancellation............................................. 96

Branch registration                                                                                                 96

16‑142................... Branches may be registered.............................................. 96

16‑143................... Separate amounts for entities and branches....................... 97

16‑144................... Cancellation of branch registration.................................... 98

16‑145................... Effect on branches of cancelling the entity’s registration.. 98

Subdivision 16‑C—To provide information                                                     98

To the Commissioner                                                                                              99

16‑150................... Commissioner must be notified of amounts...................... 99

16‑152................... Annual reports—Withholding payments covered by section 12‑175       99

16‑153................... Annual reports—other payments.................................... 100

To recipients of withholding payments                                                             102

16‑155................... Annual payment summary.............................................. 102

16‑156................... Annual payment summary for sections 12‑175 and 12‑180 104

16‑157................... Payment summary for Subdivision 12‑H....................... 105

16‑160................... Part‑year payment summary........................................... 105

16‑165................... Payment summaries for superannuation lump sums and payments for termination of employment         106

16‑166................... Payment summary for a departing Australia superannuation payment     107

16‑167................... Payment summary for payment to recipient who does not quote ABN    107

16‑170................... Form and content of payment summary.......................... 107

16‑175................... Penalty for not providing payment summary.................. 109

16‑180................... Commissioner may exempt entity from giving payment summary           109

16‑182................... Definition of reportable employer superannuation contribution             109

Subdivision 16‑D—Additional rights and obligations of entity that makes a payment                111

16‑195................... Payer’s right to recover amounts of penalty: certain withholding taxes    111

Division 18—Recipient’s entitlements and obligations                                 112

Subdivision 18‑A—Crediting withheld amounts                                            112

Guide to Subdivision 18‑A                                                                                    112

18‑1....................... What this Subdivision is about....................................... 112

General exception                                                                                                  113

18‑5....................... No credit for refunded amount........................................ 113

Entitlement to credits: income tax liability                                                     114

18‑10..................... Application of sections 18‑15, 18‑20 and 18‑25............. 114

18‑15..................... Tax credit for recipient of withholding payments............ 114

18‑20..................... Tax credit where recipient is a partnership...................... 115

18‑25..................... Tax credit where recipient is a trust................................. 115

18‑27..................... Tax credit for alienated personal services payments........ 117

Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or Seasonal Labour Mobility Program                                                                    118

18‑30..................... Credit: dividend, interest or royalty................................. 118

18‑32..................... Credit: amount attributable to fund payment................... 118

18‑33..................... Credit: Seasonal Labour Mobility Program.................... 118

18‑35..................... Credit: penalty under section 12‑415, 16‑30, 16‑35 or 16‑40 or related general interest charge               119

18‑40..................... Credit: liability under Part 4‑25....................................... 121

Entitlement to credit: departing Australia superannuation payment       122

18‑42..................... Credit—departing Australia superannuation payment..... 122

Entitlement to credit: mining payment                                                             122

18‑45..................... Credit—mining payment................................................. 122

Entitlement to credit: Minerals resource rent tax                                          124

18‑49..................... Credit—Natural resource payments................................ 124

Entitlement to credit: Petroleum resource rent tax                                       124

18‑55..................... Credit—Natural resource payments................................ 124

Subdivision 18‑B—Refund of certain withheld amounts                             124

18‑65..................... Refund of withheld amounts by the payer to the recipient 125

18‑70..................... Refund of withheld amounts by the Commissioner to the recipient         128

18‑80..................... Refund by Commissioner of amount withheld from payment in respect of investment           129

Subdivision 18‑C—Recipient’s obligations                                                      129

18‑100................... Obligation to keep payment summary............................. 129

Subdivision 18‑D—Directors etc. of non‑complying companies                130

Object of Subdivision                                                                                            131

18‑120................... Object of Subdivision..................................................... 131

PAYG withholding non‑compliance tax                                                           131

18‑125................... Directors of non‑complying companies.......................... 131

18‑130................... Directors of non‑complying companies—tax reduced in certain circumstances       132

18‑135................... Associates of directors of non‑complying companies..... 134

18‑140................... Notices............................................................................ 137

18‑145................... When PAYG withholding non‑compliance tax must be paid.. 139

18‑150................... General interest charge payable on unpaid PAYG withholding non‑compliance tax               139

18‑155................... Validity of decisions and evidence.................................. 139

18‑160................... Rights of indemnity and contribution.............................. 140

Credits for later compliance                                                                               141

18‑165................... Credits for later compliance—scope............................... 141

18‑170................... Credits for later compliance—Commissioner must give notice in certain circumstances          141

18‑175................... Credits for later compliance—Commissioner may give notice 143

18‑180................... Effect of earlier credits.................................................... 144

Other provisions                                                                                                     144

18‑185................... When Commissioner may give notice............................. 144

18‑190................... Review of decisions........................................................ 146

Division 20—Other matters                                                                                 147

Subdivision 20‑B—Offences                                                                                147

20‑35..................... Offences......................................................................... 147

20‑40..................... Joining of charges........................................................... 148

20‑45..................... Offences that would otherwise be committed by a partnership or unincorporated company    149

Subdivision 20‑D—Review of decisions                                                            149

20‑80..................... Reviewable decisions...................................................... 149

Division 21—Entitlements relating to insolvent ADIs and general insurers 151

Guide to Division 21                                                                                              151

21‑1....................... What this Division is about............................................. 151

Subdivision 21‑A—Treatment of some payments by APRA                       151

21‑5....................... APRA treated like ADI or general insurance company.. 151

Part 2‑10—Pay as you go (PAYG) instalments                                          153

Division 45—Instalment payments                                                                    153

Guide to Division 45                                                                                              154

45‑1....................... What this Division is about............................................. 154

Subdivision 45‑A—Basic rules                                                                            155

45‑5....................... Object of this Part........................................................... 155

45‑10..................... Application of Part.......................................................... 156

45‑15..................... Liability for instalments.................................................. 157

45‑20..................... Information to be given to the Commissioner by certain payers               157

45‑25..................... Penalty for failure to notify Commissioner..................... 158

45‑30..................... Credit for instalments payable......................................... 158

Subdivision 45‑B—When instalments are due                                                159

45‑50..................... Liability to pay instalments............................................. 159

45‑60..................... Meaning of instalment quarter....................................... 160

45‑61..................... When quarterly instalments are due—payers of quarterly instalments     161

45‑65..................... Meaning of instalment month......................................... 162

45‑67..................... When monthly instalments are due—payers of monthly instalments       162

45‑70..................... When annual instalments are due.................................... 162

45‑72..................... Means of payment of instalment..................................... 163

45‑75..................... Instalments recoverable in same way as income tax........ 163

45‑80..................... General interest charge on late payment.......................... 163

45‑90..................... Commissioner may withdraw instalment rate................. 163

Subdivision 45‑C—Working out instalment amounts                                   164

45‑110................... How to work out amount of quarterly instalment on instalment income basis         164

45‑112................... Amount of instalment for quarterly payer who pays on basis of GDP‑adjusted notional tax   165

45‑114................... How to work out amount of monthly instalment............ 165

45‑115................... How to work out amount of annual instalment............... 167

45‑120................... Meaning of instalment income........................................ 168

Subdivision 45‑D—Quarterly payers                                                                171

45‑125................... Quarterly payer who pays instalments on the basis of instalment income                171

45‑130................... Quarterly payer who pays on the basis of GDP‑adjusted notional tax     173

45‑132................... Quarterly payer who pays 4 instalments annually on the basis of GDP‑adjusted notional tax 175

45‑134................... Quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax 176

Subdivision 45‑DA—Monthly payers                                                                177

45‑136................... Monthly payer................................................................ 177

45‑138................... Monthly payer requirement............................................. 178

Subdivision 45‑E—Annual payers                                                                     180

When you start and stop being an annual payer                                            180

45‑140................... Choosing to pay annual instalments................................ 180

45‑145................... Meaning of instalment group......................................... 181

45‑150................... Entity stops being annual payer if involved with GST registration or instalment group           182

45‑155................... Entity stops being annual payer if notional tax is $8,000 or more, or entity chooses to pay quarterly      183

45‑160................... Head company of a consolidated group stops being annual payer           184

Subdivision 45‑F—Varying the instalment rate for quarterly or monthly payers who pay on the basis of instalment income                                                                                         184

