Federal Register of Legislation - Australian Government

Primary content

Taxation Administration Act 1953

Authoritative Version
  • - C2019C00056
  • In force - Superseded Version
  • View Series
Act No. 1 of 1953 as amended, taking into account amendments up to Treasury Laws Amendment (Black Economy Taskforce Measures No. 2) Act 2018
An Act to provide for the administration of certain Acts relating to Taxation, and for purposes connected therewith
Administered by: Treasury
General Comments: This compilation is affected by retrospective amendments. Please see the Treasury Laws Amendment (2018 Measures No. 4) Act 2019 (Act No. 8, 2019) for details.

Sections 18-15, 18-20 and 18-25 of Schedule 1 of this Act have been modified by the operation of the Commissioner’s Remedial Power, click here to see the modification
Registered 21 Jan 2019
Start Date 01 Jan 2019
End Date 28 Feb 2019
Table of contents.

Commonwealth Coat of Arms of Australia

Taxation Administration Act 1953

No. 1, 1953

Compilation No. 159

Compilation date:                              1 January 2019

Includes amendments up to:            Act No. 141, 2018

Registered:                                         21 January 2019

This compilation is in 3 volumes

Volume 1:       sections 1–18

                        Schedule 1 (sections 6‑1 to 97‑35)

Volume 2:       Schedule 1 (sections 105‑1 to 990‑5)

Volume 3:       Endnotes

Each volume has its own contents

 

About this compilation

This compilation

This is a compilation of the Taxation Administration Act 1953 that shows the text of the law as amended and in force on 1 January 2019 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

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

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

  

  

  


Contents

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

Chapter 3—Collection, recovery and administration of other taxes      1

Part 3‑10—Indirect taxes                                                                                           1

Division 105—General rules for indirect taxes                                                  1

Guide to Division 105                                                                                                1

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

Subdivision 105‑D—General interest charge and penalties                            2

105‑80................... General interest charge........................................................ 2

105‑85................... Amending Acts cannot impose penalties or general interest charge earlier than 28 days after Royal Assent............................................................................................ 3

Subdivision 105‑F—Indirect tax refund schemes                                              3

105‑120................. Refund scheme—defence related international obligations. 3

105‑125................. Refund scheme—international obligations.......................... 4

Subdivision 105‑G—Other administrative provisions                                     5

105‑145................. Commissioner must give things in writing......................... 5

Division 110—Goods and services tax                                                                  6

Guide to Division 110                                                                                                6

110‑1..................... What this Division is about................................................. 6

Subdivision 110‑F—Review of GST decisions                                                    6

110‑50................... Reviewable GST decisions................................................. 6

Division 111—Wine tax and luxury car tax                                                      11

Guide to Division 111                                                                                              11

111‑1..................... What this Division is about............................................... 11

Subdivision 111‑C—Review of wine tax decisions                                           11

111‑50................... Reviewable wine tax decisions......................................... 11

Subdivision 111‑D—Effect on contracts from amendments to laws           12

111‑60................... Alteration of contracts if cost of complying with agreement is affected by later alteration to wine tax or luxury car tax laws....................................................................... 12

Division 112—Fuel tax                                                                                           14

Guide to Division 112                                                                                              14

112‑1..................... What this Division is about............................................... 14

Subdivision 112‑E—Review of fuel tax decisions                                            14

112‑50................... Reviewable fuel tax decisions........................................... 14

Part 3‑15—Major bank levy                                                                                  16

Division 115General provisions relating to the major bank levy           16

115‑1..................... What this Division is about............................................... 16

115‑5..................... Returns............................................................................. 16

115‑10................... When major bank levy is due and payable........................ 17

Division 117—Anti‑avoidance                                                                              18

Guide to Division 117                                                                                              18

117‑1..................... What this Division is about............................................... 18

Subdivision 117‑A—Application of this Division                                             18

117‑5..................... Object of this Division...................................................... 18

117‑10................... Application of this Division.............................................. 19

117‑15................... Meaning of MBL benefit................................................... 19

117‑20................... Matters to be considered in determining purpose.............. 20

Subdivision 117‑B—Commissioner may negate effects of schemes for MBL benefits                20

117‑25................... Commissioner may negate entity’s MBL benefits............ 21

117‑30................... Determination has effect according to its terms................. 21

117‑35................... Commissioner may disregard scheme in making determinations             21

117‑40................... One determination may cover several quarters etc............ 22

117‑45................... Commissioner must give copy of determination to entity affected           22

117‑50................... Objections......................................................................... 22

Part 3‑20—Superannuation                                                                                    23

Division 131—Releasing money from superannuation                                  23

Subdivision 131‑A—Releasing money from superannuation                       23

Guide to Subdivision 131‑A                                                                                   23

131‑1..................... What this Subdivision is about......................................... 23

Requesting a release authority                                                                              24

131‑5..................... Requesting the release of amounts from superannuation interests            24

131‑10................... Restrictions on the total amount you can request to be released               26

Issuing a release authority to superannuation provider                                27

131‑15................... Issuing release authorities................................................. 27

131‑20................... Amount to be stated in a release authority......................... 28

131‑25................... Contents of a release authority.......................................... 29

131‑30................... Varying and revoking a release authority.......................... 29

Complying with a release authority                                                                    29

131‑35................... Obligations of superannuation providers.......................... 29

131‑40................... Voluntary compliance with a release authority relating to defined benefit interests  30

131‑45................... Meaning of maximum available release amount................ 30

131‑50................... Notifying Commissioner.................................................. 31

131‑55................... Notifying you................................................................... 31

131‑60................... Compensation for acquisition of property......................... 32

Consequences of releasing amounts                                                                    32

131‑65................... Entitlement to credits......................................................... 32

131‑70................... Interest for late payments of money received by the Commissioner in accordance with release authority.......................................................................................... 33

131‑75................... Income tax treatment of amounts released—proportioning rule does not apply       33

Division 133—Division 293 tax                                                                            34

Guide to Division 133                                                                                              34

133‑1..................... What this Division is about............................................... 34

Subdivision 133‑A—Deferral determination                                                    34

Guide to Subdivision 133‑A                                                                                   34

133‑5..................... What this Subdivision is about......................................... 34

Operative provisions                                                                                               35

133‑10................... Determination of tax that is deferred to a debt account..... 35

133‑15................... Defined benefit tax............................................................ 36

133‑20................... How to attribute the defined benefit tax to defined benefit interests         37

133‑25................... Determination reducing tax deferred to a debt account...... 37

133‑30................... General provisions applying to determinations under this Subdivision    37

Subdivision 133‑B—Debt account                                                                        38

Guide to Subdivision 133‑B                                                                                   38

133‑55................... What this Subdivision is about......................................... 38

Operative provisions                                                                                               39

133‑60................... Debt account to be kept for deferred tax........................... 39

133‑65................... Interest on debt account balance........................................ 39

133‑70................... Voluntary payments.......................................................... 40

133‑75................... Commissioner must notify superannuation provider of debt account       41

Subdivision 133‑C—Compulsory payment                                                       41

Guide to Subdivision 133‑C                                                                                   41

133‑100................. What this Subdivision is about......................................... 41

Debt account discharge liability                                                                           42

133‑105................. Liability to pay debt account discharge liability................. 42

133‑110................. When debt account discharge liability must be paid.......... 42

133‑115................. General interest charge...................................................... 42

133‑120................. Meaning of debt account discharge liability..................... 43

133‑125................. Notice of debt account discharge liability.......................... 44

End benefit        44

133‑130................. Meaning of end benefit..................................................... 44

133‑135................. Superannuation provider may request debt account status 45

133‑140................. End benefit notice—superannuation provider................... 46

133‑145................. End benefit notice—material changes or omissions.......... 47

Division 135—Releasing money from superannuation                                  48

Guide to Division 135                                                                                              48

135‑1..................... What this Division is about............................................... 48

Subdivision 135‑A—When the Commissioner must issue a release authority                48

Guide to Subdivision 135‑A                                                                                   48

135‑5..................... What this Subdivision is about......................................... 48

Operative provisions                                                                                               49

135‑10................... Release authorities............................................................ 49

Subdivision 135‑B—When a release authority can be given to a superannuation provider       50

Guide to Subdivision 135‑B                                                                                   50

135‑35................... What this Subdivision is about......................................... 50

Operative provisions                                                                                               51

135‑40................... When you may give release authority to superannuation provider           51

Subdivision 135‑C—Release of superannuation money under a release authority       51

Guide to Subdivision 135‑C                                                                                   51

135‑70................... What this Subdivision is about......................................... 51

Operative provisions                                                                                               52

135‑75................... Requirement for superannuation provider to release money 52

135‑80................... Compensation for acquisition of property......................... 53

135‑85................... Release amount................................................................. 53

135‑90................... How the Commissioner applies amounts received under a release authority            54

135‑95................... Defined benefit interests—releasing amounts to pay debt account discharge liability              54

135‑100................. Income tax treatment of amounts released—proportioning rule does not apply       54

Division 136—Transfer balance cap                                                                  55

Guide to Division 136                                                                                              55

136‑1..................... What this Division is about............................................... 55

Subdivision 136‑A—Excess transfer balance determinations                      55

Guide to Subdivision 136‑A                                                                                   55

136‑5..................... What this Subdivision is about......................................... 55

Operative provisions                                                                                               56

136‑10................... Excess transfer balance determination............................... 56

136‑15................... Review.............................................................................. 57

136‑20................... Electing to commute a different superannuation income stream               57

136‑25................... Notifying Commissioner of transfer balance debits.......... 58

Subdivision 136‑B—Commutation authorities                                                 59

Guide to Subdivision 136‑B                                                                                   59

136‑50................... What this Subdivision is about......................................... 59

Obligations of Commissioner                                                                               60

136‑55................... Issuing of commutation authorities................................... 60

136‑60................... Varying and revoking a commutation authority................ 61

136‑65................... Issuing further commutation authorities............................ 61

136‑70................... Notifying of non‑commutable excess transfer balance...... 62

Obligations of superannuation income stream providers                             63

136‑80................... Obligations on superannuation income stream providers.. 63

136‑85................... Notifying the Commissioner............................................. 64

136‑90................... Notifying you................................................................... 64

Division 138—First home super saver scheme                                                 65

Guide to Division 138                                                                                              65

138‑1..................... What this Division is about............................................... 65

Subdivision 138‑A—First home super saver determination                         65

Guide to Subdivision 138‑A                                                                                   65

138‑5..................... What this Subdivision is about......................................... 65

Operative provisions                                                                                               66

138‑10................... First home super saver determination............................... 66

138‑15................... Review.............................................................................. 67

Subdivision 138‑B—FHSS maximum release amount                                   67

Guide to Subdivision 138‑B                                                                                   67

138‑20................... What this Subdivision is about......................................... 67

Operative provisions                                                                                               68

138‑25................... FHSS maximum release amount....................................... 68

138‑30................... FHSS releasable contributions amount............................. 68

138‑35................... Eligible contributions........................................................ 69

138‑40................... Associated earnings.......................................................... 71

Part 3‑30—Diverted profits tax                                                                            72

Division 145—Assessments of diverted profits tax                                          72

Guide to Division 145                                                                                              72

145‑1..................... What this Division is about............................................... 72

145‑5..................... DPT assessments—modified application of Division 155 72

145‑10................... When DPT assessments can be made............................... 73

145‑15................... Period of review of DPT assessments.............................. 73

145‑20................... Review of assessments..................................................... 74

145‑25................... Restricted DPT evidence................................................... 75

Chapter 4—Generic assessment, collection and recovery rules               78

Part 4‑1—Returns and assessments                                                                    78

Division 155—Assessments                                                                                    78

Guide to Division 155                                                                                              78

155‑1..................... What this Division is about............................................... 78

Subdivision 155‑A—Making assessments                                                          78

155‑5..................... Commissioner may make assessment............................... 79

155‑10................... Commissioner must give notice of assessment................. 80

155‑15................... Self‑assessment................................................................ 80

155‑20................... Assessment of indirect tax on importations and customs dealing             82

155‑25................... Special assessment............................................................ 83

155‑30................... Delays in making assessments.......................................... 83

Subdivision 155‑B—Amending assessments                                                      84

When Commissioner may amend assessments                                                 84

155‑35................... Amendment during period of review................................ 84

155‑40................... Amendment during period of review—certain applications taken to be notices       86

155‑45................... Amendment on application............................................... 87

155‑50................... Amendment to give effect to private ruling....................... 87

155‑55................... Amendment to give effect to certain anti‑avoidance declarations              87

155‑60................... Amendment because of review, objection or fraud........... 88

Special rules about amending amended assessments                                      88

155‑65................... Amending amended assessments...................................... 88

155‑70................... Refreshed period of review............................................... 88

General rules    89

155‑75................... Refunds of amounts overpaid........................................... 89

155‑80................... Amended assessments are assessments............................ 89

Subdivision 155‑C—Validity and review of assessments                               90

155‑85................... Validity of assessment...................................................... 90

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

Subdivision 155‑D—Miscellaneous                                                                     90

155‑95................... Entities.............................................................................. 90

Part 4‑15—Collection and recovery of tax‑related liabilities and other amounts           92

Division 250—Introduction                                                                                   92

Subdivision 250‑A—Guide to Part 4‑15                                                             92

250‑1..................... What this Part is about...................................................... 92

250‑5..................... Some important concepts about tax‑related liabilities........ 92

250‑10................... Summary of tax‑related liabilities...................................... 93

Subdivision 250‑B—Object of this Part                                                            101

250‑25................... Object............................................................................. 101

Division 255—General rules about collection and recovery                      102

Subdivision 255‑A—Tax‑related liabilities                                                     102

255‑1..................... Meaning of tax‑related liability....................................... 102

255‑5..................... Recovering a tax‑related liability that is due and payable 102

Subdivision 255‑B—Commissioner’s power to vary payment time          103

255‑10................... To defer the payment time............................................... 103

255‑15................... To permit payments by instalments................................. 104

255‑20................... To bring forward the payment time in certain cases........ 104

Subdivision 255‑C—Recovery proceedings                                                    105

Guide to Subdivision 255‑C                                                                                 105

255‑35................... What this Subdivision is about....................................... 105

Operative provisions                                                                                             105

255‑40................... Service of documents if person absent from Australia or cannot be found              105

255‑45................... Evidentiary certificate...................................................... 106

255‑50................... Certain statements or averments...................................... 107

255‑55................... Evidence by affidavit...................................................... 108

Subdivision 255‑D—Security deposits                                                              108

255‑100................. Commissioner may require security deposit................... 108

255‑105................. Notice of requirement to give security............................ 109

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

Division 260—Special rules about collection and recovery                        111

Guide to Division 260                                                                                            111

260‑1..................... What this Division is about............................................. 111

Subdivision 260‑A—From third party                                                              111

260‑5..................... Commissioner may collect amounts from third party...... 112

260‑10................... Notice to Commonwealth, State or Territory.................. 113

260‑15................... Indemnity........................................................................ 114

260‑20................... Offence........................................................................... 114

Subdivision 260‑B—From liquidator                                                               114

260‑40................... Subdivision does not apply to superannuation guarantee charge              115

260‑45................... Liquidator’s obligation.................................................... 115

260‑50................... Offence........................................................................... 116

260‑55................... Joint liability of 2 or more liquidators............................. 116

260‑60................... Liquidator’s other obligation or liability.......................... 117

Subdivision 260‑C—From receiver                                                                   117

260‑75................... Receiver’s obligation...................................................... 117

260‑80................... Offence........................................................................... 118

260‑85................... Joint liability of 2 or more receivers................................ 119

260‑90................... Receiver’s other obligation or liability............................ 119

Subdivision 260‑D—From agent winding up business for foreign resident principal  119

260‑105................. Obligation of agent winding up business for foreign resident principal   119

260‑110................. Offence........................................................................... 120

260‑115................. Joint liability of 2 or more agents.................................... 120

260‑120................. Agent’s other obligation or liability................................ 121

Subdivision 260‑E—From deceased person’s estate                                     121

260‑140................. Administered estate......................................................... 121

260‑145................. Unadministered estate..................................................... 122

260‑150................. Commissioner may authorise amount to be recovered.... 123

Division 263—Mutual assistance in collection of foreign tax debts          124

Subdivision 263‑A—Foreign revenue claims                                                  124

Guide to Subdivision 263‑A                                                                                 124

263‑5..................... What this Subdivision is about....................................... 124

Operative provisions                                                                                             125

263‑10................... Meaning of foreign revenue claim.................................. 125

263‑15................... Requirements for foreign revenue claims........................ 125

263‑20................... Foreign Revenue Claims Register................................... 126

263‑25................... Registering claims........................................................... 126

263‑30................... When amount is due and payable.................................... 126

263‑35................... Amending the Register etc.............................................. 127

263‑40................... Payment to competent authority...................................... 128

Division 265—Other matters                                                                              129

Subdivision 265‑A—Right of person to seek recovery or contribution    129

Guide to Subdivision 265‑A                                                                                 129

265‑35................... What this Subdivision is about....................................... 129

Operative provisions                                                                                             129

265‑40................... Right of recovery if another person is liable................... 129

265‑45................... Right of contribution if persons are jointly liable............ 130

Subdivision 265‑B—Application of laws                                                          130

265‑65................... Non‑application of certain taxation laws......................... 130

Division 268—Estimates and recovery of PAYG withholding liabilities and superannuation guarantee charge                                                                                                       131

Guide to Division 268                                                                                            131

268‑1..................... What this Division is about............................................. 131

Subdivision 268‑A—Object                                                                                  132

268‑5..................... Object of Division.......................................................... 132

Subdivision 268‑B—Making estimates                                                             132

268‑10................... Commissioner may make estimate.................................. 132

268‑15................... Notice of estimate........................................................... 134

Subdivision 268‑C—Liability to pay estimates                                              134

268‑20................... Nature of liability to pay estimate.................................... 135

268‑25................... Accuracy of estimate irrelevant to liability to pay............ 136

268‑30................... Estimate provable in bankruptcy or winding up.............. 136

Subdivision 268‑D—Reducing and revoking estimates                                137

268‑35................... How estimate may be reduced or revoked—Commissioner’s powers     137

268‑40................... How estimate may be reduced or revoked—statutory declaration or affidavit          139

268‑45................... How estimate may be reduced or revoked—rejection of proof of debt    141

268‑50................... How estimate may be reduced—amount paid or applied 143

268‑55................... When reduction or revocation takes effect...................... 143

268‑60................... Consequences of reduction or revocation—refund......... 144

268‑65................... Consequences of reduction or revocation—statutory demand changed or set aside 144

268‑70................... Consequences of reduction or revocation—underlying liability               145

Subdivision 268‑E—Late payment of estimates                                             145

268‑75................... Liability to pay the general interest charge...................... 145

268‑80................... Effect of paying the general interest charge..................... 146

Subdivision 268‑F—Miscellaneous                                                                    147

268‑85................... Effect of judgment on liability on which it is based........ 147

268‑90................... Requirements for statutory declaration or affidavit......... 148

268‑95................... Liquidators, receivers and trustees in bankruptcy........... 151

268‑100................. Division not to limit or exclude Corporations or Bankruptcy Act            152

Division 269—Penalties for directors of non‑complying companies       153

Guide to Division 269                                                                                            153

269‑1..................... What this Division is about............................................. 153

Subdivision 269‑A—Object and scope                                                              154

269‑5..................... Object of Division.......................................................... 154

269‑10................... Scope of Division........................................................... 154

Subdivision 269‑B—Obligations and penalties                                              156

269‑15................... Directors’ obligations..................................................... 156

269‑20................... Penalty............................................................................ 157

269‑25................... Notice............................................................................. 158

269‑30................... Effect on penalty of directors’ obligation ending before end of notice period          159

269‑35................... Defences......................................................................... 162

Subdivision 269‑C—Discharging liabilities                                                    164

269‑40................... Effect of director paying penalty or company discharging liability           164

269‑45................... Directors’ rights of indemnity and contribution.............. 165

Subdivision 269‑D—Miscellaneous                                                                   165

269‑50................... How notice may be given............................................... 166

269‑52................... Copies of notices............................................................ 166

269‑55................... Division not to limit or exclude Corporations Act.......... 166

Part 4‑25—Charges and penalties                                                                     167

Division 280—Shortfall interest charge                                                           167

Guide to Division 280                                                                                            167

280‑1..................... Guide to Division 280.................................................... 167

Subdivision 280‑A—Object of Division                                                            167

280‑50................... Object of Division.......................................................... 167

Subdivision 280‑B—Shortfall interest charge                                                168

280‑100................. Liability to shortfall interest charge—income tax............ 168

280‑101................. Liability to shortfall interest charge—excess exploration credit tax          170

280‑102................. Liability to shortfall interest charge—petroleum resource rent tax            170

280‑102A.............. Liability to shortfall interest charge—excess non‑concessional contributions tax    171

280‑102B.............. Liability to shortfall interest charge—Division 293 tax... 172

280‑102C.............. Liability to shortfall interest charge—diverted profits tax 174

280‑103................. Liability to shortfall interest charge—general.................. 175

280‑105................. Amount of shortfall interest charge................................. 175

280‑110................. Notification by Commissioner........................................ 176

Subdivision 280‑C—Remitting shortfall interest charge                             176

280‑160................. Remitting shortfall interest charge................................... 176

280‑165................. Commissioner must give reasons for not remitting in certain cases         177

280‑170................. Objecting against remission decision.............................. 177

Division 284—Administrative penalties for statements, unarguable positions and schemes      178

Guide to Division 284                                                                                            178

284‑5..................... What this Division is about............................................. 178

Subdivision 284‑A—General provisions                                                          178

284‑10................... Object of Division.......................................................... 179

284‑15................... When a matter is reasonably arguable........................... 179

284‑20................... Which statements this Division applies to....................... 180

284‑25................... Statements by agents....................................................... 180

284‑30................... Application of Division to trusts..................................... 180

284‑35................... Application of Division to partnerships.......................... 180

Subdivision 284‑B—Penalties relating to statements                                    181

Guide to Subdivision 284‑B                                                                                 181

284‑70................... What this Subdivision is about....................................... 181

Operative provisions                                                                                             182

284‑75................... Liability to penalty.......................................................... 182

284‑80................... Shortfall amounts........................................................... 185

284‑85................... Amount of penalty.......................................................... 187

284‑90................... Base penalty amount....................................................... 188

284‑95................... Joint and several liability of directors of corporate trustee that makes a false or misleading statement     192

Subdivision 284‑C—Penalties relating to schemes                                        192

Guide to Subdivision 284‑C                                                                                 192

284‑140................. What this Subdivision is about....................................... 192

Operative provisions                                                                                             193

284‑145................. Liability to penalty.......................................................... 193

284‑150................. Scheme benefits and scheme shortfall amounts.............. 195

284‑155................. Amount of penalty.......................................................... 197

284‑160................. Base penalty amount: schemes....................................... 198

284‑165................. Exception—threshold for penalty arising from cross‑border transfer pricing          199

Subdivision 284‑D—Provisions common to Subdivisions 284‑B and 284‑C 200

284‑220................. Increase in base penalty amount...................................... 200

284‑224................. Reduction of base penalty amount if law was applied in an accepted way               201

284‑225................. Reduction of base penalty amount if you voluntarily tell the Commissioner            202

Subdivision 284‑E—Special rules about unarguable positions for cross‑border transfer pricing           203

284‑250................. Undocumented transfer pricing treatment not reasonably arguable          204

284‑255................. Documentation requirements.......................................... 204

Division 286—Penalties for failing to lodge documents on time               206

Subdivision 286‑A—Guide to Division 286                                                     206

286‑1..................... What this Division is about............................................. 206

Subdivision 286‑B—Object of Division                                                            206

286‑25................... Object of Division.......................................................... 206

Subdivision 286‑C—Penalties for failing to lodge documents on time    207

286‑75................... Liability to penalty.......................................................... 207

286‑80................... Amount of penalty.......................................................... 209

Division 288—Miscellaneous administrative penalties                                213

288‑10................... Penalty for non‑electronic notification............................ 213

288‑20................... Penalty for non‑electronic payment................................. 214

288‑25................... Penalty for failure to keep or retain records.................... 214

288‑30................... Penalty for failure to retain or produce declarations........ 215

288‑35................... Penalty for preventing access etc.................................... 215

288‑40................... Penalty for failing to register or cancel registration......... 216

288‑45................... Penalty for failing to issue tax invoice etc....................... 216

288‑46................... Penalty for failing to ensure tax information about supplies of low value goods is included in customs documents....................................................................... 216

288‑50................... Penalty for both principal and agent issuing certain documents               217

288‑70................... Administrative penalties for life insurance companies.... 217

288‑75................... Administrative penalty for a copyright or resale royalty collecting society               219

288‑80................... Administrative penalty for over declaring conduit foreign income           219

288‑85................... Failure by Reporting Financial Institution to obtain self‑certification       220

288‑95................... Failing to comply etc. with release authority................... 221

288‑100................. Excess money paid under release authority..................... 222

288‑105................. Superannuation provider to calculate crystallised pre‑July 83 amount of superannuation interest by 30 June 2008................................................................................ 222

288‑110................. Contravention of superannuation data and payment regulation or standard              223

288‑115................. AMIT under or over resulting from intentional disregard of or recklessness as to taxation law              224

288‑120................. Prohibited offsets of liabilities using interest etc. accrued on farm management deposits        226

288‑125................. Producing or supplying electronic sales suppression tools 227

288‑130................. Possessing electronic sales suppression tools................. 227

288‑135................. Incorrectly keeping records using electronic sales suppression tools       228

Division 290—Promotion and implementation of schemes                        229

Subdivision 290‑A—Preliminary                                                                       229

290‑5..................... Objects of this Division.................................................. 229

290‑10................... Extra‑territorial application.............................................. 229

Subdivision 290‑B—Civil penalties                                                                   229

290‑50................... Civil penalties................................................................. 230

290‑55................... Exceptions...................................................................... 232

290‑60................... Meaning of promoter..................................................... 234

290‑65................... Meaning of tax exploitation scheme................................ 234

Subdivision 290‑C—Injunctions                                                                         235

290‑120................. Conduct to which this Subdivision applies..................... 236

290‑125................. Injunctions...................................................................... 236

290‑130................. Interim injunctions.......................................................... 236

290‑135................. Delay in making ruling................................................... 236

290‑140................. Discharge etc. of injunctions........................................... 237

290‑145................. Certain limits on granting injunctions not to apply.......... 237

290‑150................. Other powers of the Federal Court unaffected................ 238

Subdivision 290‑D—Voluntary undertakings                                                 238

290‑200................. Voluntary undertakings.................................................. 238

Division 295—Miscellaneous civil penalties                                                   239

Subdivision 295‑B—Civil penalty for possession of tobacco without relevant documentation 239

Guide to Subdivision 295‑B                                                                                 239

295‑70................... What this Subdivision is about....................................... 239

295‑75................... Possession of tobacco without relevant documentation etc. 240

295‑80................... Things treated as tobacco................................................ 242

Division 298—Machinery provisions for penalties                                       243

Subdivision 298‑A—Administrative penalties                                                243

