Contents
Part I—Preliminary 1
1............................ Short title............................................................................ 1
2............................ Interpretation....................................................................... 1
2A......................... Application of the Criminal Code....................................... 3
2B.......................... Act binds the Crown........................................................... 3
3............................ Application......................................................................... 4
3AA...................... Schedule 1.......................................................................... 4
Part IA—Administration 5
3A......................... General administration of Act............................................. 5
3B.......................... Annual report...................................................................... 5
3C.......................... Reporting of information about corporate tax entity with reported total income of $100 million or more............................................................................................ 6
3CA....................... Reporting of information by significant global entities....... 8
3E.......................... Reporting of information about entity with PRRT payable. 9
Part II—Commissioner of Taxation, Second Commissioner of Taxation and Deputy Commissioner of Taxation 11
4............................ Commissioner and Second Commissioners of Taxation... 11
4A......................... Statutory Agency etc. for purposes of Public Service Act 11
5............................ Tenure of Commissioner and Second Commissioners..... 11
5A......................... Remuneration and allowances of Commissioner and Second Commissioners 11
6............................ Leave of absence............................................................... 12
6A......................... Resignation....................................................................... 12
6B.......................... Acting appointments......................................................... 12
6C.......................... Suspension and removal from office of Commissioner or Second Commissioner 13
6D......................... Powers of Second Commissioner..................................... 15
7............................ Deputy Commissioners of Taxation................................. 15
8............................ Delegation......................................................................... 16
Part IIA—The general interest charge 17
8AAA................... Overview.......................................................................... 17
8AAB.................... When the general interest charge applies........................... 17
8AAC.................... Amount of the general interest charge............................... 23
8AAD................... What is the general interest charge rate?......................... 23
8AAE.................... When the charge is due and payable................................. 24
8AAF.................... Notification by Commissioner.......................................... 24
8AAG................... Remission of the charge.................................................... 25
8AAGA................ Rounding of the charge..................................................... 26
8AAH................... Judgment for payment of an unpaid amount..................... 26
Part IIB—Running balance accounts, application of payments and credits, and related matters 27
Division 1—Preliminary 27
8AAZA................. Definitions........................................................................ 27
8AAZB................. Trustee to be treated as separate entity for each capacity... 29
Division 2—Running Balance Accounts (or RBAs) 30
8AAZC................. Establishment of RBAs.................................................... 30
8AAZD................. Allocation of tax debts to RBAs....................................... 30
8AAZF.................. General interest charge on RBA deficit debt..................... 31
8AAZG................. RBA statements................................................................ 31
8AAZH................. Liability for RBA deficit debt........................................... 31
8AAZI................... RBA statement to be evidence.......................................... 32
8AAZJ.................. Evidentiary certificate about RBA transactions etc............ 32
Division 3—Treatment of payments, credits and RBA surpluses 34
8AAZL.................. Amounts covered by this Division................................... 34
8AAZLA............... Method 1—allocating the amount first to an RBA............ 35
8AAZLB............... Method 2—applying the amount first against a non‑RBA tax debt 35
8AAZLC............... RBA surplus and related credits must remain equivalent if one or the other is applied 36
8AAZLD............... Special priority credits...................................................... 36
8AAZLE............... Instructions to Commissioner not binding........................ 37
Division 3A—Refunds of RBA surpluses and credits 38
8AAZLF............... Commissioner must refund RBA surpluses and credits... 38
8AAZLG............... Retaining refunds until information or notification given.. 39
8AAZLGA............ Retaining refunds while Commissioner verifies information 39
8AAZLGB............ Retaining refunds until notification under Division 389 or ascertainment of liability 42
8AAZLH............... How refunds are made...................................................... 44
Division 4—Miscellaneous provisions about tax debts 45
8AAZM................ When payments are treated as received............................. 45
8AAZMA............. Electronic payment of tax debts........................................ 45
8AAZMB.............. Saturdays, Sundays and public holidays........................... 45
8AAZN................. Overpayments made by the Commissioner under taxation laws 46
Part III—Prosecutions and offences 47
Division 1—Preliminary 47
8A......................... Interpretation..................................................................... 47
8AB....................... Application of Part to the Development Allowance Authority Act 1992 48
8AC....................... Application of Part to the Tax Agent Services Act 2009.... 49
Division 2—Offences 50
Subdivision A—Failure to comply with taxation requirements 50
8B.......................... Interpretation..................................................................... 50
8C.......................... Failure to comply with requirements under taxation law... 51
8D......................... Failure to answer questions when attending before the Commissioner etc. 52
8E.......................... Penalties for failure to comply with requirements under taxation law 52
8F.......................... Election to treat offence otherwise than as prescribed taxation offence 53
8G......................... Order to comply with requirement.................................... 53
8H......................... Penalty for failure to comply with order to comply........... 54
8HA...................... Court may order payment of amount in addition to penalty 55
Subdivision B—Offences relating to statements, records and certain other Acts 55
8J........................... Interpretation..................................................................... 55
8K.......................... False or misleading statements.......................................... 62
8L.......................... Incorrectly keeping records etc......................................... 63
8M......................... Penalties for offences against subsections 8K(1) and (1B) and 8L(1) and (1A) 65
8N......................... Recklessly making false or misleading statements............ 65
8Q......................... Recklessly incorrectly keeping records etc........................ 66
8R.......................... Penalties for offences against sections 8N and 8Q........... 67
8S.......................... Election to treat offence otherwise than as prescribed taxation offence 67
8T.......................... Incorrectly keeping records with intention of deceiving or misleading etc. 68
8U......................... Falsifying or concealing identity with intention of deceiving or misleading etc. 69
8V......................... Penalties for offences against sections 8T and 8U............ 69
8W......................... Court may order payment of amount in addition to penalty 70
Subdivision BA—Offences relating to tax file numbers 74
8WA...................... Unauthorised requirement etc. that tax file number be quoted 74
8WB...................... Unauthorised recording etc. of tax file number................. 75
8WC...................... Conducting affairs so as to avoid tax file number requirements 76
Subdivision C—Miscellaneous 77
8XA...................... Unauthorised access to taxation records........................... 77
8Y......................... Liability of officers etc. of corporations............................ 78
8Z.......................... Evidentiary certificate relating to previous convictions..... 79
Division 3—Prosecution of taxation offences 81
8ZA....................... Prosecution of taxation offences....................................... 81
8ZB....................... Prosecution may be commenced at any time..................... 82
8ZC....................... Place where offence committed......................................... 82
8ZD....................... Conduct by employees or agents of corporations............. 83
8ZE........................ Civil penalty not payable if prosecution instituted............. 83
8ZF........................ Penalties for corporations................................................. 84
8ZG....................... Enforcement of orders for payment.................................. 84
8ZH....................... Penalties not to relieve from tax........................................ 85
Division 4—Prescribed taxation offences 86
8ZJ........................ Prosecution of prescribed taxation offences...................... 86
8ZK....................... Protection of witnesses..................................................... 87
8ZL........................ Averment.......................................................................... 88
8ZM...................... Evidence of authority to institute proceedings................... 88
8ZN....................... Costs................................................................................. 89
Division 5—Service of summons for prescribed taxation offences 90
9............................ Interpretation..................................................................... 90
10.......................... Service of summons by post............................................. 90
11.......................... Notice of conviction in absentia....................................... 91
12.......................... Notice of intention to issue warrant in default of payment 91
13.......................... Limitation of action to enforce payment of fine................. 92
13A....................... Setting aside of conviction or order.................................. 92
13B........................ Proof of service of summons or notice............................. 95
13C........................ Application of other laws.................................................. 95
Division 6—Setting aside etc. of conviction or order on application of Commissioner 96
13CA..................... Setting aside etc. of conviction or order on application of Commissioner 96
Part IIIA—Co‑operation between Commonwealth and State taxation authorities 98
Division 1—Interpretation 98
13D....................... Interpretation..................................................................... 98
Division 2—Trans‑border investigations 100
13E........................ State taxation officers may refer matters to Commissioner for investigation 100
13F........................ Access to documents etc................................................. 100
13G....................... Commissioner may obtain information and evidence...... 101
Division 4—Certification by State taxation officer of copies of, and extracts from, documents 102
13K........................ Certification by State taxation officer of copies of, and extracts from, documents 102
Division 5—Australian Taxation Office may perform functions under State/Territory debits tax laws 105
13L........................ Australian Taxation Office may perform functions under State/Territory debits tax laws 105
Part IVA—Departure from Australia of certain tax debtors 107
Division 1—Interpretation 107