45‑200................... Application..................................................................... 184

45‑205................... Choosing a varied instalment rate................................... 185

45‑210................... Notifying Commissioner of varied instalment rate.......... 185

45‑215................... Credit on using varied rate in certain cases..................... 186

Subdivision 45‑G—General interest charge payable in certain cases if instalments are too low              187

45‑225................... Effect of Subdivision in relation to monthly payers........ 187

45‑230................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of varied rate     187

45‑232................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated benchmark tax........................................................................................ 189

45‑233................... Reduction in GIC liability under section 45‑232 if shortfall is made up in later instalment      196

45‑235................... Liability to GIC on shortfall in annual instalment........... 197

45‑240................... Commissioner may remit general interest charge............ 199

Subdivision 45‑H—Partnership income                                                           199

45‑260................... Instalment income for a period in which you are in a partnership            199

Subdivision 45‑I—Trust income included in instalment income of beneficiary            200

45‑280................... Instalment income for a period in which you are a beneficiary of a trust  200

45‑285................... Instalment income includes distributions by certain resident unit trusts   202

45‑286................... Instalment income includes distributions by certain managed investment trusts       204

45‑287................... When trusts are disqualified due to concentrated ownership 205

45‑288................... Resident investment trusts for beneficiaries who are absolutely entitled  206

45‑290................... Exceptions to exclusion of trust capital gains from beneficiary’s instalment income                207

Subdivision 45‑J—How Commissioner works out your instalment rate and notional tax          207

45‑320................... Working out instalment rate............................................ 207

45‑325................... Working out your notional tax........................................ 208

45‑330................... Working out your adjusted taxable income.................... 210

45‑335................... Working out your adjusted withholding income............. 212

45‑340................... Adjusted tax on adjusted taxable income or on adjusted withholding income           212

Subdivision 45‑K—How Commissioner works out your benchmark instalment rate and benchmark tax             214

45‑355................... When Commissioner works out benchmark instalment rate and benchmark tax      214

45‑360................... How Commissioner works out benchmark instalment rate 215

45‑365................... Working out your benchmark tax................................... 215

45‑370................... Working out your adjusted assessed taxable income for the variation year             216

45‑375................... Adjusted assessed tax on adjusted assessed taxable income 217

Subdivision 45‑L—How Commissioner works out amount of quarterly instalment on basis of GDP‑adjusted notional tax                                                                                                 218

45‑400................... Working out amount of instalment—payers of 4 quarterly instalments    219

45‑402................... Working out amount of instalment—payers of 2 quarterly instalments    220

45‑405................... Working out your GDP‑adjusted notional tax................ 222

Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax                                                                                                 224

45‑410................... Working out amount of instalment—payers of 4 quarterly instalments    224

45‑412................... Working out amount of instalment—payers of 2 quarterly instalments    226

45‑415................... Estimating your benchmark tax....................................... 227

45‑420................... Credit in certain cases where amount of instalment is nil 228

Subdivision 45‑N—How this Part applies to the trustee of a trust             228

Trustees to whom this Part applies                                                                    229

45‑450................... Trustees to whom a single instalment rate is given......... 229

45‑455................... Trustees to whom several instalment rates are given....... 229

45‑460................... Rest of Subdivision applies only to multi‑rate trustees... 231

45‑465................... Meaning of instalment income........................................ 231

45‑468................... Multi‑rate trustee may pay quarterly instalments............. 231

How Commissioner works out instalment rate and notional tax for a multi‑rate trustee            231

45‑470................... Working out instalment rate............................................ 231

45‑473................... Commissioner must notify you of notional tax............... 232

45‑475................... Working out your notional tax........................................ 232

45‑480................... Working out your adjusted taxable income.................... 233

45‑483................... Meaning of reduced beneficiary’s share and reduced no beneficiary’s share         234

45‑485................... Working out your adjusted withholding income............. 234

How Commissioner works out benchmark instalment rate and benchmark tax for a multi‑rate trustee                235

45‑525................... When Commissioner works out benchmark instalment rate and benchmark tax      235

45‑530................... How Commissioner works out benchmark instalment rate 235

45‑535................... Working out your benchmark tax................................... 236

Subdivision 45‑P—Anti‑avoidance rules                                                          236

45‑595................... Object of this Subdivision.............................................. 237

45‑597................... Effect of Subdivision in relation to instalment months.... 237

45‑600................... General interest charge on tax benefit relating to instalments 237

45‑605................... When do you get a tax benefit from a scheme?............... 239

45‑610................... What is your tax position for an income year?................ 239

45‑615................... What is your hypothetical tax position for an income year? 242

45‑620................... Amount on which GIC is payable, and period for which it is payable     242

45‑625................... Credit if you also got a tax detriment from the scheme... 243

45‑630................... When do you get a tax detriment from a scheme?........... 244

45‑635................... No tax benefit or detriment results from choice for which income tax law expressly provides                245

45‑640................... Commissioner may remit general interest charge in special cases            246

Subdivision 45‑Q—General rules for consolidated groups                         247

Guide to Subdivision 45‑Q                                                                                   247

45‑700................... What this Subdivision is about....................................... 247

Application of Subdivision                                                                                   248

45‑703................... Effect of this Subdivision and Subdivision 45‑R in relation to monthly payers       248

45‑705................... Application of Subdivision to head company................. 249

Usual operation of this Part for consolidated group members                  253

45‑710................... Single entity rule............................................................. 253

45‑715................... When instalments are due—modification of section 45‑61 253

45‑720................... Head company cannot be an annual payer—modification of section 45‑140           253

Membership changes                                                                                             254

45‑740................... Change of head company................................................ 254

45‑755................... Entry rule (for an entity that becomes a subsidiary member of a consolidated group)              256

45‑760................... Exit rule (for an entity that ceases to be a subsidiary member of a consolidated group)           257

45‑775................... Commissioner’s power to work out different instalment rate or GDP‑adjusted notional tax   258

Subdivision 45‑R—Special rules for consolidated groups                           260

Guide to Subdivision 45‑R                                                                                    260

45‑850................... What this Subdivision is about....................................... 260

Operative provisions                                                                                             261

45‑855................... Section 701‑1 disregarded for certain purposes.............. 261

45‑860................... Member having a different instalment period.................. 261

45‑865................... Credit rule....................................................................... 263

45‑870................... Head company’s liability to GIC on shortfall in quarterly instalment       264

45‑875................... Other rules about the general interest charge................... 267

45‑880................... Continued application of Subdivision 45‑Q to the head company of an acquired group          267

45‑885................... Early application of Subdivision 45‑Q to the head company of a new group           269

Subdivision 45‑S—MEC groups                                                                         271

Guide to Subdivision 45‑S                                                                                    271

45‑900................... What this Subdivision is about....................................... 271

Preliminary                                                                                                             272

45‑905................... Objects of Subdivision................................................... 272

General modification rules                                                                                  272

45‑910................... Extended operation of Part to cover MEC groups.......... 272

Extended operation of Subdivision 45‑Q                                                         273

45‑913................... Sections 45‑705 and 45‑740 do not apply to members of MEC groups  273

45‑915................... Application of Subdivision 45‑Q to provisional head company               273

45‑917................... Assumption for applying section 45‑710 (single entity rule) 277

45‑920................... Change of provisional head company............................. 277

45‑922................... Life insurance company.................................................. 280

Extended operation of Subdivision 45‑R                                                          280

45‑925................... Additional modifications of sections 45‑855 and 45‑860 280

45‑930................... Modifications of sections 45‑865 and 45‑870 and a related provision     280

45‑935................... Additional modifications of section 45‑885.................... 281

Part 2‑30—Collecting Medicare levy with income tax                           282

Division 90Medicare levy and Medicare levy surcharge                        282

Subdivision 90‑A—Treatment like income tax                                               282

90‑1....................... Laws apply in relation to Medicare levy and Medicare levy surcharge as they apply in relation to income tax........................................................................................ 282

Part 2‑35—Excess concessional contributions                                            283

Division 95—Excess concessional contributions charge                              283

Guide to Division 95                                                                                              283

95‑1....................... What this Division is about............................................. 283

Subdivision 95‑A—Object of Division                                                              283

95‑5....................... Object of Division.......................................................... 283

Subdivision 95‑B—Excess concessional contributions charge                   284

95‑10..................... Liability to excess concessional contributions charge..... 284