298‑5..................... Scope of Subdivision...................................................... 243

298‑10................... Notification of liability.................................................... 243

298‑15................... Due date for penalty........................................................ 244

298‑20................... Remission of penalty...................................................... 244

298‑25................... General interest charge on unpaid penalty....................... 244

298‑30................... Assessment of penalties under Division 284 or section 288‑115             245

Subdivision 298‑B—Civil penalties                                                                   245

298‑80................... Application of Subdivision............................................. 245

298‑85................... Civil evidence and procedure rules for civil penalty orders 246

298‑90................... Civil proceedings after criminal proceedings.................. 246

298‑95................... Criminal proceedings during civil proceedings............... 246

298‑100................. Criminal proceedings after civil proceedings.................. 246

298‑105................. Evidence given in proceedings for penalty not admissible in criminal proceedings  247

298‑110................. Civil double jeopardy...................................................... 247

Part 4‑30—Offences and prosecutions                                                            248

Division 308—Offences relating to tobacco                                                    248

Guide to Division 308                                                                                            248

308‑1..................... What this Division is about............................................. 248

Subdivision 308‑A—Reasonable suspicion offences relating to tobacco 248

Guide to Subdivision 308‑A                                                                                 248

308‑5..................... What this Subdivision is about....................................... 248

308‑10................... Possession of tobacco (500 kilograms or above)—reasonable suspicion offence    249

308‑15................... Possession of tobacco (100 kilograms or above)—reasonable suspicion offence    252

308‑20................... Possession of tobacco (5 kg or above)—reasonable suspicion offence   255

308‑25................... Sale of tobacco (500 kilograms or above)—reasonable suspicion offence               257

308‑30................... Sale of tobacco (100 kilograms or above)—reasonable suspicion offence               260

308‑35................... Sale of tobacco (5 kg or above)—reasonable suspicion offence              262

308‑40................... Buying of tobacco (500 kilograms or above)—reasonable suspicion offence          265

308‑45................... Buying of tobacco (100 kilograms or above)—reasonable suspicion offence          268

308‑50................... Buying of tobacco (5 kg or above)—reasonable suspicion offence         270

308‑55................... Matters taken to satisfy “reasonable to suspect” requirement 273

Subdivision 308‑B—Fault‑based offences of possession, production and manufacture              275

Guide to Subdivision 308‑B                                                                                 275

308‑105................. What this Subdivision is about....................................... 275

308‑110................. Possession of tobacco (500 kg or above)—fault‑based offence               276

308‑115................. Possession of tobacco (100 kg or above)—fault‑based offence               278

308‑120................. Possession of tobacco (5 kg or above)—fault‑based offence.. 281

308‑125................. Manufacture or production of tobacco (500 kg or above)—fault‑based offence      283

308‑130................. Manufacture or production of tobacco (100 kg or above)—fault‑based offence      285

308‑135................. Manufacture or production of tobacco (5 kg or above)—fault‑based offence          287

Subdivision 308‑C—Offences relating to equipment relating to the manufacture or production of tobacco        290

Guide to Subdivision 308‑C                                                                                 290

308‑200................. What this Subdivision is about....................................... 290

308‑205................. Possession of equipment for use in illegal manufacture or production of tobacco   290

308‑210................. Possession of equipment designed or adapted to manufacture or produce tobacco  291

Subdivision 308‑E—Other provisions                                                              292

Guide to Subdivision 308‑E                                                                                 292

308‑500................. What this Subdivision is about....................................... 292

308‑505................. Things treated as tobacco................................................ 293

308‑510................. Matters treated as possession.......................................... 293

308‑515................. Where excise duty or customs duty is treated as not payable for the purpose of the reasonable suspicion offences.......................................................................... 293

308‑520................. Section 8ZD does not apply to this Division.................. 294

Part 4‑50—Release from particular liabilities                                            295

Division 340Commissioner’s power in cases of hardship                        295

Guide to Division 340                                                                                            295

340‑1..................... What this Division is about............................................. 295

Operative provisions                                                                                             295

340‑5..................... Release from particular liabilities in cases of serious hardship 295

340‑10................... Liabilities to which this section applies........................... 297

340‑15................... Commissioner may take action to give effect to a release decision           298

340‑20................... Extinguishing your liability to pay a fringe benefits tax instalment if you are released             299

340‑25................... Extinguishing your liability to pay a PAYG instalment if you are released              299

Division 342Commissioner’s power relating to proceeds of crime proceedings       301

Guide to Division 342                                                                                            301

342‑1..................... What this Division is about............................................. 301

Subdivision 342‑A—Power to waive right to payment of tax‑related liabilities            301

342‑5..................... Object of this Subdivision.............................................. 301

342‑10................... Power to waive right to payment of tax‑related liability.. 302

Part 4‑90—Evidence                                                                                                 304

Division 350—Evidence                                                                                       304

Guide to Division 350                                                                                            304

350‑1..................... What this Division is about............................................. 304

Subdivision 350‑A—Evidence                                                                             304

350‑5..................... Application of Subdivision............................................. 304

350‑10................... Evidence......................................................................... 304

350‑15................... Judicial notice of signature.............................................. 307

Chapter 5—Administration                                                                                         308

Part 5‑1—The Australian Taxation Office                                                   308

Division 352—Commissioner’s reporting obligations                                 308

Guide to Division 352                                                                                            308

352‑1..................... What this Division is about............................................. 308

Subdivision 352‑A—Accountability of the Commissioner in respect of indirect tax laws           308

352‑5..................... Commissioner must prepare annual report on indirect tax laws               308

Subdivision 352‑C—Reporting on working holiday makers                      309

352‑25................... Commissioner must prepare annual report on working holiday makers   309

Division 353—Powers to obtain information and evidence                        310

353‑10................... Commissioner’s power................................................... 310

353‑15................... Access to premises, documents etc................................. 310

353‑20................... Checking status of specifically listed deductible gift recipients                311

Division 354—Power to obtain information about rights or interests in property       314

354‑5..................... Power to obtain information about rights or interests in property            314

Division 355—Confidentiality of taxpayer information                             316

Guide to Division 355                                                                                            316

355‑1..................... What this Division is about............................................. 316

Subdivision 355‑A—Objects and application of Division                            317

355‑10................... Objects of Division......................................................... 317

355‑15................... Application of Division.................................................. 317

Subdivision 355‑B—Disclosure of protected information by taxation officers             318

Guide to Subdivision 355‑B                                                                                 318

355‑20................... What this Subdivision is about....................................... 318

Operative provisions                                                                                             318

355‑25................... Offence—disclosure of protected information by taxation officers          318

355‑30................... Meaning of protected information and taxation officer... 320

355‑35................... Consent is not a defence................................................. 320

355‑40................... Generality of Subdivision not limited............................. 320

355‑45................... Exception—disclosure of publicly available information 321

355‑47................... Exception—disclosure of periodic aggregate tax information  321

355‑50................... Exception—disclosure in performing duties................... 321

355‑55................... Exception—disclosure to Ministers................................ 323

355‑60................... Limits on disclosure to Ministers.................................... 326

355‑65................... Exception—disclosure for other government purposes.. 326

355‑70................... Exception—disclosure for law enforcement and related purposes           340

355‑75................... Limits on disclosure to courts and tribunals.................... 346

Subdivision 355‑C—On‑disclosure of protected information by other people               346

Guide to Subdivision 355‑C                                                                                 346

355‑150................. What this Subdivision is about....................................... 346

Operative provisions                                                                                             347

355‑155................. Offence—on‑disclosure of protected information by other people           347

355‑160................. Consent is not a defence................................................. 348

355‑165................. Generality of Subdivision not limited............................. 348

355‑170................. Exception—on‑disclosure of publicly available information 348

355‑172................. Exception—disclosure of periodic aggregate tax information  348

355‑175................. Exception—on‑disclosure for original purpose.............. 349

355‑180................. Exception—on‑disclosure to Ministers in relation to statutory powers or functions                350

355‑182................. Exception—on‑disclosure of certain information to Commonwealth Ombudsman  350

355‑185................. Exception—on‑disclosure in relation to IGIS................. 351

355‑190................. Exception—on‑disclosure in relation to ASIO............... 352

355‑195................. Exception—on‑disclosure by Royal Commissions......... 353

355‑200................. Exception—records made in compliance with Australian laws                354

355‑205................. Limits on on‑disclosure to courts or tribunals................. 354

355‑210................. Limits on on‑disclosure to Ministers.............................. 354

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

Guide to Subdivision 355‑D                                                                                 355

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

Operative provisions                                                                                             356

355‑265................. Offence—disclosure of protected information acquired in breach of a taxation law 356

355‑270................. Exception—disclosure of publicly available information 356

355‑275................. Exception—disclosure in relation to a taxation law......... 356

355‑280................. Limits on disclosure to courts and tribunals.................... 357

Subdivision 355‑E—Other matters                                                                    357

Guide to Subdivision 355‑E                                                                                 357

355‑320................. What this Subdivision is about....................................... 357

Operative provisions                                                                                             358

355‑325................. Oath or affirmation to protect information...................... 358

355‑330................. Injunctions to prevent contravention of non‑disclosure provisions          358

355‑335................. Procedures for disclosing protected information............. 360

Division 356—General administration of tax laws                                       362

Guide to Division 356                                                                                            363

356‑1..................... What this Division is about............................................. 362

Subdivision 356‑A—Indirect tax laws                                                               362

356‑5..................... Commissioner has general administration of indirect tax laws 362

Subdivision 356‑B—Major bank levy                                                               362

356‑10................... Commissioner has general administration of major bank levy 362

Part 5‑5—Rulings                                                                                                       363

Division 357—Object and common rules                                                         363

Guide to Division 357                                                                                            364

357‑1..................... What this Division is about............................................. 363

Subdivision 357‑A—Object of this Part                                                            363

357‑5..................... Object of this Part........................................................... 364

Subdivision 357‑B—Common rules for rulings                                             365

Rules for all rulings                                                                                               365

357‑50................... Scope of Division........................................................... 365

357‑55................... The provisions that are relevant for rulings..................... 366

357‑60................... When rulings are binding on the Commissioner............. 366

357‑65................... Stopping relying on a ruling........................................... 369

357‑70................... Commissioner may apply the law if more favourable than the ruling       370

357‑75................... Inconsistent rulings......................................................... 370

357‑80................... Contracts for schemes..................................................... 372

357‑85................... Effect on ruling if relevant provision re‑enacted............. 372

357‑90................... Validity of ruling not affected by formal defect.............. 372

Common rules for public and private rulings                                                373

357‑95................... Electronic communications............................................. 373

357‑100................. Evidence......................................................................... 373

Common rules for private and oral rulings                                                    373

357‑105................. Further information must be sought................................ 373

357‑110................. Assumptions in making private or oral ruling................. 374

357‑115................. Additional information provided by applicant................. 374

357‑120................. Commissioner may take into account information from third parties       374

357‑125................. Applications and objections not to affect obligations and powers            375

Division 358—Public rulings                                                                              376

Guide to Division 358                                                                                            377

358‑1..................... What this Division is about............................................. 376

Making public rulings                                                                                           376

358‑5..................... What is a public ruling?.................................................. 376

358‑10................... Application of public rulings.......................................... 377

358‑15................... When a public ruling ceases to apply.............................. 377

Withdrawing public rulings                                                                                 378

358‑20................... Withdrawing public rulings............................................ 378

Division 359—Private rulings                                                                            379

Guide to Division 359                                                                                            380

359‑1..................... What this Division is about............................................. 379

Private rulings 380

359‑5..................... Private rulings................................................................. 380

359‑10................... Applying for a private ruling.......................................... 380

359‑15................... Private rulings to be given to applicants.......................... 380

359‑20................... Private rulings must contain certain details..................... 380

359‑25................... Time of application of private rulings............................. 381

359‑30................... Ruling for trustee of a trust............................................. 381

359‑35................... Dealing with applications................................................ 382

359‑40................... Valuations....................................................................... 382

359‑45................... Related rulings................................................................ 383

359‑50................... Delays in making private rulings.................................... 384

359‑55................... Revised private rulings................................................... 385

359‑60................... Objections, reviews and appeals relating to private rulings 386

359‑65................... Commissioner may consider new information on objection 387

359‑70................... Successful objection decision alters ruling...................... 387

Division 360—Oral rulings                                                                                 388

Guide to Division 360                                                                                            389

360‑1..................... What this Division is about............................................. 388

Oral rulings      388

360‑5..................... Applying for and making of oral rulings........................ 388

360‑10................... Withdrawing an application for an oral ruling................. 390

360‑15................... Commissioner determinations......................................... 390

Division 361—Non‑ruling advice and general administrative practice  391

361‑5..................... Non‑ruling advice and general administrative practice.... 391

Division 362—Rulings by Innovation and Science Australia that activities are not ineligible activities                392

Guide to Division 362                                                                                            393

362‑1..................... What this Division is about............................................. 392

Public rulings by Innovation and Science Australia                                     393

362‑5..................... Innovation and Science Australia may make public rulings on a specified class of activities   393

362‑10................... Application of public rulings.......................................... 394

362‑15................... When a public ruling ceases to apply.............................. 394

362‑20................... Withdrawing public rulings............................................ 394

Private rulings by Innovation and Science Australia                                   394

362‑25................... Innovation and Science Australia may make private rulings on a specified activity 394

362‑30................... Applying for a private ruling.......................................... 395

362‑35................... Innovation and Science Australia must give notice of its decision           395

362‑40................... Private rulings must contain certain details..................... 396

362‑45................... Application of private rulings......................................... 396

362‑50................... Delays in making private rulings.................................... 396

362‑55................... When a private ruling ceases to apply............................. 398

362‑60................... Withdrawing private rulings........................................... 398

General provisions                                                                                                 398

362‑65................... When rulings are binding on the Commissioner and Innovation and Science Australia           398

362‑70................... Application of common rules under Subdivision 357‑B. 399

362‑75................... Application of Divisions 358 and 359............................ 399

Part 5‑10—Commissioner’s remedial power                                               400

Division 370—Commissioner’s remedial power                                            400

Guide to Division 370                                                                                            401

370‑1..................... What this Division is about............................................. 400

Subdivision 370‑A—Commissioner’s remedial power                                 401

370‑5..................... Commissioner’s remedial power.................................... 401

370‑10................... Intended purpose or object.............................................. 402

370‑15................... Repeal of determinations................................................. 403

370‑20................... Commencement of determinations.................................. 403

Part 5‑25—Record‑keeping and other obligations relating to taxpayers            404

Division 382—Record‑keeping                                                                           404

Guide to Division 382                                                                                            405

382‑1..................... What this Division is about............................................. 404

Subdivision 382‑A—Keeping records of indirect tax transactions           404

382‑5..................... Keeping records of indirect tax transactions.................... 404

Subdivision 382‑B—Record keeping obligations of deductible gift recipients               408

382‑15................... Deductible gift recipients to keep records....................... 408

Division 388—Requirements about giving material to the Commissioner 410

Subdivision 388‑A—Object of Division                                                            410

388‑5..................... Object of Division.......................................................... 410

Subdivision 388‑B—General provisions                                                          410

388‑50................... Approved forms............................................................. 410

388‑52................... Saturdays, Sundays and public holidays......................... 411

388‑55................... Commissioner may defer time for lodgment................... 411

388‑60................... Declaration by entity....................................................... 412

388‑65................... Declaration by entity where agent gives document......... 412

388‑70................... Declaration by agent....................................................... 413

388‑75................... Signing declarations........................................................ 413

388‑80................... Electronic notification of BAS amounts.......................... 414

388‑85................... Truncating amounts........................................................ 414

Division 389—Reporting by employers                                                           415

Guide to Division 389                                                                                            416

389‑1..................... What this Division is about............................................. 415

389‑5..................... Required reporting by substantial employers.................. 415

389‑10................... Exemptions..................................................................... 418

389‑15................... Voluntary reporting by employers.................................. 419

389‑20................... Effect on reporting requirements under Subdivision 16‑C 420

389‑25................... Grace periods for correcting false or misleading notifications  421

Division 390Superannuation reporting                                                        423

Guide to Division 390                                                                                            424

390‑1..................... What this Division is about............................................. 423

Subdivision 390‑A—Member information statements and roll‑over superannuation benefit statements               423

390‑5..................... Member information statements...................................... 423

390‑10................... Statements about roll‑over superannuation benefits etc... 426

390‑12................... Statements about benefits paid to KiwiSaver schemes.... 428

390‑15................... Superannuation statements to members.......................... 429

390‑20................... Statements relating to holders of certain life insurance policies                430

Subdivision 390‑BStatements relating to release authorities                 431

390‑65................... Statements relating to release authorities......................... 431

Subdivision 390‑COther statements                                                              433

390‑115................. Change or omission in information given to the Commissioner               433

Division 392—Employee share scheme reporting                                         434

Guide to Division 392                                                                                            435

392‑1..................... What this Division is about............................................. 434

Subdivision 392‑A—Statements                                                                          434

392‑5..................... Statements by providers.................................................. 434

392‑10................... Change or omission in information given to the Commissioner               437

Subdivision 392‑B—Miscellaneous                                                                   438

392‑15................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997  438

Division 393—Reports by investment bodies                                                  439

Guide to Division 393                                                                                            440

393‑1..................... What this Division is about............................................. 439

393‑5..................... Reports about quoting tax file numbers and ABNs........ 439

393‑10................... Annual investment income reports.................................. 440

393‑15................... Errors in reports.............................................................. 441

Division 394Reporting about forestry managed investment schemes  442

Guide to Division 394                                                                                            443

394‑1..................... What this Division is about............................................. 442

394‑5..................... Statements about initial contributions to scheme............. 442

394‑10................... Statements about failure to establish trees within 18 months 443

Division 396—Third party reporting                                                               445

Guide to Division 396                                                                                            446

396‑1A.................. What this Division is about............................................. 445

Subdivision 396‑A—FATCA                                                                               445

Guide to Subdivision 396‑A                                                                                 445

396‑1..................... What this Subdivision is about....................................... 445

Operative provisions                                                                                             446

396‑5..................... Statements about U.S. Reportable Accounts................... 446

396‑10................... Statements about payments to Nonparticipating Financial Institutions     447

396‑15................... Meaning of the FATCA Agreement................................. 448

396‑20................... Permissions and elections............................................... 448

396‑25................... Record keeping............................................................... 449

Subdivision 396‑B—Information about transactions that could have tax consequences for taxpayers  450

Guide to Subdivision 396‑B                                                                                 450

396‑50................... What this Subdivision is about....................................... 450

Operative provisions                                                                                             450

396‑55................... Reporting tax‑related information about transactions to the Commissioner              450

396‑60................... Information required....................................................... 454

396‑65................... Exemptions—wholesale clients...................................... 455

396‑70................... Exemptions—other cases................................................ 455

396‑75................... Errors in reports.............................................................. 456

Subdivision 396‑C—Common Reporting Standard                                      457

Guide to Subdivision 396‑C                                                                                 457

396‑100................. What this Subdivision is about....................................... 457

Operative provisions                                                                                             458

396‑105................. Statements about Reportable Accounts........................... 458

396‑110................. Meaning of CRS............................................................. 459

396‑115................. Matters Common Reporting Standard leaves to domestic law 459

396‑120................. Application of Common Reporting Standard.................. 461

396‑125................. Record keeping............................................................... 462

396‑130................. Anti‑avoidance provisions.............................................. 463

396‑135................. Application of penalty to false or misleading self‑certification 464

396‑136................. Report on Reportable Accounts maintained by Australian Reporting Financial Institutions    465

Division 398—Miscellaneous reporting obligations                                     466

Guide to Division 398                                                                                            467

398‑1..................... What this Division is about............................................. 466

Subdivision 398‑A—Farm Management Deposit reporting                        466

398‑5..................... Reporting to Agriculture Department.............................. 466

Part 5‑30—Payment, ABN and identification verification system   468

Division 400—Guide to Part 5‑30                                                                      468

400‑1..................... What Part 5‑30 is about.................................................. 468

400‑5..................... The payment, ABN and identification verification system 468

Division 405—Transaction reporting by purchasers                                   469

405‑5..................... Payments to which this Division applies........................ 469

405‑10................... Reporting requirements................................................... 469

405‑15................... Invoices produced by purchasers.................................... 470

Division 410—Transaction reporting by suppliers                                       471

410‑5..................... Payments to which this Division applies........................ 471

410‑10................... Reporting requirements................................................... 471

410‑15................... Invoices produced by purchasers.................................... 472

Division 415—Verification of suppliers’ ABNs by purchasers                  473

415‑5..................... Payments to which this Division applies........................ 473

415‑10................... ABN verification requirements....................................... 473

415‑15................... Method of obtaining ABN verification........................... 474

415‑20................... Verification applies to later payments............................. 474

Division 417—Verification of suppliers’ identities by purchasers            475

417‑5..................... Payments to which this Division applies........................ 475

417‑10................... Identity verification requirements.................................... 475

417‑15................... Method of obtaining identity verification........................ 476

417‑20................... Verification applies to later payments............................. 476

Division 420—Penalties for not reporting or verifying                               477

420‑5..................... Failing to report or verify: administrative penalty........... 477

Division 425—Other matters                                                                              478

425‑20................... Constructive payment..................................................... 478

425‑25................... Non‑cash benefits........................................................... 478

Part 5‑35—Registration and similar processes for various taxes    479

Division 426—Process of endorsing charities and other entities               479

Guide to Division 426                                                                                            480

426‑1..................... What this Division is about............................................. 479

Subdivision 426‑A—Application of Subdivision 426‑B to various kinds of endorsement           480

426‑5..................... Application of Subdivision 426‑B to various kinds of endorsement        480

426‑10................... How Subdivision 426‑B applies to government entities in relation to endorsement under section 30‑120 of the Income Tax Assessment Act 1997................................... 481

Subdivision 426‑B—Process of endorsement etc.                                          481

426‑15................... Applying for endorsement.............................................. 482

426‑20................... Dealing with an application for endorsement.................. 482

426‑25................... Notifying outcome of application for endorsement......... 483

426‑30................... Date of effect of endorsement......................................... 484

426‑35................... Review of refusal of endorsement.................................. 484

426‑40................... Checking entitlement to endorsement.............................. 484

426‑45................... Telling Commissioner of loss of entitlement to endorsement 485

426‑50................... Partnerships and unincorporated bodies......................... 486

426‑55................... Revoking endorsement................................................... 486

426‑60................... Review of revocation of endorsement............................. 487

Subdivision 426‑C—Entries on Australian Business Register                    488

426‑65................... Entries on Australian Business Register......................... 488

Subdivision 426‑D—Public and private ancillary funds                              489

Guide to Subdivision 426‑D                                                                                 489

426‑100................. What this Subdivision is about....................................... 489

Public ancillary funds                                                                                           491

426‑102................. Public ancillary funds..................................................... 491

426‑103................. Public ancillary fund guidelines...................................... 491

426‑104................. Australian Business Register must show public ancillary fund status      492

Private ancillary funds                                                                                         492

426‑105................. Private ancillary funds.................................................... 492

426‑110................. Private ancillary fund guidelines..................................... 493

426‑115................. Australian Business Register must show private ancillary fund status     493

Administrative penalties                                                                                       494

426‑120................. Administrative penalties for trustees of ancillary funds.. 494

Suspension and removal of trustees                                                                   495

426‑125................. Suspension or removal of trustees.................................. 495

426‑130................. Commissioner to appoint acting trustee in cases of suspension or removal             497

426‑135................. Terms and conditions of appointment of acting trustee... 498

426‑140................. Termination of appointment of acting trustee.................. 498

426‑145................. Resignation of acting trustee........................................... 498

426‑150................. Property vesting orders................................................... 499

426‑155................. Powers of acting trustee.................................................. 499

426‑160................. Commissioner may give directions to acting trustee....... 500

426‑165................. Property vested in acting trustee—former trustees’ obligations relating to books, identification of property and transfer of property......................................................... 500

Transfers between ancillary funds                                                                    502

426‑170................. Ancillary funds must not provide funds to other ancillary funds             502

Part 5‑45—Application of taxation laws to certain entities                 503

Division 444—Obligations of entities on behalf of other entities              503

Guide to Division 444                                                                                            504

444‑1..................... What this Division is about............................................. 503

Subdivision 444‑A—Unincorporated associations and bodies and companies               503

444‑5..................... Unincorporated associations and bodies......................... 503

444‑10................... Public officers of companies........................................... 504

444‑15................... Notifying and serving companies................................... 505

Subdivision 444‑B—Partnerships                                                                      505

444‑30................... Partnerships.................................................................... 505

Subdivision 444‑C—Superannuation funds                                                     506

444‑50................... Superannuation funds..................................................... 506

Subdivision 444‑D—Incapacitated entities                                                      507

444‑70................... Representatives of incapacitated entities.......................... 507

Subdivision 444‑E—Indirect tax specific entities                                          508

444‑80................... GST joint ventures.......................................................... 508

444‑85................... Non‑profit sub‑entities.................................................... 511

444‑90................... GST groups.................................................................... 511

Division 446—Local governing bodies                                                            515

Guide to Division                                                                                                    515

446‑1..................... What this Division is about............................................. 515

Operative provisions                                                                                             515

446‑5..................... Requirements for unanimous resolutions by local governing bodies       515

Part 5‑100—Miscellaneous                                                                                    519

Division 850—Transactions exempt from application of taxation laws 519

Subdivision 850‑A—Declaration relating to security or intelligence agency 519

850‑100................. Declaration relating to security or intelligence agency..... 519

Division 990—Miscellaneous                                                                              522

Subdivision 990‑A—Combining notices                                                           522

990‑5..................... Commissioner may combine notices............................... 522


Schedule 1Collection and recovery of income tax and other liabilities

Chapter 3Collection, recovery and administration of other taxes

Part 3‑10Indirect taxes

Division 105General rules for indirect taxes

Table of Subdivisions

             Guide to Division 105

105‑D   General interest charge and penalties

105‑F    Indirect tax refund schemes

105‑G   Other administrative provisions

Guide to Division 105

105‑1  What this Division is about

This Division contains rules relating to the administration of the indirect tax laws.

                   Note 1:          Administration rules relevant to particular indirect tax laws are in Divisions 110, 111 and 112.

                   Note 2:          For assessment of assessable amounts under indirect tax laws, see Division 155.

The rules in this Division deal with the following:

               (c)     limits on credits, refunds and recovering amounts;

               (e)     the effect of not passing on refunds of overpaid amounts;

               (f)     charges and penalties;

              (h)     refunding indirect tax because of Australia’s international obligations;

               (i)     requirements for notifications.

Subdivision 105‑DGeneral interest charge and penalties

Table of sections

105‑80      General interest charge

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

105‑80  General interest charge

             (1)  If any of an amount (the liability) to which this section applies remains unpaid after the time by which it is due to be paid, you are liable to pay the *general interest charge on the unpaid amount of the liability for each day in the period that:

                     (a)  started at the beginning of the day by which the liability was due to be paid; and

                     (b)  finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:

                              (i)  the liability;

                             (ii)  general interest charge on any of the liability.

