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Taxation Administration Act 1953

Authoritative Version
Act No. 1 of 1953 as amended, taking into account amendments up to Treasury Laws Amendment (Laminaria and Corallina Decommissioning Cost Recovery Levy) Act 2022
An Act to provide for the administration of certain Acts relating to Taxation, and for other purposes
Administered by: Treasury
General Comments: Section 355-25 of Schedule 1 of this Act has been modified by the operation of the Commissioner’s Remedial Power, click here to see the modification.
Registered 29 Apr 2022
Start Date 02 Apr 2022

Commonwealth Coat of Arms of Australia

Taxation Administration Act 1953

No. 1, 1953

Compilation No. 191

Compilation date:                              2 April 2022

Includes amendments up to:            Act No. 24, 2022

Registered:                                         29 April 2022

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 2 April 2022 (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

Part I—Preliminary                                                                                                              1

1............................ Short title............................................................................ 1

2............................ Interpretation....................................................................... 1

2A......................... Application of the Criminal Code....................................... 3

2B.......................... Act binds the Crown........................................................... 4

3............................ Application......................................................................... 4

3AA...................... Schedule 1.......................................................................... 4

Part IA—Administration                                                                                                   5

3A......................... General administration of Act............................................. 5

3B.......................... Annual report...................................................................... 5

3C.......................... Reporting of information about corporate tax entity with reported total income of $100 million or more............................................................................................ 6

3CA....................... Reporting of information by corporate country by country reporting entities           8

3E.......................... Reporting of information about entity with PRRT payable 10

3F.......................... Reporting of information about junior minerals exploration incentive offset            11

3G......................... Electronic invoicing.......................................................... 11

3H......................... Reporting of information about research and development tax offset       12

Part II—Commissioner of Taxation, Second Commissioner of Taxation and Deputy Commissioner of Taxation                                                                                                                  14

4............................ Commissioner and Second Commissioners of Taxation... 14

4A......................... Statutory Agency etc. for purposes of Public Service Act 14

5............................ Tenure of Commissioner and Second Commissioners..... 14

5A......................... Remuneration and allowances of Commissioner and Second Commissioners         14

6............................ Leave of absence............................................................... 15

6A......................... Resignation....................................................................... 15

6B.......................... Acting appointments......................................................... 15

6C.......................... Suspension and removal from office of Commissioner or Second Commissioner  16

6D......................... Powers of Second Commissioner..................................... 18

7............................ Deputy Commissioners of Taxation................................. 18

8............................ Delegation......................................................................... 19

Part IIA—The general interest charge                                                                   20

8AAA................... Overview.......................................................................... 20

8AAB.................... When the general interest charge applies........................... 20

8AAC.................... Amount of the general interest charge............................... 26

8AAD................... What is the general interest charge rate?......................... 27

8AAE.................... When the charge is due and payable................................. 28

8AAF.................... Notification by Commissioner.......................................... 28

8AAG................... Remission of the charge.................................................... 28

8AAGA................ Rounding of the charge..................................................... 29

8AAH................... Judgment for payment of an unpaid amount..................... 29

Part IIB—Running balance accounts, application of payments and credits, and related matters          31

Division 1—Preliminary                                                                                            31

8AAZA................. Definitions........................................................................ 31

8AAZAA.............. Amounts relating to Coronavirus economic response payments              34

8AAZB................. Trustee to be treated as separate entity for each capacity... 34

Division 2—Running Balance Accounts (or RBAs)                                    35

8AAZC................. Establishment of RBAs.................................................... 35

8AAZD................. Allocation of tax debts to RBAs....................................... 35

8AAZF.................. General interest charge on RBA deficit debt..................... 36

8AAZG................. RBA statements................................................................ 36

8AAZH................. Liability for RBA deficit debt........................................... 36

8AAZI................... RBA statement to be evidence.......................................... 37

8AAZJ.................. Evidentiary certificate about RBA transactions etc............ 37

Division 3—Treatment of payments, credits and RBA surpluses       39

8AAZL.................. Amounts covered by this Division................................... 39

8AAZLA............... Method 1—allocating the amount first to an RBA............ 40

8AAZLB............... Method 2—applying the amount first against a non‑RBA tax debt          40

8AAZLC............... RBA surplus and related credits must remain equivalent if one or the other is applied            41

8AAZLD............... Special priority credits...................................................... 41

8AAZLE............... Instructions to Commissioner not binding........................ 42

Division 3A—Refunds of RBA surpluses and credits                                43

8AAZLF............... Commissioner must refund RBA surpluses and credits... 43

8AAZLG............... Retaining refunds until information or notification given.. 44

8AAZLGA............ Retaining refunds while Commissioner verifies information 44

8AAZLGB............ Retaining refunds until notification under Division 389 or ascertainment of liability               47

8AAZLH............... How refunds are made...................................................... 49

Division 4—Miscellaneous provisions about tax debts                             50

8AAZM................ When payments are treated as received............................. 50

8AAZMA............. Electronic payment of tax debts........................................ 50

8AAZMB.............. Saturdays, Sundays and public holidays........................... 50

8AAZN................. Overpayments made by the Commissioner under taxation laws              51

Part III—Prosecutions and offences                                                                        52

Division 1—Preliminary                                                                                            52

8A......................... Interpretation..................................................................... 52

8AC....................... Application of Part to the Tax Agent Services Act 2009.... 53

Division 2—Offences                                                                                                   54

Subdivision A—Failure to comply with taxation requirements                   54

8B.......................... Interpretation..................................................................... 54

8C.......................... Failure to comply with requirements under taxation law... 55

8D......................... Failure to answer questions when attending before the Commissioner etc.              56

8E.......................... Penalties for failure to comply with requirements under taxation law      57

8F.......................... Election to treat offence otherwise than as prescribed taxation offence    57

8G......................... Order to comply with requirement.................................... 58

8H......................... Penalty for failure to comply with order to comply........... 58

8HA...................... Court may order payment of amount in addition to penalty 59

Subdivision B—Offences relating to statements, records and certain other Acts          59

8J........................... Interpretation..................................................................... 59