95‑15..................... Amount of excess concessional contributions charge..... 285

95‑20..................... When excess concessional contributions charge is due and payable        285

95‑25..................... General interest charge.................................................... 286

Division 96—Releasing money from superannuation                                  287

Subdivision 96‑A—Releasing money from superannuation                       287

Guide to Subdivision 96‑A                                                                                    287

96‑1....................... What this Subdivision is about....................................... 287

Requesting a release authority                                                                            288

96‑5....................... Electing to release money from superannuation.............. 288

Issuing a release authority to superannuation provider                              290

96‑10..................... Issuing a release authority to a superannuation provider. 290

96‑15..................... Varying and revoking a release authority........................ 290

Complying with a release authority                                                                  290

96‑20..................... Obligations of superannuation providers........................ 290

96‑25..................... Voluntary compliance with a release authority relating to voluntary release interests               291

96‑30..................... Meaning of maximum available release amount............ 291

96‑35..................... Notifying Commissioner................................................ 292

96‑40..................... Notifying individual of unsuccessful release attempt...... 292

96‑45..................... Compensation for acquisition of property....................... 293

Consequences of releasing amounts                                                                  293

96‑50..................... Entitlement to credits....................................................... 293

96‑55..................... Interest for late payments of money received by the Commissioner in accordance with release authority........................................................................................ 293

96‑60..................... Income tax treatment of amounts released—proportioning rule does not apply       294

Division 97—Excess concessional contributions determinations              295

Subdivision 97‑A—Excess concessional contributions determinations    295

Guide to Subdivision 97‑A                                                                                    295

97‑1....................... What this Subdivision is about....................................... 295

Operative provisions                                                                                             295

97‑5....................... Determination of excess concessional contributions and charge              295

97‑10..................... Review............................................................................ 296

Chapter 3—Collection, recovery and administration of other taxes  297

Part 3‑10—Indirect taxes                                                                                       297

Division 105—General rules for indirect taxes                                              297

Guide to Division 105                                                                                            297

105‑1..................... What this Division is about............................................. 297

Subdivision 105‑A—Assessments                                                                       298

105‑3..................... Application of Subdivision............................................. 298

105‑5..................... Commissioner may make assessment of indirect tax...... 298

105‑10................... Request for assessment................................................... 299

105‑15................... Indirect tax liabilities do not depend on assessment........ 299

105‑20................... Commissioner must give notice of the assessment......... 300

105‑25................... Amendment of assessment............................................. 300

105‑30................... Later assessment prevails in case of inconsistency......... 300

Subdivision 105‑B—Review of indirect tax decisions                                   300

105‑40................... Reviewable indirect tax decisions................................... 301

Subdivision 105‑C—Limits on credits, refunds and recovering amounts 301

105‑50................... Time limit on recovery by the Commissioner................. 301

105‑55................... Time limit on refunds etc. from the Commissioner......... 302

105‑65................... Restriction on GST refunds............................................ 305

Subdivision 105‑D—General interest charge and penalties                        306

105‑80................... General interest charge.................................................... 306

105‑85................... Amending Acts cannot impose penalties or general interest charge earlier than 28 days after Royal Assent........................................................................................ 307

Subdivision 105‑F—Indirect tax refund schemes                                          307

105‑120................. Refund scheme—defence related international obligations 307

105‑125................. Refund scheme—international obligations...................... 308

Subdivision 105‑G—Other administrative provisions                                 309

105‑140................. Address for service......................................................... 309

105‑145................. Commissioner must give things in writing..................... 310

Division 110—Goods and services tax                                                              311

Guide to Division 110                                                                                            311

110‑1..................... What this Division is about............................................. 311

Subdivision 110‑F—Review of GST decisions                                                311

110‑50................... Reviewable GST decisions............................................. 311

Division 111—Wine tax and luxury car tax                                                    315

Guide to Division 111                                                                                            315

111‑1..................... What this Division is about............................................. 315

Subdivision 111‑C—Review of wine tax decisions                                         315

111‑50................... Reviewable wine tax decisions....................................... 315

Subdivision 111‑D—Effect on contracts from amendments to laws         316

111‑60................... Alteration of contracts if cost of complying with agreement is affected by later alteration to wine tax or luxury car tax laws..................................................................... 316

Division 112—Fuel tax                                                                                         318

Guide to Division 112                                                                                            318

112‑1..................... What this Division is about............................................. 318

Subdivision 112‑E—Review of fuel tax decisions                                          318

112‑50................... Reviewable fuel tax decisions......................................... 318

Part 3‑15—Minerals Resource Rent Tax                                                      320

Division 115—Instalments                                                                                   320

Guide to Division 115                                                                                            320

115‑1..................... What this Division is about............................................. 320

Subdivision 115‑A—Preliminary                                                                       321

115‑5..................... Objects of this Division.................................................. 321

Subdivision 115‑B—Liability for instalments                                                321

115‑10................... Liability for instalments.................................................. 321

115‑15................... Information to be given to the Commissioner................. 322

115‑20................... Credit for instalments payable......................................... 323

115‑25................... When instalments are due............................................... 323

115‑30................... General interest charge on late payment.......................... 323

Subdivision 115‑C—Working out instalment amounts                                323

115‑35................... How to work out the amount of an instalment................ 324

115‑40................... Meaning of instalment income........................................ 324

115‑45................... Meaning of applicable instalment rate........................... 324

Subdivision 115‑D—Instalment rate chosen by you                                      326

Choosing an instalment rate                                                                                326

115‑50................... Choosing a varied instalment rate................................... 326

115‑55................... Notifying Commissioner of varied instalment rate.......... 327

Variation credits                                                                                                     327

115‑60................... Credit on using varied rate in certain cases..................... 327

General interest charge payable in certain cases if instalments are too low   329

115‑65................... Liability to GIC on shortfall in instalments worked out on the basis of varied rate  329

115‑70................... Working out your benchmark instalment rate................ 330

Subdivision 115‑E—Instalment rate given to you by Commissioner       331

115‑75................... Commissioner instalment rate for MRRT....................... 331

115‑80................... Commissioner may take changes, and proposed changes, to the law into account   332

Subdivision 115‑F—Default instalment rate                                                   333

115‑85................... Default instalment rate.................................................... 333

Subdivision 115‑G—Special rules for project interests that are transferred or split   334

115‑90................... Effect of transfer or split of project interest on instalment income            334

115‑95................... Additional instalment income for new miner or new explorer  336

115‑100................. Credit for original miner or original explorer for instalment quarters before transfer or split   336

115‑105................. Adjusted instalment income for original miners or explorers 338

Subdivision 115‑H—Special rules for transitional accounting periods   338

115‑110................. Instalment quarters in transitional accounting periods..... 339

Division 117—MRRT returns and starting base returns                             340

Guide to Division 117                                                                                            340

117‑1..................... What this Division is about............................................. 340

Operative provisions                                                                                             340

117‑5..................... Who must give MRRT returns....................................... 340

117‑10................... The form and contents of MRRT returns........................ 341

117‑15................... Additional MRRT returns............................................... 342

117‑20................... Starting base returns....................................................... 342

117‑25................... Electronic lodgement of MRRT returns and starting base returns            343

117‑30................... MRRT returns and starting base returns treated as being duly made        343

Division 119—Making choices                                                                           344

Guide to Division 119                                                                                            344

119‑1..................... What this Division is about............................................. 344

Operative provisions                                                                                             344

119‑5..................... Making choices............................................................... 344

119‑10................... Choices are irrevocable................................................... 345

119‑15................... Division subject to more specific rules........................... 345

Division 121—Reporting                                                                                      346

Guide to Division 121                                                                                            346

121‑1..................... What this Division is about............................................. 346

Operative provisions                                                                                             346

121‑5..................... Object of this Division.................................................... 346

121‑10................... Information notice for transfers and splits of mining and pre‑mining project interests             346

121‑12................... Notice of rehabilitation expenditure................................ 348

121‑15................... Substantiation requirement.............................................. 348

Division 123—Record keeping                                                                           350

Guide to Division 123                                                                                            350

123‑1..................... What this Division is about............................................. 350

Operative provisions                                                                                             350

123‑5..................... What records you must keep........................................... 350

123‑10................... Retaining records............................................................ 351