14Q....................... Interpretation................................................................... 107
Division 2—Prohibition and authorisation of departure of certain tax debtors 108
14R........................ Departure from Australia of certain tax debtors prohibited 108
14S........................ Departure prohibition orders........................................... 108
14T........................ Revocation and variation of departure prohibition orders 109
14U....................... Departure authorisation certificates................................. 111
Division 3—Appeals from, and review of, decisions of the Commissioner 113
14V....................... Appeals to courts against making of departure prohibition orders 113
14W....................... Jurisdiction of courts...................................................... 113
14X....................... Orders of court on appeal............................................... 113
14Y....................... Applications for review of certain decisions................... 114
Division 4—Enforcement 115
14Z........................ Powers of authorised officers......................................... 115
14ZA..................... Certain tax debtors to produce authority to depart etc..... 116
Part IVC—Taxation objections, reviews and appeals 117
Division 1—Introduction 117
14ZL...................... Part applies to taxation objections................................... 117
14ZM.................... Division 2—Interpretive................................................. 117
14ZN..................... Division 3—Taxation objections.................................... 117
14ZO..................... Division 4—Tribunal review.......................................... 117
14ZP...................... Division 5—Federal Court appeals................................. 117
Division 2—Interpretive provisions 118
14ZQ..................... General interpretation provisions.................................... 118
14ZR..................... Taxation decisions covered by single notice to be treated as single decision 119
14ZS...................... Ineligible income tax remission decisions....................... 120
Division 3—Taxation objections 121
14ZU..................... How taxation objections are to be made.......................... 121
14ZV..................... Limited objection rights in the case of certain amended taxation decisions 121
14ZVA.................. Limited objection rights because of other objections....... 121
14ZVB.................. Objections relating to excess concessional contributions 122
14ZVC.................. Objections relating to non‑concessional contributions.... 123
14ZW.................... When taxation objections are to be made........................ 124
14ZX..................... Commissioner to consider applications for extension of time 131
14ZY..................... Commissioner to decide taxation objections................... 131
14ZYA.................. Person may require Commissioner to make an objection decision 132
14ZYB.................. Requiring Commissioner to make a private ruling.......... 133
14ZZ...................... Person may seek review of, or appeal against, Commissioner’s decision 133
Division 4—AAT review of objection decisions and extension of time refusal decisions 135
14ZZA................... Modified AAT Act to apply........................................... 135
14ZZB................... Sections 27, 28, 41 and 44A of the AAT Act not to apply to certain decisions 135
14ZZC................... Modification of section 29 of the AAT Act.................... 135
14ZZD................... Modification of section 30 of the AAT Act.................... 136
14ZZE................... Hearings before Tribunal to be held in private if applicant so requests 136
14ZZF................... Modification of section 37 of the AAT Act.................... 136
14ZZG................... Modification of section 38 of the AAT Act.................... 138
14ZZJ.................... Modification of section 43 of the AAT Act.................... 138
14ZZK................... Grounds of objection and burden of proof..................... 139
14ZZL................... Implementation of Tribunal decisions............................. 139
14ZZM.................. Pending review not to affect implementation of taxation decisions 139
Division 5—Court appeals against objection decisions 140
14ZZN................... Time limit for appeals..................................................... 140
14ZZO................... Grounds of objection and burden of proof..................... 140
14ZZP................... Order of court on objection decision............................... 140
14ZZQ................... Implementation of court order in respect of objection decision 140
14ZZR................... Pending appeal not to affect implementation of taxation decisions 141
14ZZS................... Transfer of certain proceedings to Family Court............. 141
Part V—Miscellaneous 144
15.......................... Appearance by Commissioner etc................................... 144
15A....................... Certification by Commissioner of copies of, and extracts from, documents 145
15B........................ Recoverable advances..................................................... 147
15C........................ Recoverable payments.................................................... 149
15D....................... Reports about recoverable advances and recoverable payments 150
16.......................... Payments out of Consolidated Revenue Fund................ 152
16A....................... Regulations may provide for methods of payment of tax liabilities etc. 153
16B........................ Certain liabilities to be reduced to nearest multiple of 5 cents.. 154
17.......................... Powers of taxation officers in relation to references to currency etc. 154
17A....................... Powers of Federal Court and Federal Circuit Court in respect of taxation matters 155
18.......................... Regulations..................................................................... 156
Schedule 1—Collection and recovery of income tax and other liabilities 157
Chapter 2—Collection, recovery and administration of income tax 157
Part 2‑1—Introduction to the Pay as you go (PAYG) system 157
Division 6—Guide to Parts 2‑5 and 2‑10 157
6‑1......................... What Parts 2‑5 and 2‑10 are about.................................. 157
6‑5......................... The Pay as you go (PAYG) system............................... 157
6‑10....................... How the amounts collected are dealt with....................... 158
Part 2‑5—Pay as you go (PAYG) withholding 159
Division 10—Guide to Part 2‑5 159
10‑1....................... What this Part is about.................................................... 159
10‑5....................... Summary of withholding payments................................ 159
Division 11—Preliminary matters 162
11‑1....................... Object of this Part........................................................... 162
11‑5....................... Constructive payment..................................................... 162
Division 12—Payments from which amounts must be withheld 164
Subdivision 12‑A—General rules 164
12‑1....................... General exceptions.......................................................... 164
12‑5....................... What to do if more than one provision requires a withholding 165
12‑7....................... Division does not apply to alienated personal services payments 167
12‑10..................... Division does not apply to non‑cash benefits................. 168
12‑20..................... Application of Division and regulations to non‑share dividends 168
Subdivision 12‑B—Payments for work and services 168
12‑35..................... Payment to employee...................................................... 168
12‑40..................... Payment to company director.......................................... 169
12‑45..................... Payment to office holder................................................. 169
12‑47..................... Payment to religious practitioners................................... 170
12‑50..................... Return to work payment................................................. 170
12‑55..................... Voluntary agreement to withhold.................................... 170
12‑60..................... Payment under labour hire arrangement, or specified by regulations 171
Subdivision 12‑C—Payments for retirement or because of termination of employment 172
12‑80..................... Superannuation income streams and annuities................ 172
12‑85..................... Superannuation lump sums and payments for termination of employment 172
12‑90..................... Unused leave payments.................................................. 172
Subdivision 12‑D—Benefit and compensation payments 173
12‑110................... Social Security or other benefit payment......................... 173
12‑115................... Commonwealth education or training payment............... 174
12‑120................... Compensation, sickness or accident payment................. 174
Subdivision 12‑E—Payments where TFN or ABN not quoted 174
Payment in respect of investment 175
12‑140................... Recipient does not quote tax file number........................ 175
12‑145................... Investor becoming presently entitled to income of a unit trust 176
12‑150................... Limited application of section 12‑140 to payment under financial arrangement 176
12‑155................... When investor may quote ABN as alternative................ 177
12‑160................... Investment body unaware that exemption from quoting TFN has stopped applying 178
12‑165................... Exception for fully franked dividend.............................. 178
12‑170................... Exception for payments below thresholds set by regulations 178
Payment of income of closely held trust where TFN not quoted 179
12‑175................... Trustee distributes income of closely held trust.............. 179
12‑180................... Beneficiary becomes presently entitled to income of closely held trust 181
12‑185................... Exception for payments below thresholds set by regulations 182
Payment for a supply 182
12‑190................... Recipient does not quote ABN....................................... 182
Subdivision 12‑F—Dividend, interest and royalty payments 185
Dividends 186
12‑210................... Dividend payment to overseas person............................ 186
12‑215................... Dividend payment received for foreign resident............. 187
12‑220................... Application to part of a dividend..................................... 187
12‑225................... Application to distribution by a liquidator or other person 187
Interest 188
12‑245................... Interest payment to overseas person............................... 188
12‑250................... Interest payment received for foreign resident................ 188
12‑255................... Interest payment derived by lender in carrying on business through overseas permanent establishment 189
12‑260................... Lender to notify borrower if interest derived through overseas permanent establishment 189
Royalties 190
12‑280................... Royalty payment to overseas person............................... 190
12‑285................... Royalty payment received for foreign resident................ 190
General 191
12‑300................... Limits on amount withheld under this Subdivision......... 191
Subdivision 12‑FA—Departing Australia superannuation payments 192
12‑305................... Departing Australia superannuation payment................. 192
12‑310................... Limits on amount withheld under this Subdivision......... 192
Subdivision 12‑FAA—Excess untaxed roll‑over amount 192
12‑312................... Untaxed roll‑over superannuation benefits..................... 192
12‑313................... Limits on amount withheld under this Subdivision......... 193
Subdivision 12‑FB—Payments to foreign residents etc. 193
12‑315................... Payment to foreign resident etc....................................... 193
12‑317................... Payment received for foreign resident etc....................... 195
12‑319................... Exemptions from withholding obligations under this Subdivision 196
Subdivision 12‑FC—Seasonal Labour Mobility Program 197
12‑319A................ Payment to employee...................................................... 197
Subdivision 12‑G—Payments in respect of mining on Aboriginal land, and natural resources 197
Mining on Aboriginal land 198
12‑320................... Mining payment.............................................................. 198