Note:          The general interest charge is worked out under Division 1 of Part IIA.

             (2)  This section applies to either of the following amounts that you are liable to pay:

                     (a)  an *assessed net fuel amount;

                     (b)  an assessed amount of *indirect tax (including an *assessed net amount).

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

             (1)  An Act that amends an *indirect tax law does not have the effect of making you liable to:

                     (a)  a penalty for an offence against an indirect tax law; or

                     (b)  *general interest charge under section 105‑80;

for any act or omission that happens before the 28th day (the postponed day) after the day on which the amending Act receives the Royal Assent.

             (2)  If the amending Act would (apart from this section) have the effect of making you liable to such a penalty or charge because you contravened a requirement to do something:

                     (a)  within a specified period ending before the postponed day; or

                     (b)  before a specified time happening before the postponed day;

the requirement has effect instead by reference to a period ending at the start of the postponed day, or by reference to the start of the postponed day, as the case requires.

             (3)  This section does not relieve you from liability to such a penalty or charge to the extent to which the liability would have existed if the amending Act had not been enacted.

Subdivision 105‑FIndirect tax refund schemes

Table of sections

105‑120    Refund scheme—defence related international obligations

105‑125    Refund scheme—international obligations

105‑120  Refund scheme—defence related international obligations

             (1)  The Commissioner must, on behalf of the Commonwealth, pay you an amount equal to the amount of *indirect tax borne by you in respect of an acquisition (within the meaning of the *GST Act) if:

                     (a)  you are in a class of entities determined by the *Defence Minister; and

                     (b)  the acquisition is covered by a determination of the Defence Minister; and

                     (c)  the acquisition is made:

                              (i)  by or on behalf of a *visiting force that is; or

                             (ii)  by a member (within the meaning of the Defence (Visiting Forces) Act 1963) of the visiting force who is; or

                            (iii)  by any other entity that is;

                            covered by a determination of the Defence Minister; and

                     (d)  at the time of the acquisition, it was intended for:

                              (i)  the official use of the visiting force; or

                             (ii)  the use of a member (within the meaning of the Defence (Visiting Forces) Act 1963) of the visiting force; or

                            (iii)  any other use;

                            and that use is covered by a determination of the Defence Minister; and

                     (e)  you claim the amount in the *approved form.

             (2)  The amount is payable:

                     (a)  in accordance with the conditions and limitations; and

                     (b)  within the period and manner;

determined by the *Defence Minister.

             (3)  The *Defence Minister may only determine an entity under subparagraph (1)(c)(iii) or a use under subparagraph (1)(d)(iii) if the Commonwealth is under an international obligation to grant *indirect tax concessions in relation to the kind of entity or the kind of use.

             (4)  A determination under this section is a legislative instrument.

105‑125  Refund scheme—international obligations

             (1)  The Commissioner must, on behalf of the Commonwealth, pay you, or an entity in a class of entities determined by the Commissioner, an amount equal to the amount of *indirect tax borne by you in respect of an acquisition (within the meaning of the *GST Act) made by you if:

                     (a)  you are a kind of entity specified in the regulations; and

                     (b)  the acquisition is of a kind specified in the regulations; and

                     (c)  you or the entity claims the amount in the *approved form.

             (2)  The amount is payable:

                     (a)  in accordance with the conditions and limitations; and

                     (b)  within the period and manner;

set out in the regulations.

             (3)  The regulations may only specify a kind of entity for the purposes of paragraph (1)(a) or a kind of acquisition for the purposes of paragraph (1)(b) if the Commonwealth is under an international obligation to grant *indirect tax concessions in relation to the kind of entity or the kind of acquisition.

             (4)  A determination by the Commissioner under subsection (1) is not a legislative instrument.

Subdivision 105‑GOther administrative provisions

Table of sections

105‑145    Commissioner must give things in writing

105‑145  Commissioner must give things in writing

             (1)  Any notice, approval, direction, authority or declaration that the Commissioner may give, or must give, to you under an *indirect tax law must be in writing.

             (2)  However, this does not prevent the Commissioner giving any of those things to you by electronic transmission if a provision of an *indirect tax law allows the Commissioner to do so.

Division 110Goods and services tax

Table of Subdivisions

             Guide to Division 110

110‑F    Review of GST decisions

Guide to Division 110

110‑1  What this Division is about

This Division gives you the right to object against reviewable GST decisions that relate to you. Section 110‑50 sets out the reviewable GST decisions.

Subdivision 110‑FReview of GST decisions

Table of sections

110‑50      Reviewable GST decisions

110‑50  Reviewable GST decisions

             (1)  You may object, in the manner set out in Part IVC, against a decision you are dissatisfied with that is:

                     (a)  a *reviewable GST decision relating to you; or

                     (b)  a *reviewable GST transitional decision relating to you.

             (2)  Each of the following decisions is a reviewable GST decision:

 

Reviewable GST decisions under GST Act

Item

Decision

Provision of GST Act under which decision is made

1

refusing to register you

subsection 25‑5(1)

2

registering you

subsection 25‑5(2)

3

deciding the date of effect of your registration

section 25‑10

4

refusing to cancel your registration

subsection 25‑55(1)

5

cancelling your registration

subsection 25‑55(2)

6

refusing to cancel your registration

section 25‑57

7

deciding the date on which the cancellation of your registration takes effect

section 25‑60

8

determining that the *tax periods that apply to you are each individual month

subsection 27‑15(1)

9

deciding the date of effect of a determination

subsection 27‑15(2)

10

refusing to revoke your election under section 27‑10

subsection 27‑22(1)

11

deciding the date of effect of a revocation

subsection 27‑22(3)

12

refusing to revoke a determination under section 27‑15

subsection 27‑25(1)

13

deciding the date of effect of a revocation

subsection 27‑25(2)

14

determining that a specified period is a *tax period that applies to you

section 27‑30

15

refusing a request for a determination

section 27‑37

16

revoking a determination under section 27‑37

subsection 27‑38(1)

17

deciding the date of a revocation

subsection 27‑38(2)

18

refusing to permit you to account on a cash basis

subsection 29‑45(1)

19

deciding the date of effect of your permission to account on a cash basis

subsection 29‑45(2)

20

revoking your permission to account on a cash basis

subsection 29‑50(3)

21

deciding the date of effect of the revocation of your permission to account on a cash basis

subsection 29‑50(4)

22

refusing an application for a decision that an event is a *fund‑raising event

paragraph 40‑165(1)(c)

23

approving another day of effect

paragraph 48‑71(1)(b)

24

revoking an approval of a day of effect

subsection 48‑71(2)

29

refusing an application for approval

section 49‑5

30

refusing an application for approval or revocation

subsection 49‑70(1)

31

revoking an approval under Division 49

subsection 49‑70(2)

32

refusing an application for revocation

subsection 49‑75(1)

33

revoking the approval of a *GST religious group

subsection 49‑75(2)

34

deciding the date of effect of any approval, or any revocation of an approval, under Division 49

section 49‑85

35

approving another day of effect

paragraph 51‑75(1)(b)

36

revoking an approval of a day of effect

subsection 51‑75(2)

42

refusing an application for registration

section 54‑5

43

deciding the date of effect of registration as a *GST branch

section 54‑10

44

refusing to cancel the registration of a *GST branch

subsection 54‑75(1)

45

cancelling the registration of a *GST branch

subsection 54‑75(2)

46

deciding the date of effect of the cancellation of the registration of a *GST branch

section 54‑80

47

cancelling the registration of an Australian resident agent

subsection 57‑25(1)

48

determining that the *tax periods that apply to a resident agent are each individual month

subsection 57‑35(1)

49

deciding the date of effect of a determination

subsection 57‑35(2)

49A

cancelling the registration of a *representative of an *incapacitated entity

subsection 58‑25(1)

49B

deciding to direct a *representative of an *incapacitated entity to give to the Commissioner a *GST return

paragraph 58‑50(1)(b)

50

cancelling the registration of a *non‑profit sub‑entity

subsection 63‑35(1)

51

refusing to allow, or allowing, a further period within which to make an agreement that the margin scheme is to apply

paragraph 75‑5(1A)(b)

52

refusing a request to allow an annual apportionment election to take effect from the start of another *tax period

paragraph 131‑10(2)(b)

53

disallowing an annual apportionment election

subsection 131‑20(3)

53A

refusing to make requested decision about excess GST

subsection 142‑15(1)

55

refusing a request to allow an annual *tax period election to take effect from the start of another tax period

paragraph 151‑10(2)(b)

56

refusing a request to be allowed to make an annual *tax period election on a specified day

subsection 151‑20(3)

57

disallowing an annual *tax period election

subsection 151‑25(3)

58

refusing a request to allow an election to pay *GST by instalments to take effect from the start of another *tax period

paragraph 162‑15(2)(b)

59

refusing a request to be allowed to make an election on a specified day

subsection 162‑25(3)

60

disallowing an election to pay *GST by instalments

subsection 162‑30(3)

62

making a declaration to negate or reduce a GST disadvantage

subsection 165‑45(3)

63

deciding whether to grant a request for a declaration to negate or reduce a GST disadvantage

subsection 165‑45(5)

             (3)  A decision under section 24B of the A New Tax System (Goods and Services Tax Transition) Act 1999 refusing an application for a determination under that section, or making a determination under that section, is a reviewable GST transitional decision.

Division 111Wine tax and luxury car tax

Table of Subdivisions

             Guide to Division 111

111‑C    Review of wine tax decisions

111‑D   Effect on contracts from amendments to laws

Guide to Division 111

111‑1  What this Division is about

This Division gives you the right to object against decisions that relate to you disallowing the whole or part of a claim for a wine tax credit.

It also explains how contracts to supply wine or a luxury car are affected if a wine tax law or luxury car tax law changes.

Subdivision 111‑CReview of wine tax decisions

Table of sections

111‑50      Reviewable wine tax decisions

111‑50  Reviewable wine tax decisions

             (1)  You may object, in the manner set out in Part IVC, against a decision you are dissatisfied with that is a *reviewable wine tax decision relating to you.

             (2)  Each of the following decisions is a reviewable wine tax decision:

 

Reviewable wine tax decisions

Item

Decision

Provision of Wine Tax Act under which decision is made

1

disallowing the whole or a part of your claim for a *wine tax credit

section 17‑45

2

deciding the date of effect of your approval as a New Zealand participant

section 19‑7

3

refusing to approve you as a New Zealand participant

section 19‑7

4

revoking your approval as a New Zealand participant

section 19‑8

5

deciding the date of effect of revocation of your approval as a New Zealand participant

section 19‑8

Subdivision 111‑DEffect on contracts from amendments to laws

Table of sections

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

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

             (1)  If, after a contract involving a *supply, or a *taxable dealing in relation to *wine, has been made, an alteration to the *wine tax law or the *luxury car tax law happens and the alteration directly causes an increase or decrease in the cost to a party to the agreement of complying with the agreement, then the contract is altered as follows:

                     (a)  if the cost is increased—by allowing the party to add the increase to the contract price;

                     (b)  if the cost is decreased—by allowing the other party to deduct the decrease from the contract price.

             (2)  The contract is not altered if:

                     (a)  the contract has express written provision to the contrary; or

                     (b)  it is clear from the terms of the contract that the alteration of the *wine tax law or the *luxury car tax law has been taken into account in the agreed contract price.

Division 112Fuel tax

Table of Subdivisions

             Guide to Division 112

112‑E    Review of fuel tax decisions

Guide to Division 112

112‑1  What this Division is about

This Division gives you the right to object against reviewable fuel tax decisions that relate to you. Section 112‑50 sets out the reviewable fuel tax decisions.

Subdivision 112‑EReview of fuel tax decisions

Table of sections

112‑50      Reviewable fuel tax decisions

112‑50  Reviewable fuel tax decisions

             (1)  You may object, in the manner set out in Part IVC, against a decision you are dissatisfied with that is a *reviewable fuel tax decision relating to you.

             (2)  Each of the following decisions is a reviewable fuel tax decision:

 

Reviewable fuel tax decisions

Item

Decision

Provision of the Fuel Tax Act 2006 under which decision is made

2

making a declaration to negate or reduce a *fuel tax disadvantage

subsection 75‑45(3)

3

deciding whether or not to grant a request to negate or reduce a *fuel tax disadvantage

subsection 75‑45(5)

Part 3‑15Major bank levy

Division 115General provisions relating to the major bank levy

115‑1  What this Division is about

An ADI that is liable to pay levy under the Major Bank Levy Act 2017 must give quarterly returns to the Commissioner.

An amount of levy is due and payable when an ADI’s last PAYG instalment within an instalment quarter is due.

Table of sections

115‑5        Returns

115‑10      When major bank levy is due and payable

115‑5  Returns

             (1)  An *ADI that is liable to pay levy for a *quarter under the Major Bank Levy Act 2017 must give to the Commissioner a return relating to the levy, in the *approved form.

             (2)  The return must be given on or before the *MBL reporting day for the *quarter.

             (3)  The MBL reporting day for the *quarter is the day by which the *ADI is required to give to *APRA a report, in accordance with a standard determined by APRA under section 13 of the Financial Sector (Collection of Data) Act 2001, that:

                     (a)  relates to the *quarter; and

                     (b)  states the total liabilities amount (within the meaning of the Major Bank Levy Act 2017) for the quarter in relation to the ADI.

115‑10  When major bank levy is due and payable

             (1)  An amount of levy under the Major Bank Levy Act 2017 that an *ADI is liable to pay for a *quarter is due and payable on the first day:

                     (a)  that occurs on or after the *MBL reporting day for the quarter; and

                     (b)  on which the last instalment that the ADI is liable to pay within an *instalment quarter is due under Subdivision 45‑B.

             (2)  If that amount remains unpaid after it is due and payable, the *ADI is liable to pay *general interest charge on the unpaid amount for each day in the period that:

                     (a)  started at the beginning of the day by which the amount was due to be paid; and

                     (b)  finishes at the end of the last day at the end of which either of the following remains unpaid:

                              (i)  the amount;

                             (ii)  general interest charge on any of the amount.

Division 117Anti‑avoidance

Table of Subdivisions

             Guide to Division 117

117‑A   Application of this Division

117‑B    Commissioner may negate effects of schemes for MBL benefits

Guide to Division 117

117‑1  What this Division is about

This Division applies to deter schemes that give entities MBL benefits.

If the sole or dominant purpose of entering into a scheme is to give an entity such a benefit, the Commissioner may negate the MBL benefit an entity gets from the scheme by making a determination.

Subdivision 117‑AApplication of this Division

Table of sections

117‑5        Object of this Division

117‑10      Application of this Division

117‑15      Meaning of MBL benefit

117‑20      Matters to be considered in determining purpose

117‑5  Object of this Division

                   The object of this Division is to deter *schemes to give entities benefits that reduce or defer liabilities to levy under the Major Bank Levy Act 2017.

117‑10  Application of this Division

             (1)  This Division applies if:

                     (a)  an entity gets or got an *MBL benefit from a *scheme; and

                     (b)  taking account of the matters described in section 117‑20, it is reasonable to conclude that an entity that (whether alone or with others) entered into or carried out the scheme, or part of the scheme, did so for the sole or dominant purpose of that entity or another entity getting an MBL benefit from the scheme; and

                     (c)  the scheme:

                              (i)  has been or is entered into at or after 7.30 pm, by legal time in the Australian Capital Territory, on 9 May 2017; or

                             (ii)  has been or is carried out or commenced at or after that time (other than a scheme that was entered into before that time).

             (2)  It does not matter whether the *scheme, or any part of the scheme, was entered into or carried out inside or outside Australia.

117‑15  Meaning of MBL benefit

             (1)  An entity gets an MBL benefit from a *scheme, if:

                     (a)  an amount of levy under the Major Bank Levy Act 2017 that is payable by the entity under this Act apart from this Division is, or could reasonably be expected to be, smaller than it would be apart from the scheme or a part of the scheme; or

                     (b)  all or part of an amount of levy under the Major Bank Levy Act 2017 that is payable by the entity under this Act apart from this Division is, or could reasonably be expected to be, payable later than it would have been apart from the scheme or a part of the scheme.

             (2)  To avoid doubt, a smaller liability mentioned in paragraph (1)(a) includes a case where the liability is zero, or there is no such liability for a particular *quarter.

117‑20  Matters to be considered in determining purpose

                   The following matters are to be taken into account under section 117‑10 in considering an entity’s purpose in entering into or carrying out the *scheme, or part of the scheme:

                     (a)  the manner in which the scheme was entered into or carried out;

                     (b)  the form and substance of the scheme;

                     (c)  the time at which the scheme was entered into and the length of the period during which the scheme was carried out;

                     (d)  the effect that the Major Bank Levy Act 2017, and any other *taxation law to the extent that it applies in relation to that Act, would have in relation to the scheme apart from this Division;

                     (e)  any change in the financial position of the entity that has resulted, or may reasonably be expected to result, from the scheme;

                      (f)  any change that has resulted, or may reasonably be expected to result, from the scheme in the financial position of an entity (a connected entity) that has or had a connection or dealing with the entity, whether the connection or dealing is or was of a business or other nature;

                     (g)  any other consequence for the entity or a connected entity of the scheme having been entered into or carried out;

                     (h)  the nature of the connection (whether of a business or other nature) between the entity and a connected entity.

Subdivision 117‑BCommissioner may negate effects of schemes for MBL benefits

Table of sections

117‑25      Commissioner may negate entity’s MBL benefits

117‑30      Determination has effect according to its terms

117‑35      Commissioner may disregard scheme in making determinations

117‑40      One determination may cover several quarters etc.

117‑45      Commissioner must give copy of determination to entity affected

117‑50      Objections

117‑25  Commissioner may negate entity’s MBL benefits

             (1)  For the purpose of negating an *MBL benefit the entity mentioned in paragraph 117‑10(1)(a) gets or got from the *scheme, the Commissioner may:

                     (a)  make a determination stating the amount that is (and has been at all times) the entity’s liability for levy under the Major Bank Levy Act 2017, for a specified *quarter that has ended; or

                     (b)  make a determination stating the amount that is (and has been at all times) a particular amount mentioned in paragraph 5(2)(a) or (b) of that Act, for a specified quarter that has ended.

             (2)  A determination under this section is not a legislative instrument.

             (3)  The Commissioner may take such action as the Commissioner considers necessary to give effect to the determination.

117‑30  Determination has effect according to its terms

                   For the purpose of making an *assessment, a statement in a determination under this Subdivision has effect according to its terms, despite the provisions of a *taxation law outside of this Division.

117‑35  Commissioner may disregard scheme in making determinations

                   For the purposes of making a determination under this Subdivision, the Commissioner may:

                     (a)  treat a particular event that actually happened as not having happened; and

                     (b)  treat a particular event that did not actually happen as having happened and, if appropriate, treat the event as:

                              (i)  having happened at a particular time; and

                             (ii)  having involved particular action by a particular entity; and

                     (c)  treat a particular event that actually happened as:

                              (i)  having happened at a time different from the time it actually happened; or

                             (ii)  having involved particular action by a particular entity (whether or not the event actually involved any action by that entity).

117‑40  One determination may cover several quarters etc.

                   To avoid doubt, statements relating to different *quarters and different *MBL benefits may be included in a single determination under this Subdivision.

117‑45  Commissioner must give copy of determination to entity affected

             (1)  The Commissioner must give a copy of a determination under this Subdivision to the entity whose liability for levy under the Major Bank Levy Act 2017 is stated in the determination.

             (2)  A failure to comply with subsection (1) does not affect the validity of the determination.

117‑50  Objections

                   If the entity whose liability for levy under the Major Bank Levy Act 2017 is stated in a determination under this Subdivision is dissatisfied with the determination, the entity may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953.

Part 3‑20Superannuation

Division 131Releasing money from superannuation

Table of Subdivisions

131‑A   Releasing money from superannuation

Subdivision 131‑AReleasing money from superannuation

Guide to Subdivision 131‑A

131‑1  What this Subdivision is about

You may request the Commissioner to require the release of an amount from your superannuation interests if you are given:

       (a)     an excess concessional contributions determination or excess non‑concessional contributions determination; or

      (b)     a notice of assessment of an amount of Division 293 tax; or

       (c)     a first home super saver determination.

The Commissioner may also require the release of an amount from your superannuation interests in related circumstances.

Superannuation providers must usually pay the amount required to be released. However, for defined benefit superannuation interests the provider may choose whether or not to pay.

Released amounts are paid to the Commissioner. You get a credit for the released amount. Surplus credits are refunded to you under Division 3A of Part IIB.

Table of sections

Requesting a release authority

131‑5        Requesting the release of amounts from superannuation interests

131‑10      Restrictions on the total amount you can request to be released

Issuing a release authority to superannuation provider

131‑15      Issuing release authorities

131‑20      Amount to be stated in a release authority

131‑25      Contents of a release authority

131‑30      Varying and revoking a release authority

Complying with a release authority

131‑35      Obligations of superannuation providers

131‑40      Voluntary compliance with a release authority relating to defined benefit interests

131‑45      Meaning of maximum available release amount

131‑50      Notifying Commissioner

131‑55      Notifying you

131‑60      Compensation for acquisition of property

Consequences of releasing amounts

131‑65      Entitlement to credits

131‑70      Interest for late payments of money received by the Commissioner in accordance with release authority

131‑75      Income tax treatment of amounts released—proportioning rule does not apply

Requesting a release authority

131‑5  Requesting the release of amounts from superannuation interests

             (1)  You may make a request under this section for a *financial year if you are given any of the following:

                     (a)  an *excess concessional contributions determination for the financial year;

                     (b)  an *excess non‑concessional contributions determination for the financial year;

                     (c)  a notice of assessment of an amount of *Division 293 tax payable for the income year that corresponds to the financial year;

                     (d)  a *first home super saver determination.

             (2)  You make the request by:

                     (a)  notifying the Commissioner of the total amount to be released; and

                     (b)  identifying your *superannuation interest or interests from which that total amount is to be released; and

                     (c)  if you identify more than one superannuation interest—stating the amount to be released from each such interest.

             (3)  The request must:

                     (a)  ensure that the total amount to be released for the determination or assessment complies with section 131‑10; and

                     (b)  be in the *approved form; and

                     (c)  be given to the Commissioner within:

                              (i)  60 days after the Commissioner issues the determination or notice referred to in subsection (1); or

                             (ii)  a further period allowed by the Commissioner.

Unsuccessful requests—making a further request

             (4)  If:

                     (a)  you make a valid request under this section; and

                     (b)  the Commissioner gives you a notice under subsection 131‑55(1) stating an amount (the unreleased amount) that a *superannuation provider did not pay in relation to a release authority issued for that request;

you may make a further request to release the unreleased amount from another of your *superannuation interests.

             (5)  The further request must comply with subsection (2) and paragraphs (3)(a) and (b), and must be given to the Commissioner within:

                     (a)  60 days after the Commissioner issues the notice mentioned in paragraph (4)(b); or

                     (b)  a further period allowed by the Commissioner.

Request is irrevocable

             (6)  A request under this section is irrevocable.

131‑10  Restrictions on the total amount you can request to be released

             (1)  The total amount you can request to be released complies with this section if that amount:

                     (a)  if item 1, 3 or 4 of the following table applies—does not exceed the relevant amount referred to in that item; or

                     (b)  if item 2 of the following table applies—is nil or equals the relevant amount referred to in that item.

 

Amount you can request to be released

Item

If the request relates to this kind of determination or assessment (see subsection 131‑5(1)):

The relevant amount is:

1

an *excess concessional contributions determination

85% of the contributions stated in that determination

2

an *excess non‑concessional contributions determination

the *total release amount stated in that determination

3

an assessment of an amount of *Division 293 tax

that amount of Division 293 tax

4

a *first home super saver determination

the *FHSS maximum release amount stated in that determination

             (2)  However, for an amended determination or assessment, reduce the relevant amount referred to in the above table by any amount released under this Subdivision for an earlier determination or assessment of that kind that you are given for the *financial year or corresponding income year.

             (3)  An amendment of a determination or assessment does not affect the validity of a request you make under section 131‑5 before you are given the amended determination or the notice of the amended assessment.

Issuing a release authority to superannuation provider

131‑15  Issuing release authorities

Issuing in response to a valid request

             (1)  If you make a valid request under section 131‑5, the Commissioner must issue a release authority to each *superannuation provider that holds a *superannuation interest identified in the request.

Issuing if you do not make a valid request in response to an excess non‑concessional contributions determination etc.

             (2)  If:

                     (a)  on a particular day, the Commissioner issues you with:

                              (i)  an *excess non‑concessional contributions determination for a *financial year; or

                             (ii)  a notice to which paragraph 131‑5(4)(b) applies for such a determination; and

                     (b)  within 60 days after that day, you do not make a valid request under section 131‑5 for that determination;

the Commissioner may issue a release authority to one or more *superannuation providers that hold *superannuation interests for you.

Issuing if you are liable to pay excess non‑concessional contributions tax

             (3)  If you are given a notice of an *excess non‑concessional contributions tax assessment for a *financial year, the Commissioner may issue a release authority to one or more *superannuation providers that hold *superannuation interests for you.

Issuing if you have an unpaid amount of assessed Division 293 tax that is not deferred to a debt account

             (4)  If:

                     (a)  for an income year, you are given a notice of assessment of an amount of *Division 293 tax that is not *deferred to a debt account for a *superannuation interest; and

                     (b)  on the 60th day after the day the Commissioner issues that notice, the sum of the following falls short of that amount of tax:

                              (i)  any payments of that tax for the income year that you have already made;

                             (ii)  any amounts that have already been released under this Subdivision for that assessment;

the Commissioner may issue a release authority to one or more *superannuation providers that hold superannuation interests for you.

131‑20  Amount to be stated in a release authority

             (1)  The amount to be released from one or more *superannuation interests under a release authority issued under section 131‑15 must be:

                     (a)  for a release authority issued under subsection 131‑15(1)—the amount stated in the request; or

                     (b)  otherwise—worked out so that the total amount stated for all release authorities for the applicable determination or assessment does not exceed:

                              (i)  for a release authority issued under subsection 131‑15(2)—the *total release amount stated in the determination referred to in that subsection; or

                             (ii)  for a release authority issued under subsection 131‑15(3) or (4)—the amount of tax stated in the assessment referred to in that subsection.

             (2)  For the purposes of paragraph (1)(b), disregard an amount stated in another release authority to the extent that a notice given under subsection 131‑50(2) states that the amount will not be paid.

131‑25  Contents of a release authority

                   Each release authority issued under section 131‑15 must:

                     (a)  be issued to a single *superannuation provider; and

                     (b)  state the amount to be released from each *superannuation interest under the release authority; and

                     (c)  be dated; and

                     (d)  contain any other information that the Commissioner considers relevant.

131‑30  Varying and revoking a release authority

                   The Commissioner may vary or revoke a release authority issued under section 131‑15 at any time before the Commissioner is given a notice under section 131‑50 relating to the release authority.