123‑15................... Offence for failing to keep or retain records................... 351

Division 125—Miscellaneous                                                                              353

125‑1..................... Address for service......................................................... 353

Part 3‑20—Sustaining the superannuation contribution concession 354

Division 133—Deferred payment                                                                      354

Guide to Division 133                                                                                            354

133‑1..................... What this Division is about............................................. 354

Subdivision 133‑A—Deferral determination                                                  354

Guide to Subdivision 133‑A                                                                                 354

133‑5..................... What this Subdivision is about....................................... 354

Operative provisions                                                                                             355

133‑10................... Determination of tax that is deferred to a debt account... 355

133‑15................... Defined benefit tax.......................................................... 355

133‑20................... How to attribute the defined benefit tax to defined benefit interests         356

133‑25................... Determination reducing tax deferred to a debt account.... 357

133‑30................... General provisions applying to determinations under this Subdivision    357

Subdivision 133‑B—Debt account                                                                      358

Guide to Subdivision 133‑B                                                                                 358

133‑55................... What this Subdivision is about....................................... 358

Operative provisions                                                                                             358

133‑60................... Debt account to be kept for deferred tax......................... 358

133‑65................... Interest on debt account balance...................................... 359

133‑70................... Voluntary payments........................................................ 360

133‑75................... Commissioner must notify superannuation provider of debt account       360

Subdivision 133‑C—Compulsory payment                                                     360

Guide to Subdivision 133‑C                                                                                 360

133‑100................. What this Subdivision is about....................................... 360

Debt account discharge liability                                                                         361

133‑105................. Liability to pay debt account discharge liability............... 361

133‑110................. When debt account discharge liability must be paid........ 361

133‑115................. General interest charge.................................................... 362

133‑120................. Meaning of debt account discharge liability................... 362

133‑125................. Notice of debt account discharge liability........................ 363

End benefit                                                                                                               364

133‑130................. Meaning of end benefit................................................... 364

133‑135................. End benefit notice—individual........................................ 364

133‑140................. End benefit notice—superannuation provider................. 364

133‑145................. End benefit notice—material changes or omissions........ 365

Division 135—Releasing money from superannuation                                366

Guide to Division 135                                                                                            366

135‑1..................... What this Division is about............................................. 366

Subdivision 135‑A—When the Commissioner must issue a release authority                366

Guide to Subdivision 135‑A                                                                                 366

135‑5..................... What this Subdivision is about....................................... 366

Operative provisions                                                                                             367

135‑10................... Release authorities.......................................................... 367

Subdivision 135‑B—When a release authority can be given to a superannuation provider       368

Guide to Subdivision 135‑B                                                                                 368

135‑35................... What this Subdivision is about....................................... 368

Operative provisions                                                                                             369

135‑40................... When you may give release authority to superannuation provider           369

135‑45................... When Commissioner may give release authority to superannuation provider          369

Subdivision 135‑C—Release of superannuation money under a release authority       370

Guide to Subdivision 135‑C                                                                                 370

135‑70................... What this Subdivision is about....................................... 370

Operative provisions                                                                                             371

135‑75................... Requirement for superannuation provider to release money 371

135‑80................... Compensation for acquisition of property....................... 372

135‑85................... Release amount............................................................... 372

135‑90................... How the Commissioner applies amounts received under a release authority            373

135‑95................... Defined benefit interests—releasing amounts to pay debt account discharge liability              373

135‑100................. Income tax treatment of amounts released—proportioning rule does not apply       373

Chapter 4—Generic assessment, collection and recovery rules             375

Part 4‑1—Returns and assessments                                                                  375

Division 155—Assessments                                                                                  375

Guide to Division 155                                                                                            375

155‑1..................... What this Division is about............................................. 375

Subdivision 155‑A—Making assessments                                                        375

155‑5..................... Commissioner may make assessment............................. 376

155‑10................... Commissioner must give notice of assessment............... 376

155‑15................... Self‑assessment.............................................................. 376

155‑20................... Assessment of indirect tax on importations and customs dealing             378

155‑25................... Special assessment.......................................................... 379

155‑30................... Delays in making assessments........................................ 379

Subdivision 155‑B—Amending assessments                                                    379

When Commissioner may amend assessments                                               380

155‑35................... Amendment during period of review.............................. 380

155‑40................... Amendment during period of review—certain applications taken to be notices       381

155‑45................... Amendment on application............................................. 382

155‑50................... Amendment to give effect to private ruling..................... 382

155‑55................... Amendment to give effect to certain anti‑avoidance declarations or determinations 382

155‑57................... Amendment to give effect to MRRT anti‑profit shifting rules  383

155‑60................... Amendment because of review, objection or fraud......... 383

Special rules about amending amended assessments                                    383

155‑65................... Amending amended assessments.................................... 383

155‑70................... Refreshed period of review............................................. 384

General rules                                                                                                           384

155‑75................... Refunds of amounts overpaid......................................... 384

155‑80................... Amended assessments are assessments.......................... 385

Subdivision 155‑C—Validity and review of assessments                             385

155‑85................... Validity of assessment.................................................... 385

155‑90................... Review of assessments................................................... 385

Subdivision 155‑D—Miscellaneous                                                                   386

155‑95................... Entities............................................................................ 386

Part 4‑15—Collection and recovery of tax‑related liabilities and other amounts           387

Division 250—Introduction                                                                                 387

Subdivision 250‑A—Guide to Part 4‑15                                                           387

250‑1..................... What this Part is about.................................................... 387

250‑5..................... Some important concepts about tax‑related liabilities...... 387

250‑10................... Summary of tax‑related liabilities.................................... 388

Subdivision 250‑B—Object of this Part                                                            395

250‑25................... Object............................................................................. 395

Division 255—General rules about collection and recovery                      396

Subdivision 255‑A—Tax‑related liabilities                                                     396

255‑1..................... Meaning of tax‑related liability....................................... 396

255‑5..................... Recovering a tax‑related liability that is due and payable 396

Subdivision 255‑B—Commissioner’s power to vary payment time          397

255‑10................... To defer the payment time............................................... 397

255‑15................... To permit payments by instalments................................. 398

255‑20................... To bring forward the payment time in certain cases........ 398

Subdivision 255‑C—Recovery proceedings                                                    399

Guide to Subdivision 255‑C                                                                                 399

255‑35................... What this Subdivision is about....................................... 399

Operative provisions                                                                                             399

255‑40................... Service of documents if person absent from Australia or cannot be found              399

255‑45................... Evidentiary certificate...................................................... 400

255‑50................... Certain statements or averments...................................... 401

255‑55................... Evidence by affidavit...................................................... 401

Subdivision 255‑D—Security deposits                                                              402

255‑100................. Commissioner may require security deposit................... 402

255‑105................. Notice of requirement to give security............................ 403

255‑110................. Offence........................................................................... 403

Division 260—Special rules about collection and recovery                        405

Guide to Division 260                                                                                            405

260‑1..................... What this Division is about............................................. 405

Subdivision 260‑A—From third party                                                              405

260‑5..................... Commissioner may collect amounts from third party...... 405

260‑10................... Notice to Commonwealth, State or Territory.................. 407

260‑15................... Indemnity........................................................................ 407

260‑20................... Offence........................................................................... 408

Subdivision 260‑B—From liquidator                                                               408

260‑40................... Subdivision does not apply to superannuation guarantee charge              408

260‑45................... Liquidator’s obligation.................................................... 408

260‑50................... Offence........................................................................... 410

260‑55................... Joint liability of 2 or more liquidators............................. 410

260‑60................... Liquidator’s other obligation or liability.......................... 410

Subdivision 260‑C—From receiver                                                                   410

260‑75................... Receiver’s obligation...................................................... 410

260‑80................... Offence........................................................................... 412

260‑85................... Joint liability of 2 or more receivers................................ 412

260‑90................... Receiver’s other obligation or liability............................ 412

Subdivision 260‑D—From agent winding up business for foreign resident principal  412

260‑105................. Obligation of agent winding up business for foreign resident principal   412

260‑110................. Offence........................................................................... 413

260‑115................. Joint liability of 2 or more agents.................................... 414

260‑120................. Agent’s other obligation or liability................................ 414

Subdivision 260‑E—From deceased person’s estate                                     414

260‑140................. Administered estate......................................................... 414

260‑145................. Unadministered estate..................................................... 415