Natural resources 198
12‑325................... Natural resource payment............................................... 198
12‑330................... Payer must ask Commissioner how much to withhold... 199
12‑335................... Commissioner may exempt from section 12‑330, subject to conditions 200
Subdivision 12‑H—Distributions of withholding MIT income 201
Guide to Subdivision 12‑H 201
12‑375................... What this Subdivision is about....................................... 201
Operative provisions 202
12‑383................... Meaning of withholding MIT.......................................... 202
12‑385................... Withholding by withholding MITs................................. 203
12‑390................... Withholding by custodians and other entities.................. 204
12‑395................... Requirement to give notice or make information available 208
12‑405................... Meaning of fund payment—general case........................ 210
12‑410................... Entity to whom payment is made.................................... 212
12‑415................... Failure to give notice or make information available: administrative penalty 213
12‑420................... Agency rules................................................................... 213
12‑425................... Meaning of clean building managed investment trust.... 214
12‑430................... Meaning of clean building.............................................. 214
Division 12A—Distributions by AMITs (including deemed payments) 217
Guide to Division 12A 217
12A‑1.................... What this Division is about............................................. 217
Subdivision 12A‑A—Distributions by AMITs relating to dividend, interest and royalties 218
Guide to Subdivision 12A‑A 218
12A‑5.................... What this Subdivision is about....................................... 218
Operative provisions 218
12A‑10.................. Deemed payments—no obligation to withhold under Subdivision 12‑F (dividend, interest and royalty payments)....................................................................... 218
12A‑15.................. Dividend, interest or royalty payments relating to AMIT—requirement to give notice or make information available.......................................................................... 219
12A‑20.................. Failure to give notice or make information available under section 12A‑15: administrative penalty 222
12A‑25.................. Meaning of AMIT DIR payment..................................... 222
12A‑30.................. Meaning of AMIT dividend payment.............................. 223
12A‑35.................. Meaning of AMIT interest payment................................ 224
12A‑40.................. Meaning of AMIT royalty payment................................. 225
Subdivision 12A‑B—Distributions by AMITs relating to Subdivision 12‑H fund payments 226
Guide to Subdivision 12A‑B 226
12A‑100................ What this Subdivision is about....................................... 226
Operative provisions 226
12A‑105................ Deemed payments—no obligation to withhold under Subdivision 12‑H 226
12A‑110................ Meaning of fund payment—AMITs............................... 227
Subdivision 12A‑C—Deemed payments by AMITs etc. 230
Guide to Subdivision 12A‑C 230
12A‑200................ What this Subdivision is about....................................... 230
Operative provisions 231
12A‑205................ Issue of AMMA statement etc. deemed to be payment... 231
12A‑210................ Post‑AMMA actual payment and pre‑AMMA actual payment in respect of deemed payment 233
12A‑215................ AMIT payment to the Commissioner in respect of deemed payments to offshore entities etc. 234
12A‑220................ Custodian payment to the Commissioner in respect of deemed payments to offshore entities etc. 236
Division 13—Alienated personal services payments 239
13‑1....................... Object of this Division.................................................... 239
13‑5....................... Payment to the Commissioner in respect of alienated personal services payments 239
13‑10..................... Alienated personal services payments............................. 242
13‑15..................... Personal services payment remitters............................... 243
13‑20..................... Time for payments to Commissioner for alienated personal services payments made during 2000‑01 244
Division 14—Non‑cash benefits, and accruing gains, for which amounts must be paid to the Commissioner 245
Subdivision 14‑A—Non‑cash benefits 245
14‑1....................... Object of this Subdivision.............................................. 245
14‑5....................... Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding..................................................................... 245
14‑10..................... Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit 246
14‑15..................... Payer can recover amount paid to the Commissioner...... 247
Subdivision 14‑B—Accruing gains 247
14‑50..................... Object of this Subdivision.............................................. 247
14‑55..................... Liability for TFN withholding tax................................... 248
14‑60..................... Investment body may recover TFN withholding tax from investor 249
14‑65..................... Application of rules in Division 18................................. 249
14‑75..................... Overpayment of TFN withholding tax............................ 250
14‑85..................... Other laws do not exempt from TFN withholding tax.... 250
Subdivision 14‑C—Shares and rights under employee share schemes 251
14‑155................... Liability for TFN withholding tax (ESS)........................ 251
14‑160................... Employer may give individual tax file numbers to provider 252
14‑165................... Provider may recover TFN withholding tax (ESS) from individual 253
14‑170................... Application of rules in Division 18................................. 253
14‑175................... Overpayment of TFN withholding tax (ESS)................. 253
14‑180................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997 253
Subdivision 14‑D—Capital proceeds involving foreign residents and taxable Australian property 254
14‑200................... Certain acquisitions of taxable Australian property from foreign residents 254
14‑205................... Effect of look‑through earnout rights.............................. 255
14‑210................... Whether an entity is a relevant foreign resident............... 256
14‑215................... Excluded transactions..................................................... 258
14‑220................... Commissioner clearance certificates................................ 260
14‑225................... Entity declarations........................................................... 261
14‑230................... Administrative penalties for false or misleading declarations 261
14‑235................... Varying amounts to be paid to the Commissioner.......... 263
Division 15—Working out the amount to withhold 264
Guide to Division 15 264
15‑1....................... What this Division is about............................................. 264
Subdivision 15‑A—Working out how much to withhold 264
15‑10..................... How much to withhold................................................... 265
15‑15..................... Variation of amounts required to be withheld................. 265
Subdivision 15‑B—Withholding schedules and regulations 266
15‑25..................... Commissioner’s power to make withholding schedules. 266
15‑30..................... Matters to be considered when making withholding schedules 267
15‑35..................... Regulations about withholding....................................... 268
Subdivision 15‑C—Declarations 269
15‑50..................... Declarations.................................................................... 269
Division 16—Payer’s obligations and rights 271
Guide to Division 16 271
16‑1....................... What this Division is about............................................. 271
Subdivision 16‑A—To withhold 271
When to withhold 272
16‑5....................... When to withhold an amount.......................................... 272
16‑7....................... Treat entity obliged to pay under Subdivision 12A‑C as having withheld amount under Division 12 272
16‑20..................... Payer discharged from liability to recipient for amount withheld 273
Penalties for not withholding 273
16‑25..................... Failure to withhold: offence............................................ 273
16‑30..................... Failure to withhold: administrative penalty for entity other than exempt Australian government agency 274
16‑35..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment other than dividend, interest or royalty............................ 274
16‑40..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment.............................................. 275
16‑43..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment to foreign resident etc.......................................................... 276
Subdivision 16‑B—To pay withheld amounts to the Commissioner 276
When and how to pay amounts to the Commissioner 277
16‑70..................... Entity to pay amounts to Commissioner......................... 277
16‑75..................... When amounts must be paid to Commissioner............... 277
16‑80..................... Penalty for failure to pay within time.............................. 279
16‑85..................... How amounts are to be paid........................................... 279
Who is a large, medium or small withholder 280
16‑95..................... Meaning of large withholder.......................................... 280
16‑100................... Meaning of medium withholder...................................... 281
16‑105................... Meaning of small withholder.......................................... 282
16‑110................... Commissioner may vary withholder’s status downwards 282
16‑115................... Commissioner may vary withholder’s status upwards... 282
Subdivision 16‑BA—To be registered 284
Registration of withholders 284
16‑140................... Withholders must be registered....................................... 284
16‑141................... Registration and cancellation........................................... 285
Branch registration 285
16‑142................... Branches may be registered............................................ 285
16‑143................... Separate amounts for entities and branches..................... 286
16‑144................... Cancellation of branch registration.................................. 287
16‑145................... Effect on branches of cancelling the entity’s registration 287
Subdivision 16‑C—To provide information 287
To the Commissioner 288
16‑150................... Commissioner must be notified of amounts.................... 288
16‑152................... Annual reports—Withholding payments covered by section 12‑175 288
16‑153................... Annual reports—other payments.................................... 289
To recipients of withholding payments 292
16‑155................... Annual payment summary.............................................. 292
16‑156................... Annual payment summary for sections 12‑175 and 12‑180 294
16‑157................... Payment summary for Subdivision 12‑H....................... 294
16‑160................... Part‑year payment summary........................................... 295
16‑165................... Payment summaries for superannuation lump sums and payments for termination of employment 296
16‑166................... Payment summary for a departing Australia superannuation payment 297
16‑167................... Payment summary for payment to recipient who does not quote ABN 297
16‑170................... Form and content of payment summary.......................... 297
16‑175................... Penalty for not providing payment summary.................. 299
16‑180................... Commissioner may exempt entity from giving payment summary 299
16‑182................... Definition of reportable employer superannuation contribution 300
Subdivision 16‑D—Additional rights and obligations of entity that makes a payment 301
16‑195................... Payer’s right to recover amounts of penalty: certain withholding taxes 301
Division 18—Recipient’s entitlements and obligations 303
Subdivision 18‑A—Crediting withheld amounts 303
Guide to Subdivision 18‑A 303
18‑1....................... What this Subdivision is about....................................... 303