8K.......................... False or misleading statements.......................................... 66

8L.......................... Incorrectly keeping records etc......................................... 68

8M......................... Penalties for offences against subsections 8K(1) and (1B) and 8L(1) and (1A)      69

8N......................... Recklessly making false or misleading statements............ 69

8Q......................... Recklessly incorrectly keeping records etc........................ 71

8R.......................... Penalties for offences against sections 8N and 8Q........... 71

8S.......................... Election to treat offence otherwise than as prescribed taxation offence    72

8T.......................... Incorrectly keeping records with intention of deceiving or misleading etc.              72

8U......................... Falsifying or concealing identity with intention of deceiving or misleading etc.       73

8V......................... Penalties for offences against sections 8T and 8U............ 74

8W......................... Court may order payment of amount in addition to penalty 74

Subdivision BAA—Offences relating to electronic sales suppression tools 78

8WAA................... Object of this Subdivision................................................ 78

8WAB................... Interpretation..................................................................... 78

8WAC................... Producing or supplying electronic sales suppression tools 79

8WAD................... Possessing electronic sales suppression tools................... 80

8WAE................... Incorrectly keeping records using electronic sales suppression tools       80

Subdivision BA—Offences relating to tax file numbers                                81

8WA...................... Unauthorised requirement etc. that tax file number be quoted  81

8WB...................... Unauthorised recording etc. of tax file number................. 82

8WC...................... Conducting affairs so as to avoid tax file number requirements               84

Subdivision C—Miscellaneous                                                                              85

8XA...................... Unauthorised access to taxation records........................... 85

8Y......................... Liability of officers etc. of corporations............................ 85

8Z.......................... Evidentiary certificate relating to previous convictions..... 86

Division 3—Prosecution of taxation offences                                                88

8ZA....................... Prosecution of taxation offences....................................... 88

8ZB....................... Prosecution may be commenced at any time..................... 89

8ZC....................... Place where offence committed......................................... 89

8ZD....................... Conduct by employees or agents of corporations............. 90

8ZE........................ Civil penalty not payable if prosecution instituted............. 90

8ZF........................ Penalties for corporations................................................. 91

8ZG....................... Enforcement of orders for payment.................................. 91

8ZH....................... Penalties not to relieve from tax........................................ 92

Division 4—Prescribed taxation offences                                                        93

8ZJ........................ Prosecution of prescribed taxation offences...................... 93

8ZK....................... Protection of witnesses..................................................... 94

8ZL........................ Averment.......................................................................... 95

8ZM...................... Evidence of authority to institute proceedings................... 95

8ZN....................... Costs................................................................................. 96

Division 5—Service of summons for prescribed taxation offences    97

9............................ Interpretation..................................................................... 97

10.......................... Service of summons by post............................................. 97

11.......................... Notice of conviction in absentia....................................... 98

12.......................... Notice of intention to issue warrant in default of payment 98

13.......................... Limitation of action to enforce payment of fine................. 99

13A....................... Setting aside of conviction or order.................................. 99

13B........................ Proof of service of summons or notice........................... 102

13C........................ Application of other laws................................................ 102

Division 6—Setting aside etc. of conviction or order on application of Commissioner                103

13CA..................... Setting aside etc. of conviction or order on application of Commissioner                103

Part IIIA—Co‑operation between Commonwealth and State taxation authorities          105

Division 1—Interpretation                                                                                     105

13D....................... Interpretation................................................................... 105

Division 2—Trans‑border investigations                                                       107

13E........................ State taxation officers may refer matters to Commissioner for investigation            107

13F........................ Access to documents etc................................................. 107

13G....................... Commissioner may obtain information and evidence...... 108

Division 4—Certification by State taxation officer of copies of, and extracts from, documents             110

13K........................ Certification by State taxation officer of copies of, and extracts from, documents   110

Division 5—Australian Taxation Office may perform functions under State/Territory debits tax laws                                                                                                                    112

13L........................ Australian Taxation Office may perform functions under State/Territory debits tax laws        112

Part IVA—Departure from Australia of certain tax debtors                 114

Division 1—Interpretation                                                                                     114

14Q....................... Interpretation................................................................... 114

Division 2—Prohibition and authorisation of departure of certain tax debtors               115

14R........................ Departure from Australia of certain tax debtors prohibited 115

14S........................ Departure prohibition orders........................................... 115

14T........................ Revocation and variation of departure prohibition orders 116

14U....................... Departure authorisation certificates................................. 117

Division 3—Appeals from, and review of, decisions of the Commissioner          120

14V....................... Appeals to courts against making of departure prohibition orders           120

14W....................... Jurisdiction of courts...................................................... 120

14X....................... Orders of court on appeal............................................... 120

14Y....................... Applications for review of certain decisions................... 121

Division 4—Enforcement                                                                                        122

14Z........................ Powers of authorised officers......................................... 122

14ZA..................... Certain tax debtors to produce authority to depart etc..... 123

Part IVC—Taxation objections, reviews and appeals                                 124

Division 1—Introduction                                                                                        124

14ZL...................... Part applies to taxation objections................................... 124

14ZM.................... Division 2—Interpretive................................................. 124

14ZN..................... Division 3—Taxation objections.................................... 124

14ZO..................... Division 4—Tribunal review.......................................... 124

14ZP...................... Division 5—Federal Court appeals................................. 124

Division 2—Interpretive provisions                                                                  125

14ZQ..................... General interpretation provisions.................................... 125

14ZR..................... Taxation decisions covered by single notice to be treated as single decision            126

14ZS...................... Ineligible income tax remission decisions....................... 126

Division 3—Taxation objections                                                                         128

14ZU..................... How taxation objections are to be made.......................... 128

14ZV..................... Limited objection rights in the case of certain amended taxation decisions               128

14ZVA.................. Limited objection rights because of other objections....... 128

14ZVB.................. Objections relating to excess concessional contributions 129

14ZVC.................. Objections relating to non‑concessional contributions.... 130

14ZW.................... When taxation objections are to be made........................ 131

14ZX..................... Commissioner to consider applications for extension of time  137

14ZY..................... Commissioner to decide taxation objections................... 138