260‑150................. Commissioner may authorise amount to be recovered.... 416

Division 263—Mutual assistance in collection of foreign tax debts          417

Subdivision 263‑A—Foreign revenue claims                                                  417

Guide to Subdivision 263‑A                                                                                 417

263‑5..................... What this Subdivision is about....................................... 417

Operative provisions                                                                                             418

263‑10................... Meaning of foreign revenue claim.................................. 418

263‑15................... Requirements for foreign revenue claims........................ 418

263‑20................... Foreign Revenue Claims Register................................... 418

263‑25................... Registering claims........................................................... 419

263‑30................... When amount is due and payable.................................... 419

263‑35................... Amending the Register etc.............................................. 420

263‑40................... Payment to competent authority...................................... 421

Division 265—Other matters                                                                              422

Subdivision 265‑A—Right of person to seek recovery or contribution    422

Guide to Subdivision 265‑A                                                                                 422

265‑35................... What this Subdivision is about....................................... 422

Operative provisions                                                                                             422

265‑40................... Right of recovery if another person is liable................... 422

265‑45................... Right of contribution if persons are jointly liable............ 423

Subdivision 265‑B—Application of laws                                                          423

265‑65................... Non‑application of certain taxation laws......................... 423

Division 268—Estimates and recovery of PAYG withholding liabilities and superannuation guarantee charge                                                                                                       424

Guide to Division 268                                                                                            424

268‑1..................... What this Division is about............................................. 424

Subdivision 268‑A—Object                                                                                  425

268‑5..................... Object of Division.......................................................... 425

Subdivision 268‑B—Making estimates                                                             425

268‑10................... Commissioner may make estimate.................................. 425

268‑15................... Notice of estimate........................................................... 426

Subdivision 268‑C—Liability to pay estimates                                              427

268‑20................... Nature of liability to pay estimate.................................... 427

268‑25................... Accuracy of estimate irrelevant to liability to pay............ 428

268‑30................... Estimate provable in bankruptcy or winding up.............. 429

Subdivision 268‑D—Reducing and revoking estimates                                429

268‑35................... How estimate may be reduced or revoked—Commissioner’s powers     430

268‑40................... How estimate may be reduced or revoked—statutory declaration or affidavit          431

268‑45................... How estimate may be reduced or revoked—rejection of proof of debt    433

268‑50................... How estimate may be reduced—amount paid or applied 434

268‑55................... When reduction or revocation takes effect...................... 435

268‑60................... Consequences of reduction or revocation—refund......... 435

268‑65................... Consequences of reduction or revocation—statutory demand changed or set aside 436

268‑70................... Consequences of reduction or revocation—underlying liability               436

Subdivision 268‑E—Late payment of estimates                                             437

268‑75................... Liability to pay the general interest charge...................... 437

268‑80................... Effect of paying the general interest charge..................... 437

Subdivision 268‑F—Miscellaneous                                                                    438

268‑85................... Effect of judgment on liability on which it is based........ 438

268‑90................... Requirements for statutory declaration or affidavit......... 439

268‑95................... Liquidators, receivers and trustees in bankruptcy........... 442

268‑100................. Division not to limit or exclude Corporations or Bankruptcy Act            443

Division 269—Penalties for directors of non‑complying companies       444

Guide to Division 269                                                                                            444

269‑1..................... What this Division is about............................................. 444

Subdivision 269‑A—Object and scope                                                              444

269‑5..................... Object of Division.......................................................... 445

269‑10................... Scope of Division........................................................... 445

Subdivision 269‑B—Obligations and penalties                                              446

269‑15................... Directors’ obligations..................................................... 447

269‑20................... Penalty............................................................................ 447

269‑25................... Notice............................................................................. 448

269‑30................... Effect on penalty of directors’ obligation ending before end of notice period          449

269‑35................... Defences......................................................................... 452

Subdivision 269‑C—Discharging liabilities                                                    454

269‑40................... Effect of director paying penalty or company discharging liability           454

269‑45................... Directors’ rights of indemnity and contribution.............. 455

Subdivision 269‑D—Miscellaneous                                                                   455

269‑50................... How notice may be given............................................... 455

269‑52................... Copies of notices............................................................ 455

269‑55................... Division not to limit or exclude Corporations Act.......... 456

Part 4‑25—Charges and penalties                                                                     457

Division 280—Shortfall interest charge                                                           457

Guide to Division 280                                                                                            457

280‑1..................... Guide to Division 280.................................................... 457

Subdivision 280‑A—Object of Division                                                            457

280‑50................... Object of Division.......................................................... 457

Subdivision 280‑B—Shortfall interest charge                                                458

280‑100................. Liability to shortfall interest charge—income tax............ 458

280‑101................. Liability to shortfall interest charge—minerals resource rent tax              459

280‑102................. Liability to shortfall interest charge—petroleum resource rent tax            460

280‑102A.............. Liability to shortfall interest charge—excess non‑concessional contributions tax    460

280‑102B.............. Liability to shortfall interest charge—Division 293 tax... 461

280‑103................. Liability to shortfall interest charge—general.................. 462

280‑105................. Amount of shortfall interest charge................................. 462

280‑110................. Notification by Commissioner........................................ 462

Subdivision 280‑C—Remitting shortfall interest charge                             463

280‑160................. Remitting shortfall interest charge................................... 463

280‑165................. Commissioner must give reasons for not remitting in certain cases         463

280‑170................. Objecting against remission decision.............................. 464

Division 284—Administrative penalties for statements, unarguable positions and schemes      465

Guide to Division 284                                                                                            465

284‑5..................... What this Division is about............................................. 465

Subdivision 284‑A—General provisions                                                          465

284‑10................... Object of Division.......................................................... 466

284‑15................... When a matter is reasonably arguable........................... 466

284‑20................... Which statements this Division applies to....................... 466

284‑25................... Statements by agents....................................................... 467

284‑30................... Application of Division to trusts..................................... 467

284‑35................... Application of Division to partnerships.......................... 467

Subdivision 284‑B—Penalties relating to statements                                    468

Guide to Subdivision 284‑B                                                                                 468

284‑70................... What this Subdivision is about....................................... 468

Operative provisions                                                                                             469

284‑75................... Liability to penalty.......................................................... 469

284‑80................... Shortfall amounts........................................................... 471

284‑85................... Amount of penalty.......................................................... 473

284‑90................... Base penalty amount....................................................... 473

284‑95................... Joint and several liability of directors of corporate trustee that makes a false or misleading statement     476

Subdivision 284‑C—Penalties relating to schemes                                        476

Guide to Subdivision 284‑C                                                                                 476

284‑140................. What this Subdivision is about....................................... 476

Operative provisions                                                                                             477

284‑145................. Liability to penalty.......................................................... 477

284‑150................. Scheme benefits and scheme shortfall amounts.............. 478

284‑155................. Amount of penalty.......................................................... 480

284‑160................. Base penalty amount: schemes....................................... 480

284‑165................. Exception—threshold for penalty arising from cross‑border transfer pricing          481

Subdivision 284‑D—Provisions common to Subdivisions 284‑B and 284‑C 482

284‑220................. Increase in base penalty amount...................................... 482

284‑224................. Reduction of base penalty amount if law was applied in an accepted way               484

284‑225................. Reduction of base penalty amount if you voluntarily tell the Commissioner            484

Subdivision 284‑E—Special rules about unarguable positions for cross‑border transfer pricing           485

284‑250................. Undocumented transfer pricing treatment not reasonably arguable          486

284‑255................. Documentation requirements.......................................... 486

Division 286—Penalties for failing to lodge documents on time               488

Subdivision 286‑A—Guide to Division 286                                                     488

286‑1..................... What this Division is about............................................. 488

Subdivision 286‑B—Object of Division                                                            488

286‑25................... Object of Division.......................................................... 488

Subdivision 286‑C—Penalties for failing to lodge documents on time    488

286‑75................... Liability to penalty.......................................................... 489

286‑80................... Amount of penalty.......................................................... 491

Division 288—Miscellaneous administrative penalties                                493

288‑10................... Penalty for non‑electronic notification............................ 493

288‑20................... Penalty for non‑electronic payment................................. 494

288‑25................... Penalty for failure to keep or retain records.................... 494

288‑30................... Penalty for failure to retain or produce declarations........ 494