General exception 304
18‑5....................... No credit for refunded amount........................................ 304
Entitlement to credits: income tax liability 305
18‑10..................... Application of sections 18‑15, 18‑20 and 18‑25............. 305
18‑15..................... Tax credit for recipient of withholding payments............ 305
18‑20..................... Tax credit where recipient is a partnership...................... 306
18‑25..................... Tax credit where recipient is a trust................................. 307
18‑27..................... Tax credit for alienated personal services payments........ 309
Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or Seasonal Labour Mobility Program 309
18‑30..................... Credit: dividend, interest or royalty................................. 309
18‑32..................... Credit: amount attributable to fund payment................... 310
18‑33..................... Credit: Seasonal Labour Mobility Program.................... 311
18‑35..................... Credit: penalty under section 12‑415, 16‑30, 16‑35 or 16‑40 or related general interest charge 311
18‑40..................... Credit: liability under Part 4‑25....................................... 313
Entitlement to credit: departing Australia superannuation payment 314
18‑42..................... Credit—departing Australia superannuation payment..... 314
Entitlement to credit: mining payment 315
18‑45..................... Credit—mining payment................................................. 315
Entitlement to credit: Petroleum resource rent tax 316
18‑55..................... Credit—Natural resource payments................................ 316
Subdivision 18‑B—Refund of certain withheld amounts 317
18‑65..................... Refund of withheld amounts by the payer to the recipient 317
18‑70..................... Refund of withheld amounts by the Commissioner to the recipient 320
18‑80..................... Refund by Commissioner of amount withheld from payment in respect of investment 322
Subdivision 18‑C—Recipient’s obligations 323
18‑100................... Obligation to keep payment summary............................. 323
Subdivision 18‑D—Directors etc. of non‑complying companies 323
Object of Subdivision 324
18‑120................... Object of Subdivision..................................................... 324
PAYG withholding non‑compliance tax 324
18‑125................... Directors of non‑complying companies.......................... 324
18‑130................... Directors of non‑complying companies—tax reduced in certain circumstances 326
18‑135................... Associates of directors of non‑complying companies..... 328
18‑140................... Notices............................................................................ 331
18‑145................... When PAYG withholding non‑compliance tax must be paid.. 333
18‑150................... General interest charge payable on unpaid PAYG withholding non‑compliance tax 333
18‑155................... Validity of decisions and evidence.................................. 334
18‑160................... Rights of indemnity and contribution.............................. 334
Credits for later compliance 335
18‑165................... Credits for later compliance—scope............................... 335
18‑170................... Credits for later compliance—Commissioner must give notice in certain circumstances 336
18‑175................... Credits for later compliance—Commissioner may give notice 337
18‑180................... Effect of earlier credits.................................................... 338
Other provisions 339
18‑185................... When Commissioner may give notice............................. 339
18‑190................... Review of decisions........................................................ 340
Division 20—Other matters 341
Subdivision 20‑B—Offences 341
20‑35..................... Offences......................................................................... 341
20‑40..................... Joining of charges........................................................... 342
20‑45..................... Offences that would otherwise be committed by a partnership or unincorporated company 343
Subdivision 20‑D—Review of decisions 344
20‑80..................... Reviewable decisions...................................................... 344
Division 21—Entitlements relating to insolvent ADIs and general insurers 346
Guide to Division 21 347
21‑1....................... What this Division is about............................................. 346
Subdivision 21‑A—Treatment of some payments by APRA 346
21‑5....................... APRA treated like ADI or general insurance company.. 346
Part 2‑10—Pay as you go (PAYG) instalments 348
Division 45—Instalment payments 348
Guide to Division 45 350
45‑1....................... What this Division is about............................................. 349
Subdivision 45‑A—Basic rules 350
45‑5....................... Object of this Part........................................................... 350
45‑10..................... Application of Part.......................................................... 352
45‑15..................... Liability for instalments.................................................. 352
45‑20..................... Information to be given to the Commissioner by certain payers 353
45‑25..................... Penalty for failure to notify Commissioner..................... 353
45‑30..................... Credit for instalments payable......................................... 354
Subdivision 45‑B—When instalments are due 355
45‑50..................... Liability to pay instalments............................................. 355
45‑60..................... Meaning of instalment quarter....................................... 356
45‑61..................... When quarterly instalments are due—payers of quarterly instalments 356
45‑65..................... Meaning of instalment month......................................... 357
45‑67..................... When monthly instalments are due—payers of monthly instalments 358
45‑70..................... When annual instalments are due.................................... 358
45‑72..................... Means of payment of instalment..................................... 359
45‑75..................... Instalments recoverable in same way as income tax........ 359
45‑80..................... General interest charge on late payment.......................... 359
45‑90..................... Commissioner may withdraw instalment rate................. 359
Subdivision 45‑C—Working out instalment amounts 360
45‑110................... How to work out amount of quarterly instalment on instalment income basis 360
45‑112................... Amount of instalment for quarterly payer who pays on basis of GDP‑adjusted notional tax 361
45‑114................... How to work out amount of monthly instalment............ 362
45‑115................... How to work out amount of annual instalment............... 363
45‑120................... Meaning of instalment income........................................ 364
Subdivision 45‑D—Quarterly payers 368
45‑125................... Quarterly payer who pays instalments on the basis of instalment income 368
45‑130................... Quarterly payer who pays on the basis of GDP‑adjusted notional tax 370
45‑132................... Quarterly payer who pays 4 instalments annually on the basis of GDP‑adjusted notional tax 372
45‑134................... Quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax 373
Subdivision 45‑DA—Monthly payers 374
45‑136................... Monthly payer................................................................ 374
45‑138................... Monthly payer requirement............................................. 375
Subdivision 45‑E—Annual payers 377
When you start and stop being an annual payer 377
45‑140................... Choosing to pay annual instalments................................ 377
45‑145................... Meaning of instalment group......................................... 379
45‑150................... Entity stops being annual payer if involved with GST registration or instalment group 380
45‑155................... Entity stops being annual payer if notional tax is $8,000 or more, or entity chooses to pay quarterly 381
45‑160................... Head company of a consolidated group stops being annual payer 381
Subdivision 45‑F—Varying the instalment rate for quarterly or monthly payers who pay on the basis of instalment income 382
45‑200................... Application..................................................................... 382
45‑205................... Choosing a varied instalment rate................................... 383
45‑210................... Notifying Commissioner of varied instalment rate.......... 384
45‑215................... Credit on using varied rate in certain cases..................... 384
Subdivision 45‑G—General interest charge payable in certain cases if instalments are too low 385
45‑225................... Effect of Subdivision in relation to monthly payers........ 385
45‑230................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of varied rate 385
45‑232................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated benchmark tax........................................................................................ 387
45‑233................... Reduction in GIC liability under section 45‑232 if shortfall is made up in later instalment 396
45‑235................... Liability to GIC on shortfall in annual instalment........... 397
45‑240................... Commissioner may remit general interest charge............ 399
Subdivision 45‑H—Partnership income 399
45‑260................... Instalment income for a period in which you are in a partnership 399
Subdivision 45‑I—Trust income included in instalment income of beneficiary 400
45‑280................... Instalment income for a period in which you are a beneficiary of a trust 400
45‑285................... Instalment income includes distributions by certain resident unit trusts 403
45‑286................... Instalment income includes distributions by certain managed investment trusts 404
45‑287................... When trusts are disqualified due to concentrated ownership 405
45‑288................... Resident investment trusts for beneficiaries who are absolutely entitled 407
45‑290................... Exceptions to exclusion of trust capital gains from beneficiary’s instalment income 407
Subdivision 45‑J—How Commissioner works out your instalment rate and notional tax 408
45‑320................... Working out instalment rate............................................ 408
45‑325................... Working out your notional tax........................................ 409
45‑330................... Working out your adjusted taxable income.................... 410
45‑335................... Working out your adjusted withholding income............. 413
45‑340................... Adjusted tax on adjusted taxable income or on adjusted withholding income 413
Subdivision 45‑K—How Commissioner works out your benchmark instalment rate and benchmark tax 416
45‑355................... When Commissioner works out benchmark instalment rate and benchmark tax 416
45‑360................... How Commissioner works out benchmark instalment rate 417
45‑365................... Working out your benchmark tax................................... 417
45‑370................... Working out your adjusted assessed taxable income for the variation year 418
45‑375................... Adjusted assessed tax on adjusted assessed taxable income 419
Subdivision 45‑L—How Commissioner works out amount of quarterly instalment on basis of GDP‑adjusted notional tax 421
45‑400................... Working out amount of instalment—payers of 4 quarterly instalments 421
45‑402................... Working out amount of instalment—payers of 2 quarterly instalments 423
45‑405................... Working out your GDP‑adjusted notional tax................ 425
Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax 427
45‑410................... Working out amount of instalment—payers of 4 quarterly instalments 427
45‑412................... Working out amount of instalment—payers of 2 quarterly instalments 429
45‑415................... Estimating your benchmark tax....................................... 431
45‑420................... Credit in certain cases where amount of instalment is nil 432
Subdivision 45‑N—How this Part applies to the trustee of a trust 432
Trustees to whom this Part applies 433
45‑450................... Trustees to whom a single instalment rate is given......... 433
45‑455................... Trustees to whom several instalment rates are given....... 433