Complying with a release authority

131‑35  Obligations of superannuation providers

             (1)  A *superannuation provider issued with a release authority under section 131‑15 must, within 10 *business days after the release authority is issued (or a further period allowed by the Commissioner), pay to the Commissioner the lesser of:

                     (a)  the amount stated in the release authority; and

                     (b)  the sum of the *maximum available release amounts for each *superannuation interest held by the superannuation provider for you in *superannuation plans.

Note 1:       Subsection 288‑95(3) provides for an administrative penalty for failing to comply with this section.

Note 2:       For the taxation treatment of the payment, see section 131‑75.

Exception—defined benefit interests not subject to compulsory release

             (2)  However, the *maximum available release amount for a *superannuation interest is not to be included in the sum worked out under paragraph (1)(b) if the interest is a *defined benefit interest.

131‑40  Voluntary compliance with a release authority relating to defined benefit interests

             (1)  A *superannuation provider issued with a release authority under section 131‑15 may, within 10 *business days after the release authority is issued (or a further period allowed by the Commissioner), pay to the Commissioner the lesser of:

                     (a)  the amount stated in the release authority; and

                     (b)  the sum of the *maximum available release amounts for each *defined benefit interest held by the superannuation provider for you in *superannuation plans.

             (2)  For the purposes of paragraph (1)(a), reduce the amount mentioned in that paragraph by any amount the provider pays under section 131‑35 in relation to the release authority.

131‑45  Meaning of maximum available release amount

                   The maximum available release amount for a *superannuation interest at a particular time is the total amount of all the *superannuation lump sums that could be payable from the interest at that time.

131‑50  Notifying Commissioner

             (1)  A *superannuation provider issued with a release authority under section 131‑15 must notify the Commissioner of a payment made in accordance with this Subdivision.

             (2)  A *superannuation provider that:

                     (a)  has been issued with a release authority under section 131‑15; and

                     (b)  is not required to pay an amount under section 131‑35, or is required under that section to pay an amount less than the amount stated in the release authority;

must notify the Commissioner that the provider is not required to comply with the release authority.

             (3)  A notice under this section must be given in the *approved form within the period applying under subsection 131‑35(1) or 131‑40(1) for the release authority.

Note:          Subsection 286‑75(1) provides for an administrative penalty for failing to comply with this section.

131‑55  Notifying you

             (1)  The Commissioner must notify you if, in relation to a release authority issued under section 131‑15 in relation to you, the Commissioner:

                     (a)  is given a notice from a *superannuation provider under section 131‑50; or

                     (b)  does not receive a payment from a superannuation provider of the full amount stated in the release authority within the time mentioned in subsection 131‑35(1) or 131‑40(1).

             (2)  A notice under subsection (1) must:

                     (a)  be in writing; and

                     (b)  identify the *superannuation provider; and

                     (c)  state how much of the amount stated in the release authority was not paid within the applicable time.

131‑60  Compensation for acquisition of property

             (1)  If the operation of section 131‑35 would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from an entity otherwise than on just terms (within the meaning of that paragraph), the Commonwealth is liable to pay a reasonable amount of compensation to the entity.

             (2)  If the Commonwealth and the entity do not agree on the amount of the compensation, the entity may institute proceedings in:

                     (a)  the Federal Court of Australia; or

                     (b)  the Supreme Court of a State or Territory;

for the recovery from the Commonwealth of such reasonable amount of compensation as the court determines.

Consequences of releasing amounts

131‑65  Entitlement to credits

             (1)  If a *superannuation provider pays an amount in relation to a release authority issued under section 131‑15 in relation to you, you are entitled to a credit equal to that amount.

Note:          Division 3 of Part IIB provides for the treatment of credits that you are entitled to under a taxation law.

             (2)  The credit arises on the day the Commissioner receives the amount.

Exception for voluntary payments of Division 293 tax debt account

             (3)  However, if the amount paid in relation to the release authority relates to an amount of *assessed Division 293 tax that is *deferred to a debt account for a *superannuation interest:

                     (a)  subsection (1) does not apply in relation to the payment; and

                     (b)  treat the payment as if it were a voluntary payment under section 133‑70 in relation to that debt account.

131‑70  Interest for late payments of money received by the Commissioner in accordance with release authority

             (1)  You are entitled to an amount of interest worked out under subsection (2) if:

                     (a)  the Commissioner is required under Division 3A of Part IIB to refund all or part of a credit you are entitled to under section 131‑65; and

                     (b)  the Commissioner does not so refund all or part of that credit within 60 days after receiving the payment that gave rise to the credit.

             (2)  The interest is to be calculated:

                     (a)  on so much of the amount of the credit as the Commissioner fails to refund under that Division; and

                     (b)  for the period:

                              (i)  beginning 60 days after the day the Commissioner receives the amount; and

                             (ii)  ending on the day the Commissioner refunds the amount mentioned in paragraph (1)(a); and

                     (c)  on a daily basis; and

                     (d)  at the *base interest rate for the day the interest is calculated.

131‑75  Income tax treatment of amounts released—proportioning rule does not apply

                   Section 307‑125 of the Income Tax Assessment Act 1997 (the proportioning rule) does not apply to a payment made as required or permitted under this Subdivision.

Note:          The income tax treatment of released amounts is also affected by Subdivision 292‑B, and section 303‑15, of that Act.

Division 133Division 293 tax

Table of Subdivisions

             Guide to Division 133

133‑A   Deferral determination

133‑B    Debt account

133‑C    Compulsory payment

Guide to Division 133

133‑1  What this Division is about

Payment of Division 293 tax is deferred to the extent to which the tax is attributable to defined benefit interests from which no superannuation benefit has yet become payable.

This reflects the fact that money generally cannot be released from defined benefit interests until a superannuation benefit is paid, usually upon retirement.

Subdivision 133‑ADeferral determination

Guide to Subdivision 133A

133‑5  What this Subdivision is about

The Commissioner determines the amount of your tax that is deferred to a debt account by working out the extent to which your assessed tax is attributable to defined benefit interests.

Table of sections

Operative provisions

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

133‑15      Defined benefit tax

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

133‑25      Determination reducing tax deferred to a debt account

133‑30      General provisions applying to determinations under this Subdivision

Operative provisions

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

             (1)  The Commissioner must make a determination specifying the amount the Commissioner has ascertained as being the extent to which your *assessed Division 293 tax for an income year is *defined benefit tax attributable to a *superannuation interest.

Note 1:       For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.

Note 2:       For general provisions, including review, see section 133‑30.

             (2)  The amount of *assessed Division 293 tax specified in the determination is deferred to a debt account for the *superannuation interest.

             (3)  However, the Commissioner must not make a determination under this section in relation to a *superannuation interest if, at the time the determination is to be made, the *end benefit for the superannuation interest has become payable.

Note:          For the meaning of end benefit, see section 133‑130.

             (4)  Subsection (1) does not apply if the Commissioner ascertains that no part of your *assessed Division 293 tax for an income year is *defined benefit tax attributable to a *superannuation interest.

133‑15  Defined benefit tax

             (1)  Your defined benefit tax for an income year is the amount worked out using the formula:

                  

where:

defined benefit contribution component means the amount worked out as follows:

                     (a)  work out the lesser of the following for the corresponding *financial year:

                              (i)  your *low tax contributions;

                             (ii)  the total amount of your *defined benefit contributions in respect of all *defined benefit interests you have in the financial year;

                     (b)  subtract from the result of paragraph (a) the difference (if any) between:

                              (i)  your *taxable contributions for the income year; and

                             (ii)  your low tax contributions for the corresponding financial year.

Note:       A difference may exist for paragraph (b) because of the $250,000 high income threshold: see subsection 293‑20(1) of the Income Tax Assessment Act 1997.

Exception—defined benefit contribution component is nil or less

             (2)  However, if the defined benefit contribution component mentioned in subsection (1) is nil, or a negative amount, no part of the *Division 293 tax for the income year is defined benefit tax.

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

             (1)  If you have one *defined benefit interest in a *financial year, your *defined benefit tax for the corresponding income year is attributable to that interest.

             (2)  If you have more than one *defined benefit interest in a *financial year, your *defined benefit tax for the corresponding income year is attributable to each such interest in proportion to the *defined benefit contributions for the interest for the financial year.

133‑25  Determination reducing tax deferred to a debt account

             (1)  If an amount of *assessed Division 293 tax that is *deferred to a debt account for a *superannuation interest is reduced as a result of an amended assessment, the Commissioner must make a determination under this section in respect of the reduced amount.

             (2)  The amount so determined is a deferral reversal for the *superannuation interest.

Note:          For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.

133‑30  General provisions applying to determinations under this Subdivision

             (1)  The Commissioner must:

                     (a)  make a determination as soon as practicable after:

                              (i)  for a determination under section 133‑10—assessing the amount (whether by way of a first assessment or an amended assessment); or

                             (ii)  for a determination under section 133‑25—amending the assessment; and

                     (b)  give you notice in writing of the determination as soon as practicable after making it.

             (3)  The validity of the determination is not affected because any of the provisions of this Act have not been complied with.

Review

             (4)  If you are dissatisfied with a determination made under this Subdivision in relation to you, you may object against the determination in the manner set out in Part IVC.

             (5)  If you are dissatisfied with a decision the Commissioner makes not to make a determination under this Subdivision:

                     (a)  you may object against the decision in the manner set out in Part IVC; and

                     (b)  for the purpose of working out the period within which the objection must be lodged, notice of the decision is taken to have been served on you on the day notice is given to you of:

                              (i)  for a determination under section 133‑10—the assessment of the amount; or

                             (ii)  for a determination under section 133‑25—the amended assessment.

Note:       For the period within which objections must be lodged, see section 14ZW.

Subdivision 133‑BDebt account

Guide to Subdivision 133B

133‑55  What this Subdivision is about

The Commissioner keeps debt accounts for tax that is deferred to a debt account for a superannuation interest.

You can make voluntary payments of the debt account.

Table of sections

Operative provisions

133‑60      Debt account to be kept for deferred tax

133‑65      Interest on debt account balance

133‑70      Voluntary payments

133‑75      Commissioner must notify superannuation provider of debt account

Operative provisions

133‑60  Debt account to be kept for deferred tax

Accounts to be kept

             (1)  The Commissioner is to keep a debt account for *Division 293 tax for you for a *superannuation interest, if an amount of your *assessed Division 293 tax is *deferred to a debt account for the superannuation interest.

Account to be debited for Division 293 tax

             (2)  The Commissioner must debit the debt account for the amount of *assessed Division 293 tax that is *deferred to a debt account for the *superannuation interest.

133‑65  Interest on debt account balance

Interest to be debited at end of financial year

             (1)  If a debt account for a *superannuation interest is in debit at the end of a *financial year, the Commissioner is to debit the account for interest on the amount by which the account is in debit, calculated at the *long term bond rate for that financial year.

Note:          Interest would not be debited to a debt account that is no longer being kept by the Commissioner because the assessed Division 293 tax liability being tracked in the account has been finally discharged as mentioned in subsection 133‑105(3).

Remission of interest—deferral reversal

             (2)  The Commissioner may remit the whole or any part of an amount of interest debited, or to be debited, from a debt account under subsection (1) if:

                     (a)  the debt account is credited:

                              (i)  under section 133‑70 because of a *deferral reversal; or

                             (ii)  because a determination under section 133‑10 is varied or revoked; and

                     (b)  the Commissioner is satisfied that, because of that credit, it would be fair and reasonable to do so.

Remission of interest—special circumstances

             (3)  The Commissioner may remit the whole or any part of an amount of interest debited, or to be debited, to a debt account under subsection (1) if the Commissioner is satisfied that, because special circumstances exist, it would be fair and reasonable to do so.

133‑70  Voluntary payments

             (1)  You may make payments to the Commissioner for the purpose of reducing the amount by which a debt account for a *superannuation interest is in debit.

             (2)  The Commissioner is to:

                     (a)  acknowledge receipt of the payment to you; and

                     (b)  credit the payment to the debt account; and

                     (c)  notify you of the revised balance of the debt account.

The credit mentioned in paragraph (b) is to be made when the payment is received.

             (3)  The amount of a *deferral reversal for the *superannuation interest is to be treated as if it were a voluntary payment under this section in relation to the debt account for that interest. However, paragraphs (2)(a) and (c) do not apply in relation to that amount.

133‑75  Commissioner must notify superannuation provider of debt account

                   If the Commissioner starts to keep a debt account for *Division 293 tax for you for a *superannuation interest, the Commissioner must give the *superannuation provider in relation to the superannuation interest a notice saying so.

Subdivision 133‑CCompulsory payment

Guide to Subdivision 133C

133‑100  What this Subdivision is about

The deferred tax liability must be paid when a superannuation benefit becomes payable from the superannuation interest.

In some cases, the amount that must be paid is capped.

Table of sections

Debt account discharge liability

133‑105    Liability to pay debt account discharge liability

133‑110    When debt account discharge liability must be paid

133‑115    General interest charge

133‑120    Meaning of debt account discharge liability

133‑125    Notice of debt account discharge liability

End benefit

133‑130    Meaning of end benefit

133‑135    Superannuation provider may request debt account status

133‑140    End benefit notice—superannuation provider

133‑145    End benefit notice—material changes or omissions

Debt account discharge liability

133‑105  Liability to pay debt account discharge liability

             (1)  You are liable to pay the amount of your *debt account discharge liability for a *superannuation interest if the *end benefit for the interest becomes payable.

             (2)  The liability arises:

                     (a)  unless paragraph (b) applies—at the time the *end benefit becomes payable; or

                     (b)  if the end benefit is a *superannuation death benefit—just before you die.

Note 1:       For paragraph (a), a release authority allows money to be released from the superannuation plan to pay this amount: see subsection 135‑10(1).

Note 2:       For paragraph (b), the debt will be recovered from your estate: see Subdivision 260‑E.

             (3)  Payment of your *debt account discharge liability for a *superannuation interest discharges your liability for so much of your total *assessed Division 293 tax for all income years as is *deferred to a debt account for the superannuation interest.

133‑110  When debt account discharge liability must be paid

                   The amount of your *debt account discharge liability for a *superannuation interest is due and payable at the end of 21 days after the day on which the *end benefit for the superannuation interest is paid.

133‑115  General interest charge

                   If your *debt account discharge liability remains unpaid after the time by which it is due and payable, you are liable to pay the *general interest charge on the unpaid amount for each day in the period that:

                     (a)  begins on the day on which the debt account discharge liability was due to be paid; and

                     (b)  ends on the last day on which, at the end of the day, any of the following remains unpaid:

                              (i)  the debt account discharge liability;

                             (ii)  general interest charge on any of the debt account discharge liability.

Note:          The general interest charge is worked out under Part IIA.

133‑120  Meaning of debt account discharge liability

             (1)  The debt account discharge liability for a *superannuation interest for which the Commissioner keeps a debt account is the amount by which the debt account is in debit at the time the *end benefit for the superannuation interest becomes payable.

          (1A)  However, if the end benefit cap for the *superannuation interest stated in a notice given to the Commissioner under subsection (2) of this section or section 133‑140 is less than the amount mentioned in subsection (1) of this section, the debt account discharge liability for the superannuation interest is an amount equal to the end benefit cap.

             (2)  If requested by the Commissioner, the *superannuation provider in relation to a *superannuation interest must give the Commissioner notice of the amount (the end benefit cap) that is 15% of the employer‑financed component of any part of the *value of the superannuation interest that accrued after 1 July 2012.

Note:          If a person is dissatisfied with a notice given to the Commissioner under this subsection, the person may make a complaint under the AFCA scheme (within the meaning of Chapter 7 of the Corporations Act 2001).

             (3)  For the purposes of subsection (2), the *value of the *superannuation interest is to be worked out at the end of the *financial year before the financial year in which the *end benefit becomes payable.

             (4)  A notice under subsection (2) must be given:

                     (a)  in the *approved form; and

                     (b)  within 14 days of the Commissioner making the request.

133‑125  Notice of debt account discharge liability

             (1)  The Commissioner must give you a notice under this section if the *end benefit becomes payable from a *superannuation interest for which the Commissioner keeps a debt account.

             (2)  The notice must state that you are liable to pay your *debt account discharge liability for the *superannuation interest and specify:

                     (a)  the amount of that debt; and

                     (b)  the day on which that debt is due and payable; and

                     (c)  whether the amount of that debt is:

                              (i)  the amount by which the debt account is in debit as mentioned in subsection 133‑120(1); or

                             (ii)  the end benefit cap mentioned in subsection 133‑120(1A).

             (3)  If you are dissatisfied with a notice given under this section in relation to you, you may object against it in the manner set out in Part IVC of this Act.

             (4)  However, you cannot object against a notice stating that the amount you are liable to pay is the amount by which the debt account is in debit, unless you are seeking to be liable to pay the end benefit cap specified in a notice given to the Commissioner by the *superannuation provider under subsection (2) or section 133‑140 (as the case requires).

End benefit

133‑130  Meaning of end benefit

             (1)  A *superannuation benefit is the end benefit for a *superannuation interest if it is the first superannuation benefit to become payable from the interest, disregarding a benefit that is any of the following:

                     (a)  a *roll‑over superannuation benefit paid to a *complying superannuation plan that is a *successor fund;

                     (b)  a benefit that becomes payable under the condition of release specified in item 105 of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994 (about severe financial hardship);

                     (c)  a benefit that becomes payable under the condition of release specified in item 107 of that table (about compassionate ground);

                     (d)  a benefit specified in an instrument under subsection (2).

             (2)  The Minister may, by legislative instrument, specify a *superannuation benefit for the purposes of paragraph (1)(d).

             (3)  Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply in relation to an instrument made under subsection (2).

             (4)  Despite subsection 12(1A) (retrospective commencement of legislative instruments) of the Legislation Act 2003, an instrument made under subsection (2) of this section must not commence before 1 July 2012.

133‑135  Superannuation provider may request debt account status

             (1)  If:

                     (a)  a *superannuation provider has been given a notice under section 133‑75 saying that the Commissioner has started to keep a debt account for a *superannuation interest; and

                     (b)  the superannuation provider receives a request to pay the *end benefit from the superannuation interest or the end benefit becomes payable from the superannuation interest;

the superannuation provider may, in the *approved form, request the Commissioner to advise as to the status of the debt account.

             (2)  If the Commissioner receives a request, the Commissioner must advise the *superannuation provider as soon as practicable whether or not the debt account is in debit.

133‑140  End benefit notice—superannuation provider

             (1)  If the *end benefit becomes payable from a *superannuation interest for which the Commissioner keeps a debt account, the *superannuation provider in relation to the interest must give the Commissioner a notice stating:

                     (a)  unless subsection (1A) applies—the amount of the end benefit cap mentioned in subsection 133‑120(2) for the superannuation interest; and

                     (b)  the expected date of payment of the benefit.

Note:          If a person is dissatisfied with a notice given to the Commissioner under this subsection, the person may make a complaint under the AFCA scheme (within the meaning of Chapter 7 of the Corporations Act 2001).

          (1A)  The notice does not need to state the amount of the end benefit cap if:

                     (a)  the *superannuation provider has already given the Commissioner notice of the end benefit cap under subsection 133‑120(2); or

                     (b)  before the end of the period mentioned in subsection (2), the Commissioner has advised the superannuation provider under subsection 133‑135(2) that the debt account is not in debit.

             (2)  The notice must be given within 14 days after the earlier of:

                     (a)  the *superannuation provider receiving a request (if any) to pay the *superannuation benefit; and

                     (b)  the superannuation benefit becoming payable.

             (3)  However, this section does not apply if the *superannuation provider has not been given a notice under section 133‑75 saying that the Commissioner has started to keep a debt account for the *superannuation interest.

             (4)  A notice under this section must be given in the *approved form.

133‑145  End benefit notice—material changes or omissions

             (1)  If an entity that gives the Commissioner a notice under section 133‑140 becomes aware of a material change or material omission in any information given to the Commissioner in the notice, the entity must:

                     (a)  tell the Commissioner of the change in the *approved form; or

                     (b)  give the omitted information to the Commissioner in the approved form.

             (2)  Information required by this section must be given no later than 7 days after the entity becomes aware of the change or omission.

Division 135Releasing money from superannuation

Table of Subdivisions

             Guide to Division 135

135‑A   When the Commissioner must issue a release authority

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

135‑C    Release of superannuation money under a release authority

Guide to Division 135

135‑1  What this Division is about

This Division contains rules about release authorities, which allow money to be released from a superannuation plan to pay your debt account discharge liability.

Subdivision 135‑AWhen the Commissioner must issue a release authority

Guide to Subdivision 135A

135‑5  What this Subdivision is about

The Commissioner must issue you with a release authority to allow money to be released from a superannuation plan to pay your debt account discharge liability.

Table of sections

Operative provisions

135‑10      Release authorities

Operative provisions

135‑10  Release authorities

             (1)  If the condition mentioned in column 1 of an item in the following table is satisfied:

                     (a)  the Commissioner must issue you with a release authority under that item; and

                     (b)  you have a release entitlement:

                              (i)  equal to the amount mentioned in column 2 of that item; and

                             (ii)  arising at the time mentioned in column 3 of that item.

 

Release entitlement

Item

Column 1
Condition:

Column 2
Amount of the release entitlement:

Column 3
Time at which the release entitlement arises:

3

You become liable to pay your *debt account discharge liability for a *superannuation interest

The amount of your debt account discharge liability

On the giving of the notice under section 133‑125

Note:          A release authority issued under item 3 of the table can only be given to the superannuation provider that holds the superannuation interest to which the debt account relates: see subsection 135‑40(3).

Requirements for release authority

             (2)  A release authority must:

                     (a)  state the amount of the *release entitlement in respect of which it is given; and

                     (b)  be dated; and

                     (c)  contain any other information that the Commissioner considers relevant.

Commissioner may issue a further release authority

             (3)  The Commissioner may at any time issue you with a further release authority in respect of a *release entitlement if:

                     (a)  the Commissioner is satisfied that it is reasonable in the circumstances to do so; and

                     (b)  the Commissioner has issued you with an earlier release authority in respect of that release entitlement.

Despite paragraph (2)(a), the further release authority must state the amount the Commissioner considers reasonable in the circumstances, but not exceeding the amount of the release entitlement.

Note:          For variation and revocation of release authorities, see subsection 33(3) of the Acts Interpretation Act 1901.

Release authority not to be issued to trustee of deceased estate

             (4)  To avoid doubt, this section does not require or permit the Commissioner to issue a release authority to the trustee of a deceased estate.

Subdivision 135‑BWhen a release authority can be given to a superannuation provider

Guide to Subdivision 135B

135‑35  What this Subdivision is about

You may give a release authority to a superannuation provider within 120 days of being issued with it.

Table of sections

Operative provisions

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

Operative provisions

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

             (1)  You may give the release authority to a *superannuation provider that holds a *superannuation interest for you within 120 days after the date of the release authority.

             (2)  You may request the *superannuation provider, in writing, to pay a specified amount in relation to the release authority.

Note 1:       For the amount that the provider pays under a release authority, see section 135‑85.

Note 2:       If excess amounts are paid in relation to a release authority:

(a)    the excess is assessable income (see section 304‑20 of the Income Tax Assessment Act 1997); and

(b)    you are liable to an administrative penalty (see section 288‑100 in this Schedule).

             (3)  However, a release authority issued under item 3 of the table in subsection 135‑10(1) (for debt account discharge liability) may only be given to the *superannuation provider that holds the *superannuation interest to which the debt account relates.

Subdivision 135‑CRelease of superannuation money under a release authority

Guide to Subdivision 135C

135‑70  What this Subdivision is about

This Subdivision sets out a general requirement for a superannuation provider to comply with a release authority.

The Subdivision also includes provisions about how much must be paid, who it must be paid to, which interest it is to be paid from, and how the payments are treated by the Commissioner.

Table of sections

Operative provisions

135‑75      Requirement for superannuation provider to release money

135‑80      Compensation for acquisition of property

135‑85      Release amount

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

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

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

Operative provisions

135‑75  Requirement for superannuation provider to release money

             (1)  If:

                     (a)  a *superannuation provider has been given a release authority in accordance with Subdivision 135‑B; and

                     (b)  the amount mentioned in section 135‑85 (the release amount) is greater than nil;

the superannuation provider must pay the release amount within 30 days after receiving the release authority.

Who superannuation provider pays the amount to

             (2)  The release amount must be paid to the Commissioner.

Note 1:       Section 288‑95 provides for an administrative penalty for failing to comply with this section.

Note 2:       For the taxation treatment of the payment, see sections 303‑20 and 304‑20 of the Income Tax Assessment Act 1997.

Note 3:       For reporting obligations on the superannuation provider in these circumstances, see section 390‑65 in this Schedule.

Which superannuation interest the amount is to be paid from

             (4)  The payment must be made out of one or more *superannuation interests (other than a *defined benefit interest) held by the *superannuation provider for the individual.

135‑80  Compensation for acquisition of property

             (1)  If the operation of section 135‑75 would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from an entity otherwise than on just terms (within the meaning of that paragraph), the Commonwealth is liable to pay a reasonable amount of compensation to the entity.

             (2)  If the Commonwealth and the entity do not agree on the amount of the compensation, the entity may institute proceedings in a court of competent jurisdiction for the recovery from the Commonwealth of such reasonable amount of compensation as the court determines.

135‑85  Release amount

                   The amount is the least of the following amounts:

                     (a)  the amount stated in the release authority, as issued by the Commissioner;

                     (b)  if the individual or Commissioner requests the *superannuation provider, in writing, to pay a specified amount in relation to the release authority—that amount;

                     (c)  the sum of the *maximum available release amounts for each *superannuation interest (other than a *defined benefit interest) held by the superannuation provider for the individual in *superannuation plans.

Note:          For the maximum available release amount, see section 131‑45.

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

                   If the Commissioner receives a payment under a release authority, it is taken for the purposes of Part IIB to have been received in respect of a current or anticipated tax debt of the individual.

Note:          Part IIB is about running balance accounts and the application of payments and credits.

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

                   The exclusion of *defined benefit interests from subsection 135‑75(4) and paragraph 135‑85(c) is to be disregarded for a release authority issued under item 3 of the table in subsection 135‑10(1) (about debt account discharge liability).

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

                   Section 307‑125 of the Income Tax Assessment Act 1997 (the proportioning rule) does not apply to a payment made as required or permitted under this Division.

Note:          Further provisions about the income tax treatment of amounts released are in sections 303‑20 and 304‑20 of that Act.

Division 136Transfer balance cap

Table of Subdivisions

             Guide to Division 136

136‑A   Excess transfer balance determinations

136‑B    Commutation authorities

Guide to Division 136

136‑1  What this Division is about

If you have excess transfer balance in your transfer balance account, the Commissioner may require you and your superannuation income stream provider to reduce the total amount of your superannuation income streams that are in the retirement phase.

Subdivision 136‑AExcess transfer balance determinations

Guide to Subdivision 136‑A

136‑5  What this Subdivision is about

If your transfer balance account exceeds the transfer balance cap, the excess must be reduced by commuting in full or in part your superannuation income streams that are in the retirement phase.

If you have more than one superannuation income stream, you may choose which one to commute.