288‑35................... Penalty for preventing access etc.................................... 495

288‑40................... Penalty for failing to register or cancel registration......... 495

288‑45................... Penalty for failing to issue tax invoice etc....................... 495

288‑50................... Penalty for both principal and agent issuing certain documents               496

288‑70................... Administrative penalties for life insurance companies.... 496

288‑75................... Administrative penalty for a copyright or resale royalty collecting society               498

288‑80................... Administrative penalty for over declaring conduit foreign income           498

288‑90................... Failing to give release authority for excess non‑concessional contributions tax       499

288‑95................... Failing to comply etc. with release authority................... 500

288‑100................. Excess money paid under release authority..................... 500

288‑105................. Superannuation provider to calculate crystallised pre‑July 83 amount of superannuation interest by 30 June 2008................................................................................ 501

288‑110................. Contravention of superannuation data and payment regulation or standard              501

Division 290—Promotion and implementation of schemes                        503

Subdivision 290‑A—Preliminary                                                                       503

290‑5..................... Objects of this Division.................................................. 503

290‑10................... Extra‑territorial application.............................................. 503

Subdivision 290‑B—Civil penalties                                                                   503

290‑50................... Civil penalties................................................................. 504

290‑55................... Exceptions...................................................................... 506

290‑60................... Meaning of promoter..................................................... 507

290‑65................... Meaning of tax exploitation scheme................................ 508

Subdivision 290‑C—Injunctions                                                                         509

290‑120................. Conduct to which this Subdivision applies..................... 509

290‑125................. Injunctions...................................................................... 509

290‑130................. Interim injunctions.......................................................... 509

290‑135................. Delay in making ruling................................................... 510

290‑140................. Discharge etc. of injunctions........................................... 510

290‑145................. Certain limits on granting injunctions not to apply.......... 510

290‑150................. Other powers of the Federal Court unaffected................ 511

Subdivision 290‑D—Voluntary undertakings                                                 511

290‑200................. Voluntary undertakings.................................................. 511

Division 298—Machinery provisions for penalties                                       513

Subdivision 298‑A—Administrative penalties                                                513

298‑5..................... Scope of Subdivision...................................................... 513

298‑10................... Notification of liability.................................................... 513

298‑15................... Due date for penalty........................................................ 513

298‑20................... Remission of penalty...................................................... 514

298‑25................... General interest charge on unpaid penalty....................... 514

298‑30................... Assessment of penalties under Division 284.................. 515

Subdivision 298‑B—Civil penalties                                                                   515

298‑80................... Application of Subdivision............................................. 515

298‑85................... Civil evidence and procedure rules for civil penalty orders 516

298‑90................... Civil proceedings after criminal proceedings.................. 516

298‑95................... Criminal proceedings during civil proceedings............... 516

298‑100................. Criminal proceedings after civil proceedings.................. 516

298‑105................. Evidence given in proceedings for penalty not admissible in criminal proceedings  517

298‑110................. Civil double jeopardy...................................................... 517

Part 4‑50—Release from particular liabilities                                            518

Division 340Commissioner’s power in cases of hardship                        518

Guide to Division 340                                                                                            518

340‑1..................... What this Division is about............................................. 518

Operative provisions                                                                                             518

340‑5..................... Release from particular liabilities in cases of serious hardship 518

340‑10................... Liabilities to which this section applies........................... 519

340‑15................... Commissioner may take action to give effect to a release decision           521

340‑20................... Extinguishing your liability to pay a fringe benefits tax instalment if you are released             521

340‑25................... Extinguishing your liability to pay a PAYG instalment if you are released              522

Division 342Commissioner’s power relating to proceeds of crime proceedings       523

Guide to Division 342                                                                                            523

342‑1..................... What this Division is about............................................. 523

Subdivision 342‑A—Power to waive right to payment of tax‑related liabilities            523

342‑5..................... Object of this Subdivision.............................................. 523

342‑10................... Power to waive right to payment of tax‑related liability.. 524

Part 4‑90—Evidence                                                                                                 525

Division 350—Evidence                                                                                       525

Guide to Division 350                                                                                            525

350‑1..................... What this Division is about............................................. 525

Subdivision 350‑A—Evidence                                                                             525

350‑5..................... Application of Subdivision............................................. 525

350‑10................... Evidence......................................................................... 525

350‑15................... Judicial notice of signature.............................................. 527

Chapter 5—Administration                                                                                         529

Part 5‑1—The Australian Taxation Office                                                   529

Division 352—Accountability of the Commissioner                                     529

Guide to Division 352                                                                                            529

352‑1..................... What this Division is about............................................. 529

Subdivision 352‑A—Accountability of the Commissioner in respect of indirect tax laws           529

352‑5..................... Commissioner must prepare annual report on indirect tax laws               529

Subdivision 352‑B—Accountability of the Commissioner in respect of MRRT law     530

352‑10................... Commissioner must prepare annual report on MRRT law 530

Division 353—Powers to obtain information and evidence                        531

353‑10................... Commissioner’s power................................................... 531

353‑15................... Access to premises for the purposes of the indirect tax laws, the MRRT law and the Division 293 tax law........................................................................................ 532

353‑17................... Offshore information notices.......................................... 533

353‑20................... Checking status of specifically listed deductible gift recipients                533

Division 355—Confidentiality of taxpayer information                             535

Guide to Division 355                                                                                            535

355‑1..................... What this Division is about............................................. 535

Subdivision 355‑A—Objects and application of Division                            535

355‑10................... Objects of Division......................................................... 536

355‑15................... Application of Division.................................................. 536

Subdivision 355‑B—Disclosure of protected information by taxation officers             537

Guide to Subdivision 355‑B                                                                                 537

355‑20................... What this Subdivision is about....................................... 537

Operative provisions                                                                                             537

355‑25................... Offence—disclosure of protected information by taxation officers          537

355‑30................... Meaning of protected information and taxation officer... 538

355‑35................... Consent is not a defence................................................. 539

355‑40................... Generality of Subdivision not limited............................. 539

355‑45................... Exception—disclosure of publicly available information 539

355‑47................... Exception—disclosure of periodic aggregate tax information  540

355‑50................... Exception—disclosure in performing duties................... 540

355‑55................... Exception—disclosure to Ministers................................ 542

355‑60................... Limits on disclosure to Ministers.................................... 543

355‑65................... Exception—disclosure for other government purposes.. 544

355‑70................... Exception—disclosure for law enforcement and related purposes           556

355‑75................... Limits on disclosure to courts and tribunals.................... 561

Subdivision 355‑C—On‑disclosure of protected information by other people               562

Guide to Subdivision 355‑C                                                                                 562

355‑150................. What this Subdivision is about....................................... 562

Operative provisions                                                                                             562

355‑155................. Offence—on‑disclosure of protected information by other people           562

355‑160................. Consent is not a defence................................................. 563

355‑165................. Generality of Subdivision not limited............................. 563

355‑170................. Exception—on‑disclosure of publicly available information 563

355‑172................. Exception—disclosure of periodic aggregate tax information  564

355‑175................. Exception—on‑disclosure for original purpose.............. 564

355‑180................. Exception—on‑disclosure to Ministers in relation to statutory powers or functions                565

355‑185................. Exception—on‑disclosure in relation to IGIS................. 565

355‑190................. Exception—on‑disclosure in relation to ASIO............... 566

355‑195................. Exception—on‑disclosure by Royal Commissions......... 567

355‑200................. Exception—records made in compliance with Australian laws                567

355‑205................. Limits on on‑disclosure to courts or tribunals................. 568

355‑210................. Limits on on‑disclosure to Ministers.............................. 568

Subdivision 355‑D—Disclosure of protected information that has been unlawfully acquired   569

Guide to Subdivision 355‑D                                                                                 569

355‑260................. What this Subdivision is about....................................... 569

Operative provisions                                                                                             569

355‑265................. Offence—disclosure of protected information acquired in breach of a taxation law 569

355‑270................. Exception—disclosure of publicly available information 570

355‑275................. Exception—disclosure in relation to a taxation law......... 570

355‑280................. Limits on disclosure to courts and tribunals.................... 570

Subdivision 355‑E—Other matters                                                                    571

Guide to Subdivision 355‑E                                                                                 571

355‑320................. What this Subdivision is about....................................... 571

Operative provisions                                                                                             571