45‑460................... Rest of Subdivision applies only to multi‑rate trustees... 434
45‑465................... Meaning of instalment income........................................ 435
45‑468................... Multi‑rate trustee may pay quarterly instalments............. 435
How Commissioner works out instalment rate and notional tax for a multi‑rate trustee 435
45‑470................... Working out instalment rate............................................ 435
45‑473................... Commissioner must notify you of notional tax............... 436
45‑475................... Working out your notional tax........................................ 437
45‑480................... Working out your adjusted taxable income.................... 437
45‑483................... Meaning of reduced beneficiary’s share and reduced no beneficiary’s share 438
45‑485................... Working out your adjusted withholding income............. 438
How Commissioner works out benchmark instalment rate and benchmark tax for a multi‑rate trustee 439
45‑525................... When Commissioner works out benchmark instalment rate and benchmark tax 439
45‑530................... How Commissioner works out benchmark instalment rate 440
45‑535................... Working out your benchmark tax................................... 440
Subdivision 45‑P—Anti‑avoidance rules 441
45‑595................... Object of this Subdivision.............................................. 441
45‑597................... Effect of Subdivision in relation to instalment months.... 442
45‑600................... General interest charge on tax benefit relating to instalments 442
45‑605................... When do you get a tax benefit from a scheme?............... 444
45‑610................... What is your tax position for an income year?................ 444
45‑615................... What is your hypothetical tax position for an income year? 447
45‑620................... Amount on which GIC is payable, and period for which it is payable 447
45‑625................... Credit if you also got a tax detriment from the scheme... 448
45‑630................... When do you get a tax detriment from a scheme?........... 449
45‑635................... No tax benefit or detriment results from choice for which income tax law expressly provides 450
45‑640................... Commissioner may remit general interest charge in special cases 452
Subdivision 45‑Q—General rules for consolidated groups 452
Guide to Subdivision 45‑Q 452
45‑700................... What this Subdivision is about....................................... 452
Application of Subdivision 453
45‑703................... Effect of this Subdivision and Subdivision 45‑R in relation to monthly payers 453
45‑705................... Application of Subdivision to head company................. 454
Usual operation of this Part for consolidated group members 458
45‑710................... Single entity rule............................................................. 458
45‑715................... When instalments are due—modification of section 45‑61 459
45‑720................... Head company cannot be an annual payer—modification of section 45‑140 459
Membership changes 459
45‑740................... Change of head company................................................ 459
45‑755................... Entry rule (for an entity that becomes a subsidiary member of a consolidated group) 462
45‑760................... Exit rule (for an entity that ceases to be a subsidiary member of a consolidated group) 463
45‑775................... Commissioner’s power to work out different instalment rate or GDP‑adjusted notional tax 465
Subdivision 45‑R—Special rules for consolidated groups 467
Guide to Subdivision 45‑R 467
45‑850................... What this Subdivision is about....................................... 467
Operative provisions 468
45‑855................... Section 701‑1 disregarded for certain purposes.............. 468
45‑860................... Member having a different instalment period.................. 468
45‑865................... Credit rule....................................................................... 469
45‑870................... Head company’s liability to GIC on shortfall in quarterly instalment 471
45‑875................... Other rules about the general interest charge................... 474
45‑880................... Continued application of Subdivision 45‑Q to the head company of an acquired group 475
45‑885................... Early application of Subdivision 45‑Q to the head company of a new group 477
Subdivision 45‑S—MEC groups 478
Guide to Subdivision 45‑S 478
45‑900................... What this Subdivision is about....................................... 478
Preliminary 479
45‑905................... Objects of Subdivision................................................... 479
General modification rules 480
45‑910................... Extended operation of Part to cover MEC groups.......... 480
Extended operation of Subdivision 45‑Q 481
45‑913................... Sections 45‑705 and 45‑740 do not apply to members of MEC groups 481
45‑915................... Application of Subdivision 45‑Q to provisional head company 481
45‑917................... Assumption for applying section 45‑710 (single entity rule) 485
45‑920................... Change of provisional head company............................. 485
45‑922................... Life insurance company.................................................. 488
Extended operation of Subdivision 45‑R 489
45‑925................... Additional modifications of sections 45‑855 and 45‑860 489
45‑930................... Modifications of sections 45‑865 and 45‑870 and a related provision 489
45‑935................... Additional modifications of section 45‑885.................... 490
Part 2‑15—Returns and assessments 491
Division 70—Tax receipts 491
Guide to Division 70 492
70‑1....................... What this Division is about............................................. 491
Subdivision 70‑A—Tax receipts 491
70‑5....................... Tax receipt to be provided to certain individual taxpayers 492
Part 2‑30—Collecting Medicare levy with income tax 494
Division 90—Medicare levy and Medicare levy surcharge 494
Subdivision 90‑A—Treatment like income tax 494
90‑1....................... Laws apply in relation to Medicare levy and Medicare levy surcharge as they apply in relation to income tax........................................................................................ 494
Part 2‑35—Excess superannuation contributions 495
Division 95—Excess concessional contributions charge 495
Guide to Division 95 496
95‑1....................... What this Division is about............................................. 495
Subdivision 95‑A—Object of Division 495
95‑5....................... Object of Division.......................................................... 495
Subdivision 95‑B—Excess concessional contributions charge 496
95‑10..................... Liability to excess concessional contributions charge..... 496
95‑15..................... Amount of excess concessional contributions charge..... 497
95‑20..................... When excess concessional contributions charge is due and payable 497
95‑25..................... General interest charge.................................................... 498
Division 96—Releasing money from superannuation 499
Subdivision 96‑A—Releasing money from superannuation 499
Guide to Subdivision 96‑A 499
96‑1....................... What this Subdivision is about....................................... 499
Requesting a release authority 500
96‑5....................... Electing to release excess concessional contributions..... 500
96‑7....................... Electing to release non‑concessional contributions etc.... 502
Issuing a release authority to superannuation provider 504
96‑10..................... Release authorities for elections under section 96‑5........ 504
96‑12..................... Release authorities for elections under section 96‑7........ 505
96‑15..................... Varying and revoking a release authority........................ 505
Complying with a release authority 505
96‑20..................... Obligations of superannuation providers........................ 505
96‑25..................... Voluntary compliance with a release authority relating to voluntary release interests and defined benefit interests........................................................................... 507
96‑30..................... Meaning of maximum available release amount............ 507
96‑35..................... Notifying Commissioner................................................ 507
96‑40..................... Notifying individual—unsuccessful release attempt....... 508
96‑42..................... Notifying individual—successful releases under section 96‑12 509
96‑45..................... Compensation for acquisition of property....................... 509
Consequences of releasing amounts 509
96‑50..................... Entitlement to credits....................................................... 509
96‑55..................... Interest for late payments of money received by the Commissioner in accordance with release authority........................................................................................ 510
96‑60..................... Income tax treatment of amounts released—proportioning rule does not apply 510
Division 97—Excess contributions determinations 511
Subdivision 97‑A—Excess concessional contributions determinations 511
Guide to Subdivision 97‑A 511
97‑1....................... What this Subdivision is about....................................... 511
Operative provisions 511
97‑5....................... Determination of excess concessional contributions and charge 511
97‑10..................... Review............................................................................ 512
Subdivision 97‑B—Excess non‑concessional contributions determinations 512
Guide to Subdivision 97‑B 512
97‑20..................... What this Subdivision is about....................................... 512
Operative provisions 513
97‑25..................... Excess non‑concessional contributions determinations... 513
97‑30..................... Associated earnings........................................................ 514
97‑35..................... Review............................................................................ 515
An Act to provide for the administration of certain Acts relating to Taxation, and for purposes connected therewith
Part I—Preliminary
1 Short title
This Act may be cited as the Taxation Administration Act 1953.
2 Interpretation
(1) In this Act (except Schedule 1), unless the contrary intention appears:
approved form has the meaning given by Schedule 1.
ASIO means the Australian Security Intelligence Organisation.
assessable amount has the meaning given by subsection 155‑5(2) in Schedule 1.
Australia, when used in a geographical sense, has the same meaning as in the Income Tax Assessment Act 1997.
Commissioner means the Commissioner of Taxation.
Deputy Commissioner means any Deputy Commissioner of Taxation.
Director‑General of Security means the Director‑General of Security holding office under the Australian Security Intelligence Organisation Act 1979.
engage in conduct means:
(a) do an act; or
(b) omit to perform an act.
excess concessional contributions determination has the same meaning as in subsection 995‑1(1) of the Income Tax Assessment Act 1997.
excise law has the meaning given by the Income Tax Assessment Act 1997.
exempt Australian government agency has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
failure to notify penalty means the penalty worked out under Division 2 of Part IIA.
fuel tax law has the meaning given by the Fuel Tax Act 2006.
general interest charge means the charge worked out under Part IIA.
Immigration Department has the meaning given by the Income Tax Assessment Act 1997.
Immigration Secretary has the meaning given by the Income Tax Assessment Act 1997.
indirect tax law has the meaning given by the Income Tax Assessment Act 1997.
ineligible income tax remission decision has the meaning given by section 14ZS.
late reconciliation statement penalty means the penalty worked out under Division 3 of Part IIA.
migration officer means:
(a) the Immigration Secretary; or
(b) an employee of the Immigration Department.
objection decision has the meaning given by subsection 14ZY(2).
officer means a person appointed or engaged under the Public Service Act 1999.
private indirect tax ruling means a private ruling, to the extent that it relates to an indirect tax law (other than the fuel tax law).
private ruling has the meaning given by section 359‑5 in Schedule 1.
registered tax agent or BAS agent has the same meaning as in the Tax Agent Services Act 2009.