14ZYA.................. Person may require Commissioner to make an objection decision           138

14ZYB.................. Requiring Commissioner to make a private ruling.......... 139

14ZZ...................... Person may seek review of, or appeal against, Commissioner’s decision                140

Division 4—AAT review of objection decisions and extension of time refusal decisions             141

14ZZA................... Modified AAT Act to apply........................................... 141

14ZZB................... Sections 27, 28, 41 and 44A of the AAT Act not to apply to certain decisions       141

14ZZC................... Modification of section 29 of the AAT Act.................... 141

14ZZD................... Modification of section 30 of the AAT Act.................... 142

14ZZE................... Hearings before Tribunal to be held in private if applicant so requests    142

14ZZF................... Modification of section 37 of the AAT Act.................... 142

14ZZG................... Modification of section 38 of the AAT Act.................... 143

14ZZJ.................... Modification of section 43 of the AAT Act.................... 144

14ZZK................... Grounds of objection and burden of proof..................... 144

14ZZL................... Implementation of Tribunal decisions............................. 145

14ZZM.................. Pending review not to affect implementation of taxation decisions          145

Division 5—Court appeals against objection decisions                          146

14ZZN................... Time limit for appeals..................................................... 146

14ZZO................... Grounds of objection and burden of proof..................... 146

14ZZP................... Order of court on objection decision............................... 146

14ZZQ................... Implementation of court order in respect of objection decision                146

14ZZR................... Pending appeal not to affect implementation of taxation decisions           147

14ZZS................... Transfer of certain proceedings to Federal Circuit and Family Court of Australia (Division 1)               147

Part IVD—Protection for whistleblowers                                                           150

14ZZT................... Disclosures qualifying for protection under this Part...... 150

14ZZU................... Eligible whistleblowers................................................... 151

14ZZV................... Eligible recipients............................................................ 152

14ZZW.................. Confidentiality of whistleblower’s identity..................... 153

14ZZX................... Disclosure that qualifies for protection not actionable etc. 154

14ZZY................... Victimisation prohibited.................................................. 155

14ZZZ................... Compensation and other remedies—circumstances in which an order may be made               156

14ZZZAA............. Detriment........................................................................ 158

14ZZZA................ Compensation and other remedies—orders that may be made 159

14ZZZB................. Identifying information not to be disclosed etc. to courts or tribunals      161

14ZZZC................. Costs only if proceedings instituted vexatiously etc........ 161

14ZZZD................ Interaction between civil proceedings and criminal offences 162

14ZZZE................. Compensation for acquisition of property....................... 162

Part V—Miscellaneous                                                                                                    163

15.......................... Appearance by Commissioner etc................................... 163

15A....................... Certification by Commissioner of copies of, and extracts from, documents             164

15B........................ Recoverable advances..................................................... 166

15C........................ Recoverable payments.................................................... 167

15D....................... Reports about recoverable advances and recoverable payments               169

16.......................... Payments out of Consolidated Revenue Fund................ 171

16A....................... Regulations may provide for methods of payment of tax liabilities etc.    172

16B........................ Certain liabilities to be reduced to nearest multiple of 5 cents.. 173

17.......................... Powers of taxation officers in relation to references to currency etc.        173

17A....................... Powers of Federal Court and Federal Circuit and Family Court of Australia (Division 2) in respect of taxation matters............................................................................ 174

18.......................... Regulations..................................................................... 175

Schedule 1—Collection and recovery of income tax and other liabilities               176

Chapter 2—Collection, recovery and administration of income tax  176

Part 2‑1—Introduction to the Pay as you go (PAYG) system            176

Division 6Guide to Parts 2‑5 and 2‑10                                                          176

6‑1......................... What Parts 2‑5 and 2‑10 are about.................................. 176

6‑5......................... The Pay as you go (PAYG) system............................... 176

6‑10....................... How the amounts collected are dealt with....................... 177

Part 2‑5—Pay as you go (PAYG) withholding                                           178

Division 10Guide to Part 2‑5                                                                           178

10‑1....................... What this Part is about.................................................... 178

10‑5....................... Summary of withholding payments................................ 178

Division 11—Preliminary matters                                                                    181

11‑1....................... Object of this Part........................................................... 181

11‑5....................... Constructive payment..................................................... 181

Division 12—Payments from which amounts must be withheld                 183

Subdivision 12‑A—General rules                                                                       183

12‑1....................... General exceptions.......................................................... 184

12‑5....................... What to do if more than one provision requires a withholding 185

12‑7....................... Division does not apply to alienated personal services payments             187

12‑10..................... Division does not apply to non‑cash benefits................. 187

12‑20..................... Application of Division and regulations to non‑share dividends              187

Subdivision 12‑B—Payments for work and services                                    188

12‑35..................... Payment to employee...................................................... 188

12‑40..................... Payment to company director.......................................... 188

12‑45..................... Payment to office holder................................................. 188

12‑47..................... Payment to religious practitioners................................... 189

12‑50..................... Return to work payment................................................. 189

12‑55..................... Voluntary agreement to withhold.................................... 190

12‑60..................... Payment under labour hire arrangement, or specified by regulations       191

Subdivision 12‑C—Payments for retirement or because of termination of employment            192

12‑80..................... Superannuation income streams and annuities................ 192

12‑85..................... Superannuation lump sums and payments for termination of employment              192

12‑90..................... Unused leave payments.................................................. 192

Subdivision 12‑D—Benefit and compensation payments                             192

12‑110................... Social Security or other benefit payment......................... 193

12‑115................... Commonwealth education or training payment............... 193

12‑120................... Compensation, sickness or accident payment................. 194

Subdivision 12‑E—Payments where TFN or ABN not quoted                    194

Payment in respect of investment                                                                       195

12‑140................... Recipient does not quote tax file number........................ 195

12‑145................... Investor becoming presently entitled to income of a unit trust  196

12‑150................... Limited application of section 12‑140 to payment under financial arrangement       197

12‑152................... Limited application of section 12‑140 to payment covered by section 12A‑205      198

12‑155................... When investor may quote ABN as alternative................ 198