355‑325................. Oath or affirmation to protect information...................... 571

355‑330................. Injunctions to prevent contravention of non‑disclosure provisions          572

355‑335................. Procedures for disclosing protected information............. 573

Division 356—General administration of tax laws                                       575

Guide to Division 356                                                                                            575

356‑1..................... What this Division is about............................................. 575

Subdivision 356‑A—Indirect tax laws                                                               575

356‑5..................... Commissioner has general administration of indirect tax laws 575

Part 5‑5—Rulings                                                                                                       576

Division 357—Object and common rules                                                         576

Guide to Division 357                                                                                            576

357‑1..................... What this Division is about............................................. 576

Subdivision 357‑A—Object of this Part                                                            576

357‑5..................... Object of this Part........................................................... 576

Subdivision 357‑B—Common rules for rulings                                             577

Rules for all rulings                                                                                               578

357‑50................... Scope of Division........................................................... 578

357‑55................... The provisions that are relevant for rulings..................... 578

357‑60................... When rulings are binding on the Commissioner............. 579

357‑65................... Stopping relying on a ruling........................................... 581

357‑70................... Commissioner may apply the law if more favourable than the ruling       582

357‑75................... Inconsistent rulings......................................................... 582

357‑80................... Contracts for schemes..................................................... 584

357‑85................... Effect on ruling if relevant provision re‑enacted............. 584

357‑90................... Validity of ruling not affected by formal defect.............. 584

Common rules for public and private rulings                                                584

357‑95................... Electronic communications............................................. 584

357‑100................. Evidence......................................................................... 584

Common rules for private and oral rulings                                                    585

357‑105................. Further information must be sought................................ 585

357‑110................. Assumptions in making private or oral ruling................. 585

357‑115................. Additional information provided by applicant................. 586

357‑120................. Commissioner may take into account information from third parties       586

357‑125................. Applications and objections not to affect obligations and powers            586

Division 358—Public rulings                                                                              587

Guide to Division 358                                                                                            587

358‑1..................... What this Division is about............................................. 587

Making public rulings                                                                                           587

358‑5..................... What is a public ruling?.................................................. 587

358‑10................... Application of public rulings.......................................... 588

358‑15................... When a public ruling ceases to apply.............................. 588

Withdrawing public rulings                                                                                 588

358‑20................... Withdrawing public rulings............................................ 588

Division 359—Private rulings                                                                            590

Guide to Division 359                                                                                            590

359‑1..................... What this Division is about............................................. 590

Private rulings                                                                                                        591

359‑5..................... Private rulings................................................................. 591

359‑10................... Applying for a private ruling.......................................... 591

359‑15................... Private rulings to be given to applicants.......................... 591

359‑20................... Private rulings must contain certain details..................... 591

359‑25................... Time of application of private rulings............................. 592

359‑30................... Ruling for trustee of a trust............................................. 592

359‑35................... Dealing with applications................................................ 592

359‑40................... Valuations....................................................................... 593

359‑45................... Related rulings................................................................ 594

359‑50................... Delays in making private rulings.................................... 594

359‑55................... Revised private rulings................................................... 595

359‑60................... Objections, reviews and appeals relating to private rulings 596

359‑65................... Commissioner may consider new information on objection 597

359‑70................... Successful objection decision alters ruling...................... 597

Division 360—Oral rulings                                                                                 598

Guide to Division 360                                                                                            598

360‑1..................... What this Division is about............................................. 598

Oral rulings                                                                                                             598

360‑5..................... Applying for and making of oral rulings........................ 598

360‑10................... Withdrawing an application for an oral ruling................. 599

360‑15................... Commissioner determinations......................................... 600

Division 361—Non‑ruling advice and general administrative practice  601

361‑5..................... Non‑ruling advice and general administrative practice.... 601

Part 5‑25—Record‑keeping and other obligations of taxpayers      602

Division 382—Record‑keeping                                                                           602

Guide to Division 382                                                                                            602

382‑1..................... What this Division is about............................................. 602

Subdivision 382‑A—Keeping records of indirect tax transactions           602

382‑5..................... Keeping records of indirect tax transactions.................... 602

Subdivision 382‑B—Record keeping obligations of deductible gift recipients               606

382‑15................... Deductible gift recipients to keep records....................... 606

Division 388—Requirements about giving material to the Commissioner 608

Subdivision 388‑A—Object of Division                                                            608

388‑5..................... Object of Division.......................................................... 608

Subdivision 388‑B—General provisions                                                          608

388‑50................... Approved forms............................................................. 608

388‑52................... Saturdays, Sundays and public holidays......................... 609

388‑55................... Commissioner may defer time for lodgment................... 609

388‑60................... Declaration by entity....................................................... 610

388‑65................... Declaration by entity where agent gives document......... 610

388‑70................... Declaration by agent....................................................... 610

388‑75................... Signing declarations........................................................ 611

388‑80................... Electronic notification of BAS amounts.......................... 612

388‑85................... Truncating amounts........................................................ 612

Division 390Superannuation reporting                                                        613

Guide to Division 390                                                                                            613

390‑1..................... What this Division is about............................................. 613

Subdivision 390‑A—Member information statements and roll‑over superannuation benefit statements               613

390‑5..................... Member information statements...................................... 613

390‑10................... Statements about roll‑over superannuation benefits etc... 615

390‑12................... Statements about benefits paid to KiwiSaver schemes.... 617

390‑15................... Superannuation statements to members.......................... 619

Subdivision 390‑BStatements relating to release authorities                 619

390‑65................... Statements relating to release authorities......................... 619

Subdivision 390‑COther statements                                                              621

390‑115................. Change or omission in information given to the Commissioner               621

Division 391—First home saver account reporting                                      622

Guide to Division 391                                                                                            622

391‑1..................... What this Division is about............................................. 622

Subdivision 391‑A—Account activity statements                                           622

391‑5..................... FHSA account activity statements.................................. 622

Subdivision 391‑B—Transfer statements                                                        624

391‑10................... Statements about transfer payments between FHSAs etc. 624

Division 392—Employee share scheme reporting                                         626

Guide to Division 392                                                                                            626

392‑1..................... What this Division is about............................................. 626

Subdivision 392‑A—Statements                                                                          626

392‑5..................... Statements by providers.................................................. 626

392‑10................... Change or omission in information given to the Commissioner               629

Subdivision 392‑B—Miscellaneous                                                                   630

392‑15................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997  630

Division 394Reporting about forestry managed investment schemes  631

Guide to Division 394                                                                                            631

394‑1..................... What this Division is about............................................. 631

394‑5..................... Statements about initial contributions to scheme............. 631

394‑10................... Statements about failure to establish trees within 18 months 632

Division 398—Miscellaneous reporting obligations                                     634

Guide to Division 398                                                                                            634

398‑1..................... What this Division is about............................................. 634

Subdivision 398‑A—Farm Management Deposit reporting                        634

398‑5..................... Reporting to Agriculture Department.............................. 634

Part 5‑30—Payment, ABN and identification verification system   636

Division 400—Guide to Part 5‑30                                                                      636

400‑1..................... What Part 5‑30 is about.................................................. 636

400‑5..................... The payment, ABN and identification verification system 636

Division 405—Transaction reporting by purchasers                                   637

405‑5..................... Payments to which this Division applies........................ 637

405‑10................... Reporting requirements................................................... 637

405‑15................... Invoices produced by purchasers.................................... 638

Division 410—Transaction reporting by suppliers                                       639

410‑5..................... Payments to which this Division applies........................ 639

410‑10................... Reporting requirements................................................... 639

410‑15................... Invoices produced by purchasers.................................... 640

Division 415—Verification of suppliers’ ABNs by purchasers                  641

415‑5..................... Payments to which this Division applies........................ 641

415‑10................... ABN verification requirements....................................... 641

415‑15................... Method of obtaining ABN verification........................... 642

415‑20................... Verification applies to later payments............................. 642

Division 417—Verification of suppliers’ identities by purchasers            643

417‑5..................... Payments to which this Division applies........................ 643

417‑10................... Identity verification requirements.................................... 643

417‑15................... Method of obtaining identity verification........................ 643

417‑20................... Verification applies to later payments............................. 644

Division 420—Penalties for not reporting or verifying                               645

420‑5..................... Failing to report or verify: administrative penalty........... 645