Second Commissioner means a Second Commissioner of Taxation.
taxation law has the meaning given by the Income Tax Assessment Act 1997.
Note: See also subsection (2).
tax liability means a liability to the Commonwealth arising under, or by virtue of, a taxation law.
Tribunal means the Administrative Appeals Tribunal.
(2) Despite the definition of taxation law in subsection (1), an Excise Act (as defined in subsection 4(1) of the Excise Act 1901) is not a taxation law for the purposes of Part III of this Act.
2A Application of the Criminal Code
Chapter 2 of the Criminal Code applies to all offences against this Act.
Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.
2B Act binds the Crown
This Act binds the Crown in each of its capacities. However, it does not make the Crown liable to a pecuniary penalty or to be prosecuted for an offence.
3 Application
This Act extends to every external Territory referred to in the definition of Australia.
3AA Schedule 1
(1) Schedule 1 has effect.
Definitions in Schedule 1 do not apply to rest of Act
(1A) So far as a provision in Schedule 1 gives an expression a particular meaning, the provision does not also have effect for the purposes of this Act (other than Schedule 1), except as provided in this Act (other than Schedule 1).
Application of interpretation provisions of Income Tax Assessment Act 1997
(2) An expression has the same meaning in Schedule 1 as in the Income Tax Assessment Act 1997.
(3) Division 950 of the Income Tax Assessment Act 1997 (which contains rules for interpreting that Act) applies to Schedule 1 to this Act as if the provisions in that Schedule were provisions of that Act.
Part IA—Administration
3A General administration of Act
The Commissioner has the general administration of this Act.
Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1.
3B Annual report
(1) The Commissioner shall, as soon as practicable after 30 June in each year, prepare and furnish to the Minister a report on the working of this Act.
(1AA) A report under subsection (1) in relation to a year ending on 30 June shall:
(b) set out:
(i) the number of occasions (if any) during the year on which a request was made to disclose information under subsection 355‑55(1) in Schedule 1 (about disclosures to Ministers); and
(ii) the number of occasions (if any) during the year on which information was disclosed under that subsection; and
(iii) the Ministers to whom the information was disclosed; and
(c) set out:
(i) the number of occasions (if any) during the year on which a request was made to disclose information under subsection 355‑70(1) in Schedule 1 (about disclosures for law enforcement and related purposes); and
(ii) the number of occasions (if any) during the year on which information was disclosed under that subsection; and
(iii) the types of entities and the names of the courts and tribunals to which the information was disclosed; and
(iv) if the information was disclosed under table item 1 or 6 in subsection 355‑70(1)—the general categories of offences in relation to which the information was disclosed; and
(d) set out the number (if any) of *taxation officers found guilty of the offence in section 355‑25 in Schedule 1 (about disclosure of protected information).
(1B) Subsection (1) does not apply in relation to Part III and sections 15 and 15A insofar as that Part and those sections apply in relation to the Development Allowance Authority Act 1992.
(1C) Subsection (1) does not apply in relation to sections 3D and 3E, Part III and sections 15 and 15A insofar as that Part and those sections apply in relation to the Tax Agent Services Act 2009.
(2) The Minister shall cause a copy of a report furnished under subsection (1) to be laid before each House of the Parliament within 15 sitting days of that House after the day on which the Minister receives the report.
(3) For the purposes of section 34C of the Acts Interpretation Act 1901, a report that is required by subsection (1) to be furnished as soon as practicable after 30 June in a year shall be taken to be a periodic report relating to the working of this Act during the year ending on that 30 June.
(4) In this section:
this Act does not include Part IVC.
3C Reporting of information about corporate tax entity with reported total income of $100 million or more
(1) This section applies to a corporate tax entity for an income year if, according to information reported to the Commissioner in the entity’s income tax return for the income year:
(a) the entity has total income equal to or exceeding $100 million for the income year and, at the end of the income year:
(i) the entity is not an Australian resident that is a private company for the income year; or
(ii) the entity is a member of a wholly‑owned group that has a foreign resident ultimate holding company; or
(iii) the percentage of foreign shareholding in the entity is greater than 50%; or
(b) the entity has total income equal to or exceeding $200 million for the income year and, at the end of the income year, the entity is an Australian resident that is a private company for the income year.
An expression used in this subsection that is also used in the Income Tax Assessment Act 1997 has the same meaning as in that Act.
(2) The Commissioner must, as soon as practicable after the end of the income year, make publicly available the information mentioned in subsection (3).
(3) The information is as follows:
(a) the entity’s ABN (within the meaning of the Income Tax Assessment Act 1997) and name;
(b) the entity’s total income for the income year, according to information reported to the Commissioner in the entity’s income tax return (within the meaning of that Act) for the income year;
(c) the entity’s taxable income or net income (if any) for the income year, according to information reported to the Commissioner in that income tax return;
(d) the entity’s income tax payable (if any) for the financial year corresponding to the income year, according to information reported to the Commissioner in that income tax return.
(4) Subsection (5) applies if:
(a) the entity gives the Commissioner a notice in writing that the return mentioned in paragraph (3)(b) contains an error; and
(b) the notice contains information that corrects the error.
(5) The Commissioner may at any time make the information mentioned in paragraph (4)(b) publicly available, in accordance with subsection (2), in order to correct the error.
(6) To avoid doubt, if the Commissioner considers that information made publicly available under subsection (2) fails to reflect all of the information required to be made publicly available under that subsection, the Commissioner may at any time make publicly available other information in order to remedy the failure.
3CA Reporting of information by significant global entities
(1) This section applies to a corporate tax entity for an income year if:
(a) the entity is a significant global entity for the income year; and
(b) at the end of the income year, the entity is:
(i) an Australian resident; or
(ii) a foreign resident who operates an Australian permanent establishment (within the meaning of Part IVA of the Income Tax Assessment Act 1936); and
(c) the entity does not lodge a general purpose financial statement for the financial year most closely corresponding to the income year:
(i) with the Australian Securities and Investments Commission; and
(ii) within the time provided under subsection 319(3) of the Corporations Act 2001 for lodgement of a report for that financial year.
(2) A corporate tax entity to which this section applies for an income year must, on or before the day by which the entity is required to lodge its income tax return for the income year with the Commissioner, give to the Commissioner a general purpose financial statement for the financial year most closely corresponding to the income year.
Note: Section 286‑75 in Schedule 1 provides an administrative penalty for breach of this subsection.
(3) The Commissioner must give a copy of the statement to the Australian Securities and Investments Commission.
(4) The giving of the copy to the Australian Securities and Investments Commission under subsection (3) is taken, for the purposes of the Corporations Act 2001, to be lodgement of the document with the Australian Securities and Investments Commission.
Note: Under section 1274 of the Corporations Act 2001, a person may inspect, and require to be given a copy or extract of, any document lodged with the Australian Securities and Investments Commission.
(5) For the purposes of this section, a general purpose financial statement in relation to an entity:
(a) must be prepared in accordance with:
(i) the accounting principles; or
(ii) if accounting principles do not apply in relation to the entity—commercially accepted principles relating to accounting; and
(b) if the entity is a member of a group of entities that are consolidated for accounting purposes as a single group—must relate to:
(i) the entity; or
(ii) the entity and some or all of the other members of the group.
(6) An expression used in this section that is also used in the Income Tax Assessment Act 1997 has the same meaning as in that Act.
3E Reporting of information about entity with PRRT payable
(1) This section applies to an entity if the entity has an amount of PRRT payable for a year of tax, according to information reported to the Commissioner in the entity’s PRRT return for the year of tax.
(2) The Commissioner must, as soon as practicable after the end of the year of tax, make publicly available the information mentioned in subsection (3).
(3) The information is as follows:
(a) the entity’s ABN (within the meaning of the Income Tax Assessment Act 1997) and name;
(b) the PRRT payable by the entity in respect of the year of tax, according to information reported to the Commissioner in the entity’s PRRT return for the year of tax.
(4) Subsection (5) applies if:
(a) the entity gives the Commissioner a notice in writing that the return mentioned in paragraph (3)(b) contains an error; and
(b) the notice contains information that corrects the error.
(5) The Commissioner may at any time make the information mentioned in paragraph (4)(b) publicly available, in accordance with subsection (2), in order to correct the error.
(6) To avoid doubt, if the Commissioner considers that information made publicly available under subsection (2) fails to reflect all of the information required to be made publicly available under that subsection, the Commissioner may at any time make publicly available other information in order to remedy the failure.
(7) In this section:
PRRT return means a return under section 59 or 60 of the Petroleum Resource Rent Tax Assessment Act 1987.
year of tax has the meaning given by the Petroleum Resource Rent Tax Assessment Act 1987.
Part II—Commissioner of Taxation, Second Commissioner of Taxation and Deputy Commissioner of Taxation
4 Commissioner and Second Commissioners of Taxation
There shall be a Commissioner of Taxation and 3 Second Commissioners of Taxation, who shall be appointed by the Governor‑General.
4A Statutory Agency etc. for purposes of Public Service Act
(1) The staff necessary to assist the Commissioner are to be persons engaged under the Public Service Act 1999.