12‑160................... Investment body unaware that exemption from quoting TFN has stopped applying                198

12‑165................... Exception for fully franked dividend.............................. 199

12‑170................... Exception for payments below thresholds set by regulations 199

Payment of income of closely held trust where TFN not quoted                199

12‑175................... Trustee distributes income of closely held trust.............. 199

12‑180................... Beneficiary becomes presently entitled to income of closely held trust    201

12‑185................... Exception for payments below thresholds set by regulations 202

Payment for a supply                                                                                            203

12‑190................... Recipient does not quote ABN....................................... 203

Subdivision 12‑F—Dividend, interest and royalty payments                      206

Dividends                                                                                                                  207

12‑210................... Dividend payment to overseas person............................ 207

12‑215................... Dividend payment received for foreign resident............. 207

12‑220................... Application to part of a dividend..................................... 208

12‑225................... Application to distribution by a liquidator or other person 208

Interest                                                                                                                      208

12‑245................... Interest payment to overseas person............................... 208

12‑250................... Interest payment received for foreign resident................ 209

12‑255................... Interest payment derived by lender in carrying on business through overseas permanent establishment 209

12‑260................... Lender to notify borrower if interest derived through overseas permanent establishment        210

Royalties                                                                                                                   210

12‑280................... Royalty payment to overseas person............................... 210

12‑285................... Royalty payment received for foreign resident................ 211

General                                                                                                                     212

12‑300................... Limits on amount withheld under this Subdivision......... 212

Subdivision 12‑FA—Departing Australia superannuation payments       212

12‑305................... Departing Australia superannuation payment................. 212

12‑310................... Limits on amount withheld under this Subdivision......... 212

Subdivision 12‑FAA—Excess untaxed roll‑over amount                             213

12‑312................... Untaxed roll‑over superannuation benefits..................... 213

12‑313................... Limits on amount withheld under this Subdivision......... 213

Subdivision 12‑FB—Payments to foreign residents etc.                               214

12‑315................... Payment to foreign resident etc....................................... 214

12‑317................... Payment received for foreign resident etc....................... 215

12‑319................... Exemptions from withholding obligations under this Subdivision           216

Subdivision 12‑FC—Seasonal Labour Mobility Program                          217

12‑319A................ Payment to employee...................................................... 218

Subdivision 12‑G—Payments in respect of mining on Aboriginal land, and natural resources                218

Mining on Aboriginal land                                                                                  218

12‑320................... Mining payment.............................................................. 218

Natural resources                                                                                                   219

12‑325................... Natural resource payment............................................... 219

12‑330................... Payer must ask Commissioner how much to withhold... 219

12‑335................... Commissioner may exempt from section 12‑330, subject to conditions   220

Subdivision 12‑H—Distributions of withholding MIT income                   221

Guide to Subdivision 12‑H                                                                                   221

12‑375................... What this Subdivision is about....................................... 221

Operative provisions                                                                                             223

12‑383................... Meaning of withholding MIT.......................................... 223

12‑385................... Withholding by withholding MITs................................. 224

12‑390................... Withholding by custodians and other entities.................. 225

12‑395................... Requirement to give notice or make information available 228

12‑405................... Meaning of fund payment—general case........................ 231

12‑410................... Entity to whom payment is made.................................... 234

12‑415................... Failure to give notice or make information available: administrative penalty            234

12‑420................... Agency rules................................................................... 235

12‑425................... Meaning of clean building managed investment trust.... 235

12‑430................... Meaning of clean building.............................................. 236

12‑435................... Meaning of non‑concessional MIT income.................... 237

12‑436................... Meaning of asset entity, operating entity, cross staple arrangement and stapled entity           237

12‑437................... Meaning of MIT cross staple arrangement income....... 239

12‑438................... MIT cross staple arrangement income—de minimis exception                241

12‑439................... MIT cross staple arrangement income—approved economic infrastructure facility exception 242

12‑440................... Transitional—MIT cross staple arrangement income...... 244

12‑441................... Integrity rule—concessional cross staple rent cap........... 247

12‑442................... Meaning of excepted MIT CSA income........................... 248

12‑443................... Concessional cross staple rent cap—existing lease with specified rent or rent method            248

12‑444................... Concessional cross staple rent cap—general................... 249

12‑445................... Asset entity to allocate deductions first against rental income that is not MIT cross staple arrangement income........................................................................................ 250

12‑446................... Meaning of MIT trading trust income............................ 251

12‑447................... Transitional—MIT trading trust income......................... 252

12‑448................... Meaning of MIT agricultural income, Australian agricultural land for rent and Division 6C land        253

12‑449................... Transitional—MIT agricultural income........................... 254

12‑450................... Meaning of MIT residential housing income.................. 256

12‑451................... Transitional—MIT residential housing income............... 257

12‑452................... Meaning of residential dwelling asset............................ 258

12‑453................... MIT agricultural income and MIT residential housing income—capital gains in relation to membership interests........................................................................... 259

Subdivision 12‑J—FHSS released amounts                                                     261

12‑460................... FHSS released amounts.................................................. 261

Division 12A—Distributions by AMITs (including deemed payments)    262

Guide to Division 12A                                                                                           262

12A‑1.................... What this Division is about............................................. 262

Subdivision 12A‑A—Distributions by AMITs relating to dividend, interest and royalties          263

Guide to Subdivision 12A‑A                                                                                 263

12A‑5.................... What this Subdivision is about....................................... 263

Operative provisions                                                                                             263

12A‑10.................. Deemed payments—no obligation to withhold under Subdivision 12‑F (dividend, interest and royalty payments)....................................................................... 263

12A‑15.................. Dividend, interest or royalty payments relating to AMIT—requirement to give notice or make information available.......................................................................... 264

12A‑20.................. Failure to give notice or make information available under section 12A‑15: administrative penalty         267

12A‑25.................. Meaning of AMIT DIR payment..................................... 267

12A‑30.................. Meaning of AMIT dividend payment.............................. 268

12A‑35.................. Meaning of AMIT interest payment................................ 269

12A‑40.................. Meaning of AMIT royalty payment................................. 270

Subdivision 12A‑B—Distributions by AMITs relating to Subdivision 12‑H fund payments       271

Guide to Subdivision 12A‑B                                                                                 271

12A‑100................ What this Subdivision is about....................................... 271

Operative provisions                                                                                             271

12A‑105................ Deemed payments—no obligation to withhold under Subdivision 12‑H 271

12A‑110................ Meaning of fund payment—AMITs............................... 272

Subdivision 12A‑C—Deemed payments by AMITs etc.                                276

Guide to Subdivision 12A‑C                                                                                 276

12A‑200................ What this Subdivision is about....................................... 276

Operative provisions                                                                                             277

12A‑205................ Issue of AMMA statement etc. deemed to be payment... 277

12A‑210................ Post‑AMMA actual payment and pre‑AMMA actual payment in respect of deemed payment  279

12A‑215................ AMIT payment to the Commissioner in respect of deemed payments to offshore entities etc. 280

12A‑220................ Custodian payment to the Commissioner in respect of deemed payments to offshore entities etc.           281

Division 13—Alienated personal services payments                                     284

13‑1....................... Object of this Division.................................................... 284

13‑5....................... Payment to the Commissioner in respect of alienated personal services payments   284

13‑10..................... Alienated personal services payments............................. 287

13‑15..................... Personal services payment remitters............................... 288

13‑20..................... Time for payments to Commissioner for alienated personal services payments made during 2000‑01    289

Division 14—Benefits, gains and taxable supplies for which amounts must be paid to the Commissioner             290

Subdivision 14‑A—Non‑cash benefits                                                               290

14‑1....................... Object of this Subdivision.............................................. 290

14‑5....................... Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding..................................................................... 290

14‑10..................... Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit              291

14‑15..................... Payer can recover amount paid to the Commissioner...... 292

Subdivision 14‑B—Accruing gains                                                                    292

14‑50..................... Object of this Subdivision.............................................. 292

14‑55..................... Liability for TFN withholding tax................................... 293

14‑60..................... Investment body may recover TFN withholding tax from investor          294

14‑65..................... Application of rules in Division 18................................. 294

14‑75..................... Overpayment of TFN withholding tax............................ 295

14‑85..................... Other laws do not exempt from TFN withholding tax.... 295

Subdivision 14‑C—Shares and rights under employee share schemes     296

14‑155................... Liability for TFN withholding tax (ESS)........................ 296

14‑160................... Employer may give individual tax file numbers to provider 297

14‑165................... Provider may recover TFN withholding tax (ESS) from individual         297

14‑170................... Application of rules in Division 18................................. 298

14‑175................... Overpayment of TFN withholding tax (ESS)................. 298

14‑180................... Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997  298

Subdivision 14‑D—Capital proceeds involving foreign residents and taxable Australian property        299

14‑200................... Certain acquisitions of taxable Australian property from foreign residents              299

14‑205................... Effect of look‑through earnout rights.............................. 300

14‑210................... Whether an entity is a relevant foreign resident............... 301

14‑215................... Excluded transactions..................................................... 303

14‑220................... Commissioner clearance certificates................................ 305

14‑225................... Entity declarations........................................................... 305

14‑230................... Administrative penalties for false or misleading declarations 306

14‑235................... Varying amounts to be paid to the Commissioner.......... 307

Subdivision 14‑E—GST payable on taxable supplies of certain real property              308

14‑250................... Recipients of certain taxable supplies of real property must pay amounts to Commissioner    309

14‑255................... Notification by suppliers of residential premises etc....... 311

Division 15—Working out the amount to withhold                                       314

Guide to Division 15                                                                                                      314

15‑1....................... What this Division is about............................................. 314

Subdivision 15‑A—Working out how much to withhold                              314

15‑10..................... How much to withhold................................................... 315

15‑15..................... Variation of amounts required to be withheld................. 315

Subdivision 15‑B—Withholding schedules and regulations                        316

15‑25..................... Commissioner’s power to make withholding schedules. 316

15‑30..................... Matters to be considered when making withholding schedules                317

15‑35..................... Regulations about withholding....................................... 318

Subdivision 15‑C—Declarations                                                                        319

15‑50..................... Declarations.................................................................... 319

Division 16—Payer’s obligations and rights                                                   321

Guide to Division 16                                                                                                      321

16‑1....................... What this Division is about............................................. 321

Subdivision 16‑A—To withhold                                                                          321

When to withhold                                                                                                    322

16‑5....................... When to withhold an amount.......................................... 322

16‑7....................... Treat entity obliged to pay under Subdivision 12A‑C as having withheld amount under Division 12     322

16‑20..................... Payer discharged from liability to recipient for amount withheld             323

Penalties for not withholding                                                                              323

16‑25..................... Failure to withhold: offence............................................ 323

16‑30..................... Failure to withhold: administrative penalty for entity other than exempt Australian government agency 324

16‑35..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment other than dividend, interest or royalty............................ 325

16‑40..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment.............................................. 326

16‑43..................... Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment to foreign resident etc.......................................................... 326

Subdivision 16‑B—To pay withheld amounts to the Commissioner         327

When and how to pay amounts to the Commissioner                                    327

16‑70..................... Entity to pay amounts to Commissioner......................... 327

16‑75..................... When amounts must be paid to Commissioner............... 328

16‑80..................... Penalty for failure to pay within time.............................. 330

16‑85..................... How amounts are to be paid........................................... 330

Who is a large, medium or small withholder                                                  331

16‑95..................... Meaning of large withholder.......................................... 331

16‑100................... Meaning of medium withholder...................................... 332

16‑105................... Meaning of small withholder.......................................... 332

16‑110................... Commissioner may vary withholder’s status downwards 332

16‑115................... Commissioner may vary withholder’s status upwards... 333

Subdivision 16‑BA—To be registered                                                               334

Registration of withholders                                                                                 335

16‑140................... Withholders must be registered....................................... 335

16‑141................... Registration and cancellation........................................... 336

Branch registration                                                                                               336

16‑142................... Branches may be registered............................................ 336

16‑143................... Separate amounts for entities and branches..................... 337

16‑144................... Cancellation of branch registration.................................. 337

16‑145................... Effect on branches of cancelling the entity’s registration 337

Registration of employers of working holiday makers                                338

16‑146................... Employers of working holiday makers must be registered 338

16‑147................... Registering employers of working holiday makers......... 338

16‑148................... Cancelling the registration of employers of working holiday makers       340

Subdivision 16‑C—To provide information                                                   342

To the Commissioner                                                                                            342

16‑150................... Commissioner must be notified of amounts.................... 342

16‑152................... Annual reports—Withholding payments covered by section 12‑175       343

16‑153................... Annual reports—other payments.................................... 344

To recipients of withholding payments                                                             347

16‑155................... Annual payment summary.............................................. 347

16‑156................... Annual payment summary for sections 12‑175 and 12‑180 349

16‑157................... Payment summary for Subdivision 12‑H....................... 349

16‑160................... Part‑year payment summary........................................... 350

16‑165................... Payment summaries for superannuation lump sums and payments for termination of employment         351

16‑166................... Payment summary for a departing Australia superannuation payment     352

16‑167................... Payment summary for payment to recipient who does not quote ABN    352

16‑170................... Form and content of payment summary.......................... 353

16‑175................... Penalty for not providing payment summary.................. 354

16‑180................... Commissioner may exempt entity from giving payment summary           355

16‑182................... Definition of reportable employer superannuation contribution             355

Subdivision 16‑D—Additional rights and obligations of entity that makes a payment                356

16‑195................... Payer’s right to recover amounts of penalty: certain withholding taxes    356

Division 18—Recipient’s entitlements and obligations                                 358

Subdivision 18‑A—Crediting withheld amounts                                            358

Guide to Subdivision 18‑A                                                                                    358

18‑1....................... What this Subdivision is about....................................... 358

General exception                                                                                                  360

18‑5....................... No credit for refunded amount........................................ 360

Entitlement to credits: income tax liability                                                     360

18‑10..................... Application of sections 18‑15, 18‑20 and 18‑25............. 360

18‑15..................... Tax credit for recipient of withholding payments............ 361

18‑20..................... Tax credit where recipient is a partnership...................... 361

18‑25..................... Tax credit where recipient is a trust................................. 362

18‑27..................... Tax credit for alienated personal services payments........ 364

Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or Seasonal Labour Mobility Program                                                                    364

18‑30..................... Credit: dividend, interest or royalty................................. 364

18‑32..................... Credit: amount attributable to fund payment................... 365

18‑33..................... Credit: Seasonal Labour Mobility Program.................... 366

18‑35..................... Credit: penalty under section 12‑415, 16‑30, 16‑35 or 16‑40 or related general interest charge               366

18‑40..................... Credit: liability under Part 4‑25....................................... 368

Entitlement to credit: departing Australia superannuation payment       370

18‑42..................... Credit—departing Australia superannuation payment..... 370

Entitlement to credit: mining payment                                                             371

18‑45..................... Credit—mining payment................................................. 371

Entitlement to credit: Petroleum resource rent tax                                       372

18‑55..................... Credit—Natural resource payments................................ 372

Entitlement to credit: taxable supply of real property                                 372

18‑60..................... Credit—payment relating to taxable supply of real property 372

Subdivision 18‑B—Refund of certain withheld amounts                             373

18‑65..................... Refund of withheld amounts by the payer to the recipient 373

18‑70..................... Refund of withheld amounts by the Commissioner to the recipient         376

18‑80..................... Refund by Commissioner of amount withheld from payment in respect of investment           378

18‑85..................... Refund by Commissioner of amount withheld from payment in respect of supply of real property        379

Subdivision 18‑C—Recipient’s obligations                                                      379

18‑100................... Obligation to keep payment summary............................. 379

Subdivision 18‑D—Directors etc. of non‑complying companies                380

Object of Subdivision                                                                                            381

18‑120................... Object of Subdivision..................................................... 381

PAYG withholding non‑compliance tax                                                           381

18‑125................... Directors of non‑complying companies.......................... 381

18‑130................... Directors of non‑complying companies—tax reduced in certain circumstances       383

18‑135................... Associates of directors of non‑complying companies..... 385

18‑140................... Notices............................................................................ 388

18‑145................... When PAYG withholding non‑compliance tax must be paid.. 390

18‑150................... General interest charge payable on unpaid PAYG withholding non‑compliance tax               390

18‑155................... Validity of decisions and evidence.................................. 391

18‑160................... Rights of indemnity and contribution.............................. 391

Credits for later compliance                                                                               392

18‑165................... Credits for later compliance—scope............................... 392

18‑170................... Credits for later compliance—Commissioner must give notice in certain circumstances          393

18‑175................... Credits for later compliance—Commissioner may give notice 394

18‑180................... Effect of earlier credits.................................................... 395

Other provisions                                                                                                     396

18‑185................... When Commissioner may give notice............................. 396

18‑190................... Review of decisions........................................................ 397

Division 20—Other matters                                                                                 398

Subdivision 20‑B—Offences                                                                                398

20‑35..................... Offences......................................................................... 398

20‑40..................... Joining of charges........................................................... 399

20‑45..................... Offences that would otherwise be committed by a partnership or unincorporated company    400

Subdivision 20‑D—Review of decisions                                                            401

20‑80..................... Reviewable decisions...................................................... 401

Division 21—Entitlements relating to insolvent ADIs and general insurers 403

Guide to Division 21                                                                                              403

21‑1....................... What this Division is about............................................. 403

Subdivision 21‑A—Treatment of some payments by APRA                       403

21‑5....................... APRA treated like ADI or general insurance company.. 403

Part 2‑10—Pay as you go (PAYG) instalments                                          405

Division 45—Instalment payments                                                                    405

Guide to Division 45                                                                                              406

45‑1....................... What this Division is about............................................. 406

Subdivision 45‑A—Basic rules                                                                            407

45‑5....................... Object of this Part........................................................... 407

45‑10..................... Application of Part.......................................................... 409

45‑15..................... Liability for instalments.................................................. 409

45‑20..................... Information to be given to the Commissioner by certain payers               410

45‑25..................... Penalty for failure to notify Commissioner..................... 411

45‑30..................... Credit for instalments payable......................................... 411

Subdivision 45‑B—When instalments are due                                                412

45‑50..................... Liability to pay instalments............................................. 412

45‑60..................... Meaning of instalment quarter....................................... 413

45‑61..................... When quarterly instalments are due—payers of quarterly instalments     414

45‑65..................... Meaning of instalment month......................................... 415

45‑67..................... When monthly instalments are due—payers of monthly instalments       415

45‑70..................... When annual instalments are due.................................... 416

45‑72..................... Means of payment of instalment..................................... 416

45‑75..................... Instalments recoverable in same way as income tax........ 416

45‑80..................... General interest charge on late payment.......................... 416

45‑90..................... Commissioner may withdraw instalment rate................. 416

Subdivision 45‑C—Working out instalment amounts                                   417

45‑110................... How to work out amount of quarterly instalment on instalment income basis         417

45‑112................... Amount of instalment for quarterly payer who pays on basis of GDP‑adjusted notional tax   418

45‑114................... How to work out amount of monthly instalment............ 419

45‑115................... How to work out amount of annual instalment............... 420

45‑120................... Meaning of instalment income........................................ 421

Subdivision 45‑D—Quarterly payers                                                                425

45‑125................... Quarterly payer who pays instalments on the basis of instalment income                425

45‑130................... Quarterly payer who pays on the basis of GDP‑adjusted notional tax     427

45‑132................... Quarterly payer who pays 4 instalments annually on the basis of GDP‑adjusted notional tax 430

45‑134................... Quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax 431

Subdivision 45‑DA—Monthly payers                                                                432

45‑136................... Monthly payer................................................................ 432

45‑138................... Monthly payer requirement............................................. 433

Subdivision 45‑E—Annual payers                                                                     435

When you start and stop being an annual payer                                            435

45‑140................... Choosing to pay annual instalments................................ 435

45‑145................... Meaning of instalment group......................................... 437

45‑150................... Entity stops being annual payer if involved with GST registration or instalment group           437

45‑155................... Entity stops being annual payer if notional tax is $8,000 or more, or entity chooses to pay quarterly      438

45‑160................... Head company of a consolidated group stops being annual payer           439

Subdivision 45‑F—Varying the instalment rate for quarterly or monthly payers who pay on the basis of instalment income                                                                                         440

45‑200................... Application..................................................................... 440

45‑205................... Choosing a varied instalment rate................................... 440

45‑210................... Notifying Commissioner of varied instalment rate.......... 441

45‑215................... Credit on using varied rate in certain cases..................... 441

Subdivision 45‑G—General interest charge payable in certain cases if instalments are too low              442

45‑225................... Effect of Subdivision in relation to monthly payers........ 443

45‑230................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of varied rate     443

45‑232................... Liability to GIC on shortfall in quarterly instalment worked out on the basis of estimated benchmark tax........................................................................................ 445

45‑233................... Reduction in GIC liability under section 45‑232 if shortfall is made up in later instalment      453

45‑235................... Liability to GIC on shortfall in annual instalment........... 454

45‑240................... Commissioner may remit general interest charge............ 456

Subdivision 45‑H—Partnership income                                                           456

45‑260................... Instalment income for a period in which you are in a partnership            456

Subdivision 45‑I—Trust income included in instalment income of beneficiary            457

45‑280................... Instalment income for a period in which you are a beneficiary of a trust  458

45‑285................... Instalment income includes distributions by certain resident unit trusts   460

45‑286................... Instalment income includes distributions by certain managed investment trusts       462

45‑287................... When trusts are disqualified due to concentrated ownership 462

45‑288................... Resident investment trusts for beneficiaries who are absolutely entitled  464

45‑290................... Exceptions to exclusion of trust capital gains from beneficiary’s instalment income                465

Subdivision 45‑J—How Commissioner works out your instalment rate and notional tax          465

45‑320................... Working out instalment rate............................................ 465

45‑325................... Working out your notional tax........................................ 466

45‑330................... Working out your adjusted taxable income.................... 468

45‑335................... Working out your adjusted withholding income............. 470

45‑340................... Adjusted tax on adjusted taxable income or on adjusted withholding income           470

Subdivision 45‑K—How Commissioner works out your benchmark instalment rate and benchmark tax             473

45‑355................... When Commissioner works out benchmark instalment rate and benchmark tax      473

45‑360................... How Commissioner works out benchmark instalment rate 474

45‑365................... Working out your benchmark tax................................... 474

45‑370................... Working out your adjusted assessed taxable income for the variation year             475

45‑375................... Adjusted assessed tax on adjusted assessed taxable income 476

Subdivision 45‑L—How Commissioner works out amount of quarterly instalment on basis of GDP‑adjusted notional tax                                                                                                 478

45‑400................... Working out amount of instalment—payers of 4 quarterly instalments    479

45‑402................... Working out amount of instalment—payers of 2 quarterly instalments    480

45‑405................... Working out your GDP‑adjusted notional tax................ 482

Subdivision 45‑M—How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax                                                                                                 484

45‑410................... Working out amount of instalment—payers of 4 quarterly instalments    485

45‑412................... Working out amount of instalment—payers of 2 quarterly instalments    487

45‑415................... Estimating your benchmark tax....................................... 488

45‑420................... Credit in certain cases where amount of instalment is nil 489

Subdivision 45‑N—How this Part applies to the trustee of a trust             490

Trustees to whom this Part applies                                                                    490

45‑450................... Trustees to whom a single instalment rate is given......... 490

45‑455................... Trustees to whom several instalment rates are given....... 491

45‑460................... Rest of Subdivision applies only to multi‑rate trustees... 492

45‑465................... Meaning of instalment income........................................ 492

45‑468................... Multi‑rate trustee may pay quarterly instalments............. 493

How Commissioner works out instalment rate and notional tax for a multi‑rate trustee            493

45‑470................... Working out instalment rate............................................ 493

45‑473................... Commissioner must notify you of notional tax............... 494

45‑475................... Working out your notional tax........................................ 494

45‑480................... Working out your adjusted taxable income.................... 495

45‑483................... Meaning of reduced beneficiary’s share and reduced no beneficiary’s share         495

45‑485................... Working out your adjusted withholding income............. 496

How Commissioner works out benchmark instalment rate and benchmark tax for a multi‑rate trustee                497

45‑525................... When Commissioner works out benchmark instalment rate and benchmark tax      497

45‑530................... How Commissioner works out benchmark instalment rate 497

45‑535................... Working out your benchmark tax................................... 498

Subdivision 45‑P—Anti‑avoidance rules                                                          498

45‑595................... Object of this Subdivision.............................................. 499

45‑597................... Effect of Subdivision in relation to instalment months.... 499

45‑600................... General interest charge on tax benefit relating to instalments 499

45‑605................... When do you get a tax benefit from a scheme?............... 501

45‑610................... What is your tax position for an income year?................ 502

45‑615................... What is your hypothetical tax position for an income year? 504

45‑620................... Amount on which GIC is payable, and period for which it is payable     504

45‑625................... Credit if you also got a tax detriment from the scheme... 505

45‑630................... When do you get a tax detriment from a scheme?........... 506

45‑635................... No tax benefit or detriment results from choice for which income tax law expressly provides                507

45‑640................... Commissioner may remit general interest charge in special cases            509

Subdivision 45‑Q—General rules for consolidated groups                         509

Guide to Subdivision 45‑Q                                                                                   509

45‑700................... What this Subdivision is about....................................... 509

Application of Subdivision                                                                                   510

45‑703................... Effect of this Subdivision and Subdivision 45‑R in relation to monthly payers       510

45‑705................... Application of Subdivision to head company................. 511

Usual operation of this Part for consolidated group members                  515

45‑710................... Single entity rule............................................................. 515

45‑715................... When instalments are due—modification of section 45‑61 516

45‑720................... Head company cannot be an annual payer—modification of section 45‑140           516

Membership changes                                                                                             516

45‑740................... Change of head company................................................ 516

45‑755................... Entry rule (for an entity that becomes a subsidiary member of a consolidated group)              519

45‑760................... Exit rule (for an entity that ceases to be a subsidiary member of a consolidated group)           520

45‑775................... Commissioner’s power to work out different instalment rate or GDP‑adjusted notional tax   522

Subdivision 45‑R—Special rules for consolidated groups                           524

Guide to Subdivision 45‑R                                                                                    524

45‑850................... What this Subdivision is about....................................... 524

Operative provisions                                                                                             525

45‑855................... Section 701‑1 disregarded for certain purposes.............. 525

45‑860................... Member having a different instalment period.................. 525

45‑865................... Credit rule....................................................................... 526

45‑870................... Head company’s liability to GIC on shortfall in quarterly instalment       528

45‑875................... Other rules about the general interest charge................... 531

45‑880................... Continued application of Subdivision 45‑Q to the head company of an acquired group          532

45‑885................... Early application of Subdivision 45‑Q to the head company of a new group           534

Subdivision 45‑S—MEC groups                                                                         535

Guide to Subdivision 45‑S                                                                                    535

45‑900................... What this Subdivision is about....................................... 535

Preliminary                                                                                                             536

45‑905................... Objects of Subdivision................................................... 536

General modification rules                                                                                  537

45‑910................... Extended operation of Part to cover MEC groups.......... 537

Extended operation of Subdivision 45‑Q                                                         538

45‑913................... Sections 45‑705 and 45‑740 do not apply to members of MEC groups  538

45‑915................... Application of Subdivision 45‑Q to provisional head company               538

45‑917................... Assumption for applying section 45‑710 (single entity rule) 542

45‑920................... Change of provisional head company............................. 542

45‑922................... Life insurance company.................................................. 545

Extended operation of Subdivision 45‑R                                                          546

45‑925................... Additional modifications of sections 45‑855 and 45‑860 546

45‑930................... Modifications of sections 45‑865 and 45‑870 and a related provision     546

45‑935................... Additional modifications of section 45‑885.................... 547

Part 2‑15—Returns and assessments                                                               548

Division 70Tax receipts                                                                                    548

Guide to Division 70                                                                                              548

70‑1....................... What this Division is about............................................. 548

Subdivision 70‑A—Tax receipts                                                                         548

70‑5....................... Tax receipt to be provided to certain individual taxpayers 549

Part 2‑30—Collecting Medicare levy with income tax                           551

Division 90Medicare levy and Medicare levy surcharge                        551

Subdivision 90‑A—Treatment like income tax                                               551

90‑1....................... Laws apply in relation to Medicare levy and Medicare levy surcharge as they apply in relation to income tax........................................................................................ 551

Part 2‑35—Excess superannuation contributions                                     552

Division 97—Excess contributions determinations                                       552

Subdivision 97‑A—Excess concessional contributions determinations    552

Guide to Subdivision 97‑A                                                                                    552

97‑1....................... What this Subdivision is about....................................... 552

Operative provisions                                                                                             552

97‑5....................... Determination of excess concessional contributions....... 552

97‑10..................... Review............................................................................ 553

Subdivision 97‑B—Excess non‑concessional contributions determinations 553

Guide to Subdivision 97‑B                                                                                    553

97‑20..................... What this Subdivision is about....................................... 553

Operative provisions                                                                                             554

97‑25..................... Excess non‑concessional contributions determinations... 554

97‑30..................... Associated earnings........................................................ 554

97‑35..................... Review............................................................................ 555


An Act to provide for the administration of certain Acts relating to Taxation, and for other purposes

Part IPreliminary

  

1  Short title

                   This Act may be cited as the Taxation Administration Act 1953.

2  Interpretation

             (1)  In this Act (except Schedule 1), unless the contrary intention appears:

approved form has the meaning given by Schedule 1.

ASIO means the Australian Security Intelligence Organisation.

assessable amount has the meaning given by subsection 155‑5(2) in Schedule 1.

Australia, when used in a geographical sense, has the same meaning as in the Income Tax Assessment Act 1997.

Commissioner means the Commissioner of Taxation.