Division 425—Other matters                                                                              646

425‑20................... Constructive payment..................................................... 646

425‑25................... Non‑cash benefits........................................................... 646

Part 5‑35—Registration and similar processes for various taxes    647

Division 426—Process of endorsing charities and other entities               647

Guide to Division 426                                                                                            647

426‑1..................... What this Division is about............................................. 647

Subdivision 426‑A—Application of Subdivision 426‑B to various kinds of endorsement           647

426‑5..................... Application of Subdivision 426‑B to various kinds of endorsement        648

426‑10................... How Subdivision 426‑B applies to government entities in relation to endorsement under section 30‑120 of the Income Tax Assessment Act 1997................................... 648

Subdivision 426‑B—Process of endorsement etc.                                          649

426‑15................... Applying for endorsement.............................................. 649

426‑20................... Dealing with an application for endorsement.................. 650

426‑25................... Notifying outcome of application for endorsement......... 651

426‑30................... Date of effect of endorsement......................................... 651

426‑35................... Review of refusal of endorsement.................................. 651

426‑40................... Checking entitlement to endorsement.............................. 651

426‑45................... Telling Commissioner of loss of entitlement to endorsement 652

426‑50................... Partnerships and unincorporated bodies......................... 653

426‑55................... Revoking endorsement................................................... 653

426‑60................... Review of revocation of endorsement............................. 654

Subdivision 426‑C—Entries on Australian Business Register                    654

426‑65................... Entries on Australian Business Register......................... 655

Subdivision 426‑D—Public and private ancillary funds                              656

Guide to Subdivision 426‑D                                                                                 656

426‑100................. What this Subdivision is about....................................... 656

Public ancillary funds                                                                                           657

426‑102................. Public ancillary funds..................................................... 657

426‑103................. Public ancillary fund guidelines...................................... 658

426‑104................. Australian Business Register must show public ancillary fund status      658

Private ancillary funds                                                                                         659

426‑105................. Private ancillary funds.................................................... 659

426‑110................. Private ancillary fund guidelines..................................... 659

426‑115................. Australian Business Register must show private ancillary fund status     660

Administrative penalties                                                                                       660

426‑120................. Administrative penalties for trustees of ancillary funds.. 660

Suspension and removal of trustees                                                                   662

426‑125................. Suspension or removal of trustees.................................. 662

426‑130................. Commissioner to appoint acting trustee in cases of suspension or removal             663

426‑135................. Terms and conditions of appointment of acting trustee... 664

426‑140................. Termination of appointment of acting trustee.................. 664

426‑145................. Resignation of acting trustee........................................... 664

426‑150................. Property vesting orders................................................... 665

426‑155................. Powers of acting trustee.................................................. 665

426‑160................. Commissioner may give directions to acting trustee....... 665

426‑165................. Property vested in acting trustee—former trustees’ obligations relating to books, identification of property and transfer of property......................................................... 666

Transfers between ancillary funds                                                                    667

426‑170................. Ancillary funds must not provide funds to other ancillary funds             667

Part 5‑45—Application of taxation laws to certain entities                 668

Division 444—Obligations of entities on behalf of other entities              668

Guide to Division 444                                                                                            668

444‑1..................... What this Division is about............................................. 668

Subdivision 444‑A—Unincorporated associations and bodies and companies               668

444‑5..................... Unincorporated associations and bodies......................... 668

444‑10................... Public officers of companies........................................... 669

444‑15................... Notifying and serving companies................................... 670

Subdivision 444‑B—Partnerships                                                                      670

444‑30................... Partnerships.................................................................... 671

Subdivision 444‑C—Superannuation funds                                                     671

444‑50................... Superannuation funds..................................................... 671

Subdivision 444‑D—Incapacitated entities                                                      672

444‑70................... Representatives of incapacitated entities.......................... 672

Subdivision 444‑E—Indirect tax specific entities                                          673

444‑80................... GST joint ventures.......................................................... 673

444‑85................... Non‑profit sub‑entities.................................................... 675

444‑90................... GST groups.................................................................... 676

Subdivision 444‑F—Trusts                                                                                  679

444‑120................. Trusts.............................................................................. 679

Division 446—Local governing bodies                                                            683

Guide to Division                                                                                                    683

446‑1..................... What this Division is about............................................. 683

Operative provisions                                                                                             683

446‑5..................... Requirements for unanimous resolutions by local governing bodies       683

Part 5‑100—Miscellaneous                                                                                    687

Division 850—Transactions exempt from application of taxation laws 687

Subdivision 850‑A—Declaration relating to security or intelligence agency 687

850‑100................. Declaration relating to security or intelligence agency..... 687

 


Schedule 1Collection and recovery of income tax and other liabilities

Note:       See section 3AA.

Chapter 2Collection, recovery and administration of income tax

Part 2‑1Introduction to the Pay as you go (PAYG) system

Division 6Guide to Parts 2‑5 and 2‑10

6‑1  What Parts 2‑5 and 2‑10 are about

To help taxpayers meet their annual income tax liability, they are required to pay amounts of their income at regular intervals as it is earned during the year. The system for collecting these amounts is called “Pay as you go”.

Amounts collected under this system also go towards meeting liability for Medicare levy, liability to repay contributions under the Higher Education Contribution Scheme (HECS), liability to repay debts under the Higher Education Loan Program (HELP) and liability to repay financial supplement debts under the Student Financial Supplement Scheme (SFSS).

Table of sections

6‑5            The Pay as you go (PAYG) system

6‑10          How the amounts collected are dealt with

6‑5  The Pay as you go (PAYG) system

             (1)  Parts 2‑5 and 2‑10 establish the PAYG system, which has 2 components:

                        •  PAYG withholding (Part 2‑5)

                        •  PAYG instalments (Part 2‑10).

PAYG withholding

             (2)  Under PAYG withholding, amounts are collected in respect of particular kinds of payments or transactions. Usually, someone who makes a payment to you is required to withhold an amount from the payment, and then to pay the amount to the Commissioner.

For a list of the payments and other transactions to which
PAYG withholding applies, see Division 10

PAYG instalments

             (3)  You pay PAYG instalments directly to the Commissioner. These are usually based on your GDP‑adjusted notional tax or your ordinary income for a past period, but excluding:

                        •  income subject to PAYG withholding (with certain exceptions)

                        •  exempt income, or income that is otherwise not assessable.

An instalment is usually paid after a quarter, but some taxpayers are eligible to pay an annual instalment after the end of the income year.

6‑10  How the amounts collected are dealt with

                   You are entitled to credits for the amounts of your income that are collected under the PAYG system. The credits are applied under Division 3 of Part IIB against your tax debts, and any excess is refunded to you.

Part 2‑5Pay as you go (PAYG) withholding

Division 10Guide to Part 2‑5

10‑1  What this Part is about

Under PAYG withholding, amounts are collected in respect of particular kinds of payments or transactions. Usually, someone who makes a payment to you is required to withhold an amount from the payment, and then to pay the amount to the Commissioner. If the payment is personal services income that is included in the assessable income of someone else under Division 86 of the Income Tax Assessment Act 1997, the payer must pay such an amount to the Commissioner at a later date.

If a non‑cash benefit is provided instead of a payment, the provider must first pay to the Commissioner the amount that would have been withheld from the payment.

This Part also contains provisions about the obligations and rights of payers and recipients.

10‑5  Summary of withholding payments

             (1)  The payments and other transactions covered by PAYG withholding are called withholding payments. They are summarised in the table.

Note:          The obligation to pay an amount to the Commissioner is imposed on the entity making the withholding payment (except for items 17, 19 and 22, and 26 (to the extent that it covers subsection 12‑390(4))).

 

Summary of withholding payments

Item

Withholding payment

Section

1

A payment of salary etc. to an employee

12‑35

2

A payment of remuneration to the director of a company

12‑40

3

A payment of salary etc. to an office holder (e.g. a member of the Defence Force)

12‑45

3A

a payment to a *religious practitioner

12‑47

4

A return to work payment to an individual

12‑50

5

A payment that is covered by a voluntary agreement

12‑55

6

A payment under a labour hire arrangement or a payment specified by regulations

12‑60

7

A *superannuation income stream or an annuity

12‑80

8

A *superannuation lump sum or a payment for termination of employment

12‑85

9

An unused leave payment

12‑90

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