(2) For the purposes of the Public Service Act 1999:
(a) the Commissioner and the APS employees assisting the Commissioner together constitute a Statutory Agency; and
(b) the Commissioner is the Head of that Statutory Agency.
5 Tenure of Commissioner and Second Commissioners
(1) The Commissioner of Taxation and each Second Commissioner of Taxation shall be appointed for terms of 7 years respectively and shall be eligible for re‑appointment.
(3) The Commissioner of Taxation and the Second Commissioners of Taxation are not subject to the Public Service Act 1999.
5A Remuneration and allowances of Commissioner and Second Commissioners
(1) The Commissioner of Taxation and the Second Commissioners of Taxation shall be paid such remuneration as is determined by the Remuneration Tribunal but, if no determination of that remuneration by the Tribunal is in operation, they shall be paid remuneration at the respective rates that were applicable immediately before the commencement of this section.
(2) The Commissioner of Taxation and the Second Commissioners of Taxation shall be paid such allowances as are prescribed.
(3) This section has effect subject to the Remuneration Tribunal Act 1973.
6 Leave of absence
(1) The Commissioner and a Second Commissioner have such recreation leave entitlements as are determined by the Remuneration Tribunal.
(2) The Minister may grant the Commissioner and a Second Commissioner leave of absence, other than recreation leave, on such terms and conditions as to remuneration or otherwise as the Minister determines.
6A Resignation
The Commissioner or a Second Commissioner may resign his or her office by writing signed by the Commissioner or Second Commissioner, as the case may be, and delivered to the Governor‑General.
6B Acting appointments
(1) The Minister may appoint a person to act in the office of Commissioner of Taxation:
(a) during a vacancy in that office; or
(b) during any period, or during all periods, when the person holding that office is absent from duty or from Australia or is, for any other reason, unable to perform the functions of that office.
Note: For rules that apply to acting appointments, see section 33A of the Acts Interpretation Act 1901.
(2) The Minister may appoint a person to act in an office of Second Commissioner of Taxation:
(a) during a vacancy in that office; or
(b) during any period, or during all periods, when the person holding the office of Second Commissioner of Taxation is absent from duty or from Australia, is acting in the office of Commissioner of Taxation or is, for any other reason, unable to perform the functions of the office of Second Commissioner of Taxation.
Note: For rules that apply to acting appointments, see section 33A of the Acts Interpretation Act 1901.
(6) While a person is acting in the office of Commissioner of Taxation, the person has and may exercise all the powers, and shall perform all the functions, of the Commissioner under this Act or any other law.
(6A) For the purposes of subsection (6), the Commissioner’s powers and functions include powers and functions given to the Commissioner in his or her capacity as Registrar of the Australian Business Register.
(7) While a person is acting in an office of Second Commissioner of Taxation, the person has and may exercise all the powers, and shall perform all the functions, of the Second Commissioner under this Act or any other law.
6C Suspension and removal from office of Commissioner or Second Commissioner
(1) The Governor‑General may remove the Commissioner or a Second Commissioner from office on an address praying for the removal of the Commissioner or the Second Commissioner, as the case may be, on the ground of proved misbehaviour or physical or mental incapacity being presented to the Governor‑General by each House of the Parliament in the same session of the Parliament.
(2) The Governor‑General may suspend the Commissioner or a Second Commissioner from office on the ground of misbehaviour or physical or mental incapacity.
(3) Where the Governor‑General suspends the Commissioner or a Second Commissioner, the Minister shall cause a statement of the grounds of the suspension to be laid before each House of the Parliament within 7 sitting days of that House after the suspension.
(4) If, at the expiration of 15 sitting days of a House of the Parliament after the day on which the statement was laid before that House, an address under subsection (1) has not been presented to the Governor‑General by each House of the Parliament, the suspension terminates.
(5) The suspension of the Commissioner or a Second Commissioner from office under this section does not affect any entitlement of the Commissioner or Second Commissioner, as the case may be, to be paid remuneration and allowances.
(6) If:
(a) the Commissioner or a Second Commissioner becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his or her creditors or makes an assignment of his or her remuneration for their benefit;
(b) the Commissioner or a Second Commissioner engages, except with the approval of the Minister, in paid employment outside the duties of the office of Commissioner or Second Commissioner, as the case may be; or
(c) the Commissioner or a Second Commissioner is absent from duty, except on leave of absence, for 14 consecutive days or 28 days in any 12 months;
the Governor‑General shall remove the Commissioner or Second Commissioner, as the case may be, from office.
(7) The Governor‑General may, with the consent of the Commissioner or a Second Commissioner, retire the Commissioner or Second Commissioner, as the case may be, from office on the ground of physical or mental incapacity.
(8) The Commissioner or a Second Commissioner shall not be suspended, removed or retired from office except as provided by this section.
6D Powers of Second Commissioner
(1) Subject to subsection (2) and to the regulations, a Second Commissioner has all the powers, and may perform all the functions, of the Commissioner under a taxation law.
(2) Subsection (1) does not apply in relation to:
(a) section 8 of this Act; or
(b) a provision of a taxation law that:
(i) provides that the Commissioner has the general administration of the taxation law; or
(ii) requires the Commissioner to furnish to the Minister a report on the working of the taxation law during any period.
(3) When a power or function of the Commissioner under a taxation law is exercised or performed by a Second Commissioner, the power or function shall, for the purposes of the taxation law, be deemed to have been exercised or performed by the Commissioner.
(4) The exercise of a power, or the performance of a function, of the Commissioner under a taxation law by a Second Commissioner does not prevent the exercise of the power, or the performance of the function, by the Commissioner.
7 Deputy Commissioners of Taxation
There shall be such Deputy Commissioners of Taxation as are required.
8 Delegation
(1) The Commissioner may, either generally or as otherwise provided by the instrument of delegation, by writing signed by the Commissioner, delegate to a Deputy Commissioner or any other person all or any of the Commissioner’s powers or functions under a taxation law or any other law of the Commonwealth or a Territory, other than this power of delegation.
(1A) For the purposes of this section, the Commissioner’s powers and functions include powers and functions given to the Commissioner in his or her capacity as Registrar of the Australian Business Register.
(2) Subject to subsection (5), a power or function so delegated, when exercised or performed by the delegate, shall, for the purposes of the taxation law or the other law, as the case may be, be deemed to have been exercised or performed by the Commissioner.
(4) A delegation under this section does not prevent the exercise of a power or the performance of a function by the Commissioner.
(5) A delegation under this section may be made subject to a power of review and alteration by the Commissioner, within a period specified in the instrument of delegation, of acts done in pursuance of the delegation.
(6) A delegation under this section continues in force notwithstanding a change in the occupancy of, or a vacancy in, the office of Commissioner, but, for the purposes of the application of subsection 33(3) of the Acts Interpretation Act 1901 to a delegation under this section, nothing in any law shall be taken to preclude the revocation or variation of the delegation by the same or a subsequent holder of that office.
Part IIA—The general interest charge
8AAA Overview
This Part explains how to work out the general interest charge on an amount.
Usually, a person is liable to pay the charge if an amount that the person must pay to the Commissioner is not paid on time. But there are also other circumstances in which a person can be liable.
A person is only liable to pay the charge if a provision of an Act makes the person liable.
8AAB When the general interest charge applies
(1) There are certain provisions of this Act and other Acts that make persons liable to pay the general interest charge. Subsection (4) lists the provisions.
(2) A person is only liable to pay the charge on an amount if a provision specifies that the person is liable to pay the charge on the amount.
(3) The charge does not apply to the Commonwealth or an authority of the Commonwealth.
(4) The following table is an index of the laws that deal with liability to the charge.