Table of sections

Operative provisions

136‑10      Excess transfer balance determination

136‑15      Review

136‑20      Electing to commute a different superannuation income stream

136‑25      Notifying Commissioner of transfer balance debits

Operative provisions

136‑10  Excess transfer balance determination

             (1)  If you have *excess transfer balance in your *transfer balance account at the end of a day, the Commissioner may make a written determination stating the amount of that excess transfer balance.

Note:          It is not necessary for the Commissioner to issue a determination under this subsection if the Commissioner becomes aware that you no longer have an excess transfer balance. You are still liable to pay excess transfer balance tax if no determination is issued: see Subdivision 294‑F of the Income Tax Assessment Act 1997.

             (2)  A determination under this section is an excess transfer balance determination.

             (3)  The amount of *excess transfer balance stated in an *excess transfer balance determination is a crystallised reduction amount.

             (4)  The Commissioner may amend or revoke an *excess transfer balance determination at any time before a commutation authority relating to the determination is issued under section 136‑55.

             (5)  Notice of a determination given by the Commissioner under this section is prima facie evidence of the matters stated in the notice.

Determination to include default commutation notice

             (6)  A determination made under subsection (1) must include a notice:

                     (a)  stating that, if you do not make an election under section 136‑20 within the period specified in that section, the Commissioner will issue one or more commutation authorities; and

                     (b)  specifying:

                              (i)  the *superannuation income stream provider or providers to whom a commutation authority will be issued; and

                             (ii)  the *superannuation income stream or streams that the providers will be obliged to commute in full or in part; and

                            (iii)  if more than one commutation authority will be issued—the amount to be stated in each commutation authority, or the method the Commissioner will use to work out the amount to be stated in each commutation authority.

             (7)  A notice included with an *excess transfer balance determination in accordance with subsection (6) is a default commutation notice.

136‑15  Review

             (1)  If you are dissatisfied with an *excess transfer balance determination made in relation to you, you may object against the determination in the manner set out in Part IVC.

             (2)  However, for the purposes of Part IVC, the *default commutation notice does not form part of the taxation decision.

136‑20  Electing to commute a different superannuation income stream

             (1)  This section applies to you if:

                     (a)  you receive an *excess transfer balance determination under section 136‑10; and

                     (b)  you are the *retirement phase recipient of 2 or more *superannuation income streams.

             (2)  You may elect which of those *superannuation income streams is to be fully or partially commuted for the purpose of reducing the *transfer balance in your *transfer balance account by the *crystallised reduction amount.

Requirements for election

             (3)  You make an election under subsection (2) by:

                     (a)  identifying the *superannuation income stream or streams to be commuted in full or in part and the *superannuation income stream provider for each such stream; and

                     (b)  if you identify more than one superannuation income stream—stating the amount to be commuted from each such income stream.

             (4)  The election must:

                     (a)  be in the *approved form; and

                     (b)  be given to the Commissioner within:

                              (i)  60 days after the *excess transfer balance determination or amended excess transfer balance determination is issued; or

                             (ii)  a further period allowed by the Commissioner.

Election is irrevocable

             (5)  An election under this section is irrevocable.

136‑25  Notifying Commissioner of transfer balance debits

             (1)  This section applies to you if you have received an *excess transfer balance determination.

             (2)  You may notify the Commissioner in the *approved form of the amount of a *transfer balance debit that arises in your *transfer balance account if the debit arises in the period:

                     (a)  beginning when the determination is made; and

                     (b)  ending at the earlier of:

                              (i)  the time you made an election under section 136‑20; and

                             (ii)  the end of the period within which an election under section 136‑20 may be made.

Subdivision 136‑BCommutation authorities

Guide to Subdivision 136‑B

136‑50  What this Subdivision is about

The Commissioner must issue a commutation authority to a superannuation income stream provider, unless you have notified the Commissioner that you have already reduced your excess transfer balance by the crystallised reduction amount.

A superannuation income stream provider will usually be required to commute the superannuation income stream stated in the authority.

Table of sections

Obligations of Commissioner

136‑55      Issuing of commutation authorities

136‑60      Varying and revoking a commutation authority

136‑65      Issuing further commutation authorities

136‑70      Notifying of non‑commutable excess transfer balance

Obligations of superannuation income stream providers

136‑80      Obligations on superannuation income stream providers

136‑85      Notifying the Commissioner

136‑90      Notifying you

Obligations of Commissioner

136‑55  Issuing of commutation authorities

Commutation authority must be issued if there is a commutable amount

             (1)  The Commissioner must issue a commutation authority under this section to one or more *superannuation income stream providers if:

                     (a)  an *excess transfer balance determination has been issued to you; and

                     (b)  the excess transfer balance determination has not been revoked; and

                     (c)  the period mentioned in subsection 136‑20(4) has ended; and

                     (d)  an amount (the commutable amount) greater than nil remains after reducing the *crystallised reduction amount by the sum of any *transfer balance debits notified to the Commissioner under section 136‑25.

Issuing in response to a valid election

             (2)  If you have made a valid election under section 136‑20, the Commissioner must issue a commutation authority under this section to each *superannuation income stream provider identified in your election.

             (3)  If the total of the amounts stated in your election under section 136‑20 falls short of the commutable amount, the Commissioner must also issue a commutation authority to one or more *superannuation income stream providers specified in the *default commutation notice.

Issuing if you do not make a valid election

             (4)  If you have not made a valid election under section 136‑20, the Commissioner must issue a commutation authority to each *superannuation income stream provider specified in the *default commutation notice.

Requirements for commutation authority

             (5)  Each commutation authority must:

                     (a)  specify the *superannuation income stream that the *superannuation income stream provider is to commute, in full or in part; and

                     (b)  state the amount (the reduction amount) by which the superannuation income stream is to be reduced; and

                     (c)  be dated; and

                     (d)  contain any other information that the Commissioner considers relevant.

             (6)  The total of all reduction amounts stated in commutation authorities issued under this section relating to an *excess transfer balance determination must not exceed the commutable amount.

136‑60  Varying and revoking a commutation authority

                   The Commissioner may vary or revoke a commutation authority at any time before the Commissioner receives a notice under section 136‑85 relating to the commutation authority.

136‑65  Issuing further commutation authorities

             (1)  The Commissioner may issue a commutation authority under this section to one or more *superannuation income stream providers under this section if:

                     (a)  a commutation authority (the original commutation authority) was issued under section 136‑55; and

                     (b)  the *superannuation income stream provider to which the original commutation authority was issued:

                              (i)  paid a *superannuation lump sum that fell short of the reduction amount stated in the original commutation authority; or

                             (ii)  did not comply with the original commutation authority.

             (2)  A commutation authority issued under this section must include the matters set out in subsection 136‑55(5).

             (3)  The Commissioner may issue a commutation authority under this section to any *superannuation income stream provider of a *superannuation income stream of which you are the *retirement phase recipient.

             (4)  The total of all reduction amounts stated in commutation authorities issued under this section relating to an *excess transfer balance determination must not exceed the difference between:

                     (a)  the commutable amount mentioned in subsection 136‑55(1); and

                     (b)  the sum of:

                              (i)  any *superannuation lump sums notified to the Commissioner under section 136‑85 in respect of the determination; and

                             (ii)  any *transfer balance debits arising in your *transfer balance account under item 5 of the table in subsection 294‑80(1) of the Income Tax Assessment Act 1997 because of any original commutation authority.

136‑70  Notifying of non‑commutable excess transfer balance

             (1)  The Commissioner must notify you in writing if, at the end of a day after the Commissioner has issued an *excess transfer balance determination to you:

                     (a)  the sum of all *transfer balance debits arising in your *transfer balance account since the determination was issued falls short of the *crystallised reduction amount; and

                     (b)  you have *excess transfer balance in your transfer balance account; and

                     (c)  either:

                              (i)  the only *superannuation income streams of which you are a *retirement phase recipient are *capped defined benefit income streams; or

                             (ii)  you are no longer a retirement phase recipient of any superannuation income stream.

Note:          A debit arises in your transfer balance account when the Commissioner issues a notice under this section: see item 7 of the table in subsection 294‑80(1) of the Income Tax Assessment Act 1997.

             (2)  A notice under subsection (1) must state the amount of the *excess transfer balance mentioned in paragraph (1)(b).

Obligations of superannuation income stream providers

136‑80  Obligations on superannuation income stream providers

             (1)  A *superannuation income stream provider issued with a commutation authority under this Subdivision must, within 60 days after the commutation authority is issued, pay by way of commutation of the specified *superannuation income stream, a *superannuation lump sum equal to the lesser of:

                     (a)  the reduction amount stated in the commutation authority; and

                     (b)  the *maximum available release amount for the *superannuation interest that supports the specified superannuation income stream.

Exception for capped defined benefit income streams

             (2)  Despite subsection (1), if the specified *superannuation income stream is a *capped defined benefit income stream, the *superannuation income stream provider may choose not to comply with the commutation authority.

Exception for deceased member

             (3)  Despite subsection (1), if the *retirement phase recipient has died, the *superannuation income stream provider may choose not to comply with the commutation authority.

136‑85  Notifying the Commissioner

             (1)  A *superannuation income stream provider issued with a commutation authority under this Subdivision must notify the Commissioner of the amount of a *superannuation lump sum paid in accordance with the commutation authority.

             (2)  If a *superannuation income stream provider chooses under subsection 136‑80(2) or (3) not to comply with the commutation authority, the provider must notify the Commissioner of that choice.

             (3)  A notice under this section must be in the *approved form and must be given within 60 days after the commutation authority is issued.

Note:          Section 286‑75 provides an administrative penalty for breach of this subsection.

136‑90  Notifying you

             (1)  A *superannuation income stream provider issued with a commutation authority under this Subdivision must notify you if the superannuation income stream provider:

                     (a)  pays a *superannuation lump sum in accordance with the commutation authority; or

                     (b)  chooses under subsection 136‑80(2) not to comply with the commutation authority.

             (2)  A notice under this section must be in the *approved form and must be given within 60 days after the commutation authority is issued.

Note:          Section 286‑75 provides an administrative penalty for breach of this subsection.

Division 138First home super saver scheme

Table of Subdivisions

             Guide to Division 138

138‑A   First home super saver determination

138‑B    FHSS maximum release amount

Guide to Division 138

138‑1  What this Division is about

If you have had voluntary contributions into superannuation, you may be eligible to have those contributions and their associated earnings released for the purposes of purchasing or constructing your first home.

Subdivision 138‑AFirst home super saver determination

Guide to Subdivision 138‑A

138‑5  What this Subdivision is about

If you satisfy particular criteria, you may request that the Commissioner make a determination stating your FHSS maximum release amount and the components that make up that amount.

Table of sections

Operative provisions

138‑10      First home super saver determination

138‑15      Review

Operative provisions

138‑10  First home super saver determination

             (1)  A first home super saver determination is a written determination stating:

                     (a)  your *FHSS maximum release amount; and

                     (b)  the amount of each of the following components that make up your FHSS maximum release amount:

                              (i)  your *concessional contributions;

                             (ii)  your *non‑concessional contributions;

                            (iii)  your associated earnings.

             (2)  You may request the Commissioner, in the *approved form, to make a *first home super saver determination if:

                     (a)  you have never held:

                              (i)  a freehold interest in real property in Australia; or

                             (ii)  a lease of land in Australia (including a renewal or extension of such a lease) as described in paragraph 104‑115(1)(b) of the Income Tax Assessment Act 1997; or

                            (iii)  a company title interest (within the meaning of Part X of the Income Tax Assessment Act 1936) in land in Australia; and

                     (b)  you are 18 years or older; and

                     (c)  you have not previously requested a release authority under Division 131 in relation to a first home super saver determination that has been made in relation to you.

          (2A)  If the Commissioner determines that you have suffered a financial hardship, you are taken to have satisfied paragraph (2)(a).

          (2B)  The regulations may specify the circumstances in which the Commissioner is to determine that a person has suffered a financial hardship for the purposes of subsection (2A).

             (3)  If you make a valid request under subsection (2), the Commissioner must make a *first home super saver determination in relation to you.

             (4)  The Commissioner may amend or revoke a *first home super saver determination at any time before a release authority relating to the determination is issued under Division 131.

             (5)  Notice of a determination given by the Commissioner under this section is prima facie evidence of the matters stated in the notice.

138‑15  Review

                   If you are dissatisfied with:

                     (a)  a *first home super saver determination in relation to you; or

                     (b)  a decision the Commissioner makes not to make a determination under subsection 138‑10(2A);

you may object against the determination, or the decision, as the case requires, in the manner set out in Part IVC.

Subdivision 138‑BFHSS maximum release amount

Guide to Subdivision 138‑B

138‑20  What this Subdivision is about

Your FHSS maximum release amount comprises your eligible non‑concessional contributions, 85% of your eligible concessional contributions, and your associated earnings.

There are limits on the amount of contributions that may be eligible for release.

Table of sections

Operative provisions

138‑25      FHSS maximum release amount

138‑30      FHSS releasable contributions amount

138‑35      Eligible contributions

138‑40      Associated earnings

Operative provisions

138‑25  FHSS maximum release amount

                   Your FHSS maximum release amount is the sum of:

                     (a)  your *FHSS releasable contributions amount worked out under section 138‑30; and

                     (b)  your associated earnings worked out under section 138‑40.

138‑30  FHSS releasable contributions amount

             (1)  Your FHSS releasable contributions amount is the sum of the following amounts for each *financial year that starts on 1 July 2017 or a later 1 July:

                     (a)  your *FHSS eligible non‑concessional contributions for the financial year;

                     (b)  85% of your *FHSS eligible concessional contributions for the financial year.

Order of counting contributions

             (2)  In determining which contributions are to be counted towards your *FHSS releasable contributions amount, contributions are to be counted in the order in which they were made (from earliest to latest).

             (3)  For subsection (2):

                     (a)  if an *FHSS eligible concessional contribution, and an *FHSS eligible non‑concessional contribution, is made in respect of you at the same time, the FHSS eligible non‑concessional contribution is taken to have been made first; and

                     (b)  if, for a particular *financial year, you personally made both *FHSS eligible concessional contributions and *FHSS eligible non‑concessional contributions, the FHSS eligible non‑concessional contributions are taken to have been made first.

Example:    For paragraph (b), in the 2018‑2019 financial year, you made voluntary contributions of $1,000 each fortnight, up to a total of $25,000. At the end of the financial year, you claim a deduction for $15,000 (leaving $10,000 of the contributions as non‑concessional contributions).

                   If all of the non‑concessional contributions are eligible to be released under section 138‑35, the first 10 contributions made for the financial year are taken to have been the non‑concessional contributions, and the later contributions are taken to be the concessional contributions.

138‑35  Eligible contributions

Limits on amount of eligible contributions

             (1)  For the purposes of this Subdivision:

                     (a)  the maximum amount of contributions that may be eligible to be released is $30,000; and

                     (b)  the maximum amount of contributions made in a particular *financial year that may be eligible to be released is $15,000.

Eligible contributions

             (2)  A *concessional contribution, or *non‑concessional contribution, for a *financial year is not eligible to be released unless it:

                     (a)  is made in respect of you in the financial year; and

                     (b)  is:

                              (i)  an employer contribution that is not a mandated employer contribution (within the meaning of Part 5 of the Superannuation Industry (Supervision) Regulations 1994); or

                             (ii)  a member contribution (within the meaning of that Part) that is made by you;

                            other than a contribution to the extent it is required to be made because of a law of the Commonwealth or of a State or Territory, or the rules of the relevant *superannuation fund; and

                     (c)  is not a contribution made in respect of a *defined benefit interest; and

                     (d)  is not a contribution to a *constitutionally protected fund.

             (3)  If:

                     (a)  you have *excess concessional contributions for a *financial year (your excess amount); and

                     (b)  your excess amount is greater than your *concessional contributions for the financial year that are not eligible to be released under subsection (2) (your non‑eligible contributions);

concessional contributions that are equal to the difference between your excess amount and your non‑eligible contributions are not eligible to be released.

             (4)  If:

                     (a)  you have *non‑concessional contributions for the *financial year that exceed your non‑concessional contributions cap for the financial year (your excess amount); and

                     (b)  your excess amount is greater than your non‑concessional contributions for the financial year that are not eligible to be released under subsection (2) (your non‑eligible contributions);

non‑concessional contributions that are equal to the difference between your excess amount and your non‑eligible contributions are not eligible to be released.

             (5)  For the purposes of this section, disregard paragraph 292‑90(1)(b) of the Income Tax Assessment Act 1997.

Note:          Under paragraph 292‑90(1)(b) of the Income Tax Assessment Act 1997, your non‑concessional contributions for a financial year would include the amount of your excess concessional contributions (if any) for the financial year.

138‑40  Associated earnings

             (1)  You are taken to have associated earnings equal to the sum of the amounts worked out under subsection (2) for each contribution counted in your *FHSS releasable contributions amount.

             (2)  The amount for a contribution is equal to the sum (rounded down to the nearest dollar) of the amounts worked out under the following formula for each of the days during the period mentioned in subsection (3).

where:

amount of contribution means the amount of the contribution that is counted in your *FHSS releasable contributions amount.

shortfall interest charge rate means the rate, worked out under subsection 280‑105(2), for the day.

sum of earlier daily proxy amounts means the sum of the amounts worked out for the contribution under the formula for each of the earlier days (if any) during the period for the contribution.

             (3)  The period starts:

                     (a)  if the contribution is made in the *financial year starting on 1 July 2017—on 1 July 2017; and

                     (b)  if the contribution is made in the financial year starting on 1 July 2018, or a later financial year—on the first day of the month in which the contribution is made or taken to have been made (see subsection 138‑30(2));

and ends on the day the Commissioner makes the *first home super saver determination for which the associated earnings are being worked out.

Part 3‑30Diverted profits tax

Division 145Assessments of diverted profits tax

Guide to Division 145

145‑1  What this Division is about

The Commissioner can make an assessment of diverted profits tax. The entity that is the subject of the assessment can appeal to the Federal Court against the Commissioner’s decision to make the assessment. Such an appeal can be made generally no earlier than 12 months after the day on which the Commissioner first gives notice of the assessment to the entity.

Table of sections

145‑5        DPT assessments—modified application of Division 155

145‑10      When DPT assessments can be made

145‑15      Period of review of DPT assessments

145‑20      Review of assessments

145‑25      Restricted DPT evidence

145‑5  DPT assessments—modified application of Division 155

                   In applying Division 155 in relation to an amount of *diverted profits tax:

                     (a)  apply the provisions of that Division with the modifications set out in sections 145‑10 to 145‑25; and

                     (b)  disregard sections 155‑15, 155‑20, 155‑25, 155‑30, 155‑40, 155‑45, 155‑50, 155‑55 and 155‑70.

145‑10  When DPT assessments can be made

                   Despite subsection 155‑5(1), the Commissioner can make an assessment (the DPT assessment) of the amount of *diverted profits tax only at a time in the period:

                     (a)  starting on the day on which the Commissioner first gives the entity that is the subject of the assessment a notice of assessment under Part IV of the Income Tax Assessment Act 1936 for the income year mentioned in paragraph 177J(1)(a) of the Income Tax Assessment Act 1936 (as that paragraph applies in relation to the amount of diverted profits tax); and

                     (b)  ending on the last day of the period of 7 years starting the day after that day.

145‑15  Period of review of DPT assessments

             (1)  Despite subsection 155‑35(2), the period of review, for the *DPT assessment, is:

                     (a)  the period:

                              (i)  starting on the day on which the Commissioner first gives notice of the assessment to the entity that is the subject of the assessment under section 155‑10; and

                             (ii)  ending on the last day of the period of 12 months starting the day after that day; or

                     (b)  if:

                              (i)  the entity, by written notice given to the Commissioner, specifies a shorter period in accordance with subsection (2); and

                             (ii)  the Federal Court of Australia has not made an order under subsection (3) in respect of the written notice;

                            that shorter period; or

                     (c)  if the period of review is extended under subsection 155‑35(3) or (4)—the period as so extended.

             (2)  For the purposes of subparagraph (1)(b)(i), the shorter period must:

                     (a)  start on the day mentioned in subparagraph (1)(a)(i); and

                     (b)  end on a day that is at least 30 days after the day on which the entity gives the written notice to the Commissioner.

             (3)  For the purposes of subparagraph (1)(b)(ii), the Federal Court of Australia may make an order under this subsection in respect of the written notice if:

                     (a)  the Commissioner has started to examine the entity’s affairs in relation to the assessment; and

                     (b)  the Commissioner has not completed the examination within the shorter period specified in the written notice; and

                     (c)  the Commissioner, within 30 days after the day on which the entity gives the written notice to the Commissioner, applies to the Court for the order; and

                     (d)  the Court is satisfied that it was not reasonably practicable, or it was inappropriate, for the Commissioner to complete the examination within the shorter period specified in the written notice, because of:

                              (i)  any action taken by the entity; or

                             (ii)  any failure by the entity to take action that it would have been reasonable for the entity to take.

             (4)  Despite subsection 155‑35(5), in relation to the *DPT assessment:

                     (a)  an order may be made under subsection 155‑35(3) only once; and

                     (b)  consent may be given under subsection 155‑35(4) only once.

145‑20  Review of assessments

             (1)  Section 155‑90 does not apply during the *period of review mentioned in section 145‑15.

             (2)  In applying Part IVC of this Act as a result of section 155‑90 after the end of that *period of review:

                     (a)  have regard only to the provisions of that Part mentioned in subsection (3); and

                     (b)  apply those provisions with the modifications set out in subsection (4); and

                     (c)  disregard the other provisions of that Part; and

                     (d)  apply section 145‑25 (restricted DPT evidence).

             (3)  For the purposes of paragraph (2)(a), the provisions of that Part are as follows:

                     (a)  sections 14ZL and 14ZP;

                     (b)  subsection 14ZR(1);

                     (c)  subsection 14ZZ(1);

                     (d)  Division 5 (apart from section 14ZZS).

             (4)  For the purposes of paragraph (2)(b), the modifications are as follows:

                     (a)  treat the Commissioner’s decision to make the *DPT assessment as an objection decision;

                     (b)  treat subsection 14ZZ(1) as reading “The entity that is the subject of the DPT assessment may appeal to the Federal Court of Australia against the objection decision.”;

                     (c)  treat the reference in section 14ZZN to “within 60 days after the person appealing is served with notice of the decision” as being a reference to “within 60 days after the end of the period of review mentioned in section 145‑15 in Schedule 1”;

                     (d)  disregard paragraph 14ZZO(a);

                     (e)  treat paragraph 14ZZO(b) as reading “the appellant has the burden of proving that the DPT assessment is excessive or otherwise incorrect and what the DPT assessment should have been”;

                      (f)  treat the reference in section 14ZZR to a taxation decision as being a reference to the Commissioner’s decision to make the DPT assessment.

145‑25  Restricted DPT evidence

             (1)  *Restricted DPT evidence is not admissible in evidence in proceedings under Part IVC on an appeal to the Federal Court of Australia related to the *DPT assessment.

             (2)  Restricted DPT evidence means information or documents that:

                     (a)  the entity that is the subject of the *DPT assessment (or an associate (within the meaning of section 318 of the Income Tax Assessment Act 1936) of that entity), had in its custody or under its control at a time before, during or after the *period of review; and

                     (b)  the Commissioner did not have in his or her custody or under his or her control at any time in the period of review.

             (3)  Subsection (1) does not prevent *restricted DPT evidence from being admissible in evidence in the proceedings if:

                     (a)  the Commissioner consents to the admission of the restricted DPT evidence in accordance with subsection (4); or

                     (b)  the court in which the proceedings take place considers that the admission of the restricted DPT evidence is necessary in the interests of justice; or

                     (c)  the restricted DPT evidence is expert evidence that:

                              (i)  comes into existence after the *period of review; and

                             (ii)  is based on evidence that the Commissioner had in his or her custody or under his or her control at any time in the period of review.

             (4)  For the purposes of paragraph (3)(a), the Commissioner may give the consent if the Commissioner considers that it is reasonable to do so.

             (5)  In making a decision under paragraph (3)(a) or (b), the Commissioner or the court must have regard to:

                     (a)  whether, if the *restricted DPT evidence were not admissible in evidence in the proceedings, the remaining information or documents that are relevant to the proceedings are, or are likely to be, misleading; and

                     (b)  whether it would have been reasonable for the entity that is the subject of the *DPT assessment (or the associate of that entity mentioned in paragraph (2)(a)) to have given the Commissioner the restricted DPT evidence within the *period of review.

             (6)  The Commissioner must give a consent for the purposes of paragraph (3)(a) if failure to do so would have the effect, for the purposes of the Constitution, of making any tax or penalty incontestable.

             (7)  A consent for the purposes of paragraph (3)(a) is to be in writing.

             (8)  If the Commissioner gives a consent for the purposes of paragraph (3)(a), the Commissioner must give the entity that is the subject of the *DPT assessment a copy of the consent as soon as practicable afterwards.

Chapter 4Generic assessment, collection and recovery rules

Part 4‑1Returns and assessments

Division 155Assessments

Table of Subdivisions

             Guide to Division 155

155‑A   Making assessments

155‑B    Amending assessments

155‑C    Validity and review of assessments

155‑D   Miscellaneous

Guide to Division 155

155‑1  What this Division is about

This Division contains rules relating to assessments.

The rules in this Division deal with the following:

               (a)     how assessments are made or amended and their effect;

              (b)     review of assessments.

Subdivision 155‑AMaking assessments

Table of sections

155‑5        Commissioner may make assessment

155‑10      Commissioner must give notice of assessment

155‑15      Self‑assessment

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

155‑25      Special assessment

155‑30      Delays in making assessments

155‑5  Commissioner may make assessment

             (1)  The Commissioner may at any time make an assessment of an *assessable amount (including an assessment that the amount is nil).

Note 1:       For amendment of assessments, see Subdivision 155‑B.

Note 2:       An assessment can be reviewed: see Subdivision 155‑C.

             (2)  Each of the following is an assessable amount:

                     (a)  a *net amount;

                     (b)  a *net fuel amount;

                     (c)  an amount of *indirect tax not included in an amount covered by another paragraph of this subsection;

                     (d)  a credit under an *indirect tax law not included in an amount covered by another paragraph of this subsection;

                      (f)  an amount of *Division 293 tax payable for an income year in relation to an individual’s *taxable contributions for the income year;

                     (g)  an amount of *excess exploration credit tax for an income year;

                     (h)  an amount of *excess transfer balance tax payable for an *excess transfer balance period;

                      (i)  an amount of levy under the Major Bank Levy Act 2017 for a *quarter;

                      (j)  an amount of *diverted profits tax;

Note:       This Division has a modified operation in relation to diverted profits tax (see Division 145).

                     (k)  an amount of *first home super saver tax for an income year.

155‑10  Commissioner must give notice of assessment

             (1)  The Commissioner must give you notice of an assessment of an *assessable amount of yours as soon as practicable after the assessment is made.

Note:          This section also applies to an amended assessment: see section 155‑80.

             (2)  The Commissioner may give you the notice electronically if you are required to lodge, or have lodged, the return (if any) that relates to the *assessable amount electronically.

155‑15  Self‑assessment

             (1)  The Commissioner is treated as having made an assessment under section 155‑5 of an *assessable amount mentioned in an item of the following table, if the document mentioned in the item is given to the recipient mentioned in the item:

 

Self‑assessed amounts

Item

Column 1

Assessable amount

Column 2

Recipient

Column 3

Document

1

your *net amount for a *tax period

the Commissioner

your *GST return for the tax period

2

your *net fuel amount for a *tax period

the Commissioner

your *fuel tax return for the tax period

3

the *GST payable by you on a *taxable importation

the Collector (within the meaning of the Customs Act 1901) or the Department administered by the Minister administering Part XII of that Act

return, given as described in one of the following provisions, in relation to the importation:

(a) paragraph 69(8)(a), (b) or (c), or 70(7)(a), of the Customs Act 1901;

(b) regulations prescribed for the purposes of paragraph 69(8)(d) of that Act

4

an amount of *excess exploration credit tax for an income year

the Commissioner

return given under section 418‑160 for the income year

5

an amount of levy under the Major Bank Levy Act 2017 for a *quarter

the Commissioner

return given under section 115‑5 for the quarter

Note:          There is no self‑assessment of Division 293 tax, excess transfer balance tax or first home super saver tax.

             (2)  The assessment is treated as having been made on the day the document is given to the recipient mentioned in column 2.

             (3)  The amount assessed is:

                     (a)  if the document is required to state the *assessable amount—the amount (including a nil amount) stated; or

                     (b)  otherwise—the amount (including a nil amount) worked out in accordance with the information stated in the document.

             (4)  The document is treated as being a notice of the assessment:

                     (a)  signed by the Commissioner; and

                     (b)  given to you under section 155‑10 on the day the document is given to the recipient.

             (5)  This section does not apply to an *assessable amount if the Commissioner has already assessed the assessable amount on or before the day mentioned in paragraph (4)(b).

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

             (1)  The Commissioner is treated as having made an assessment under section 155‑5 of the *GST, *luxury car tax or *wine tax (whichever is applicable) payable by you on a *taxable importation, *taxable importation of a luxury car or *customs dealing, if:

                     (a)  the document mentioned in column 1 of an item of the following table is communicated to the Department administered by the Minister administering Part XII of the Customs Act 1901, in respect of the importation or dealing; and

                     (b)  a Collector (within the meaning of the Customs Act 1901) gives the document mentioned in column 2 of the item to an entity in respect of the importation or dealing.

 

Customs documents

Item

Column 1

Document communicated

Column 2

Document given to an entity

1

an *import declaration

an *import declaration advice

2

a self‑assessed clearance declaration (within the meaning of the Customs Act 1901)

a *self‑assessed clearance declaration advice

             (2)  The assessment is treated as having been made on the day a Collector (within the meaning of the Customs Act 1901) gives the document mentioned in paragraph (1)(b) to the entity.

             (3)  The amount assessed is the amount (including a nil amount) worked out in accordance with the information stated in the 2 documents.

             (4)  The 2 documents are treated as together being a notice of the assessment:

                     (a)  signed by the Commissioner; and

                     (b)  given to you under section 155‑10 on the day a Collector (within the meaning of the Customs Act 1901) gives the document mentioned in paragraph (1)(b) of this section to the entity.

             (5)  This section does not apply if the Commissioner has already assessed the *GST, *luxury car tax or *wine tax on or before the day mentioned in paragraph (4)(b).

155‑25  Special assessment

                   For the purposes of making, under section 155‑5, an assessment of an *assessable amount that relates to a period (e.g. a tax period), the Commissioner may treat part of the period as being the whole period.

155‑30  Delays in making assessments

             (1)  You may give the Commissioner a written notice requiring the Commissioner to make an assessment of an *assessable amount of yours, if, 6 months after the day on which the relevant return (if any) for the assessable amount is given to the Commissioner, the Commissioner has not given to you notice of an assessment of the assessable amount under section 155‑10.

             (2)  You may object, in the manner set out in Part IVC of this Act, against the Commissioner’s failure to make the assessment if the Commissioner does not make the assessment within 30 days after the day the notice is given under subsection (1).

             (3)  This section does not apply to the following *assessable amounts:

                     (a)  the *Division 293 tax payable by you in relation to an income year in relation to your *taxable contributions for the income year;

                     (b)  the *excess transfer balance tax payable by you for an *excess transfer balance period;

                     (c)  the *first home super saver tax payable by you for an income year.

Subdivision 155‑BAmending assessments

Table of sections

When Commissioner may amend assessments

155‑35      Amendment during period of review

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

155‑45      Amendment on application

155‑50      Amendment to give effect to private ruling

155‑55      Amendment to give effect to certain anti‑avoidance declarations

155‑60      Amendment because of review, objection or fraud

Special rules about amending amended assessments

155‑65      Amending amended assessments

155‑70      Refreshed period of review

General rules

155‑75      Refunds of amounts overpaid

155‑80      Amended assessments are assessments

When Commissioner may amend assessments

155‑35  Amendment during period of review

Amendment

             (1)  The Commissioner may amend an assessment of an *assessable amount within the *period of review for the assessment.

Note 1:       An amendment of an assessment can be reviewed: see Subdivision 155‑C.

Note 2:       This section also applies to amended assessments: see section 155‑80. However, there are limits on how amended assessments can be amended: see sections 155‑65 and 155‑70.

Meaning of period of review

             (2)  The period of review, for an assessment of an *assessable amount of yours, is:

                     (a)  the period:

                              (i)  starting on the day on which the Commissioner first gives notice of the assessment to you under section 155‑10; and

                             (ii)  ending on the last day of the period of 4 years starting the day after that day; or

                     (b)  if the period of review is extended under subsection (3) or (4) of this section—the period as so extended.

Extensions

             (3)  The Federal Court of Australia may order an extension of the *period of review for an assessment of an *assessable amount of yours for a specified period, if:

                     (a)  the Commissioner has started to examine your affairs in relation to the assessment; and

                     (b)  the Commissioner has not completed the examination within the period of review for the assessment; and

                     (c)  the Commissioner, during the period of review, applies to the Federal Court of Australia for an order extending the period; and

                     (d)  the Court is satisfied that it was not reasonably practicable, or it was inappropriate, for the Commissioner to complete the examination within the period of review, because of:

                              (i)  any action taken by you; or

                             (ii)  any failure by you to take action that it would have been reasonable for you to take.

             (4)  You may, by written notice given to the Commissioner, consent to the extension of the *period of review for an assessment of an *assessable amount of yours for a specified period, if:

                     (a)  the Commissioner has started to examine your affairs in relation to the assessment; and

                     (b)  the Commissioner has not completed the examination within the period of review for the assessment; and

                     (c)  the Commissioner, during the period of review, requests you to consent to extending the period of review.

             (5)  An order may be made under subsection (3), or consent given under subsection (4), in relation to an assessment of an *assessable amount more than once.

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

             (1)  An application made by you for an amendment of an assessment of an *assessable amount of yours is treated as being a notice of the amended assessment given to you by the Commissioner under section 155‑10, if:

                     (a)  the application is in the *approved form; and

                     (b)  the Commissioner makes the amendment:

                              (i)  to give effect to the decision on the application; and

                             (ii)  during the *period of review for the assessment; and

                     (c)  the amendment the Commissioner makes is the entire amendment for which you applied, and nothing else.

             (2)  The notice is treated as having been given to you on whichever of the following is applicable:

                     (a)  the first day the Commissioner adjusts the balance of an *RBA of yours as a result of the amendment;

                     (b)  the day a Collector (within the meaning of the Customs Act 1901) gives an *import declaration advice, or a *self‑assessed clearance declaration advice, to an entity in respect of the relevant *taxable importation, *taxable importation of a luxury car or *customs dealing as a result of the amendment.

155‑45  Amendment on application

                   The Commissioner may amend an assessment of an *assessable amount of yours at any time, if you apply for an amendment in the *approved form during the *period of review for the assessment. The Commissioner may amend the assessment to give effect to his or her decision on the application.

Note:          The Commissioner must give you notice of the amended assessment under section 155‑10: see section 155‑80.

155‑50  Amendment to give effect to private ruling

                   The Commissioner may amend an assessment of an *assessable amount of yours at any time, if:

                     (a)  you apply for a *private ruling during the *period of review for the assessment; and

                     (b)  the Commissioner makes a private ruling because of the application.

The Commissioner may amend the assessment to give effect to the ruling.

155‑55  Amendment to give effect to certain anti‑avoidance declarations

                   The Commissioner may amend an assessment of an *assessable amount at any time, if:

                     (a)  the Commissioner makes a declaration under subsection 165‑45(3) of the *GST Act (about compensating adjustments for anti‑avoidance declarations); or

                     (b)  the Commissioner makes a declaration under subsection 75‑45(3) of the Fuel Tax Act 2006 (about compensating adjustments for anti‑avoidance declarations).

The Commissioner may amend the assessment to give effect to the declaration.

155‑60  Amendment because of review, objection or fraud

                   Despite anything in this Subdivision, the Commissioner may amend an assessment of an *assessable amount of yours at any time:

                     (a)  to give effect to a decision on a review or appeal; or

                     (b)  as a result of an objection made by you, or pending a review or appeal; or

                     (c)  if he or she is of the opinion there has been fraud or evasion.

Special rules about amending amended assessments

155‑65  Amending amended assessments

                   The Commissioner cannot amend an amended assessment of an *assessable amount under section 155‑35 if the *period of review for the assessment has ended.

Note:          The Commissioner can amend amended assessments at any time under sections 155‑45 to 155‑60.

155‑70  Refreshed period of review

             (1)  This section applies if the Commissioner has made one or more amendments of an assessment of an *assessable amount of yours under section 155‑35 about a particular.

             (2)  Despite section 155‑65, the Commissioner may amend (the later amendment) the amended assessment after the end of the *period of review for the assessment, if:

                     (a)  the Commissioner makes the later amendment before the end of the period of 4 years starting on the day after the day on which the Commissioner gave notice of the last of the amendments mentioned in subsection (1) to you under section 155‑10; and

                     (b)  the later amendment is about the particular mentioned in subsection (1) of this section; and

                     (c)  the Commissioner has not previously amended the assessment under this section about that particular.

General rules

155‑75  Refunds of amounts overpaid

             (1)  This section applies if:

                     (a)  an assessment of an *assessable amount of yours is amended; and

                     (b)  as a result of the amendment, a *tax‑related liability (the earlier liability) of yours is reduced.

             (2)  For the purposes of any *taxation law that applies the *general interest charge, the amount by which the *tax‑related liability is reduced is taken never to have been payable.

Note 1:       The general interest charge is worked out under Part IIA of this Act.

Note 2:       Subsection 8AAB(4) of this Act lists the provisions that apply the charge.

             (3)  The Commissioner must apply the amount of any *tax‑related liability overpaid in accordance with Divisions 3 and 3A of Part IIB of this Act (about running balance accounts and the application of payments and credits).

             (4)  However, if:

                     (a)  a later amendment of an assessment of an *assessable amount is made; and

                     (b)  all or some of your earlier liability in relation to a particular is reinstated;

this section is taken not to have applied to the extent that the earlier liability is reinstated.

155‑80  Amended assessments are assessments

                   An amended assessment of an *assessable amount is an assessment for all purposes of any *taxation law.

Note:          The Commissioner must give notice of the amended assessment under section 155‑10. Under section 155‑40, an application for an amendment is treated as being a notice of the amendment in certain circumstances.

Subdivision 155‑CValidity and review of assessments

Table of sections

155‑85      Validity of assessment

155‑90      Review of assessments

155‑85  Validity of assessment

                   The validity of any assessment of an *assessable amount is not affected by non‑compliance with the provisions of this Act or of any other *taxation law.

155‑90  Review of assessments

                   You may object, in the manner set out in Part IVC of this Act, against an assessment of an *assessable amount of yours if you are dissatisfied with the assessment.

Note:          If an individual is dissatisfied with a statement given to the Commissioner by a superannuation provider under section 390‑5 in this Schedule, the individual may make a complaint under the AFCA scheme (within the meaning of Chapter 7 of the Corporations Act 2001).

Subdivision 155‑DMiscellaneous

Table of sections

155‑95      Entities

155‑95  Entities

                   This Division applies, in relation to an *assessable amount under a *taxation law, to an entity under that taxation law in the same way as the Division applies to an entity under the Income Tax Assessment Act 1997.

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

Division 250Introduction

Table of Subdivisions

250‑A   Guide to Part 4‑15

250‑B    Object of this Part

Subdivision 250‑AGuide to Part 4‑15

250‑1  What this Part is about

This Part deals with the methods by which the Commissioner may collect and recover amounts of taxes and other liabilities.

These rules may affect you if you are liable to pay an amount of a tax‑related liability (see, for example, Division 255). Some of the rules may also affect you because of your relationship with someone else who is liable for such an amount (see Division 260).

Table of sections

250‑5        Some important concepts about tax‑related liabilities

250‑10      Summary of tax‑related liabilities

250‑5  Some important concepts about tax‑related liabilities

             (1)  A tax‑related liability may arise for an entity before it becomes due and payable by that entity.

Example:    Under Part 2‑5, an entity’s liability to pay a withheld amount may arise before the amount is due and payable.

             (2)  For some tax‑related liabilities, an assessment needs to be made before the amount of the relevant liability becomes due and payable.

Example:    Under Division 5 of the Income Tax Assessment Act 1997, an amount of income tax needs to be assessed before it becomes due and payable.

             (3)  An amount of a tax‑related liability may become payable by an entity (for example, when the amount has been assessed) before it is due and payable by that entity.

250‑10  Summary of tax‑related liabilities

             (1)  The following table is an index of each tax‑related liability under the Income Tax Assessment Act 1936. The key provision for the liability, as set out in the table, specifies when the liability becomes due and payable.

Note 1:       The Commissioner may vary the time at which the amount becomes due and payable. See Subdivision 255‑B.

Note 2:       Members and former members of consolidated groups and MEC groups may be jointly and severally liable to pay certain tax‑related liabilities related to the group’s activities (see Division 721 of the Income Tax Assessment Act 1997).

 

Tax‑related liabilities under the Income Tax Assessment Act 1936

Item

Topic

Provision

5

trustee beneficiary non‑disclosure tax

102UO

10

withholding tax on dividend, interest or royalty

128C(1)

15

special tax payable on dealings by offshore banking units

128NB(3)

20

mining withholding tax

128W(1)

50

late lodgment penalty

163A(3)

70

excessive tax offset refunds

172A(2)

80

diverted profits tax

subsection 177P(3)

85

shortfall interest charge for diverted profits tax

section 177R

90

family trust distribution tax

271‑75 in Schedule 2F

100

interest payable under section 102AAM (about distributions from non‑resident trust estates)

5‑5 of the Income Tax Assessment Act 1997

             (2)  The following table is an index of each tax‑related liability under other Acts. The key provision for the liability, as set out in the table, specifies when the liability becomes due and payable.

Note 1:       The Commissioner may vary the time at which the amount becomes due and payable. See Subdivision 255‑B.

Note 2:       Members and former members of consolidated groups and MEC groups may be jointly and severally liable to pay certain tax‑related liabilities related to the group’s activities (see Division 721 of the Income Tax Assessment Act 1997).

Note 3:       Companies that are or were members of the same wholly‑owned group as an NZ franking company may be jointly and severally liable to pay certain tax‑related liabilities of the NZ franking company (see Division 220 of the Income Tax Assessment Act 1997).

Note 4:       Penalties under Division 175 of the Australian Charities and Not‑for‑profits Commission Act 2012, and related general interest charge, are treated in the same way as tax‑related liabilities: see subsection 175‑70(2) of that Act.

Note 5:       A liability for a fee that is due and payable under subsection 113(5) of the Foreign Acquisitions and Takeovers Act 1975 is a tax‑related liability if the power of the Treasurer to recover the fee under that subsection is delegated to the Commissioner of Taxation under section 137 of that Act (see subsections 138(1) and (2) of that Act).

Tax‑related liabilities under other legislation

Item

Topic

Provision

Act

5

assessed net amount, including amounts in respect of luxury car tax and wine equalisation tax

33‑3, 33‑5, 35‑5(2)

A New Tax System (Goods and Services Tax) Act 1999

10

amount of assessed GST on importations

33‑15

A New Tax System (Goods and Services Tax) Act 1999

12A

assessed GST on supplies made in settlement of claims under insurance policies

78‑90

A New Tax System (Goods and Services Tax) Act 1999

12B

assessed GST on supplies made in satisfaction of debts

105‑20

A New Tax System (Goods and Services Tax) Act 1999

13

repayments of amounts paid under tourist refund scheme

168‑10

A New Tax System (Goods and Services Tax) Act 1999

15

amount of assessed luxury car tax on importation

13‑20

A New Tax System (Luxury Car Tax) Act 1999

16

excess luxury car tax credits

17‑15

A New Tax System (Luxury Car Tax) Act 1999

18

excess wine tax credits

17‑25

A New Tax System (Wine Equalisation Tax) Act 1999

20

amount of assessed wine tax on customs dealings

23‑5

A New Tax System (Wine Equalisation Tax) Act 1999

21

repayments of amounts paid under tourist refund scheme

25‑10

A New Tax System (Wine Equalisation Tax) Act 1999

22A

amount of advance to be repaid

14A

Diesel and Alternative Fuels Grants Scheme Act 1999

22B

amount payable as a result of an amended assessment

15E

Diesel and Alternative Fuels Grants Scheme Act 1999

24

excise duty

54

Excise Act 1901

24A

accounting for excisable goods

60(1), (1A), (1B) and (1C)

Excise Act 1901

24B

tobacco leaf stock deficiency

77AA

Excise Act 1901

24C

accounting for spirit

77FH

Excise Act 1901

24CA

penalty for using LPG for excisable LPG use

77M

Excise Act 1901

24D

fee for an action that does not relate to an application or a notice

113(5)

Foreign Acquisitions and Takeovers Act 1975 (but see note 5 to this subsection)

24E

vacancy fee

115F

Foreign Acquisitions and Takeovers Act 1975

25

fringe benefits tax

90

Fringe Benefits Tax Assessment Act 1986

35

fringe benefits tax instalments

103

Fringe Benefits Tax Assessment Act 1986

36

assessed net fuel amount

61‑5(2), 61‑10

Fuel Tax Act 2006

36A

compulsory repayment amount under the Higher Education Support Act 2003

5‑5

Income Tax Assessment Act 1997

36B

compulsory SSL repayment amount under the Social Security Act 1991

5‑5

Income Tax Assessment Act 1997

36C

compulsory ABSTUDY SSL repayment amount under the Student Assistance Act 1973

5‑5

Income Tax Assessment Act 1997

36D

compulsory TSL repayment amount under the Trade Support Loans Act 2014

5‑5

Income Tax Assessment Act 1997

37

income tax

5‑5

Income Tax Assessment Act 1997

37AA

shortfall interest charge on income tax

5‑10

Income Tax Assessment Act 1997

37AB

shortfall interest charge on excess non‑concessional contributions tax

5‑10

Income Tax Assessment Act 1997

37AC

shortfall interest charge on Division 293 tax

5‑10

Income Tax Assessment Act 1997

37AD

shortfall interest charge on excess concessional contributions charge

5‑10

Income Tax Assessment Act 1997

 

37A

untainting tax

197‑70

Income Tax Assessment Act 1997

38

franking tax

214‑150(1), (2), (3) and (4)

Income Tax Assessment Act 1997

38B

excess non‑concessional contributions tax

292‑385

Income Tax Assessment Act 1997

38BB

Division 293 tax

293‑65 and 293‑70

Income Tax Assessment Act 1997

38BC

excess transfer balance tax

294‑240 and 294‑245

Income Tax Assessment Act 1997

38BD

first home super saver tax

313‑65 and 313‑70

Income Tax Assessment Act 1997

38D

excess exploration credit tax

418‑155

Income Tax Assessment Act 1997

39

TSA liability

721‑30

Income Tax Assessment Act 1997

39A

managed investment trust withholding tax

840‑810(1)

Income Tax Assessment Act 1997

39AA

Seasonal Labour Mobility Program withholding tax

840‑910

Income Tax Assessment Act 1997

39B

managed investment trust withholding tax

840‑810(1)

Income Tax (Transitional Provisions) Act 1997

40

petroleum resource rent tax

82

Petroleum Resource Rent Tax Assessment Act 1987

41

shortfall interest charge on petroleum resource rent tax

82

Petroleum Resource Rent Tax Assessment Act 1987

45

petroleum resource rent tax instalments

95

Petroleum Resource Rent Tax Assessment Act 1987

45A

instalment transfer interest charge

98C(4)

Petroleum Resource Rent Tax Assessment Act 1987

45B

liability for excess private health insurance premium reduction or refund

282‑18

Private Health Insurance Act 2007

46

amount of advance to be repaid

13

Product Grants and Benefits Administration Act 2000

47

amount payable as a result of an amended assessment

20

Product Grants and Benefits Administration Act 2000

48

penalty under section 35

36

Product Grants and Benefits Administration Act 2000

50

superannuation contributions surcharge

15(3)

Superannuation Contributions Tax (Assessment and Collection) Act 1997

55

superannuation contributions surcharge

15(8)

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

60

superannuation guarantee charge

46

Superannuation Guarantee (Administration) Act 1992

65

additional superannuation guarantee charge

47

Superannuation Guarantee (Administration) Act 1992

67

Superannuation (Self Managed Funds) Levy

15DB

Superannuation (Self Managed Superannuation Funds) Taxation Act 1987

67A

payment of unclaimed money to the Commissioner

17

Superannuation (Unclaimed Money and Lost Members) Act 1999

67B

payment from Commissioner that cannot be credited

18C

Superannuation (Unclaimed Money and Lost Members) Act 1999

68

payment in respect of a superannuation interest to the Commissioner

20F

Superannuation (Unclaimed Money and Lost Members) Act 1999

69

repayment of Commissioner’s payment

20M

Superannuation (Unclaimed Money and Lost Members) Act 1999

69A

payment of value of lost member accounts to the Commissioner

24E

Superannuation (Unclaimed Money and Lost Members) Act 1999

69B

payment from Commissioner that cannot be credited

24L

Superannuation (Unclaimed Money and Lost Members) Act 1999

70

general interest charge

8AAE

Taxation Administration Act 1953

85

RBA deficit debt

8AAZH(1)

Taxation Administration Act 1953

90

administrative overpayment made by Commissioner

8AAZN

Taxation Administration Act 1953

95

TFN withholding tax

14‑55 in Schedule 1

Taxation Administration Act 1953

100

TFN withholding tax (ESS)

14‑155 in Schedule 1

Taxation Administration Act 1953

101

payment of amount to Commissioner

14‑200 or 14‑205 in Schedule 1

Taxation Administration Act 1953

105

payment of withheld amount to Commissioner

16‑75 in Schedule 1

Taxation Administration Act 1953

110

PAYG withholding non‑compliance tax

18‑145 in Schedule 1

Taxation Administration Act 1953

115

quarterly PAYG instalment

45‑61 in Schedule 1

Taxation Administration Act 1953

115A

monthly PAYG instalment

45‑67 in Schedule 1

Taxation Administration Act 1953

 

120

annual PAYG instalment

45‑70 in Schedule 1

Taxation Administration Act 1953

125

general interest charge on shortfall in quarterly instalment worked out on basis of varied rate

45‑230(4) in Schedule 1

Taxation Administration Act 1953

130

general interest charge on shortfall in quarterly instalment worked out on basis of estimated benchmark tax

45‑232 in Schedule 1

Taxation Administration Act 1953

135

general interest charge on shortfall in annual instalment

45‑235(5) in Schedule 1

Taxation Administration Act 1953

135Q

excess concessional contributions charge

95‑20 in Schedule 1

Taxation Administration Act 1953

 

135R

amount in accordance with excess superannuation contributions release authority

131‑35 in Schedule 1

Taxation Administration Act 1953

 

136

amount of major bank levy

115‑10 in Schedule 1

Taxation Administration Act 1953

 

136A

debt account discharge liability

133‑105 in Schedule 1

Taxation Administration Act 1953

137

amount to be recovered from a debtor under a registered foreign revenue claim

263‑30 in Schedule 1

Taxation Administration Act 1953

138

estimate of payable amounts

268‑20 in Schedule 1

Taxation Administration Act 1953

139

penalty under Subdivision 269‑B

269‑20 in Schedule 1

Taxation Administration Act 1953

140

administrative penalties

298‑15 in Schedule 1

Taxation Administration Act 1953

Subdivision 250‑BObject of this Part

250‑25  Object

                   The object of this Part is to ensure that unpaid amounts of *tax‑related liabilities and other related amounts are collected or recovered in a timely manner.

Division 255General rules about collection and recovery

Table of Subdivisions

255‑A   Tax‑related liabilities

255‑B    Commissioner’s power to vary payment time

255‑C    Recovery proceedings

255‑D   Security deposits

Subdivision 255‑ATax‑related liabilities

Table of sections

255‑1        Meaning of tax‑related liability

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

255‑1  Meaning of tax‑related liability

             (1)  A tax‑related liability is a pecuniary liability to the Commonwealth arising directly under a *taxation law (including a liability the amount of which is not yet due and payable).

Note 1:       See section 250‑10 for an index of tax‑related liabilities.

Note 2:       A taxation law, or a provision of it, may be excluded from being applied to this Part. See section 265‑65.

             (2)  A civil penalty under Division 290 of this Schedule or Part 5 of the Tax Agent Services Act 2009 is not a tax‑related liability.

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

             (1)  An amount of a *tax‑related liability that is due and payable:

                     (a)  is a debt due to the Commonwealth; and

                     (b)  is payable to the Commissioner.

             (2)  The Commissioner, a *Second Commissioner or a *Deputy Commissioner may sue in his or her official name in a court of competent jurisdiction to recover an amount of a *tax‑related liability that remains unpaid after it has become due and payable.

Note:          The tables in section 250‑10 set out each provision that specifies when an amount of a tax‑related liability becomes due and payable. The Commissioner may vary that time under Subdivision 255‑B.

Subdivision 255‑BCommissioner’s power to vary payment time

Table of sections

255‑10      To defer the payment time

255‑15      To permit payments by instalments

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

255‑10  To defer the payment time

Deferrals for particular taxpayers

             (1)  The Commissioner may, having regard to the circumstances of your particular case, defer the time at which an amount of a *tax‑related liability is, or would become, due and payable by you (whether or not the liability has already arisen). If the Commissioner does so, that time is varied accordingly.

Note:          General interest charge or any other relevant penalty, if applicable for any unpaid amount of the liability, will begin to accrue from the time as varied. See, for example, paragraph 5‑15(a) of the Income Tax Assessment Act 1997.

             (2)  The Commissioner must do so by written notice given to you.

Deferrals for classes of taxpayers

          (2A)  The Commissioner, having regard to the circumstances of the case, may, by notice published on the Australian Taxation Office website, defer the time at which amounts of *tax‑related liabilities are, or would become, due and payable by a class of taxpayers (whether or not the liabilities have already arisen).

          (2B)  If the Commissioner does so, that time is varied accordingly.

Note:          General interest charge and any other relevant penalties, if applicable for any unpaid amounts of the liabilities, will begin to accrue from the time as varied. See, for example, paragraph 5‑15(a) of the Income Tax Assessment Act 1997.

          (2C)  A notice published under subsection (2A) is not a legislative instrument.

Deferral does not affect time for giving form

             (3)  A deferral under this section does not defer the time for giving an *approved form to the Commissioner.

Note:          Section 388‑55 allows the Commissioner to defer the time for giving an approved form.

255‑15  To permit payments by instalments

             (1)  The Commissioner may, having regard to the circumstances of your particular case, permit you to pay an amount of a *tax‑related liability by instalments under an *arrangement between you and the Commissioner (whether or not the liability has already arisen).

             (2)  The *arrangement does not vary the time at which the amount is due and payable.

Note:          Despite an arrangement under this section, any general interest charge or other relevant penalty, if applicable for any unpaid amount of the liability, begins to accrue when the liability is due and payable under the relevant taxation law, or at that time as varied under section 255‑10 or 255‑20.

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

             (1)  If the Commissioner reasonably believes that you may leave Australia before the time at which an amount of a *tax‑related liability becomes due and payable by you, the Commissioner may bring that time forward. If the Commissioner does so, that time is varied accordingly.

Note:          General interest charge or any other relevant penalty, if applicable for any unpaid amount of the liability, will begin to accrue from the time as varied. See, for example, paragraph 5‑15(a) of the Income Tax Assessment Act 1997.

             (2)  The Commissioner must do so by written notice given to you.

Subdivision 255‑CRecovery proceedings

Guide to Subdivision 255C

255‑35  What this Subdivision is about

This Subdivision deals with procedural and evidentiary matters relating to proceedings to recover an amount of a tax‑related liability.

Table of sections

Operative provisions

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

255‑45      Evidentiary certificate

255‑50      Certain statements or averments

255‑55      Evidence by affidavit

Operative provisions

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

             (1)  This section applies if a document needs to be served on a person in respect of a proceeding to recover an amount of a *tax‑related liability, and the Commissioner, after making reasonable inquiries, is satisfied that:

                     (a)  the person is absent from Australia and does not have any agent in Australia on whom the document can be served; or

                     (b)  the person cannot be found.

             (2)  The Commissioner may, without the court’s leave, serve the document by posting it, or a sealed copy of it, in a letter addressed to the person at any Australian address of the person (including the person’s Australian place of business or residence) that is last known to the Commissioner.

             (3)  For the purposes of giving effect to a provision of an international agreement of a kind referred to in Subdivision 263‑A (about foreign revenue claims), if a document needs to be served on a person and the Commissioner, after making reasonable inquiries, is satisfied that:

                     (a)  the person is absent from Australia and does not have an agent in Australia on whom the document can be served; and

                     (b)  the person has an address in a foreign country, a constituent part of a foreign country or a foreign territory;

the Commissioner may serve the document on the person at the address mentioned in paragraph (b).

255‑45  Evidentiary certificate

             (1)  A certificate:

                     (a)  stating one or more of the matters covered by subsection (2) or (3); and

                     (b)  signed by the Commissioner, a *Second Commissioner or a *Deputy Commissioner;

is prima facie evidence of the matter or matters in a proceeding to recover an amount of a *tax‑related liability.

             (2)  A certificate may state:

                     (a)  that a person named in the certificate has a *tax‑related liability; or

                     (b)  that an *assessment relating to a tax‑related liability has been made, or is taken to have been made, under a *taxation law; or

                     (c)  that notice of an assessment, or any other notice required to be served on a person in respect of an amount of a tax‑related liability, was, or is taken to have been, served on the person under a *taxation law; or

                     (d)  that the particulars of a notice covered by paragraph (c) are as stated in the certificate; or

                     (e)  that a sum specified in the certificate is, as at the date specified in the certificate, a debt due and payable by a person to the Commonwealth.

             (3)  A certificate may state:

                     (a)  that a *foreign revenue claim for an amount specified in the certificate has been made by the competent authority under the relevant international agreement; or

                     (b)  that the relevant requirements of the relevant international agreement have been complied with in relation to the foreign revenue claim; or

                     (c)  that the claim was registered under Division 263 on the date specified in the certificate; or

                     (d)  that, as at the date of the certificate, the Commissioner has or has not received advice from the competent authority under the relevant international agreement about the reduction or discharge of an amount to be recovered under the claim; or

                     (e)  that the particulars of any reduction or discharge of an amount to be recovered under the claim are as specified in the certificate.

255‑50  Certain statements or averments

             (1)  In a proceeding to recover an amount of a *tax‑related liability, a statement or averment about a matter in the plaintiff’s complaint, claim or declaration is prima facie evidence of the matter.

             (2)  This section applies even if the matter is a mixed question of law and fact. However, the statement or averment is prima facie evidence of the fact only.

             (3)  This section applies even if evidence is given in support or rebuttal of the matter or of any other matter.

             (4)  Any evidence given in support or rebuttal of the matter stated or averred must be considered on its merits. This section does not increase or diminish the credibility or probative value of the evidence.

             (5)  This section does not lessen or affect any onus of proof otherwise falling on a defendant.

255‑55  Evidence by affidavit

                   In a proceeding to recover an amount of a *tax‑related liability:

                     (a)  a person may give evidence by affidavit; and

                     (b)  the court may require the person to attend before it:

                              (i)  to be cross‑examined on that evidence; or

                             (ii)  to give other evidence relating to the proceedings.

Subdivision 255‑DSecurity deposits

Table of sections

255‑100    Commissioner may require security deposit

255‑105    Notice of requirement to give security

255‑110    Offence

255‑100  Commissioner may require security deposit

             (1)  The Commissioner may require you to give security for the due payment of an existing or future *tax‑related liability of yours if:

                     (a)  the Commissioner has reason to believe that:

                              (i)  you are establishing or *carrying on an *enterprise in Australia; and

                             (ii)  you intend to carry on that enterprise for a limited time only; or

                     (b)  the Commissioner reasonably believes that the requirement is otherwise appropriate, having regard to all relevant circumstances.

Note:          A requirement to give security under this section is not a tax‑related liability. As such, the collection and recovery provisions in this Part do not apply to it.

             (2)  The Commissioner may require you to give the security:

                     (a)  by way of a bond or deposit (including by way of payments in instalments); or

                     (b)  by any other means that the Commissioner reasonably believes is appropriate.

             (3)  The Commissioner may require you to give security under this section:

                     (a)  at any time the Commissioner reasonably believes is appropriate; and

                     (b)  as often as the Commissioner reasonably believes is appropriate.

Example:    The Commissioner may require additional security if he or she reasonably believes that the original security requirement underestimated the amount of the likely tax‑related liability.

255‑105  Notice of requirement to give security

Commissioner must give notice of requirement to give security

             (1)  If the Commissioner requires you to give security under section 255‑100, he or she must give you written notice of the requirement.

Content of notice

             (2)  The notice must:

                     (a)  state that you are required to give the security to the Commissioner; and

                     (b)  explain why the Commissioner requires the security; and

                     (c)  set out the amount of the security; and

                     (d)  describe the means by which you are required to give the security under subsection 255‑100(2); and

                     (e)  specify the time by which you are required to give the security; and

                      (f)  explain how you may have the Commissioner’s decision to require you to give the security reviewed.

             (3)  To avoid doubt, a single notice may relate to security for the payment of 2 or more existing or future *tax‑related liabilities, but must comply with subsection (2) in relation to each of them.

When notice is given

             (4)  Despite section 29 of the Acts Interpretation Act 1901, a notice under subsection (1) is taken to be given at the time the Commissioner leaves or posts it.

Note:          Section 28A of the Acts Interpretation Act 1901 may be relevant to giving a notice under subsection (1).

Miscellaneous

             (5)  A failure to comply with this section does not affect the validity of the requirement to give the security under section 255‑100.

255‑110  Offence

                   You commit an offence if:

                     (a)  the Commissioner requires you to give security under section 255‑100; and

                     (b)  you fail to give that security as required.

Penalty:  100 penalty units.

Division 260Special rules about collection and recovery

Table of Subdivisions

             Guide to Division 260

260‑A   From third party

260‑B    From liquidator

260‑C    From receiver

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

260‑E    From deceased person’s estate

Guide to Division 260

260‑1  What this Division is about

This Division deals with the collection and recovery of an amount from a person who is not personally liable to pay that amount. Apart from Subdivision 260‑A, which covers a wider range of amounts, this Division primarily deals with amounts of tax‑related liabilities.

Subdivision 260‑AFrom third party

Table of sections

260‑5        Commissioner may collect amounts from third party

260‑10      Notice to Commonwealth, State or Territory

260‑15      Indemnity

260‑20      Offence

260‑5  Commissioner may collect amounts from third party

Amount recoverable under this Subdivision

             (1)  This Subdivision applies if any of the following amounts (the debt) is payable to the Commonwealth by an entity (the debtor) (whether or not the debt has become due and payable):

                     (a)  an amount of a *tax‑related liability;

                     (b)  a judgment debt for a *tax‑related liability;

                     (c)  costs for such a judgment debt;

                     (d)  an amount that a court has ordered the debtor to pay to the Commissioner following the debtor’s conviction for an offence against a *taxation law.

Commissioner may give notice to an entity

             (2)  The Commissioner may give a written notice to an entity (the third party) under this section if the third party owes or may later owe money to the debtor.

Third party regarded as owing money in these circumstances

             (3)  The third party is taken to owe money (the available money) to the debtor if the third party:

                     (a)  is an entity by whom the money is due or accruing to the debtor; or

                     (b)  holds the money for or on account of the debtor; or

                     (c)  holds the money on account of some other entity for payment to the debtor; or

                     (d)  has authority from some other entity to pay the money to the debtor.

The third party is so taken to owe the money to the debtor even if:

                     (e)  the money is not due, or is not so held, or payable under the authority, unless a condition is fulfilled; and

                      (f)  the condition has not been fulfilled.

How much is payable under the notice

             (4)  A notice under this section must:

                     (a)  require the third party to pay to the Commissioner the lesser of, or a specified amount not exceeding the lesser of:

                              (i)  the debt; or

                             (ii)  the available money; or

                     (b)  if there will be amounts of the available money from time to time—require the third party to pay to the Commissioner a specified amount, or a specified percentage, of each amount of the available money, until the debt is satisfied.

When amount must be paid

             (5)  The notice must require the third party to pay an amount under paragraph (4)(a), or each amount under paragraph (4)(b):

                     (a)  immediately after; or

                     (b)  at or within a specified time after;

the amount of the available money concerned becomes an amount owing to the debtor.

Debtor must be notified

             (6)  The Commissioner must send a copy of the notice to the debtor.

Setting‑off amounts

             (7)  If an entity other than the third party has paid an amount to the Commissioner that satisfies all or part of the debt:

                     (a)  the Commissioner must notify the third party of that fact; and

                     (b)  any amount that the third party is required to pay under the notice is reduced by the amount so paid.

260‑10  Notice to Commonwealth, State or Territory

                   If the third party is the Commonwealth, a State or a Territory, the Commissioner may give the notice to a person who:

                     (a)  is employed by the Commonwealth, or by the State or Territory (as appropriate); and

                     (b)  has the duty of disbursing public money under a law of the Commonwealth, or of the State or Territory (as appropriate).

260‑15  Indemnity

                   An amount that the third party pays to the Commissioner under this Subdivision is taken to have been authorised by:

                     (a)  the debtor; and

                     (b)  any other person who is entitled to all or a part of the amount;

and the third party is indemnified for the payment.

260‑20  Offence

             (1)  The third party must not fail to comply with the Commissioner’s notice.

Penalty:  20 penalty units

Note 1:       Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2:       See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

             (2)  The court may, in addition to imposing a penalty on a person convicted of an offence against subsection (1) in relation to failing to pay an amount under the notice, order the person to pay to the Commissioner an amount not exceeding that amount.

Subdivision 260‑BFrom liquidator

Table of sections

260‑40      Subdivision does not apply to superannuation guarantee charge

260‑45      Liquidator’s obligation

260‑50      Offence

260‑55      Joint liability of 2 or more liquidators

260‑60      Liquidator’s other obligation or liability

260‑40  Subdivision does not apply to superannuation guarantee charge

                   This Subdivision does not apply to a *tax‑related liability that is superannuation guarantee charge imposed by the Superannuation Guarantee Charge Act 1992.

260‑45  Liquidator’s obligation

             (1)  This Subdivision applies to a person who becomes a liquidator of a company.

             (2)  Within 14 days after becoming liquidator, the liquidator must give written notice of that fact to the Commissioner.

             (3)  The Commissioner must, as soon as practicable, notify the liquidator of the amount (the notified amount) that the Commissioner considers is enough to discharge any *outstanding tax‑related liabilities that the company has when the notice is given.

             (4)  The liquidator must not, without the Commissioner’s permission, part with any of the company’s assets before receiving the Commissioner’s notice.

             (5)  However, subsection (4) does not prevent the liquidator from parting with the company’s assets to pay debts of the company not covered by either of the following paragraphs:

                     (a)  the *outstanding tax‑related liabilities;

                     (b)  any debts of the company which:

                              (i)  are unsecured; and

                             (ii)  are not required, by an *Australian law, to be paid in priority to some or all of the other debts of the company.

             (6)  After receiving the Commissioner’s notice, the liquidator must set aside, out of the assets available for paying amounts covered by paragraph (5)(a) or (b) (the ordinary debts), assets with a value calculated using the following formula:

where:

amount of remaining ordinary debts means the sum of the company’s ordinary debts other than the *outstanding tax‑related liabilities.

             (7)  The liquidator must, in his or her capacity as liquidator, discharge the *outstanding tax‑related liabilities, to the extent of the value of the assets that the liquidator is required to set aside.

             (8)  The liquidator is personally liable to discharge the liabilities, to the extent of that value, if the liquidator contravenes this section.

260‑50  Offence

                   The liquidator must not fail to comply with subsection 260‑45(2), (4), (5), (6) or (7).

Penalty:  10 penalty units.

Note 1:       Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2:       See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

260‑55  Joint liability of 2 or more liquidators

                   If there are 2 or more persons who become liquidators of the company, the obligations and liabilities under this Subdivision:

                     (a)  apply to all the liquidators; but

                     (b)  may be discharged by any of them.

260‑60  Liquidator’s other obligation or liability

                   This Subdivision does not reduce any obligation or liability of a liquidator arising elsewhere.

Subdivision 260‑CFrom receiver

Table of sections

260‑75      Receiver’s obligation

260‑80      Offence

260‑85      Joint liability of 2 or more receivers

260‑90      Receiver’s other obligation or liability

260‑75  Receiver’s obligation

             (1)  This Subdivision applies to a person (the receiver) who, in the capacity of receiver, or of receiver and manager, takes possession of a company’s assets for the company’s debenture holders.

             (2)  Within 14 days after taking possession of the assets, the receiver must give written notice of that fact to the Commissioner.

             (3)  The Commissioner must, as soon as practicable, notify the receiver of the amount (the notified amount) that the Commissioner considers is enough to discharge any *outstanding tax‑related liabilities that the company has when the notice is given.

             (4)  The receiver must not, without the Commissioner’s permission, part with any of the company’s assets before receiving the Commissioner’s notice.

             (5)  However, subsection (4) does not prevent the receiver from parting with the company’s assets to pay debts of the company not covered by either of the following paragraphs:

                     (a)  the *outstanding tax‑related liabilities;

                     (b)  any debts of the company which:

                              (i)  are unsecured; and

                             (ii)  are not required, by an *Australian law, to be paid in priority to some or all of the other debts of the company.

             (6)  After receiving the Commissioner’s notice, the receiver must set aside, out of the assets available for paying amounts covered by paragraph (5)(a) or (b) (the ordinary debts), assets with a value calculated using the following formula:

where:

amount of remaining ordinary debts means the sum of the company’s ordinary debts other than the *outstanding tax‑related liabilities.

             (7)  The receiver must, in his or her capacity as receiver, or as receiver and manager, discharge the *outstanding tax‑related liabilities, to the extent of the value of the assets that the receiver is required to set aside.

             (8)  The receiver is personally liable to discharge the liabilities, to the extent of that value, if the receiver contravenes this section.

260‑80  Offence

                   The receiver must not fail to comply with subsection 260‑75(2), (4), (5), (6) or (7).

Penalty:  10 penalty units.

Note 1:       Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2:       See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

260‑85  Joint liability of 2 or more receivers

                   If 2 or more persons (the receivers) take possession of a company’s assets, for the company’s debenture holders, in the capacity of receiver, or of receiver and manager, the obligations and liabilities under this Subdivision apply to:

                     (a)  all the receivers; but

                     (b)  may be discharged by any of them.

260‑90  Receiver’s other obligation or liability

                   This Subdivision does not reduce any obligation or liability of the receiver or receivers arising elsewhere.

Subdivision 260‑DFrom agent winding up business for foreign resident principal

Table of sections

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

260‑110    Offence

260‑115    Joint liability of 2 or more agents

260‑120    Agent’s other obligation or liability

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

             (1)  This Subdivision applies to an agent whose principal:

                     (a)  is a foreign resident; and

                     (b)  has instructed the agent to wind up so much of the principal’s business as is carried on in Australia.

             (2)  Within 14 days after receiving the instructions, the agent must give written notice of that fact to the Commissioner.

             (3)  The Commissioner must, as soon as practicable after receiving the notice, notify the agent of the amount (the notified amount) that the Commissioner considers is enough to discharge any *outstanding tax‑related liabilities that the principal has when the notice is given.

             (4)  Before receiving the Commissioner’s notice, the agent must not, without the Commissioner’s permission, part with any of the principal’s assets that are available for discharging the *outstanding tax‑related liabilities.

             (5)  After receiving the notice, the agent must set aside:

                     (a)  out of the assets available for discharging the *outstanding tax‑related liabilities, assets to the value of the notified amount; or

                     (b)  all of the assets so available, if their value is less than the notified amount.

             (6)  The agent must, in that capacity, discharge the *outstanding tax‑related liabilities, to the extent of the value of the assets that the agent is required to set aside.

             (7)  The agent is personally liable to discharge the liabilities, to the extent of that value, if the agent contravenes this section.

260‑110  Offence

                   A person must not fail to comply with subsection 260‑105(2), (4), (5) or (6).

Penalty:  10 penalty units.

Note 1:       Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2:       See section 4AA of the Crimes Act 1914 for the current value of penalty units.

260‑115  Joint liability of 2 or more agents

                   If 2 or more agents are jointly instructed by the principal to wind up the business, the obligations and liabilities under this Subdivision:

                     (a)  apply to all the agents; but

                     (b)  may be discharged by any of them.

260‑120  Agent’s other obligation or liability

                   This Subdivision does not reduce any obligation or liability of the agent or agents arising elsewhere.

Subdivision 260‑EFrom deceased person’s estate

Table of sections

260‑140    Administered estate

260‑145    Unadministered estate

260‑150    Commissioner may authorise amount to be recovered

260‑140  Administered estate

             (1)  This section applies if:

                     (a)  a person has an *outstanding tax‑related liability when the person dies; and

                     (b)  either of the following is granted after the death:

                              (i)  probate of the person’s will;

                             (ii)  letters of administration of the person’s estate.

             (2)  The Commissioner may, in respect of the liability, deal with the trustee of the deceased person’s estate as if:

                     (a)  the deceased person were still alive; and

                     (b)  the trustee were the deceased person.

             (3)  Without limiting subsection (2), the trustee must:

                     (a)  provide any returns and other information that the deceased person was liable to provide, or would have been liable to provide if he or she were still alive; and

                     (b)  provide any additional returns or other information relating to the liability that the Commissioner requires; and

                     (c)  in the trustee’s representative capacity, discharge the liability and any penalty imposed in respect of the liability under a *taxation law (including any *general interest charge) for which the deceased person would be liable if he or she were still alive.

             (4)  If:

                     (a)  the amount of the liability requires an *assessment under a *taxation law but the assessment has not been made; and

                     (b)  the trustee fails to provide a return or other information in relation to assessing that amount as required by the Commissioner;

the Commissioner may assess that amount. If the Commissioner does so, the assessment has the same effect as if it were made under that taxation law.

             (5)  A trustee who is dissatisfied with an *assessment under subsection (4) may object in the manner set out in Part IVC.

             (6)  Part IVC applies in relation to the objection as if the trustee were the deceased person.

260‑145  Unadministered estate

             (1)  This section applies if neither of the following is granted within 6 months after a person’s death:

                     (a)  probate of the person’s will;

                     (b)  letters of administration of the person’s estate.

             (2)  The Commissioner may determine the total amount of *outstanding tax‑related liabilities that the person had at the time of death.

             (3)  The Commissioner must publish notice of the determination twice in a daily newspaper circulating in the State or Territory in which the person resided at the time of death.

             (4)  A notice of the determination is conclusive evidence of the *outstanding tax‑related liabilities, unless the determination is amended.

             (5)  A person who is dissatisfied with the determination may object in the manner set out in Part IVC if the person:

                     (a)  claims an interest in the estate; or

                     (b)  is granted probate of the deceased person’s will or letters of administration of the estate.

             (6)  Part IVC applies in relation to the objection as if the person making it were the deceased person.

260‑150  Commissioner may authorise amount to be recovered

             (1)  The Commissioner may, in writing, authorise a person (the authorised person) who is:

                     (a)  a member or a special member of the Australian Federal Police; or

                     (b)  a member of the police force of a State or Territory; or

                     (c)  any other person;

to recover:

                     (d)  the total amount of the *outstanding tax‑related liabilities of a deceased person as determined under section 260‑145 (about unadministered estates); and

                     (e)  any reasonable costs incurred by the authorised person in recovering that amount;

by seizing and disposing of any property of the deceased person.

             (2)  The authorised person may seize and dispose of the property as prescribed by the regulations.

Division 263Mutual assistance in collection of foreign tax debts

Table of Subdivisions

263‑A   Foreign revenue claims

Subdivision 263‑AForeign revenue claims

Guide to Subdivision 263A

263‑5  What this Subdivision is about

This Subdivision can be activated if there is in force an agreement between Australia and a foreign country or territory that contains an article relating to assistance in collection of foreign tax debts.

The Commissioner can collect from an entity an amount in respect of a tax debt that the person owes to such a country or territory or take action to conserve assets of the entity.

The Commissioner is required to remit amounts collected to the foreign country or territory concerned.

Table of sections

Operative provisions

263‑10      Meaning of foreign revenue claim

263‑15      Requirements for foreign revenue claims

263‑20      Foreign Revenue Claims Register

263‑25      Registering claims

263‑30      When amount is due and payable

263‑35      Amending the Register etc.

263‑40      Payment to competent authority

Operative provisions

263‑10  Meaning of foreign revenue claim

                   A foreign revenue claim is a claim made to the Commissioner:

                     (a)  in accordance with an agreement (the international agreement) between Australia and:

                              (i)  a foreign country or a constituent part of a foreign country; or

                             (ii)  an overseas territory;

                            (the overseas entity); and

                     (b)  for one or both of these purposes:

                              (i)  the recovery by the Commissioner of an amount from an entity (the debtor) in respect of taxes imposed otherwise than by an *Australian law (including any associated amounts);

                             (ii)  the conserving of assets for the purposes of a recovery of that kind.

263‑15  Requirements for foreign revenue claims

                   A *foreign revenue claim must:

                     (a)  be made by or on behalf of an entity that is, under the relevant international agreement, the competent authority; and

                     (b)  be consistent with the provisions of that agreement; and

                     (c)  be made in the *approved form; and

                     (d)  specify the amount owed by the debtor in Australian currency (calculated as at the day the claim is made); and

                     (e)  be accompanied by a declaration by the competent authority stating that the claim fulfils the requirements of that agreement.

263‑20  Foreign Revenue Claims Register

             (1)  The Commissioner must keep a register called the Foreign Revenue Claims Register (the Register).

             (2)  The regulations may make provision in relation to the form in which the Register may be kept.

             (3)  The register is not a legislative instrument.

263‑25  Registering claims

                   If the Commissioner is satisfied that a *foreign revenue claim has been made in accordance with section 263‑15, the Commissioner must register the claim by entering particulars of it in the Register within 90 days after receiving the claim.

263‑30  When amount is due and payable

             (1)  When particulars of a *foreign revenue claim are entered in the Register, the amount owed by the debtor becomes a pecuniary liability to the Commonwealth by the debtor.

Note 1:       The amount to be recovered from the debtor will be a primary tax debt for the purposes of Part IIB and the Commissioner may allocate the debt to a running balance account under that Part.

Note 2:       For provisions about collection and recovery of the debt, see Part 4‑15.

          (1A)  To avoid doubt, the amount owed by the debtor may not be the same as the amount (if any) entered in the Register.

             (2)  The amount owed by the debtor becomes due and payable 30 days after notice of the particulars of the *foreign revenue claim is given to the debtor or on a later day specified in the notice.

             (3)  If that amount remains unpaid after it is due and payable, the debtor is liable to pay *general interest charge on the unpaid amount for each day in the period that:

                     (a)  started at the beginning of the day by which the amount was due to be paid; and

                     (b)  finishes at the end of the last day at the end of which either of the following remains unpaid:

                              (i)  the amount;

                             (ii)  general interest charge on any of the amount.

263‑35  Amending the Register etc.

             (1)  The Commissioner may, with the agreement of the relevant competent authority, amend the Register to correct an error.

             (2)  The Commissioner may, with the agreement of the relevant competent authority:

                     (a)  remove from the Register the particulars of a *foreign revenue claim; or

                     (b)  reduce an amount to be recovered from a debtor under the claim.

          (2A)  To avoid doubt, the Commissioner may reduce an amount to be recovered from a debtor under paragraph (2)(b) without amending the Register.

             (3)  A debtor may, after receiving a copy of the particulars of a *foreign revenue claim entered in the Register, apply to the Commissioner in the *approved form to have those particulars removed from the Register.

             (4)  The Commissioner may, after considering the application, remove those particulars from the Register.

             (5)  If the Commissioner removes particulars of a *foreign revenue claim relating to the recovery of an amount from the Register under paragraph (2)(a) or subsection (4), the debtor is entitled to a credit for the purposes of Part IIB equal to the sum of:

                     (a)  the amount (as reduced by any previous application of subsection (6)); and

                     (b)  any *general interest charge for which the debtor is liable as a result of the foreign revenue claim.

Note:          How the credit is applied is set out in Part IIB.

             (6)  If the Commissioner reduces the amount to be recovered from a debtor under a *foreign revenue claim under paragraph (2)(b), the debtor is entitled to a credit for the purposes of Part IIB equal to the amount of the reduction.

Note:          How the credit is applied is set out in Part IIB.

263‑40  Payment to competent authority

             (1)  The Commissioner must, if the Commissioner recovers all or part of an amount to be recovered from a debtor under a registered *foreign revenue claim, pay that amount to the competent authority concerned or to another entity on behalf of that competent authority.

             (2)  The Commissioner may also pay to the competent authority all or part of an amount that the Commissioner has received and that is attributable to *general interest charge in relation to the claim.

             (3)  The Commissioner may also pay to the competent authority all or part of an amount that the Commissioner has received and that is attributable to any of the following in relation to the claim:

                     (a)  judgment interest;

                     (b)  costs that:

                              (i)  have been recovered in the course of legal proceedings; and

                             (ii)  represent an amount that has previously been paid by the competent authority to the Commonwealth in relation to the recovery of the claim.

Division 265Other matters

Table of Subdivisions

265‑A   Right of person to seek recovery or contribution

265‑B    Application of laws

Subdivision 265‑ARight of person to seek recovery or contribution

Guide to Subdivision 265A

265‑35  What this Subdivision is about

This Division deals with a person’s right to recover from another person an amount paid in discharge of a tax‑related liability if:

•      the person has paid the amount for or on behalf of the other person;

•      the persons are jointly liable to pay the amount.

Table of sections

Operative provisions

265‑40      Right of recovery if another person is liable

265‑45      Right of contribution if persons are jointly liable

Operative provisions

265‑40  Right of recovery if another person is liable

                   A person who has paid an amount of a *tax‑related liability for or on behalf of another person may:

                     (a)  recover that amount from the other person as a debt (together with the costs of recovery) in a court of competent jurisdiction; or

                     (b)  retain or deduct the amount out of money held by the person that belongs to, or is payable to, the other person.

265‑45  Right of contribution if persons are jointly liable

             (1)  If 2 or more persons are jointly liable to pay an amount of a *tax‑related liability, they are each liable for the whole of the amount.

             (2)  If one of the persons has paid an amount of the liability, the person may recover in a court of competent jurisdiction, as a debt, from another of those persons:

                     (a)  an amount equal to so much of the amount paid; and

                     (b)  an amount equal to so much of the costs of recovery under this section;

as the court considers just and equitable.

Note:          Item 15 of Schedule 6 to the Tax Laws Amendment (Repeal of Inoperative Provisions) Act 2006 has the effect that, in addition to its normal application in relation to tax‑related liabilities arising on or after 1 July 2000, subsection (2) also applies to such liabilities arising before that date, where amounts of the liabilities are paid after the commencement of that item.

Subdivision 265‑BApplication of laws

Table of sections

265‑65      Non‑application of certain taxation laws

265‑65  Non‑application of certain taxation laws

                   This Part does not apply in relation to a *taxation law, or a provision of a taxation law, that is prescribed by the regulations.

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

Table of Subdivisions

             Guide to Division 268

268‑A   Object

268‑B    Making estimates

268‑C    Liability to pay estimates

268‑D   Reducing and revoking estimates

268‑E    Late payment of estimates

268‑F    Miscellaneous

Guide to Division 268

268‑1  What this Division is about

This Division enables the Commissioner to make an estimate of:

               (a)     amounts not paid as required by Part 2‑5 of this Act (Pay as you go (PAYG) withholding); or

              (b)     unpaid superannuation guarantee charge;

and to recover the amount of the estimate.

If you are given an estimate, you are liable to pay the amount of the estimate. That liability is distinct from your liability to pay the amounts required by Part 2‑5 or the Superannuation Guarantee (Administration) Act 1992. However, you can ensure that the Commissioner does not require you to pay more than the amounts not paid under that Part or Act.

Other Divisions of this Part provide for the recovery of amounts payable under this Division.

Subdivision 268‑AObject

Table of sections

268‑5        Object of Division

268‑5  Object of Division

                   The object of this Division is to enable the Commissioner to take prompt and effective action to recover:

                     (a)  amounts not paid as required by Part 2‑5 (Pay as you go (PAYG) withholding); or

                     (b)  unpaid superannuation guarantee charge that has not been assessed.

Subdivision 268‑BMaking estimates

Table of sections

268‑10      Commissioner may make estimate

268‑15      Notice of estimate

268‑10  Commissioner may make estimate

Estimate

             (1)  The Commissioner may estimate the unpaid and overdue amount of a liability (the underlying liability) of yours:

                     (a)  under section 16‑70 in this Schedule (requirement to pay to the Commissioner amounts you have withheld under the Pay as you go withholding rules); or

                     (b)  to pay superannuation guarantee charge for a *quarter under section 16 of the Superannuation Guarantee (Administration) Act 1992, to the extent the superannuation guarantee charge has not been assessed before the Commissioner makes the estimate.

          (1A)  For the purposes of this Division, your superannuation guarantee charge for a *quarter is treated as being payable on the day by which you must lodge a superannuation guarantee statement for the quarter under section 33 of the Superannuation Guarantee (Administration) Act 1992, even if, on that day, the charge has not been assessed under that Act.

Amount of estimate

             (2)  The amount of the estimate must be what the Commissioner thinks is reasonable.

             (3)  In making the estimate, the Commissioner may have regard to anything he or she thinks relevant.

Example 1: In the case of an underlying liability under section 16‑70 (requirement to pay to the Commissioner amounts you have withheld under the Pay as you go withholding rules), the Commissioner may have regard to information about amounts you withheld under the Pay as you go rules before the period in relation to which the underlying liability arose.

Example 2: In the case of an underlying liability to pay superannuation guarantee charge for a quarter, the Commissioner may have regard to information about your contributions to RSAs and complying superannuation funds for earlier quarters.

Only one estimate for each liability

             (4)  While the estimate is in force, the Commissioner cannot make another estimate relating to the underlying liability.

             (5)  For the purposes of subsection (4), the estimate is in force if:

                     (a)  the Commissioner has given you notice of the estimate; and

                     (b)  the estimate has not been revoked; and

                     (c)  your liability to pay the estimate has not been discharged.

268‑15  Notice of estimate

Commissioner must give notice of estimate

             (1)  The Commissioner must give you written notice of the estimate.

Content of notice

             (2)  The notice must:

                     (a)  identify the underlying liability; and

                     (b)  specify the date of the estimate; and

                     (c)  set out the amount of the estimate; and

                     (d)  state that the amount of the estimate is due and payable; and

                     (e)  explain how you may have the amount of the estimate reduced or the estimate revoked.

             (3)  To avoid doubt, a single notice may relate to 2 or more estimates, but must comply with subsection (2) in relation to each of them.

When notice is given

             (4)  Despite section 29 of the Acts Interpretation Act 1901, a notice under subsection (1) is taken to be given at the time the Commissioner leaves or posts it.

Note:          Section 28A of the Acts Interpretation Act 1901 may be relevant to giving a notice under subsection (1).

Subdivision 268‑CLiability to pay estimates

Table of sections

268‑20      Nature of liability to pay estimate

268‑25      Accuracy of estimate irrelevant to liability to pay

268‑30      Estimate provable in bankruptcy or winding up

268‑20  Nature of liability to pay estimate

Liability to pay amount of estimate

             (1)  You must pay to the Commissioner the amount of the estimate if the Commissioner gives you notice of the estimate in accordance with section 268‑15. The amount is due and payable when the Commissioner gives you the notice.

Note:          The amount of the estimate may be reduced, or the estimate revoked, under Subdivision 268‑D.

Liability to pay amount of estimate is distinct from underlying liability

             (2)  Your liability to pay the amount of the estimate is separate and distinct from the underlying liability. It is separate and distinct for all purposes.

Example:    The Commissioner may take:

(a)    proceedings to recover the unpaid amount of the estimate; or

(b)    proceedings to recover the unpaid amount of the underlying liability; or

(c)    proceedings of both kinds.

Discharging one liability discharges other liabilities

             (3)  Despite subsection (2), if, at a particular time, one of the liabilities to which this subsection applies is discharged, to the extent of an amount, for either of the following reasons, each of the other liabilities to which this subsection applies is discharged to the extent of the same amount:

                     (a)  an amount is paid or applied towards discharging the liability;

                     (b)  the liability is discharged because of section 269‑40 (Effect of director paying penalty or company discharging liability).

             (4)  Subsection (3) applies to whichever of the following liabilities are in existence at the particular time:

                     (a)  your liability to pay the amount of the estimate;

                     (b)  the underlying liability;

                     (c)  a liability of yours under a judgment, to the extent that it is based on a liability referred to in paragraph (a) or (b).

             (5)  Subsection (3) does not discharge a liability to a greater extent than the amount of the liability.

268‑25  Accuracy of estimate irrelevant to liability to pay

                   You are liable to pay the unpaid amount of the estimate even if:

                     (a)  the underlying liability never existed or has been discharged in full; or

                     (b)  the unpaid amount of the underlying liability is less than the unpaid amount of the estimate.

Note 1:       Section 268‑40 revokes the estimate if you give the Commissioner a statutory declaration, or file an affidavit, to the effect that the underlying liability never existed.

Note 2:       Subdivision 268‑D provides ways in which you can challenge the estimate or its amount.

268‑30  Estimate provable in bankruptcy or winding up

             (1)  Your liability (the estimate liability) to pay the unpaid amount of the estimate is provable in a bankruptcy or winding up, even if the estimate was made after:

                     (a)  the date of the bankruptcy; or

                     (b)  the relevant date (within the meaning of the Corporations Act 2001).

             (2)  However, the estimate liability is provable only to the extent that the underlying liability would be provable if the unpaid amount of the underlying liability were the same as the unpaid amount of the estimate.

Example:    Subsection (2) prevents proof of the estimate liability if the underlying liability could not be proved because, for example, of when it arose.

             (3)  Subsections (1) and (2) do not apply if:

                     (a)  the underlying liability has already been admitted to proof; and

                     (b)  the proof has not been set aside.

             (4)  If the estimate liability has been admitted to proof at a particular amount, the underlying liability is provable only to the extent the unpaid amount of the underlying liability exceeds that particular amount.

             (5)  To the extent that a liability is provable because of this section, it is taken, for the purposes of the Bankruptcy Act 1966, to be provable in bankruptcy under that Act.

Subdivision 268‑DReducing and revoking estimates

Table of sections

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

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

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

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

268‑55      When reduction or revocation takes effect

268‑60      Consequences of reduction or revocation—refund

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

268‑70      Consequences of reduction or revocation—underlying liability

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

Reduction

             (1)  The Commissioner may at any time reduce the amount of the estimate, but is not obliged to consider whether or not to do so.

             (2)  If the Commissioner reduces the amount of the estimate under subsection (1), he or she must give you a written notice that:

                     (a)  identifies the underlying liability; and

                     (b)  sets out the reduced amount of the estimate.

Note:          The estimate is taken always to have had effect as reduced: see section 268‑55.

Revocation

             (3)  The Commissioner may at any time revoke the estimate, but is not obliged to consider whether or not to do so.

             (4)  If the Commissioner revokes the estimate under subsection (3), he or she must give you a written notice that:

                     (a)  identifies the underlying liability; and

                     (b)  states that the estimate has been revoked.

Note:          The estimate is taken never to have been made: see section 268‑55.

Matters for Commissioner to consider

             (5)  In exercising his or her power under this section to reduce the amount of the estimate, or to revoke the estimate, the Commissioner must have regard to:

                     (a)  the following principles:

                              (i)  the estimate is of the unpaid amount of the underlying liability as at a particular time;

                             (ii)  the purpose of reducing the amount of the estimate is to bring it closer to the unpaid amount of the underlying liability as at the time the estimate was made;

                            (iii)  reductions of the unpaid amount of the underlying liability that happen after the time the estimate was made are dealt with by section 268‑20 (Nature of liability to pay estimate) and so should not be taken into account in exercising such a power; and

                     (b)  the effects of sections 268‑55 and 268‑70 (effect of reduction or revocation on liabilities).

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

Scope

             (1)  This section applies as set out in the following table:

 

Statutory declaration or affidavit

Item

This section applies if ...

and ...

within ...

1

the Commissioner gives you notice of the estimate

you give the Commissioner a statutory declaration for the purposes of this section

(a) 7 days after the Commissioner gives you the notice; or

(b) a longer period allowed by the Commissioner.

2

you are a party to proceedings before a court that relate to the recovery of the unpaid amount of the estimate

you:

(a) file an affidavit for the purposes of this section; and

(b) serve a copy on the Commissioner

(a) 14 days after you first take a procedural step as a party to the proceedings; or

(b) a longer period allowed by the court.

3

(a) the estimate is of the unpaid amount of a liability of a company; and

(b) the Commissioner serves on the company a *statutory demand relating to the company’s liability to pay the unpaid amount of the estimate; and

(c) an application is made to a court under section 234, 459P, 462 or 464 of the Corporations Act 2001 for the company to be wound up

the company:

(a) files an affidavit for the purposes of this section; and

(b) serves a copy on the applicant

(a) 14 days after notice of the application was served on the company; or

(b) a longer period allowed by the court.

Example:    For the purposes of item 2 of the table, taking a procedural step as a party to proceedings includes entering an appearance, filing a notice of intention to defend, or applying to set aside judgment entered in default of appearance.

Note 1:       Section 459C of the Corporations Act 2001 creates a presumption that a company is insolvent, and may be wound up, if the company fails to comply with a statutory demand.

Note 2:       See section 268‑90 for what the statutory declaration or affidavit must contain and who must make, swear or affirm it.

Reduction

             (2)  The amount of the estimate is reduced if the statutory declaration is to the effect, or the affidavit verifies facts sufficient to prove, that a specified lesser amount is the unpaid amount of the underlying liability.

Example:    Subsection (2) will apply if the statutory declaration etc. is to the effect that the underlying liability has been discharged in full (and therefore the unpaid amount of the liability is nil).

             (3)  The amount of the reduction is the amount by which the unpaid amount of the estimate (just before the reduction) exceeds the amount specified.

Note:          The effect of subsection (3) is to reduce the unpaid amount of the estimate to the amount specified.

Revocation

             (4)  The estimate is revoked if the statutory declaration is to the effect, or the affidavit verifies facts sufficient to prove, that the underlying liability never existed.

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

Scope

             (1)  This section applies if:

                     (a)  the Commissioner lodges a proof of debt relating to the unpaid amount of the estimate; and

                     (b)  section 268‑95 applies to an entity (your supervising entity) in relation to you.

Rejection of proof of debt

             (2)  Your supervising entity may give the Commissioner a statutory declaration to the effect that:

                     (a)  the underlying liability has been discharged in full; or

                     (b)  the unpaid amount of the underlying liability is a specified, lesser amount; or

                     (c)  the underlying liability never existed.

Note:          See section 268‑90 for what the statutory declaration must contain and who must make it.

             (3)  If your supervising entity does so, he or she may reject the proof of debt (in whole or in part) on the ground made out in the statutory declaration.

             (4)  If the Commissioner appeals, or applies for review of, your supervising entity’s decision to reject the proof of debt, nothing in subsection (2) or (3) prevents evidence being adduced to contradict statements in the declaration.

Note:          Such evidence might also be relevant to a prosecution for an offence, such as an offence against section 11 of the Statutory Declarations Act 1959 (False declarations).

Revocation or reduction of estimate

             (5)  The following table applies in relation to the outcome following all (if any) appeals from, and applications for review of, your supervising entity’s decision to reject the proof of debt. (If there are no appeals or applications for review, the outcome is your supervising entity’s decision as originally made.)

 

Rejecting proof of debt

Item

If the outcome is that ...

then ...

1

the proof is rejected in whole on the ground that the estimate has been discharged in full

the amount of the estimate is reduced by the unpaid amount of the estimate (just before the reduction).

2

the proof is rejected in part

the amount of the estimate is reduced by so much of the unpaid amount of the estimate (just before the reduction) as is rejected.

3

the proof is rejected in whole on the ground that the underlying liability never existed

the estimate is revoked.

Note 1:       The effect of item 1 of the table is to reduce the unpaid amount of the estimate to nil.

Note 2:       The effect of item 2 of the table is to reduce the unpaid amount of the estimate to the amount admitted to proof.

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

             (1)  This section applies if:

                     (a)  an amount is paid or applied towards discharging your liability to pay the amount of the estimate; and

                     (b)  the amount paid or applied exceeds the unpaid amount of the underlying liability as at the time just before the payment or application.

             (2)  The amount of the estimate is reduced so that it does not exceed the unpaid amount, at the time mentioned in paragraph (1)(b), of the underlying liability.

268‑55  When reduction or revocation takes effect

Scope

             (1)  This section applies for the purposes of the following:

                     (a)  Subdivision 268‑C (Liability to pay estimates);

                     (b)  section 268‑60 (refund of overpayments);

                     (c)  Subdivision 268‑E (Late payment of estimates);

                     (d)  Division 269 (Penalties for directors of non‑complying companies).

When reduction or revocation takes effect

             (2)  If the amount of the estimate is reduced, the estimate has effect, and is taken always to have had effect, as if the original amount of the estimate had been the reduced amount.

             (3)  If the estimate is revoked, the estimate is taken never to have been made.

268‑60  Consequences of reduction or revocation—refund

             (1)  This section applies if:

                     (a)  an amount is paid or applied towards discharging your liability to pay the amount of the estimate; and

                     (b)  the amount paid or applied exceeds the unpaid amount of the estimate as at the time just before the payment or application.

Example:    You pay an amount towards discharging the estimate and the estimate is later reduced to a lesser amount.

Note:          Section 268‑50 provides for the reduction of the amount of the estimate in the case of overpayment.

             (2)  The Commissioner must pay you the excess.

Note:          See Division 3A of Part IIB of this Act for the rules about how the Commissioner must pay you. Division 3 of that Part allows the Commissioner to apply the amount owing as a credit against tax debts that you owe the Commonwealth.

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

Scope

             (1)  This section applies if:

                     (a)  the estimate is of the unpaid amount of a liability of a company; and

                     (b)  the Commissioner has served a *statutory demand on the company relating to the company’s liability to pay the unpaid amount of the estimate; and

                     (c)  the amount of the estimate is later reduced, or the estimate is revoked.

Statutory demand changed

             (2)  The *statutory demand is changed accordingly.

             (3)  The *statutory demand is taken to have had effect (as so changed) from the time the Commissioner served it on the company.

Statutory demand set aside

             (4)  The *statutory demand is set aside if subsection (2) reduces the amount of the debt (or the total of the amounts of the debts) below the statutory minimum (within the meaning of the Corporations Act 2001).

268‑70  Consequences of reduction or revocation—underlying liability

                   Reduction of the amount of the estimate, or revocation of the estimate, does not affect the Commissioner’s rights or remedies in relation to the underlying liability (except to the extent that this Division expressly provides otherwise).

Subdivision 268‑ELate payment of estimates

Table of sections

268‑75      Liability to pay the general interest charge

268‑80      Effect of paying the general interest charge

268‑75  Liability to pay the general interest charge

             (1)  This section applies if:

                     (a)  your liability to pay the amount of the estimate remains undischarged at the end of 7 days after the Commissioner gives you notice of the estimate; and

                     (b)  the underlying liability is not a liability to pay superannuation guarantee charge.

             (2)  You are liable to pay the *general interest charge on the unpaid amount of the estimate for each day in the period that:

                     (a)  started at the beginning of the day by which the underlying liability was due to be paid; and

                     (b)  finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:

                              (i)  the amount of the estimate;

                             (ii)  general interest charge on any of the amount of the estimate.

Note:          The general interest charge is worked out under Part IIA of this Act.

268‑80  Effect of paying the general interest charge

Scope

             (1)  If you are liable to pay the *general interest charge under section 268‑75 in relation to the estimate, this section applies to the following liabilities:

                     (a)  your liability to pay the general interest charge;

                     (b)  a liability of yours to pay a general interest charge, under a corresponding provision of Subdivision 16‑B, because the underlying liability remains undischarged;

                     (c)  liability under a judgment, to the extent that it is based on a liability referred to in paragraph (a) or (b);

                     (d)  a liability of yours to pay interest carried by a judgment debt, to the extent that the judgment debt is based on:

                              (i)  the liability to pay the estimate; or

                             (ii)  the liability to pay the general interest charge under section 268‑75 on an unpaid amount of the estimate.

Discharging one liability discharges other liabilities

             (2)  If, at a particular time, an amount is paid or applied towards discharging one of the liabilities, each of the other liabilities that is in existence at that time is discharged to the extent of the same amount.

             (3)  However, this section does not discharge a liability to a greater extent than the amount of the liability.

             (4)  If, because a judgment debt carries interest, section 8AAH of this Act reduces the amount of a *general interest charge payable as mentioned in paragraph (1)(b) of this section, the amount of the reduction is taken, for the purposes of subsection (2) of this section, to have been applied towards discharging your liability to the charge.

Subdivision 268‑FMiscellaneous

Table of sections

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

268‑90      Requirements for statutory declaration or affidavit

268‑95      Liquidators, receivers and trustees in bankruptcy

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

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

Estimate payable despite judgment

             (1)  The unpaid amount of the estimate, or of the underlying liability, does not stop being payable merely because a judgment has been given by, or entered in, a court.

Division applies to liability under judgment

             (2)  This Division applies in relation to liability under a judgment, to the extent that it is based on your liability to pay the amount of the estimate, in the same way as this Division applies to that estimate liability.

             (3)  This Division applies in relation to liability under a judgment, to the extent that it is based on the underlying liability, in the same way as this Division applies to the underlying liability.

             (4)  Subsections (2) and (3) do not apply for the purposes of the following:

                     (a)  section 268‑20 (Nature of liability to pay estimate);

                     (b)  section 268‑30 (Estimate provable in bankruptcy or winding up);

                     (c)  section 268‑45 (rejection of proof of debt).

Judgment conclusive as to amount of liability

             (5)  Nothing in this Division affects the conclusiveness of a judgment as to the amount of a liability on which it is based.

268‑90  Requirements for statutory declaration or affidavit

Scope

             (1)  This section applies to a statutory declaration given, or an affidavit filed, for the purposes of section 268‑40 or 268‑45 in relation to the estimate.

Content

             (2)  In a case covered by paragraph 268‑10(1)(a) (estimate of liability under requirement to pay to the Commissioner amounts you have withheld under the Pay as you go withholding rules), the statutory declaration or affidavit must verify the following facts:

                     (a)  whichever of the following are applicable:

                              (i)  the sum of all amounts you withheld under Division 12 during the relevant period, or the fact that you did not withhold any such amounts during the period;

                             (ii)  the sum of all amounts you were required to pay under Division 13 (Alienated personal services payments) during the relevant period, or the fact that you were not required to pay any such amounts during the period;

                            (iii)  the sum of all amounts you were required to pay under Division 14 (non‑cash benefits and accruing gains) during the relevant period, or the fact that you were not required to pay any such amounts during the period;

                     (b)  what has been done to comply with Division 16 (Payer’s obligations and rights) in relation to the amounts referred to in paragraph (a).

          (2A)  In a case covered by paragraph 268‑10(1)(b) (estimate of liability to pay superannuation guarantee charge), the statutory declaration or affidavit must verify the following facts:

                     (a)  your name and address;

                     (b)  for each employee for whom you have an *individual superannuation guarantee shortfall for the relevant *quarter:

                              (i)  the employee’s name and postal address and, if the employee has *quoted the employee’s *tax file number to you, the employee’s tax file number; and

                             (ii)  the amount of the shortfall;

                     (c)  what has been done to comply with your obligation to pay the relevant superannuation guarantee charge to the Commissioner.

Note:          The amount of the individual superannuation guarantee shortfall mentioned in paragraph (b) is a factor in determining the amount of the superannuation guarantee charge mentioned in paragraph 268‑10(1)(b). The lesser amount mentioned in subsection 268‑40(2) may therefore differ from the amount of that shortfall.

Maker or deponent

             (3)  The statutory declaration or affidavit must be made, sworn or affirmed by:

                     (a)  an individual specified in the following table; or

                     (b)  your liquidator, receiver or trustee in bankruptcy (if and as applicable).

 

Who must make the statutory declaration or swear or affirm the affidavit

Item

A statutory declaration or affidavit in relation to an estimate of a liability of ...

must be made, sworn or affirmed by ...

1

an individual

that individual.

2

a body corporate

(a) in the case of a company that has a director or a company secretary (within the meaning of the Corporations Act 2001)—a director of the company or the company secretary; or

(b) in the case of an *Australian government agency—an individual prescribed by the regulations; or

 

 

(c) in any case—the public officer of the body corporate (for the purposes of the Income Tax Assessment Act 1936).

3

a body politic

an individual prescribed by the regulations.

4

a partnership

a partner of the partnership.

5

any other unincorporated association or body of persons

(a) a member of the association’s or body’s committee of management; or

(b) the public officer of the association or body (for the purposes of the Income Tax Assessment Act 1936).

6

a trust

(a) the trustee of the trust; or

(b) the public officer of the trust (for the purposes of the Income Tax Assessment Act 1936).

7

a *superannuation fund or an *approved deposit fund

(a) the trustee of the fund; or

(b) if the fund does not have a trustee—the entity managing the fund.

             (4)  If the entity specified in the table in subsection (3) is not an individual, the table is taken to specify the individual who, under that subsection, would be eligible to make a statutory declaration in relation to an estimate of a liability of that entity.

268‑95  Liquidators, receivers and trustees in bankruptcy

Scope

             (1)  This section applies to an entity (your supervising entity), in relation to you, if:

                     (a)  the entity is your liquidator, receiver, trustee in bankruptcy or administrator, or the administrator of a deed of company arrangement executed by you; or

                     (b)  your property is vested in the entity, or the entity has control of your property.

             (2)  For the purposes of this Division, this section applies to an entity in relation to a partnership if it applies to the entity in relation to a partner of the partnership.

Notices from the Commissioner

             (3)  For the purposes of this Division, a notice given by the Commissioner to your supervising entity is taken to have been given to you.

             (4)  You must give your supervising entity a copy of any notice given to you by the Commissioner under this Division. You must do so as soon as practicable, and in any event within 7 days, after:

                     (a)  if the Commissioner gave you the notice before the day when your property vested in, or control of your property passed to, the supervising entity—that day; or

                     (b)  if subsection (2) applies and the Commissioner gave you the notice before the day when the relevant partner’s property vested in, or control of the relevant partner’s property passed to, the supervising entity—that day; or

                     (c)  otherwise—the day when the Commissioner gave you the notice.

             (5)  If the Commissioner gives you and your supervising entity a notice at different times, each notice is taken to have been given at the later of those times.

Action taken by your supervising entity

             (6)  For the purposes of this Division, a statutory declaration given to the Commissioner by your supervising entity is taken to have been given by you.

             (7)  For the purposes of this Division, an affidavit filed by your supervising entity is taken to have been filed by you.

             (8)  For the purposes of item 2 in the table in subsection 268‑40(1) (recovery proceedings), a procedural step taken by your supervising entity is taken to have been taken by you.

Multiple supervising entities

             (9)  If you have 2 or more supervising entities, anything this Division provides for to be done by or in relation to your supervising entity may be done by or in relation to any of them.

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

                   This Division is not intended to limit or exclude the operation of Chapter 5 (External administration) or Schedule 2 to the Corporations Act 2001, or the Bankruptcy Act 1966, to the extent those provisions or that Act can operate concurrently with this Division.

Note:          Section 268‑30 and Subdivision 268‑D affect the operation of Chapter 5 of the