| Liability to general interest charge | |
| Item | Column 1 Section | Column 2 Act | Column 3 Topic | |
| 1 | 162‑100 | A New Tax System (Goods and Services Tax) Act 1999 | payment of GST instalments | |
| 2 | 168‑10 | A New Tax System (Goods and Services Tax) Act 1999 | supplies later found to be GST‑free supplies | |
| 3 | 25‑10 | A New Tax System (Wine Equalisation Tax) Act 1999 | purchases later found to be GST free supplies | |
| 3A | 175‑65 | Australian Charities and Not‑for‑profits Commission Act 2012 | payment of administrative penalty | |
| 5 | 93 | Fringe Benefits Tax Assessment Act 1986 | payment of fringe benefits tax | |
| 6 | 112B | Fringe Benefits Tax Assessment Act 1986 | payment of fringe benefits tax instalments | |
| 7 | 102UP | Income Tax Assessment Act 1936 | payment of trustee beneficiary non‑disclosure tax | |
| 8 | 128C | Income Tax Assessment Act 1936 | payment of withholding tax | |
| 9 | 163AA | Income Tax Assessment Act 1936 | returns by instalment taxpayers | |
| 10 | 163B | Income Tax Assessment Act 1936 | returns by persons other than instalment taxpayers | |
| 10A | 172A | Income Tax Assessment Act 1936 | repayments of excessive tax offset refunds | |
| 11 | 271‑80 in Schedule 2F | Income Tax Assessment Act 1936 | payment of family trust distribution tax | |
| 12 | 5‑15 | Income Tax Assessment Act 1997 | unpaid income tax or shortfall interest charge | |
| 13 | 197‑75 | Income Tax Assessment Act 1997 | payment of untainting tax | |
| 14 | 214‑155 | Income Tax Assessment Act 1997 | payment of franking tax by a corporate tax entity | |
| 15 | 292‑390 | Income Tax Assessment Act 1997 | payment of excess non‑concessional contributions tax or shortfall interest charge | |
| 15A | 293‑75 | Income Tax Assessment Act 1997 | payment of Division 293 tax or shortfall interest charge | |
| 16A | 418‑170 | Income Tax Assessment Act 1997 | payment of excess exploration credit tax or shortfall interest charge | |
| 17 | 721‑30 | Income Tax Assessment Act 1997 | liability of members of consolidated groups | |
| 18 | 840‑810 | Income Tax Assessment Act 1997 | payment of managed investment trust withholding tax | |
| 18A | 840‑910 | Income Tax Assessment Act 1997 | payment of Seasonal Labour Mobility Program withholding tax | |
| 19 | 214‑105 | Income Tax (Transitional Provisions) Act 1997 | payment of franking deficit tax | |
| 20 | 85 | Petroleum Resource Rent Tax Assessment Act 1987 | payment of petroleum resource rent tax, shortfall interest charge or instalment transfer interest charge | |
| 20A | 282‑19 | Private Health Insurance Act 2007 | repayment of private health insurance premium reduction or refund | |
| 21 | 35 | Product Grants and Benefits Administration Act 2000 | payment of a designated scheme debt | |
| 22 | 21 | Superannuation Contributions Tax (Assessment and Collection) Act 1997 | increase in liability to pay superannuation contributions surcharge because of amendment of assessment | |
| 23 | 22 | Superannuation Contributions Tax (Assessment and Collection) Act 1997 | liability to pay superannuation contributions surcharge because of new assessment | |
| 24 | 25 | Superannuation Contributions Tax (Assessment and Collection) Act 1997 | payment of superannuation contributions surcharge or advance instalment | |
| 25 | 18 | Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 | increase in liability to pay superannuation contributions surcharge because of amendment of assessment | |
| 26 | 21 | Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 | payment of superannuation contributions surcharge | |
| 27 | 25 | Superannuation (Government Co‑contribution for Low Income Earners) Act 2003 | repayments or underpayments of Government co‑contributions that cannot be credited to an account | |
| 28 | 49 | Superannuation Guarantee (Administration) Act 1992 | payment of superannuation guarantee charge | |
| 29 | 15DC | Superannuation (Self Managed Superannuation Funds) Taxation Act 1987 | payment of superannuation (self managed superannuation funds) supervisory levy | |
| 30 | 17A | Superannuation (Unclaimed Money and Lost Members) Act 1999 | payment of unclaimed money | |
| 31 | 18C | Superannuation (Unclaimed Money and Lost Members) Act 1999 | repayment of Commissioner’s payment that cannot be credited to an account | |
| 32 | 20F | Superannuation (Unclaimed Money and Lost Members) Act 1999 | payment of unclaimed superannuation of former temporary residents | |
| 33 | 20M | Superannuation (Unclaimed Money and Lost Members) Act 1999 | repayment of Commissioner’s payment for former temporary resident that cannot be credited to an account | |
| 34 | 24F | Superannuation (Unclaimed Money and Lost Members) Act 1999 | payment in respect of lost member accounts | |
| 35 | 24L | Superannuation (Unclaimed Money and Lost Members) Act 1999 | repayment of Commissioner’s payment for former lost member that cannot be credited to an account | |
| 36 | 8AAZF | Taxation Administration Act 1953 | RBA deficit debts | |
| 37 | 8AAZN | Taxation Administration Act 1953 | overpayments made by the Commissioner | |
| 38 | 16‑80 in Schedule 1 | Taxation Administration Act 1953 | payment of PAYG withholding amounts | |
| 38A | 18‑150 in Schedule 1 | Taxation Administration Act 1953 | PAYG withholding non‑compliance tax | |
| 39 | 45‑80 in Schedule 1 | Taxation Administration Act 1953 | payment of PAYG instalments | |
| 40 | 45‑230 in Schedule 1 | Taxation Administration Act 1953 | shortfall in quarterly PAYG instalments worked out on the basis of a varied rate | |
| 41 | 45‑232 in Schedule 1 | Taxation Administration Act 1953 | shortfall in quarterly PAYG instalments worked out on the basis of estimated benchmark tax | |
| 42 | 45‑235 in Schedule 1 | Taxation Administration Act 1953 | shortfall in annual PAYG instalments | |
| 43 | 45‑600 and 45‑620 in Schedule 1 | Taxation Administration Act 1953 | tax benefits relating to PAYG instalments | |
| 44 | 45‑870 and 45‑875 in Schedule 1 | Taxation Administration Act 1953 | head company’s liability on shortfall in quarterly PAYG instalments | |
| 44Q | 95‑25 in Schedule 1 | Taxation Administration Act 1953 | payment of excess concessional contributions charge or shortfall interest charge |
| 45 | 105‑80 in Schedule 1 | Taxation Administration Act 1953 | payment of a net fuel amount or an amount of indirect tax | |
| 45C | 133‑115 in Schedule 1 | Taxation Administration Act 1953 | payment of debt account discharge liability | |
| 46 | 263‑30 in Schedule 1 | Taxation Administration Act 1953 | payment of a foreign revenue claim | |
| 47 | 268‑75 in Schedule 1 | Taxation Administration Act 1953 | late payment of estimate | |
| 48 | 298‑25 in Schedule 1 | Taxation Administration Act 1953 | payment of administrative penalty | |
| 50 | 13 | Termination Payments Tax (Assessment and Collection) Act 1997 | increase in liability to pay termination payments surcharge because of amendment of assessment | |
| 51 | 16 | Termination Payments Tax (Assessment and Collection) Act 1997 | payment of termination payments surcharge | |
8AAC Amount of the general interest charge
(1) The general interest charge for a day is worked out in accordance with this section.
(2) If the charge is payable under section 8AAZF on the RBA deficit at the end of that day, then the charge is worked out by multiplying the general interest charge rate for that day by the RBA deficit at the end of that day.
(3) If the charge is not payable under section 8AAZF, but applies to an amount that remains unpaid (the original unpaid amount), then the charge is worked out by multiplying the general interest charge rate for that day by the sum of so much of the following amounts as remains unpaid:
(a) the charge from previous days;
(b) the original unpaid amount.
(4) If the charge applies to an amount that is specified in the provision that imposes the charge, but neither subsection (2) nor (3) applies, then the charge is worked out by multiplying the general interest charge rate for that day by the sum of the following amounts:
(a) so much of the charge from previous days as remains unpaid;
(b) the specified amount.
8AAD What is the general interest charge rate?
(1) The general interest charge rate for a day is the rate worked out by adding 7 percentage points to the base interest rate for that day, and dividing that total by the number of days in the calendar year.
(2) The base interest rate for a day depends on which quarter of the year the day is in. For each day in a quarter in the second column of the table, it is the monthly average yield of 90‑day Bank Accepted Bills published by the Reserve Bank of Australia for the month in the third column of the table.
| Base interest rate |
| Item | For days in this quarter... | the monthly average yield of 90‑day Bank Accepted Bills for this month applies... |
| 1 | 1 January to 31 March | the preceding November |
| 2 | 1 April to 30 June | the preceding February |
| 3 | 1 July to 30 September | the preceding May |
| 4 | 1 October to 31 December | the preceding August |
(3) If the monthly average yield of 90‑day Bank Accepted Bills for a particular month in the third column of the table in subsection (2) is not published by the Reserve Bank of Australia before the beginning of the relevant quarter, assume that it is the same as the last monthly average yield of 90‑day Bank Accepted Bills published by the Reserve Bank of Australia before that month.
(4) The base interest rate must be rounded to the second decimal place (rounding .005 upwards).
8AAE When the charge is due and payable
The general interest charge for a day is due and payable to the Commissioner at the end of that day.
Note: For provisions about collection and recovery of the charge, see Part 4‑15 in Schedule 1.
8AAF Notification by Commissioner
(1) The Commissioner may give notice to a person liable to pay the charge of the amount of the charge for a particular day or days.
(3) The notice may be included in any other notice issued by the Commissioner in respect of the person.
(4) A notice given to a person by the Commissioner under this section is prima facie evidence of the matters stated in the notice.
8AAG Remission of the charge
(1) The Commissioner may remit all or a part of the charge payable by a person.
(2) However, if a person is liable to pay the charge because an amount remains unpaid after the time by which it is due to be paid, the Commissioner may only remit all or a part of the charge in the circumstances set out in subsection (3), (4) or (5).
(3) The Commissioner may remit all or a part of the charge referred to in subsection (2) if the Commissioner is satisfied that:
(a) the circumstances that contributed to the delay in payment were not due to, or caused directly or indirectly by, an act or omission of the person; and
(b) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances.
(4) The Commissioner may remit all or a part of the charge referred to in subsection (2) if the Commissioner is satisfied that: