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This is a Bill, not an Act. For current law, see the Acts databases.
1998-1999-2000-2001
The
Parliament of the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Taxation Laws
Amendment Bill (No. 3) 2001
No. ,
2001
(Treasury)
A Bill
for an Act to amend the law relating to taxation, and for related
purposes
ISBN: 0642 469261
Contents
Part 1—GST returns and
payments 3
A New Tax System (Goods and Services Tax) Act
1999 3
Taxation Administration Act
1953 6
Part 2—Payment of GST by
instalments 7
A New Tax System (Goods and Services Tax) Act
1999 7
Income Tax Assessment Act
1997 32
Taxation Administration Act
1953 33
Part 3—Substituted accounting
periods 35
A New Tax System (Goods and Services Tax) Act
1999 35
Part 4—Correction of
errors 36
A New Tax System (Goods and Services Tax) Act
1999 36
Part 1—Paying instalments using GDP-adjusted notional
tax 37
Taxation Administration Act
1953 37
Income Tax Assessment Act
1997 53
Part 2—Transitional
rules 56
Part 1—Amendments 61
Fringe Benefits Tax Assessment Act
1986 61
Income Tax Assessment Act
1936 63
Income Tax Assessment Act
1997 65
Taxation Administration Act
1953 66
Part 2—Transitional
rules 70
Part 3—Weekends and public
holidays 72
Income Tax Assessment Act
1997 72
Taxation Administration Act
1953 72
A Bill for an Act to amend the law relating to taxation,
and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Taxation Laws Amendment Act (No. 3)
2001.
(1) Subject to this section, this Act commences on the day on which it
receives the Royal Assent.
(2) Items 48 to 52 of Schedule 2 are taken to have commenced on
1 January 2001.
(3) Part 3 of Schedule 3 is taken to have commenced on
1 April 2001.
Subject to section 2, each Act that is specified in a Schedule to
this Act is amended or repealed as set out in the applicable items in the
Schedule concerned, and any other item in a Schedule to this Act has effect
according to its terms.
Part 1—GST
returns and payments
A New Tax System (Goods
and Services Tax) Act 1999
1 After section 31-5
Insert:
(1) If a tax period applying to you is a
*quarterly tax period, you must give your
*GST return for the tax period to the
Commissioner:
(a) as provided in the following table; or
(b) within such further period as the Commissioner allows.
|
When quarterly GST returns must be given |
||
|---|---|---|
|
Item |
If this day falls within the quarterly tax period ... |
Give the GST return to the Commissioner on or before this
day: |
|
1 |
1 September |
the following 28 October |
|
2 |
1 December |
the following 28 February |
|
3 |
1 March |
the following 28 April |
|
4 |
1 June |
the following 28 July |
(2) A tax period is a quarterly tax period if:
(a) it is a period of 3 months; or
(b) it would be a period of 3 months but for the application of
section 27-30 or 27-35.
Note: Under section 27-30, a tax period can be
determined to take account of changes in tax periods. Under section 27-35,
the start or finish of a 3 month tax period can vary by up to 7 days from the
start or finish of a normal quarter.
2 Section 31-10
(heading)
Repeal the heading, substitute:
3 Subsection 31-10(1)
After “a tax period”, insert “(other than a
*quarterly tax period)”.
4 Subsection 31-15(1)
Repeal the subsection, substitute:
(1) Your *GST return for a tax period
must be in the *approved form.
5 Subsection 31-20(2)
Repeal the subsection, substitute:
(2) The *approved form for a further or
fuller *GST return may require information to
be provided relating to:
(a) the tax period to which the return relates; or
(b) one or more preceding tax periods; or
(c) both the tax period to which the return relates, and one or more
preceding tax periods.
6 After section 33-1
Insert:
If:
(a) the *net amount for a tax period
applying to you is greater than zero; and
(b) the tax period is a *quarterly tax
period;
you must pay the net amount to the Commissioner as follows:
|
When quarterly GST payments must be made |
||
|---|---|---|
|
Item |
If this day falls within the quarterly tax period ... |
Pay the net amount to the Commissioner on or before this
day: |
|
1 |
1 September |
the following 28 October |
|
2 |
1 December |
the following 28 February |
|
3 |
1 March |
the following 28 April |
|
4 |
1 June |
the following 28 July |
7 Section 33-5
(heading)
Repeal the heading, substitute:
8 Subsection 33-5(1)
After “a tax period”, insert “(other than a
*quarterly tax period)”.
9 Subsections 33-10(1) and
(2)
Omit “under section 33-5”.
10 Section 35-10
Omit “under section 31-5 or 31-20”.
11 Subsections 51-50(2), (2A) and
(3)
Repeal the subsections, substitute:
(2) However, while an election made by the
*joint venture operator under
section 51-52 has effect, the joint venture operator must, in relation to
all the *GST joint ventures for which the joint
venture operator is the joint venture operator, give to the Commissioner a
single *GST return for each tax period applying
to the joint venture operator.
(3) This section has effect despite section 31-5 (which is about who
must give GST returns).
12 Paragraph 51-55(1)(b)
Omit “section 33-5”, substitute “section 33-3
or 33-5 (as the case requires)”.
13 Subsection 54-55(2)
Repeal the subsection.
14 Subsection 54-55(4)
Repeal the subsection, substitute:
(4) This section has effect despite section 31-5 (which is about who
must give GST returns).
15 Paragraph 54-60(1)(b)
Omit “section 33-5”, substitute “section 33-3
or 33-5 (as the case requires)”.
16 Subsection 78-85(2)
Repeal the subsection.
17 Subsection 78-85(3)
Omit “, 31-10 and 31-15”, substitute “and
31-10”.
18 Subsection 105-15(2)
Repeal the subsection.
19 Subsection 105-15(3)
Omit “, 31-10 and 31-15”, substitute “and
31-10”.
20 Section 195-1
Insert:
quarterly tax period has the meaning given by subsection
31-8(2).
Taxation Administration
Act 1953
21 Subsection 70(1AAB)
Omit “that states a net amount”.
22 Application
The amendments made by this Part of this Schedule apply, and are taken to
have applied, in relation to GST returns, and net amounts, for tax periods
ending on or after 22 February 2001.
Part 2—Payment
of GST by instalments
A New Tax System (Goods
and Services Tax) Act 1999
23 Section 17-99 (after table
item 9A)
Insert:
|
9B |
Payment of GST by instalments |
Division 162 |
24 Section 27-99 (after table
item 1)
Insert:
|
1AA |
Payment of GST by instalments |
Division 162 |
25 Section 31-99 (after table
item 4)
Insert:
|
4A |
Payment of GST by instalments |
Division 162 |
26 Section 33-99 (after table
item 5)
Insert:
|
5A |
Payment of GST by instalments |
Division 162 |
27 Section 37-1 (after table
item 21)
Insert:
|
21A |
Payment of GST by instalments |
Division 162 |
28 At the end of subsection
126-5(3)
Add:
Note: If you are a *GST instalment payer your net
amount is reduced by GST instalments you have paid: see
section 162-105.
29 Before Division 165
Insert:
Table of Subdivisions
162-A Electing to pay GST by instalments
162-B Consequences of electing to pay GST by instalments
162-C GST instalments
162-D Penalty payable in certain cases if varied instalment amounts are too
low
You may be able to elect to pay GST by instalments. If you do, GST returns
are given to the Commissioner annually, and quarterly instalments of GST are
paid on the basis of the Commissioner’s or your estimates of what your
annual GST liability will be (followed by a reconciliation based on the annual
GST return).
If you can average your income for income tax purposes, you only pay the
last 2 quarterly instalments.
Note: In some cases, you will only pay the last 2 quarterly
instalments: see section 162-105.
(1) You are eligible to elect to pay GST by instalments if:
(a) you do not exceed the *instalment
turnover threshold; and
(b) the current tax period applying to you is not affected by:
(i) an election under section 27-10 (election of one month tax
periods); or
(ii) a determination under section 27-15 (determination of one month
tax periods); or
(iii) a determination under section 27-37 (special determination of
tax periods on request); and
(c) your *current GST lodgment record is
at least 4 months; and
(d) you have complied with all your obligations to give
*GST returns to the Commissioner; and
(e) you are not in a *net refund
position.
(2) The instalment turnover threshold is:
(a) $2 million; or
(b) such higher amount as the regulations specify.
(3) You are in a net refund position if the sum of all your
*net amounts is less than zero, for the tax
periods for which *GST returns fell due during
the period referred to in the relevant item in the third column of this
table.
|
When you are in a net refund position |
||
|---|---|---|
|
Item |
If your *current GST
lodgment record is... |
Take into account this period to work out whether you are in a net
refund position: |
|
1 |
at least 13 months |
the 12 months preceding the current tax period applying to you |
|
2 |
at least 10 months, but less than 13 months |
the 9 months preceding that current tax period |
|
3 |
at least 7 months, but less than 10 months |
the 6 months preceding that current tax period |
|
4 |
less than 7 months |
the 3 months preceding that current tax period |
(4) In working out *net amounts for the
purposes of subsection (3), disregard any entitlements you had to special
credits, under section 16 of the A New Tax System (Goods and Services
Tax Transition) Act 1999, that were attributable to any of the tax periods
referred to in that subsection.
(1) If you are not a *member of a
*GST group, your current GST lodgment
record is the period, immediately preceding the current tax period
applying to you, that is covered by tax periods applying to you for which you
have given *GST returns to the
Commissioner.
(2) If you are a *member of a
*GST group, your current GST lodgment
record is the period, immediately preceding the current tax period
applying to you, that is covered by tax periods applying to you:
(a) for which you have given *GST returns
to the Commissioner; and
(b) during which the membership of the GST group has not
changed.
(3) However, if you have been (but are not currently) the
*representative member of a
*GST group, any tax periods applying to you
during which you were such a representative member are not to be counted towards
your current GST lodgment record.
(1) You may, by notifying the Commissioner in the
*approved form, elect to pay GST by instalments
if you are eligible under section 162-5.
(2) However, the Commissioner may disallow your election, even though you
are eligible under section 162-5, if the Commissioner is satisfied that you
have a history of failing to comply with your obligations under a
*taxation law.
Note: Disallowing your election is a reviewable GST decision
(see Division 7 of Part VI of the Taxation Administration Act
1953).
(3) If your election is disallowed, it is taken never to have had
effect.
(4) Your election cannot relate to more than one
*financial year.
(1) A *representative member of a
*GST group cannot elect to pay GST by
instalments unless each *member of the GST
group is eligible under section 162-5.
(2) If the *representative member makes
such an election, the *instalment tax period
applying to the representative member also applies to each member. However, the
members other than the representative member are not
*GST instalment payers.
(1) You must make your election on or before 28 October in the
*financial year to which it relates.
(2) However, if:
(a) during the *financial year but after
28 October in that financial year, you became eligible under
section 162-5 to elect to pay GST by instalments; and
(b) this subsection had not applied to you before; and
(c) your *current GST lodgment record is
not more than 6 months;
you must make your election on or before the first day, after becoming
eligible under section 162-5, on which you would, but for this Division, be
required under section 31-8 to give a *GST
return to the Commissioner.
(3) The Commissioner may, in accordance with a request you make in the
*approved form, allow you to make your election
on a specified day occurring after the day provided for under
subsection (1) or (2).
Note: Refusing a request to be allowed to make an election
on a specified day under this subsection is a reviewable GST decision (see
Division 7 of Part VI of the Taxation Administration Act
1953).
(1) Your election has effect, and is taken to have had effect, for the
whole of the *financial year in
question.
(2) However, if:
(a) you make your election after 28 October in that
*financial year; and
(b) part of that financial year is already covered by one or more tax
periods for which you have given the Commissioner a
*GST return;
your election has effect, and is taken to have had effect, only for the
part of that financial year that is not covered by those tax periods.
(3) Your election does not cease to have effect because, after making the
election, you exceed the *instalment turnover
threshold at any time.
(1) You are a GST instalment payer while an election that
you have made under section 162-15 has effect.
(2) You are a GST instalment payer for the
*financial year for which your election has
effect.
(3) However, if your election has effect only for part of a
*financial year, you are a GST instalment
payer only for that part of that financial year.
(1) The tax period that applies to you, if you are a
*GST instalment payer for a
*financial year, is that financial
year.
(2) The tax period that applies to you, if you are a
*GST instalment payer only for part of a
*financial year, is that part of that financial
year.
(3) A tax period under this section is an instalment tax
period.
(4) This section has effect despite sections 27-5, 27-10, 27-15 and
27-30 (which are about tax periods).
(1) You must give your *GST return for
the *instalment tax period to the
Commissioner:
(a) if you are required under section 161 of the
*ITAA 1936 to lodge a return in relation to a
year of income corresponding to, or ending during, an instalment tax period
applying to you—within the period, specified in the notice published in
the Gazette under that section, for you to lodge as required under that
section; or
(b) if paragraph (a) does not apply—on or before the
28 February following the end of the instalment tax period.
Note: Section 388-55 in Schedule 1 to the
Taxation Administration Act 1953 allows the Commissioner to defer the
time for giving the GST return.
(2) However, in relation to an
*instalment tax period that:
(a) ends on 30 June 2001; or
(b) would have ended on 30 June 2001 but for the application of
section 27-35;
the period referred to in paragraph (1)(a) that would otherwise end
after 28 February 2002 is taken to end on that day.
Note: Under section 27-35, the start or finish of a 3
month tax period could vary by up to 7 days from the start or finish of a normal
quarter.
(3) This section has effect despite sections 31-8 and 31-10 (which
are about when GST returns must be given).
(1) If you are a *GST instalment payer
only for part of a *financial year, the
*approved form for your
*GST return for the
*instalment tax period consisting of that part
of the financial year may require that the return relate to:
(a) the instalment tax period; and
(b) the one or more preceding tax periods applying to you that fall within
the financial year;
as if they are a single tax period consisting of the whole of the financial
year.
(2) This section has effect in addition to, and does not limit the scope
of, section 31-15 (which is about the form and contents of GST
returns).
(1) If you are a *GST instalment payer,
you must, for each *instalment tax period
applying to you, pay to the Commissioner an amount (your GST
instalment) for each *GST instalment
quarter of the instalment tax period.
Note 1: GST instalments are worked out under
Subdivision 162-C.
Note 2: Entities covered by section 162-80 only pay GST
instalments on the last 2 GST instalment quarters.
(2) These are the GST instalment quarters for an
*instalment tax period:
(a) the 3 months ending on 30 September during the period;
(b) the 3 months ending on 31 December during the period;
(c) the 3 months ending on 31 March during the period;
(d) the 3 months ending on 30 June during the period.
(3) However, if the *instalment tax
period is only part of a *financial year, any 3
month periods referred to in subsection (2) that do not form part of the
instalment tax period are not GST instalment quarters of the instalment tax
period.
(4) You must pay your *GST instalment to
the Commissioner as follows:
|
When GST instalments must be paid |
||
|---|---|---|
|
Item |
If the GST instalment quarter ends on this day ... |
Pay the GST instalment to the Commissioner on or before this
day: |
|
1 |
30 September |
the following 28 October |
|
2 |
31 December |
the following 28 February |
|
3 |
31 March |
the following 28 April |
|
4 |
30 June |
the following 28 July |
Note: Section 255-10 in Schedule 1 to the
Taxation Administration Act 1953 allows the Commissioner to defer the
time for payment of the GST instalment.
(5) You may pay by *electronic payment
any *GST instalments payable by you. Any
amounts of a GST instalment that you do not pay by electronic payment must be
paid in the manner determined in writing by the Commissioner.
If:
(a) you are required to pay a *GST
instalment; and
(b) the Commissioner requires you to give a notice relating to the GST
instalment;
you must give the notice to the Commissioner, in the
*approved form, on or before the day on which
you are required to pay the GST instalment.
(1) If:
(a) you are a *GST instalment payer for
an *instalment tax period; and
(b) subsection (2) applies to you;
section 162-70 has effect as if you are only required to pay
*GST instalments for the last 2
*GST instalment quarters for the instalment tax
period.
(2) This subsection applies to you if:
(a) both of the following conditions are satisfied:
(i) you are carrying on a *primary
production business in an *income year
corresponding to, or ending during, the
*instalment tax period;
(ii) the *assessable income that was
*derived from, or resulted from, a primary
production business that you carried on in the
*base year exceeded the amount of so much of
your deductions in that year that are reasonably related to that income;
or
(b) both of the following conditions are satisfied:
(i) you are a *special professional in an
income year corresponding to, or ending during, the instalment tax
period;
(ii) your *assessable professional income
in the base year exceeded the amount of so much of your deductions in that year
that are reasonably related to that income.
(1) If any of the following occurs:
(a) a *GST instalment payer who is an
individual dies;
(b) a GST instalment payer ceases to
*carry on any
*enterprise;
(c) a GST instalment payer’s
*registration is cancelled;
during an *instalment tax period applying
to the GST instalment payer, the instalment tax period is not affected by the
death, cessation or cancellation.
(2) However, any requirement to pay *GST
instalments for a *GST instalment quarter of
the *instalment tax period does not apply if
the GST instalment quarter commences after:
(a) the death or cessation occurred; or
(b) the cancellation took effect.
(3) This section has effect despite sections 27-40 (which is about an
entity’s concluding tax period) and 162-70.
(4) However, this section does not affect the application of those
sections if:
(a) a *GST instalment payer who is an
individual becomes bankrupt; or
(b) a GST instalment payer that is not an individual goes into liquidation
or receivership or for any reason ceases to exist.
(1) If:
(a) a *GST instalment payer who is an
individual becomes bankrupt; or
(b) a GST instalment payer that is not an individual goes into liquidation
or receivership or for any reason ceases to exist;
the GST instalment payer must give the
*GST return, for the
*instalment tax period that ends because of the
bankruptcy, liquidation, receivership or cessation, to the
Commissioner:
(c) on or before the 21st day of the month following the end of the
instalment tax period; or
(d) within such further period as the Commissioner allows.
(2) If the *net amount for the
*instalment tax period is greater than zero,
the *GST instalment payer must pay the net
amount to the Commissioner on or before the 21st day of the month following the
end of the instalment tax period.
(3) This section has effect despite sections 162-60 (which is about
when GST instalment payers must give GST returns) and 162-110 (which is about
when GST instalment payers must pay net amounts).
(1) If you are:
(a) a *GST instalment payer;
and
(b) a *member of a
*GST group whose membership changes during an
*instalment tax period applying to
you;
the instalment tax period ends when the membership of the GST group
changes.
(2) The *representative member of the
*GST group must give the
*GST return for the
*instalment tax period to the
Commissioner:
(a) on or before the 21st day of the month following the end of the
instalment tax period; or
(b) within such further period as the Commissioner allows.
(3) If the *net amount for the
*instalment tax period is greater than zero,
the *representative member of the
*GST group must pay the net amount to the
Commissioner on or before the 21st day of the month following the end of the
instalment tax period.
(4) This section has effect despite sections 162-55 (which is about
tax periods for GST instalment payers), 162-60 (which is about when GST
instalment payers must give GST returns) and 162-110 (which is about when GST
instalment payers must pay net amounts).
If you fail to pay some or all of a *GST
instalment by the time by which the GST instalment is due to be paid, you are
liable to pay the *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 GST instalment 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 GST instalment;
(ii) general interest charge on any of the instalment.
If you are a *GST instalment payer, your
*net amount for an
*instalment tax period is the difference
between:
(a) the amount that, but for this section, would be your
*net amount under section 17-5 or 126-5
for the instalment tax period; and
(b) the sum of all of the *GST
instalments payable by you for the *GST
instalment quarters of the instalment tax period.
(1) If:
(a) you are a *GST instalment payer;
and
(b) the *net amount for an
*instalment tax period applying to you is
greater than zero;
you must pay the net amount to the Commissioner on or before the day on
which, under section 162-60, you are required to give to the Commissioner
your *GST return for the instalment tax
period.
(2) This section has effect despite sections 33-3 and 33-5 (which are
about when payments of net amounts are made).
(1) If you are a *GST instalment payer,
your *GST instalments for the
*GST instalment quarters of an
*instalment tax period applying to you are
worked out under subsections (2) and (3).
(2) Your *GST instalment for the first
*GST instalment quarter is whichever of the
following you choose:
(a) your *notified instalment amount for
the GST instalment quarter; or
(b) your *varied instalment amount for
the GST instalment quarter.
(3) Your *GST instalment for any other
*GST instalment quarter is:
(a) if you have a *notified instalment
amount for the GST instalment quarter—whichever of the following you
choose:
(i) your notified instalment amount for the GST instalment quarter;
or
(ii) your *varied instalment amount for
the GST instalment quarter; or
(b) if you do not have a notified instalment amount for the GST
instalment quarter—whichever of the following you choose:
(i) 25% of your *estimated annual GST
amount relating to the preceding GST instalment quarter; or
(ii) your varied instalment amount for the GST instalment
quarter.
Note: Subsection 162-135(2) sets out when you will not have
a notified instalment amount for a GST instalment quarter.
(1) Your notified instalment amount for a
*GST instalment quarter is the amount that
is:
(a) worked out by the Commissioner; and
(b) notified by the Commissioner to you before the day on which the
*GST instalment is due.
(2) However, the Commissioner is not to work out or notify a
*notified instalment amount for a
*GST instalment quarter if you had a
*varied instalment amount for an earlier GST
instalment quarter of the same *instalment tax
period.
(1) You may, by notifying the Commissioner in the
*approved form, substitute another amount
for:
(a) your *notified instalment amount for
a *GST instalment quarter; or
(b) if paragraph 162-130(3)(b) applies to a GST instalment
quarter—your *GST instalment for the
preceding GST instalment quarter.
The amount substituted is your varied instalment amount for
the GST instalment quarter.
(2) The amount substituted must not be less than zero.
(3) You must give the notice to the Commissioner on or before the day on
which the *GST instalment for the
*GST instalment quarter is due.
(4) You must include in the notice an estimate of your
*annual GST liability relating to the
*instalment tax period in question. This
estimate is your estimated annual GST amount relating to the
*GST instalment quarter.
Note: You may be liable to penalty under
Subdivision 162-D if your variation of the notified instalment amount is
too much of an underestimate of your total GST liability.
(5) However, if paragraph 162-130(3)(b) applies to a
*GST instalment quarter but you do not, under
subsection (1) of this section, substitute another amount by notifying the
Commissioner in the *approved form:
(a) your varied instalment amount for the GST instalment
quarter is 25% of your *estimated annual GST
amount relating to the preceding GST instalment quarter; and
(b) your estimated annual GST amount relating to the GST
instalment quarter is your *estimated annual
GST amount relating to the preceding GST instalment quarter.
(1) Your annual GST liability, for an
*instalment tax period that is a
*financial year, is the amount that would be
your *net amount for the period if it were not
reduced under section 162-105.
(2) Your annual GST liability, for an
*instalment tax period that is only part of a
*financial year, is the sum of:
(a) the amount that would be your *net
amount for the period if it were not reduced under section 162-105;
and
(b) your *early net amounts for the
financial year (subtracting any of those amounts that are less than
zero).
(3) Your early net amounts for the
*financial year are your
*net amounts for any tax periods
that:
(a) started, or would but for section 27-35 have started, at the
start of or during that financial year; and
(b) ended before the start of the
*instalment tax period applying to you that
forms part of that financial year.
Note: Under section 27-35, the start or finish of a 3
month tax period could vary by up to 7 days from the start or finish of a normal
quarter.
There are 3 circumstances where a penalty can arise if a varied instalment
amount is too low:
(a) your payments are too low a proportion of your annual GST liability
(see section 162-175);
(b) your estimated annual GST amount is too low a proportion of your
annual GST liability (see section 162-180);
(c) the varied instalment amount is too low a proportion of your estimated
annual GST amount (see section 162-185).
The penalty is based on the general interest charge rate, and the machinery
provisions of Division 298 in Schedule 1 to the Taxation
Administration Act 1953 apply.
Note: This section is an explanatory
section.
(1) You are liable to pay a penalty, for a
*GST instalment quarter of an
*instalment tax period applying to you, if you
have a *varied instalment amount for the GST
instalment quarter, and:
(a) if the instalment tax period is a
*financial year—the sum of your
*GST instalments for all the GST instalment
quarters of the instalment tax period is less than 85% of your
*annual GST liability for the instalment tax
period; or
(b) if the instalment tax period is only part of a financial
year—the sum of:
(i) your *GST instalments for all the GST
instalment quarters of the instalment tax period; and
(ii) your *early net amounts for the
financial year (subtracting any of those amounts that are less than
zero);
is less than 85% of your annual GST liability for the instalment tax
period.
(2) The amount of the penalty, for a particular day, is worked out by
applying the *general interest
charge:
(a) for each day in the period in section 162-190; and
(b) in the way set out in subsection 8AAC(4) of the Taxation
Administration Act 1953;
to your *GST instalment shortfall, under
this section, for the *GST instalment
quarter.
(3) Your GST instalment shortfall, under this section, for
the *GST instalment quarter is the amount
worked out as follows:
where:
GST already payable is the sum of:
(a) the *varied instalment amount;
and
(b) all your other *GST instalments (if
any) for earlier *GST instalment quarters of
the *instalment tax period in question;
and
(c) if the instalment tax period is only part of a
*financial year—your
*early net amounts for the financial year
(subtracting any of those amounts that are less than zero).
(4) However, if:
(a) the *GST instalment quarter is not
the first GST instalment quarter of the
*instalment tax period in question;
and
(b) you are liable for one or more penalties under this section in
relation to any of the earlier GST instalment quarters of the instalment tax
period;
then:
(c) your GST instalment shortfall, under this section, for
the *GST instalment quarter is the difference
between:
(i) the amount worked out using the formula in subsection (3);
and
(ii) the sum of all your GST instalment shortfalls for those earlier GST
instalment quarters; and
(d) if that sum is greater than the amount worked out using the formula in
subsection (3)—you are not liable to pay a penalty under this section
in relation to the GST instalment quarter.
(5) The appropriate percentage for a
*GST instalment quarter is:
(a) if the GST instalment quarter ends on 30 September—25%;
or
(b) if the GST instalment quarter ends on 31 December—50%;
or
(c) if the GST instalment quarter ends on 31 March—75%;
or
(d) if the GST instalment quarter ends on
30 June—100%.
(1) You are liable to pay a penalty, for a
*GST instalment quarter of an
*instalment tax period applying to you,
if:
(a) you have a *varied instalment amount
for the GST instalment quarter; and
(b) you are not liable to pay a penalty, for the GST instalment quarter,
under section 162-175; and
(c) your *estimated annual GST amount
relating to the GST instalment quarter is less than:
(i) 85% of your *annual GST liability for
the instalment tax period; or
(ii) if the GST instalment quarter ends on 30 September
2001—75% of your *annual GST liability
for the instalment tax period; and
(d) the varied instalment amount is less than or equal to 25% of your
annual GST liability for the instalment tax period.
(2) The amount of the penalty, for a particular day, is worked out by
applying the *general interest
charge:
(a) for each day in the period in section 162-190; and
(b) in the way set out in subsection 8AAC(4) of the Taxation
Administration Act 1953;
to your *GST instalment shortfall, under
this section, for the *GST instalment
quarter.
(3) Your GST instalment shortfall, under this section, for
the *GST instalment quarter is the amount
worked out as follows:
(4) However, if:
(a) the *GST instalment quarter is not
the first GST instalment quarter of the
*instalment tax period in question;
and
(b) you are liable for one or more penalties under this section in
relation to any of the earlier GST instalment quarters of the instalment tax
period;
then:
(c) your GST instalment shortfall, under this section, for
the *GST instalment quarter is the difference
between:
(i) the amount worked out using the formula in subsection (3);
and
(ii) the sum of all your GST instalment shortfalls for those earlier GST
instalment quarters; and
(d) if that sum is greater than the amount worked out using the formula in
subsection (3)—you are not liable to pay a penalty under this section
in relation to the GST instalment quarter.
(5) For the purpose of working out your
*GST instalment shortfall under this section,
your *estimated annual GST amount relating to
the *GST instalment quarter is taken to be the
amount worked out as follows, if the amount is less than that estimated annual
GST amount:
where:
GST already payable is the sum of:
(a) the *varied instalment amount in
question; and
(b) all your other *GST instalments (if
any) for earlier *GST instalment quarters of
the *instalment tax period in question;
and
(c) if the instalment tax period is only part of a
*financial year—your
*early net amounts for the financial year
(subtracting any of those amounts that are less than zero).
(1) You are liable to pay a penalty, for a
*GST instalment quarter of an
*instalment tax period applying to you,
if:
(a) you have a *varied instalment amount
for the GST instalment quarter; and
(b) you are not liable to pay a penalty, for the GST instalment quarter,
under section 162-175 or 162-180; and
(c) the amount worked out by multiplying your
*estimated annual GST amount relating to the
GST instalment quarter by the *appropriate
percentage for the GST instalment quarter exceeds the sum of:
(i) the varied instalment amount; and
(ii) all your other *GST instalments (if
any) for earlier GST instalment quarters of the
*instalment tax period in question;
and
(iii) if the instalment tax period is only part of a
*financial year—your
*early net amounts for the financial year
(subtracting any of those amounts that are less than zero).
(2) The amount of the penalty, for a particular day, is worked out by
applying the *general interest
charge:
(a) for each day in the period in section 162-190; and
(b) in the way set out in subsection 8AAC(4) of the Taxation
Administration Act 1953;
to your *GST instalment shortfall, under
this section, for the *GST instalment
quarter.
(3) Your GST instalment shortfall, under this section, for
the *GST instalment quarter is the amount of
the excess referred to in paragraph (1)(c).
You are liable to pay the penalty under this Subdivision for each day in
the period that:
(a) started at the beginning of the day by which the
*GST instalment, for the
*GST instalment quarter to which the charge
relates, was due to be paid; and
(b) finishes at the end of the day before which you must, under
section 162-110, pay to the Commissioner your
*net amount for the
*instalment tax period that includes that GST
instalment quarter.
(1) This section reduces your *GST
instalment shortfall, for a *GST instalment
quarter of an *instalment tax period applying
to you, if:
(a) you are liable to pay a penalty under section 162-175 or 162-180
for a *GST instalment quarter of an
*instalment tax period applying to you;
and
(b) for that or any other GST instalment quarter of an
*instalment tax period:
(i) you have a *notified instalment
amount that is less than 25% of your *annual
GST liability for the instalment tax period; or
(ii) you do not have a notified instalment amount, but the Commissioner is
satisfied that, if you had such a notified instalment amount, it would be less
than 25% of your annual GST liability for the instalment tax period.
(2) The *GST instalment shortfall is
reduced by the amount worked out as follows:
where:
notified and other amounts is the sum of:
(a) the *notified instalment amount, or,
if you do not have a notified instalment amount for the
*GST instalment quarter, the amount that the
Commissioner is satisfied would have otherwise been that notified instalment
amount; and
(b) for each of the earlier GST instalment quarters (if any) of the
*instalment tax period in question:
(i) the notified instalment amount; or
(ii) if you do not have a notified instalment amount for the
*GST instalment quarter—the amount that
the Commissioner is satisfied would have otherwise been that notified instalment
amount; and
(c) if the instalment tax period is only part of a
*financial year—your
*early net amounts for the financial year
(subtracting any of those amounts that are less than zero).
(3) If, because of the reduction, your
*GST instalment shortfall for the
*GST instalment quarter is zero or less than
zero, you are not liable to pay a penalty under section 162-175 or 162-180
(as the case requires) in relation to the GST instalment quarter.
(4) If both this section and section 195-200 apply to a particular
*GST instalment shortfall, apply this section
to the shortfall before applying section 195-200.
(1) This section reduces your *GST
instalment shortfall, for a *GST instalment
quarter of an *instalment tax period applying
to you, if:
(a) you pay to the Commissioner a *GST
instalment for a later GST instalment quarter of the instalment tax period;
and
(b) that GST instalment exceeds 25% of your
*annual GST liability for the instalment tax
period.
The amount of that excess is called the top up.
(2) The *GST instalment shortfall is
reduced by applying so much of the top up as does not exceed the GST instalment
shortfall.
(3) However, if some of the top up has already been applied (under any
other application or applications of this section) to reduce a
*GST instalment shortfall for a different
*GST instalment quarter of the
*instalment tax period, the GST instalment
shortfall is reduced by applying so much of the top up as has not already been
applied, and does not exceed the GST instalment shortfall.
(4) The reduction under subsection (2) has effect for each day in the
period that:
(a) started at the beginning of the day on which you paid the
*GST instalment for the later
*GST instalment quarter; and
(b) finishes at the end of the day before which you must, under
section 162-110, pay to the Commissioner your
*net amount for the
*instalment tax period.
For the avoidance of doubt, this Subdivision does not have the effect of
making you liable to pay the *general interest
charge.
30 Section 188-5 (at the end of the
table)
Add:
|
5 |
Instalment turnover threshold |
whether you can elect to pay GST by instalments (see subsection
162-5(2)) |
31 Paragraph 188-10(3)(a) (first
occurring)
Reletter as paragraph (aa).
32 Before paragraph
188-10(3)(b)
Insert:
(ab) the *instalment turnover
threshold;
33 Section 195-1
Insert:
annual GST liability, for an
*instalment tax period, has the meaning given
by section 162-145.
34 Section 195-1
Insert:
average income has the meaning given by subsection 392-45(1)
of the *ITAA 1997.
35 Section 195-1
Insert:
appropriate percentage, for a
*GST instalment quarter, has the meaning given
by subsection 162-175(5).
36 Section 195-1
Insert:
assessable income has the meaning given by subsection
995-1(1) of the *ITAA 1997.
37 Section 195-1
Insert:
assessable professional income has the meaning given by
subsection 405-20(1) of the *ITAA
1997.
38 Section 195-1
Insert:
base year has the meaning given by sections 45-320 and
45-470 in Schedule 1 to the Taxation Administration Act
1953.
39 Section 195-1
Insert:
current GST lodgment record has the meaning given by
section 162-10.
40 Section 195-1
Insert:
derived has a meaning affected by subsection 6-5(4) of the
*ITAA 1997.
41 Section 195-1
Insert:
early net amount has the meaning given by subsection
162-145(3).
42 Section 195-1
Insert:
estimated annual GST amount has the meaning given by
subsection 162-140(4) and paragraph 162-140(5)(b).
43 Section 195-1
Insert:
general interest charge means the charge worked out under
Division 1 of Part IIA of the Taxation Administration Act
1953.
44 Section 195-1
Insert:
GST instalment has the meaning given by subsection
162-70(1).
45 Section 195-1
Insert:
GST instalment payer has the meaning given by
section 162-50.
46 Section 195-1
Insert:
GST instalment quarter has the meaning given by subsections
162-70(2) and (3).
47 Section 195-1
Insert:
GST instalment shortfall, for a
*GST instalment quarter in relation to which
you are liable to pay a penalty under Subdivision 162-D, means:
(a) if the penalty is payable under section 162-175—the amount
worked out under subsection 162-175(3) or paragraph 162-175(4)(c) (whichever is
applicable); or
(b) if the penalty is payable under section 162-180—the amount
worked out under subsection 162-180(3) or paragraph 162-180(4)(c) (whichever is
applicable); or
(c) if the penalty is payable under section 162-185—the amount
worked out under subsection 162-185(3).
Note: The amount of a GST instalment shortfall can be
reduced under section 162-195 or 162-200 (or both).
48 Section 195-1
Insert:
instalment tax period has the meaning given by subsection
162-55(3).
49 Section 195-1
Insert:
instalment turnover threshold has the meaning given by
subsection 162-5(2).
50 Section 195-1 (definition of net
amount)
Omit “section 17-5 and 126-5”, substitute
“sections 17-5, 126-5 and 162-105”.
51 Section 195-1
Insert:
net refund position has the meaning given by subsection
162-5(3).
52 Section 195-1
Insert:
notified instalment amount has the meaning given by
subsection 162-135(1).
53 Section 195-1
Insert:
primary production business has the meaning given by
subsection 995-1(1) of the *ITAA
1997.
54 Section 195-1
Insert:
special professional has the meaning given by subsection
405-25(1) of the *ITAA 1997.
55 Section 195-1
Insert:
varied instalment amount has the meaning given by subsection
162-140(1) and paragraph 162-140(5)(a).
Income Tax Assessment Act
1997
56 After paragraph
25-5(1)(c)
Insert:
(ca) a penalty under Subdivision 162-D of the
*GST Act; or
57 At the end of
section 26-5
Add:
(2) This section does not apply to an amount payable, by way of penalty,
under Subdivision 162-D of the *GST
Act.
Note: See paragraph 25-5(1)(c) for the deductibility of
penalties under Subdivision 162-D of the GST Act.
Taxation Administration
Act 1953
58 Subsection 8AAB(5) (before table
item 1A)
Insert:
|
1AA |
162-100 |
A New Tax System (Goods and Services Tax) Act 1999 |
59 Subsection 22(1)
After “net amount”, insert “, or any part of your net
amount,”.
60 Subsection 62(2) (after table
item 37A)
Insert:
|
37B |
disallowing an election to pay GST by instalments |
subsection 162-15(2) |
|
37C |
refusing a request to be allowed to make an election on a specified
day |
subsection 162-25(3) |
61 Section 298-5 in
Schedule 1
Repeal the section, substitute:
This Division applies if:
(a) an administrative penalty is imposed on an entity by another Division
in this Part; or
(b) a penalty is imposed on an entity by Subdivision 162-C of the
*GST Act.
62 Application
(1) The amendments made by this Part of this Schedule (other than the
amendments made by items 56 and 57) apply, and are taken to have applied,
in relation to net amounts for tax periods starting, or that started, on or
after 1 July 2000.
(2) The amendments made by items 56 and 57 apply to assessments for
the 2000-2001 income year and later income years.
Part 3—Substituted
accounting periods
A New Tax System (Goods
and Services Tax) Act 1999
63 Paragraph 27-15(1)(c)
Omit “law; or”, substitute “law.”.
64 Paragraph 27-15(1)(d)
Repeal the paragraph.
65 Subsection 27-15(2A)
Repeal the subsection.
66 Application
(1) The amendments made by this Part of this Schedule apply in relation to
tax periods starting on or after 1 July 2001.
(2) Any determination made under section 27-15 of the A New Tax
System (Goods and Services Tax) Act 1999 that:
(a) is in force immediately before 1 July 2001; and
(b) could not have been made on any ground other than the ground referred
to in paragraph 27-15(1)(d) of that Act;
is taken, on and after 1 July 2001, to have been revoked with effect
from the start of that day.
A New Tax System (Goods
and Services Tax) Act 1999
67 After section 17-15
Insert:
(1) The Commissioner may make a determination that, in the circumstances
specified in the determination, a *net amount
for a tax period may be worked out to take account of other matters in the way
specified in the determination.
(2) The matters must relate to correction of errors made in working out
*net amounts for the immediately preceding tax
period.
(3) If those circumstances apply in relation to a tax period applying to
you, you may work out your *net amount for the
tax period in that way.
68 Application
The amendment made by this Part of this Schedule applies, and is taken to
have applied, in relation to net amounts for tax periods starting, or that
started, on or after 1 July 2000.
Part 1—Paying
instalments using GDP-adjusted notional tax
Taxation Administration
Act 1953
1 Section 45-1 in
Schedule 1
Repeal the section, substitute:
If you have business or investment income, you must pay instalments towards
your income tax liability. However, you do not have to do so unless the
Commissioner has given you an instalment rate. Generally, instalments are
payable for each quarter of your income year.
Your instalments may be based on your previous year’s income tax
liability and notified to you by the Commissioner, or on your estimate of your
income tax liability for the current income year. (In this case, you are a
quarterly payer who pays on the basis of GDP adjusted notional tax). Generally,
four quarterly instalments are payable annually on this basis, but you may only
be required to pay two.
If you are not eligible to pay instalments on that basis, or if you are so
eligible but choose not to do so, you must work out the amount of your quarterly
instalment by multiplying your instalment income for an instalment quarter by
the rate the Commissioner gave you, or by a rate you choose yourself. (In this
case, you are a quarterly payer who pays on the basis of instalment
income).
If you are not registered for GST purposes, you may be able to choose to
pay an annual instalment after the end of the income year. (In this case, you
are an annual payer).
The amount of annual instalment can be your instalment income for the
income year multiplied by the rate the Commissioner gave you, or an amount based
on your previous year’s income tax liability and notified to you by the
Commissioner, or your own estimate of your income tax liability for the income
year.
2 Subsection 45-5(2) in
Schedule 1
Omit “quarter. (There are limited exceptions to this).”,
substitute “quarter if you are required or choose to work out your
instalment on this basis. However, you may be able to pay an amount notified by
the Commissioner. (There are exceptions to this).”.
3 Subsection 45-5(5) in
Schedule 1
Omit “The”, substitute “If you are a
*quarterly payer who pays on the basis of
instalment income, the”.
4 Section 45-20 in Schedule 1
(heading)
Repeal the heading, substitute:
5 Sections 45-50 and 45-55 in
Schedule 1
Repeal the sections, substitute:
(1) Subject to subsection (4), you are liable to pay an instalment
for an *instalment quarter in an income year
if, at the end of that instalment quarter, you are:
(a) a *quarterly payer who pays 4
instalments annually on the basis of GDP-adjusted notional tax; or
(b) a *quarterly payer who pays on the
basis of instalment income.
(2) Subject to subsection (4), you are liable to pay an instalment
for an *instalment quarter that is the third or
fourth instalment quarter in an income year if, at the end of that quarter, you
are a *quarterly payer who pays 2 instalments
annually on the basis of GDP-adjusted notional tax.
(3) Subject to subsection (4), you are liable to pay an instalment
for an income year if, at the end of the
*starting instalment quarter in that year, you
are an *annual payer.
Note: You may be liable to pay both an instalment for an
income year and instalments for instalment quarters in that income year. See
section 45-150.
(4) You are only liable to pay an instalment for an
*instalment quarter or an income year
if:
(a) the Commissioner has given you an instalment rate; and
(b) the Commissioner has not withdrawn your instalment rate before the end
of that quarter or year.
6 Section 45-60 in
Schedule 1
Repeal the section, substitute:
For an income year (whether it ends on 30 June or not), the
following are the instalment quarters:
(a) your first instalment quarter consists of the first 3
months of the income year; and
(b) your second instalment quarter consists of the fourth,
fifth and sixth months of the income year; and
(c) your third instalment quarter consists of the seventh,
eighth and ninth months of the income year; and
(d) your fourth instalment quarter consists of the tenth,
11th and 12th months of the income year.
You are not a deferred BAS payer
(1) Subject to subsection (2), if you are:
(a) a *quarterly payer who pays on the
basis of instalment income; or
(b) a *quarterly payer who pays 4
instalments annually on the basis of GDP-adjusted notional tax; or
(c) a *quarterly payer who pays 2
instalments annually on the basis of GDP-adjusted notional tax;
the instalment for an *instalment quarter
that you are liable to pay is due on or before the 21st day of the month after
the end of that quarter.
Note: You are only liable to pay instalments for the third
and fourth instalment quarters in an income year if you are a quarterly payer
who pays 2 instalments annually on the basis of GDP-adjusted notional tax. See
section 45-50.
You are a deferred BAS payer
(2) If:
(a) subsection (1) would, but for this subsection, have applied to
you in relation to an *instalment quarter;
but
(b) you are a *deferred BAS payer on the
21st day of the month after the end of that quarter;
the instalment for that quarter is instead due on or before:
(c) the 28th day of the month after the end of that quarter unless all or
a part of a December falls within the last month of that quarter; or
(d) if all or a part of a December falls within the last month of that
quarter—the next 28 February.
Note: You are only liable to pay instalments for the third
and fourth instalment quarters in an income year if you are a quarterly payer
who pays 2 instalments annually on the basis of GDP-adjusted notional tax. See
section 45-50.
7 Section 45-65 in
Schedule 1
Repeal the section.
8 Subsection 45-90(1) in Schedule 1
(note)
Omit all the words after “If the Commissioner does so,”,
substitute “you cease to be liable to pay instalments (even if you have
chosen a rate under section 45-205). See subsection
45-50(5).”.
9 Subsection 45-90(2) in
Schedule 1
Omit all the words from and including “another one”,
substitute:
another one:
(a) you are again liable to pay instalments in accordance with
section 45-50; and
(b) this Division has effect as if the Commissioner has given you an
instalment rate for the first time.
10 Subsection 45-110(1) in
Schedule 1
After “follows”, insert “if, at the end of that
instalment quarter, you are a *quarterly payer
who pays on the basis of instalment income”.
11 Section 45-110 in Schedule 1
(heading)
Repeal the heading, substitute:
12 Subsection 45-112(1) in
Schedule 1
After “*quarterly payer who pays on
the basis of GDP-adjusted notional tax”, insert “who is liable to
pay an instalment for that quarter”.
13 Subdivision 45-D in Schedule 1
(heading)
Repeal the heading, substitute:
14 Sections 45-125 and 45-130 in
Schedule 1
Repeal the sections, substitute:
(1) You are a quarterly payer who pays on the basis of instalment
income if:
(a) at the end of the *starting
instalment quarter in an income year, you are not a
*quarterly payer who pays on the basis of
GDP-adjusted notional tax and you are not an
*annual payer; or
(b) but for this section, you would be a quarterly payer who pays on the
basis of GDP-adjusted notional tax at the end of the starting instalment quarter
in an income year but you choose to pay quarterly instalments on the basis of
your instalment income.
Note: The entity must make the choice mentioned in
paragraph (b) in accordance with subsection (4).
(2) The starting instalment quarter in an income year (the
current year) is:
(a) if the Commissioner gives you an instalment rate for the first time
during an *instalment quarter in the current
year—that instalment quarter (even if it is not the first instalment
quarter in the current year); or
(b) if the Commissioner has given you an instalment rate during a previous
income year and your instalment rate has not been withdrawn—the first
instalment quarter in the current year; or
(c) if you become liable to pay an instalment for an instalment quarter in
the current year because of subsection 45-150(2)—that instalment quarter
(even if it is not the first instalment quarter in the current year).
How and when you become such a payer
(3) You become a *quarterly payer who
pays on the basis of instalment income just before the end of the
*starting instalment quarter if
paragraph (1)(a) or (b) is satisfied.
(4) You must make the choice mentioned in paragraph (1)(b) by
notifying the Commissioner in the *approved
form on or before the day on which the instalment for that quarter is due
(disregarding subsection 45-112(3)).
How and when you stop being such a payer
(5) If you are a *quarterly payer who
pays on the basis of instalment income because of paragraph (1)(a), you
stop being such a payer at the start of the first
*instalment quarter in the next income
year if, at the end of that quarter, you become:
(a) a *quarterly payer who pays on the
basis of GDP-adjusted notional tax; or
(b) an *annual payer.
(6) If you are a *quarterly payer who
pays on the basis of instalment income because of paragraph (1)(b), you
stop being such a payer at the start of the first
*instalment quarter in the next income
year if:
(a) you become an *annual payer at the
end of that quarter; or
(b) both of the following conditions apply:
(i) you choose not to be a quarterly payer who pays on the basis of
instalment income;
(ii) you become a *quarterly payer who
pays on the basis of GDP-adjusted notional tax at the end of that
quarter.
(7) You may only make the choice mentioned in paragraph (6)(b) if you
would otherwise satisfy paragraph 45-130(1)(a), (b) or (c) at the end of that
quarter. You must make that choice by notifying the Commissioner in the
*approved form on or before the day on which
the instalment for that quarter is due (disregarding subsection
45-112(3)).
(1) You are a quarterly payer who pays on the basis of GDP-adjusted
notional tax if, at the end of the
*starting instalment quarter in an income
year:
(a) you are an individual who is not an
*annual payer or a
*quarterly payer who pays on the basis of
instalment income; or
(b) you are a *full self-assessment
taxpayer:
(i) that is not an *annual payer or a
*quarterly payer who pays on the basis of
instalment income; and
(ii) your base assessment instalment income (within the meaning of
section 45-320) for the *base year is $1
million or less; or
(c) you satisfy all of the following conditions:
(i) you are a *full self-assessment
taxpayer whose base assessment instalment income (within the meaning of
section 45-320) for the *base year is more
than $1 million;
(ii) you are not an annual payer, but you satisfy the conditions set out
in subsection 45-140(1) for an annual payer;
(iii) you are not a quarterly payer who pays on the basis of instalment
income.
Note: Paragraph (a) may apply to you if you are a
multi-rate trustee. See section 45-468.
How and when you become such a payer
(2) You become such a payer just before the end of the
*starting instalment quarter if
paragraph (1)(a), (b) or (c) is satisfied.
How and when you stop being such a payer
(3) You stop being a *quarterly payer who
pays on the basis of GDP-adjusted notional tax at the start of the first
*instalment quarter in the next income
year if you fail to satisfy paragraph (1)(a), (b) or (c) at the end of that
quarter.
(4) In addition, you stop being such a payer at the start of the first
*instalment quarter in the next income
year if, at the end of that quarter, you become:
(a) a *quarterly payer who pays on the
basis of instalment income; or
(b) an *annual payer.
(1) You are a quarterly payer who pays 4 instalments annually on the
basis of GDP-adjusted notional tax if, at the end of the
*starting instalment quarter in an income
year:
(a) you satisfy the conditions to be a
*quarterly payer who pays on the basis of
GDP-adjusted notional tax under section 45-130; and
(b) you do not satisfy the conditions to be a
*quarterly payer who pays 2 instalments
annually on the basis of GDP-adjusted notional tax under
section 45-134.
How and when you become such a payer
(2) You become such a payer just before the end of the
*starting instalment quarter if
paragraphs (1)(a) and (b) are satisfied.
How and when you stop being such a payer
(3) You stop being a *quarterly payer who
pays 4 instalments annually on the basis of GDP-adjusted notional tax at the
start of the first *instalment quarter in the
next income year if you fail to satisfy paragraphs (1)(a) and (b) at
the end of that quarter.
(4) In addition, you stop being such a payer at the start of the first
*instalment quarter in the next income
year if, at the end of that quarter, you become:
(a) a *quarterly payer who pays on the
basis of instalment income; or
(b) an *annual payer.
(1) You are a quarterly payer who pays 2 instalments annually on the
basis of GDP-adjusted notional tax if, at the end of the
*starting instalment quarter in an income year,
you are an individual that is a *quarterly
payer who pays on the basis of GDP-adjusted notional tax and one or more of the
following paragraphs apply:
(a) both of the following conditions are satisfied:
(i) you are carrying on a *primary
production business in the income year;
(ii) the assessable income that was
*derived from, or resulted from, a primary
production business that you carried on in the
*base year exceeded the amount of so much of
your deductions in that year that are reasonably related to that
income;
(b) both of the following conditions are satisfied:
(i) you are a *special professional in
the income year;
(ii) your *assessable professional income
in the base year exceeded the amount of so much of your deductions in that year
that are reasonably related to that income.
Note: This section may apply to you if you are a multi-rate
trustee. See section 45-468.
How and when you become such a payer
(2) You become such a payer just before the end of the
*starting instalment quarter if
subsection (1) is satisfied.
How and when you stop being such a payer
(3) You stop being a *quarterly payer who
pays 2 instalments annually on the basis of GDP-adjusted notional tax at the
start of the first *instalment quarter in the
next income year if you fail to satisfy subsection (1) at the end of
that quarter.
(4) In addition, you also stop being such a payer at the start of the
first *instalment quarter in the next
income year if, at the end of that quarter, you become:
(a) a *quarterly payer who pays on the
basis of instalment income; or
(b) an *annual payer.
15 Subsection 45-140(1) in
Schedule 1
Omit “first *instalment quarter in
an income year for which you would otherwise be liable to pay a quarterly
instalment”, substitute “*starting
instalment quarter”.
16 Subsection 45-140(3) in
Schedule 1
Repeal the subsection, substitute:
(3) You become an annual payer just before the end of the
*starting instalment quarter if:
(a) you satisfy the conditions in subsection (1); and
(b) you choose to pay instalment annually.
17 Subsection 45-150(2) in
Schedule 1
Repeal the subsection, substitute;
(2) You must pay an instalment for that or a later
*instalment quarter if subsection 45-50(1) or
(2) requires you to do so.
18 Subsection 45-155(1) in
Schedule 1
Repeal the subsection, substitute:
(1) You stop being an *annual payer at
the start of the first *instalment quarter in
an income year (the current year) if:
(a) after the end of the first instalment quarter in the previous income
year and before the end of the first instalment quarter in the current year, the
Commissioner notifies you of your *notional
tax, and it is $8,000 or more; or
(b) you
choose to pay instalments quarterly instead of annually.
19 After subsection 45-155(1) in
Schedule 1
Insert:
(1A) You must make the choice by notifying the Commissioner, in the
*approved form, on or before the day on which
the instalment for the first *instalment
quarter for the current year would otherwise be due (disregarding subsection
45-112(3)).
20 Subsection 45-155(3) in
Schedule 1
Omit “the income year”, substitute “the previous income
year”.
21 Subsection 45-155(4) in
Schedule 1
Repeal the subsection, substitute:
(4) You may again become an *annual payer
at the end of the first *instalment quarter in
a later income year if:
(a) at that time, you again satisfy the conditions in section 45-140;
and
(b) you again choose under that section to pay annually.
22 Subsection 45-180(2) in
Schedule 1
Repeal the subsection, substitute:
(2) You must pay an instalment for the first
*instalment quarter in the next income
year and instalments for later instalment quarters if subsection 45-50(1) or (2)
requires you to do so.
23 Subdivision 45-F in Schedule 1
(heading)
Repeal the heading, substitute:
24 Section 45-200 in
Schedule 1
Omit “*quarterly payer”,
substitute “*quarterly payer who pays on
the basis of instalment income at the end of an
*instalment quarter”.
25 Paragraph 45-215(1)(b) in
Schedule 1
Repeal the paragraph, substitute:
(b) that rate is lower than the instalment rate you used to work out the
amount of your instalment for the previous instalment quarter (if any) in the
same income year; and
26 Section 45-400 in
Schedule 1
Omit all the words before the table, substitute:
(1) This section applies if you are a
*quarterly payer who pays 4 instalments
annually on the basis of GDP-adjusted notional tax at the end of an
*instalment quarter in an income year (the
current year).
(2) The amount of your instalment for that
*instalment quarter which the Commissioner must
work out and notify to you under paragraph 45-112(1)(a) is:
(a) the amount worked out in accordance with the table if it is positive;
or
(b) otherwise—nil.
27 Section 45-400 in Schedule 1
(heading)
Repeal the heading, substitute:
28 At the end of section 45-400 in
Schedule 1
Add:
Note: Your instalments for earlier instalment quarters may
have been worked out on a basis other than GDP-adjusted notional
tax.
29 After section 45-400 in
Schedule 1
Insert:
(1) This section applies if you are a
*quarterly payer who pays 2 instalments
annually on the basis of GDP-adjusted notional tax at the end of an
*instalment quarter in an income
year.
(2) If you are liable to pay an instalment for that
*instalment quarter, the amount of that
instalment which the Commissioner must work out and notify to you under
paragraph 45-112(1)(a) is:
(a) the amount worked out in accordance with this section if it is
positive; or
(b) otherwise—nil.
Amount of instalment
(3) Subject to subsections (4) to (6), the amount of that instalment
is worked out in accordance with the following table:
|
Amount of quarterly instalment |
||
|---|---|---|
|
Item |
If the *instalment
quarter is: |
the amount of the instalment is: |
|
1 |
the third *instalment quarter in the
income year |
75% of your *GDP-adjusted notional
tax |
|
2 |
the fourth *instalment quarter in the
income year |
100% of your *GDP-adjusted notional tax,
reduced by your instalment for earlier instalment quarter in that income
year |
You receive instalment rate for the first time in second
quarter
(4) If the Commissioner gives you an instalment rate for the first time
during the second *instalment quarter in that
income year, the amount of the instalment is worked out in accordance with the
following table:
|
Amount of quarterly instalment |
||
|---|---|---|
|
Item |
If the *instalment
quarter is: |
the amount of the instalment is: |
|
1 |
the third *instalment quarter in the
income year |
50% of your *GDP-adjusted notional
tax |
|
2 |
the fourth *instalment quarter in the
income year |
75% of your *GDP-adjusted notional tax,
reduced by your instalment for the earlier instalment quarter in that income
year |
You receive instalment rate for the first time in third
quarter
(5) If the Commissioner first gives you an instalment rate during the
third *instalment quarter in that income year,
the amount of the instalment is worked out in accordance with the following
table:
|
Amount of quarterly instalment |
||
|---|---|---|
|
Item |
If the *instalment
quarter is: |
the amount of the instalment is: |
|
1 |
the third *instalment quarter in the
income year |
25% of your *GDP-adjusted notional
tax |
|
2 |
the fourth *instalment quarter in the
income year |
50% of your *GDP-adjusted notional tax,
reduced by your instalment for the earlier instalment quarter in that income
year |
You receive instalment rate for the first time in fourth
quarter
(6) If the Commissioner first gives you an instalment rate during the
fourth *instalment quarter in that income year,
the amount of the instalment must be equal to 25% of your
*GDP-adjusted notional tax.
30 Subsection 45-405(1) in
Schedule 1
After “45-400”, insert “or 45-402 (as
appropriate)”.
31 Before subsection 45-410(1) in
Schedule 1
Insert:
(1A) This section applies if you are a
*quarterly payer who pays 4 instalments
annually on the basis of GDP-adjusted notional tax at the end of an
*instalment quarter in an income year (the
current year).
32 Section 45-410 in Schedule 1
(heading)
Repeal the heading, substitute:
33 Subsection 45-410(1) in
Schedule 1
Omit “an *instalment”,
substitute “that
*instalment”.
34 After section 45-410 in
Schedule 1
Insert:
(1) This section applies if you are a
*quarterly payer who pays 2 instalments
annually on the basis of GDP-adjusted notional tax at the end of an
*instalment quarter in an income
year.
(2) If you are liable to pay an instalment for that quarter, the amount of
that instalment for the purposes of paragraph 45-112(1)(b) or (c) is:
(a) the amount worked out, in accordance with this section, on the basis
of the estimate of your *benchmark tax for that
income year that section 45-415 requires to be used, if that amount is
positive; or
(b) otherwise—nil.
Note: If the amount is negative, you can claim a credit
under section 45-420.
Instalment for third quarter
(3) Subject to subsections (5) to (9), the amount of the instalment
for the third *instalment quarter in that year
is 75% of the estimate of your *benchmark
tax.
Instalment for fourth quarter
(4) Subject to subsections (5) to (9), the amount of the instalment
for the fourth *instalment quarter in that year
is worked out by subtracting:
(a) the amount of your instalment for the earlier instalment quarter in
that year;
from:
(b) the estimate of your *benchmark
tax.
You receive instalment rate for the first time in second
quarter
(5) If the Commissioner gives you an instalment rate for the first time
during the second *instalment quarter in the
income year, the amount of the instalment for the third
*instalment quarter in that year is 50% of the
estimate of your *benchmark tax.
(6) If the Commissioner gives you an instalment rate for the first time
during the second *instalment quarter in the
income year, the amount of the instalment for the fourth instalment quarter in
that year is worked out by subtracting:
(a) the amount of your instalment for the earlier instalment quarter in
that year;
from:
(b) 75% of the estimate of your
*benchmark tax.
You receive instalment rate for the first time in third
quarter
(7) If the Commissioner gives you an instalment rate for the first time
during the third *instalment quarter in the
income year, the amount of the instalment for the third instalment quarter in
that year is 25% of the estimate of your
*benchmark tax.
(8) If the Commissioner gives you an instalment rate for the first time
during the third *instalment quarter in the
income year, the amount of the instalment for the fourth instalment quarter in
that year is worked out by subtracting:
(a) the amount of your instalment for the earlier instalment quarter in
that year;
from:
(b) 50% of the estimate of your
*benchmark tax.
You receive instalment rate for the first time in fourth
quarter
(9) If the Commissioner gives you an instalment rate for the first time
during the fourth *instalment quarter in the
income year, the amount of the instalment for that quarter is 25% of the
estimate of your *benchmark tax.
35 Subsection 45-420(1) in
Schedule 1
After “45-410”, insert “or 45-412 (as
appropriate)”.
36 Section 45-468 in
Schedule 1
Omit “who pays on the basis of GDP-adjusted notional
tax”.
37 Section 45-468 in Schedule 1
(heading)
Repeal the heading, substitute:
38 At the end of section 45-468 in
Schedule 1
Add:
Note: This means that a multi-rate trustee may pay
instalments on the basis of GDP-adjusted notional tax if the trustee otherwise
satisfies the relevant test that applies to an individual.
39 Section 45-610 (item 1 of the
table) in Schedule 1
After “even if you are an *annual
payer”, insert “or a *quarterly
payer who pays 2 instalments annually on the basis of GDP-adjusted notional
tax”.
40 Application
The amendments of Schedule 1 to the Taxation Administration Act
1953 made by this Part apply in respect of the 2001-2002 income year and
later income years.
Note: There are transitional rules that apply to some
instalment quarters in the 2000-2001 income year. See Part 2 of this
Schedule.
Income Tax Assessment Act
1997
41 Subsection 995-1(1)
Insert:
full self-assessment taxpayer has the same meaning as in
subsection 6(1) of the Income Tax Assessment Act 1936.
42 Subsection 995-1(1) (definition of
quarterly payer who pays on the basis of GDP-adjusted notional
tax)
Repeal the definition, substitute:
quarterly payer who pays on the basis of GDP-adjusted notional tax
has the meaning given by section 45-130 in Schedule 1 to the
Taxation Administration Act 1953.
43 Subsection 995-1(1)
Insert:
quarterly payer who pays 2 instalments annually on the basis of
GDP-adjusted notional tax has the meaning given by section 45-134
in Schedule 1 to the Taxation Administration Act 1953.
44 Subsection 995-1(1)
Insert:
quarterly payer who pays 4 instalments annually on the basis of
GDP-adjusted notional tax has the meaning given by section 45-132
in Schedule 1 to the Taxation Administration Act 1953.
45 Subsection 995-1(1)
Insert:
quarterly payer who pays on the basis of instalment income
has the meaning given by section 45-125 in Schedule 1 to the
Taxation Administration Act 1953.
46 Subsection 995-1(1)
Insert:
starting instalment quarter has the meaning given by
subsection 45-125(2) in Schedule 1 to the Taxation Administration Act
1953.
47 Application
The amendments of the Income Tax Assessment Act 1997 made by this
Part apply in respect of the 2001-2002 income year and later income
years.
48 Preliminary
(1) This Part sets out transitional rules for:
(a) new categories of payers of *PAYG
instalment for some *instalment quarters in the
2000-2001 income year; and
(b) some existing PAYG instalment payers for some instalment quarters in
the 2000-2001 income year; and
(c) a method of calculating instalment amounts for some instalment
quarters in the 2000-2001 and 2001-2002 income years; and
(d) some PAYG instalment payers for some instalment quarters in the 2002
income year.
(2) In this Part, if there is an asterisk appearing at the start of a term
(as in “*instalment quarters”), the
term has the same meaning as in subsection 995-1(1) of the Income Tax
Assessment Act 1997.
49 Transitional—new categories of payers
who pay on basis of GDP-adjusted notional tax for 2000-2001 income
year
(1) Despite any other provisions, an entity may choose to be a
*quarterly payer who pays on the basis of
GDP-adjusted notional tax for the purposes of Division 45 in
Schedule 1 to the Taxation Administration Act 1953 if:
(a) the entity satisfies the conditions in subitem (2) at the end of
an *instalment quarter for which the entity is
liable to pay an instalment under that Division; and
(b) that quarter (transitional quarter):
(i) is in the 2000-2001 income year; and
(ii) ends on or after 31 March 2001 but not after 31 December
2001.
Note: The entity must make the choice in accordance with
subitem (3).
(2) The entity satisfies the conditions in this subitem at a particular
time if, at that time:
(a) the entity is an individual or a
*multi-rate trustee that is not an
*annual payer or a
*quarterly payer who pays on the basis of
GDP-adjusted notional tax (within the meaning of section 45-125 in
Schedule 1 to the Taxation Administration Act 1953 apart from the
effect of this item); or
(b) the entity:
(i) is a *full self-assessment taxpayer
whose base assessment instalment income (within the meaning of
section 45-320 in that Schedule) for the
*base year is $1 million or less; and
(ii) is not an annual payer; or
(c) the entity:
(i) is a full self-assessment taxpayer whose base assessment instalment
income (within the meaning of section 45-320 in that Schedule) for the base
year is more than $1 million; and
(ii) is not an annual payer but it satisfies the conditions set out in
subsection 45-140(1) in that Schedule for an annual payer.
(3) The entity must make the choice by notifying the Commissioner in the
*approved form on or before the day on which
the instalment for that transitional quarter is due (disregarding subsection
45-112(3) in Schedule 1 to the Taxation Administration Act
1953).
(4) If the entity makes the choice in accordance with this item:
(a) the entity becomes a *quarterly payer
who pays on the basis of GDP-adjusted notional tax for all purposes of
Division 45 in Schedule 1 to the Taxation Administration Act
1953 just before the end of that transitional quarter; and
(b) the entity remains such a payer for each of the rest of the
transitional quarters unless the Commissioner withdraws the entity’s
instalment rate under section 45-90 in that Schedule during that quarter;
and
(c) for the purposes of this item, subsections 45-125(1) to (3) and
section 45-130 in that Schedule do not apply to the entity.
50 Transitional—some existing PAYG payers
for 2000-2001 income year
(1) This item applies to an entity that:
(a) is a *quarterly payer who pays on the
basis of GDP-adjusted notional tax (within the meaning of section 45-125 of
Schedule 1 to the Taxation Administration Act 1953) at the end of a
transitional quarter (within the meaning of item 49 of this Schedule);
and
(b) is not an entity that has chosen to become such a payer under
item 49 of this Schedule.
(2) Section 45-130 in Schedule 1 to the Taxation
Administration Act 1953 does not apply to that entity for that transitional
quarter and all later transitional quarters.
51 Transitional—calculation of instalment
amount
(1) Despite any other provisions, the Commissioner must work out in
accordance with the following formula the amount of an instalment for a relevant
quarter that the Commissioner notifies to a transitional payer under paragraph
45-112(1)(a) in Schedule 1 to the Taxation Administration Act
1953:
(2) In this item:
GDP adjustment has the same meaning as in section 45-405
in Schedule 1 to the Taxation Administration Act 1953.
notional tax has the meaning given by sections 45-325
and 45-475 in Schedule 1 to the Taxation Administration Act
1953.
relevant quarter means an
*instalment quarter that:
(a) is in the 2000-2001 or 2001-2002 income year; and
(b) ends on or after 31 March 2001 but not on or after
31 December 2001.
transitional payer means an entity that becomes a
*quarterly payer who pays on the basis of
GDP-adjusted notional tax (within the meaning of Division 45 in
Schedule 1 to the Taxation Administration Act 1953) at the end of a
relevant quarter only because of:
(a) the operation of item 49 of this Schedule; or
(b) the amendments of that Division by this Schedule.
(3) An amount worked out under this item has effect as if it were worked
out under Subdivision 45-L in Schedule 1 to the Taxation
Administration Act 1953.
(4) Nothing in this item prevents the application to a transitional payer
of paragraph 45-112(1)(b) in Schedule 1 to the Taxation Administration
Act 1953 in respect of the instalment for a relevant quarter.
(5) However, paragraph 45-112(1)(c) and section 45-420 in that
Schedule do not apply to a transitional payer in respect of the instalment for a
relevant quarter.
52 Transitional—instalment quarters before
1st July 2001 in 2001-2002 income year
(1) This item applies to an entity if:
(a) but for this item, the entity would have become a
*quarterly payer who pays 2 instalments
annually on the basis of GDP-adjusted notional tax just before the end of an
*instalment quarter under section 45-134
in Schedule 1 to the Taxation Administration Act 1953; and
(b) that instalment quarter (the first quarter)
is:
(i) in the 2001-2002 income year; and
(ii) begins before 1st July 2001.
(2) Despite any other provisions:
(a) an entity to which this item applies does not so become a
*quarterly payer who pays 2 instalments
annually on the basis of GDP-adjusted notional tax; and
(b) for the purposes of Division 45 in Schedule 1 to the
Taxation Administration Act 1953, the entity instead becomes a
*quarterly payer who pays 4 instalments
annually on the basis of GDP-adjusted notional tax (four instalments
payer) just before the end of the first quarter; and
(c) the entity stops being a four instalments payer at the start of the
first instalment quarter that begins on or after 1 July 2001 (the
later quarter) if:
(i) as a result of paragraph (b), the entity would otherwise be a
four instalment payer at the end of the later quarter; and
(ii) the entity would satisfy subsection 45-134(1) in Schedule 1 to
that Act at the end of the later quarter if the reference to the
*starting instalment quarter in that subsection
were a reference to the later quarter; and
(d) the entity becomes a *quarterly payer
who pays 2 instalments annually on the basis of GDP-adjusted notional tax at the
end of the later quarter if subparagraph (c)(ii) of this item applies
(whether or not subparagraph (c)(i) also applies).
53 Regulations
The Governor-General may make regulations prescribing matters necessary or
convenient to be prescribed for carrying out or giving effect to this Part,
being matters that are:
(a) of a transitional nature; and
(b) not inconsistent with this Part.
Fringe Benefits Tax
Assessment Act 1986
1 At the end of section 103 (before the
note)
Add:
(2) Despite subsection (1), and subject to this Division, if an
employer is a deferred BAS payer on the day specified as the day on which an
instalment is due and payable under subsection (1), that instalment is
instead due and payable as specified in the following table:
|
When instalments of tax are due and payable |
||
|---|---|---|
|
Item |
If subsection (2) applies to this instalment: |
the instalment is due and payable on: |
|
1 |
first instalment |
28 July in that year of tax |
|
2 |
second instalment |
28 October in that year of tax |
|
3 |
third instalment |
28 February in that year of tax |
|
4 |
fourth instalment |
28 April in the next year of tax |
2 Section 109 (definition of GIC
period)
Repeal the definition, substitute:
GIC period, in relation to an instalment in relation to a
year of tax, has the meaning given by the following table:
|
GIC period |
|||
|---|---|---|---|
|
Item |
For this instalment in that year of tax: |
GIC period is this period if this instalment is due and payable
under subsection 103(1): |
GIC period is this period if this instalment is due and payable
under subsection 103(2): |
|
1 |
first instalment |
the period starting at the beginning of 21 July, and finishing at the
end of 20 October, in the year of tax |
the period starting at the beginning of 28 July, and finishing at the
end of 27 October, in the year of tax |
|
2 |
second instalment |
the period starting at the beginning of 21 October, and finishing at
the end of 20 January, in the year of tax |
the period starting at the beginning of 28 October, and finishing at
the end of 27 February, in the year of tax |
|
3 |
third instalment |
the period starting at the beginning of 21 January in the year of tax
and finishing at the end of 20 April in the next year of tax |
the period starting at the beginning of 28 February in the year of tax
and finishing at the end of 27 April in the next year of tax |
|
4 |
fourth instalment |
the period starting at the beginning of 21 April, and finishing at the
end of 20 May, in the next year of tax |
the period starting at the beginning of 28 April, and finishing at the
end of 20 May, in the next year of tax |
3 Subsection 110(5)
Omit “on the 21st day”.
4 Subsection 111(1)
Omit “on the 21st day”.
5 Subsection 111(2)
Omit “on the 21st day” (wherever occurring).
6 Subsection 112A(2)
Omit “on or before the 21st day”.
7 Subsection 136(1)
Insert:
deferred BAS payer has the same meaning as in subsection
995-1(1) in the Income Tax Assessment Act 1997.
8 Application
The amendments of the Fringe Benefits Tax Assessment Act 1986 made
by this Part apply, and are taken to have applied, in respect of instalments of
fringe benefits tax that are due and payable on or after 1 April
2001.
Income Tax Assessment Act
1936
9 Paragraph 221AZKC(3)(b)
Omit “quarterly”.
10 Subsection 221AZKC(3) (table column
heading)
Omit “quarterly”.
11 Subsection 221AZKC(3)
(note)
Omit “quarterly”.
12 Subsection 221AZKC(5)
Omit “The first of the quarterly payments”, substitute
“Subject to subsection (6), the first of the
payments”.
13 Subsection 221AZKC(5)
(note)
Repeal the note, substitute:
Note: The due date for the first payment is the same as for
the taxpayer’s next quarterly instalment for the 2000-01 year of income
under Division 45 in Schedule 1 to the Taxation Administration Act
1953. If the taxpayer’s year of income ends on 30 June 2000, the
due date will be 21 January or 21 April 2001. However, the due date
may be 28 April 2001 if subsection (6) applies.
14 Subsections 221AZKC(6) and
(7)
Repeal the subsections, insert:
(6) If the taxpayer is a deferred BAS payer on the day on which the first
of the payments would otherwise be due under paragraph (5)(a), that payment
is due instead:
(a) on the 28th day of month 19 for the 1999-2000 year of income unless
all or a part of a December falls within month 18 for that year; or
(b) on the next 28 February if all or a part of a December falls
within month 18 for that year.
(7) If the taxpayer is a deferred BAS payer on the day on which the first
of the payments would otherwise be due under paragraph (5)(b), that payment
is due instead:
(a) on the 28th day of month 22 for that year unless all or a part of a
December falls within month 21 for that year; or
(b) on the next 28 February if all or a part of a December falls
within month 21 for that year.
(7A) Each of the remaining payments is due on the same day as when each
subsequent notional PAYG quarterly instalment of the taxpayer would have been
due, starting from the first notional PAYG quarterly instalment that would be
due after the first of the payments under this section is due.
Note 1: The taxpayer may actually be liable to pay PAYG
quarterly instalments on the same day as the day worked out under this
subsection.
Note 2: If some or all of a payment under this section is
not paid on time, the taxpayer is liable to pay the general interest charge on
the unpaid amount: see section 221AZMAA.
(7B) In subsection (7A), notional PAYG quarterly
instalment of the taxpayer means each PAYG instalment that
the taxpayer would have been liable to pay under Division 45 in
Schedule 1 to the Taxation Administration Act 1953 if the taxpayer
had continued to be liable for 4 quarterly PAYG instalments each year (whether
this is actually the case or not).
Example: The final instalment of KP Ltd is due on 1st March
2001. As a medium taxpayer, KP Ltd deferred 42% of its final liability to be
repaid in 21 equal payments. On the 21st April 2001, KP Ltd is a deferred BAS
payer and the first payment under this section is therefore due on 28 April
2001.
KP Ltd has an obligation to pay PAYG instalments for each
quarter of an income year. Being a deferred BAS payer, its subsequent payments
under this section are therefore due on the same days as its PAYG instalments
are due: 28th July, 28th October, 28th February and 28th April of an income
year.
KP Ltd’s circumstances change in the 2003 income year
and the Commissioner has withdrawn its instalment rate. As a result, it no
longer has a PAYG instalment obligation. However, it continues to meet the
criteria for a deferred BAS payer (because it is not required to give a GST
return for a monthly tax period). Its payments under this section therefore
continue to be due on 28th July, 28th October, 28th February and 28th April of
an income year.
15 Subsection 221AZKC(8)
Omit “Quarterly payments”, substitute “Payments under
this section”.
16 At the end of
section 221AZKC
Add:
(9) In this section, deferred BAS payer has the same meaning
as in subsection 995-1(1) in the Income Tax Assessment Act
1997.
17 Application
The amendments of the Income Tax Assessment Act 1936 made by this
Part apply, and are taken to have applied, in respect of instalments or payments
that are due on or after 1 April 2001.
Income Tax Assessment Act
1997
18 Subsection 995-1(1)
Insert:
deferred BAS payer, at a particular time, means
an entity that has an obligation to notify the Commissioner of a
*BAS amount at that time, other than:
(a) an entity that has an obligation at that time to give the Commissioner
a *GST return for a monthly
*tax period; or
(b) an entity whose obligation to notify a BAS amount at that time relates
only to one or more of the following:
(i) an *amount withheld by a
*medium withholder or a
*large withholder;
(ii) the *PAYG instalment of an
*annual payer.
Note: You are therefore a deferred BAS payer if you have an
obligation to give the Commissioner a GST return for a quarterly tax period or
if you are a GST instalment payer within the meaning of the GST
Act.
19 Application
The amendment of the Income Tax Assessment Act 1997 made by this
Part applies, and is taken to have applied, on or after 1 April
2001.
Taxation Administration
Act 1953
20 Subsection 13-5(3) in
Schedule 1
Repeal the subsection, substitute:
(3) Subject to subsections (4) and (5), the
*personal services entity must pay the amount
to the Commissioner by the end of the 21st day after the end of the
*PAYG payment period.
Note: A different rule applies for alienated personal
services payments that large withholders and medium withholders make during the
2000-01 income year. See section 13-20.
(4) If:
(a) the *personal services entity is a
*deferred BAS payer on the 21st day after the
end of the *PAYG payment period; and
(b) the personal services entity’s PAYG payment period is a
*quarter;
the entity must pay that amount to the Commissioner as shown in the
table:
|
Payments by *deferred BAS
payers |
||
|---|---|---|
|
Item |
If paragraph (4)(a) applies to the
*quarter ending on: |
the amount for this quarter must be paid by the end of: |
|
1 |
30 September |
the following 28 October |
|
2 |
31 December |
the following 28 February |
|
3 |
31 March |
the following 28 April |
|
4 |
30 June |
the following 28 July |
(5) If:
(a) the *personal services entity is a
*deferred BAS payer on the 21st day after the
end of the *PAYG payment period; and
(b) the personal services entity’s PAYG payment period is a
month;
the entity must pay that amount to the Commissioner:
(c) by the end of the 28th day of the month following that period if the
PAYG payment period is a March, June or September; or
(d) by the end of the 28th day of the next February if the PAYG payment
period is a December.
21 Section 13-20 in
Schedule 1
Omit “If”, substitute “Subject to subsection (2),
if”.
22 At the end of section 13-20 in
Schedule 1
Add:
(2) If:
(a) the *personal services entity is a
*deferred BAS payer on the 21st day after the
end of the *quarter; and
(b) the quarter ends on 31st March or 30th June of 2001;
the payment must be paid to the Commissioner by the end of the 28th day
after the end of that quarter.
23 Subsection 16-75(2) in
Schedule 1
Omit “A *medium”, substitute
“Subject to subsection (2A), a
*medium”.
24 After subsection 16-75(2) in
Schedule 1
Insert:
(2A) If a *medium withholder:
(a) withholds an amount during the month of March, June, September or
December under Division 12; and
(b) is a *deferred BAS payer on the 21st
day of the month (the next month) following that month;
the medium withholder must pay that amount to the Commissioner by the end
of the 28th day of:
(c) the next month if that amount is withheld during March, June or
September; or
(d) the next February if the amount is withheld during December.
25 Subsection 16-75(3) in
Schedule 1
Omit “If a *small”, substitute
“Subject to subsection (4), if a
*small”.
26 After subsection 16-75(3) in
Schedule 1
Insert:
(4) If a *small withholder:
(a) withholds an amount under Division 12 during a month in a
*quarter; and
(b) is a *deferred BAS payer on the 21st
day of the month after the end of that quarter;
the small withholder must pay that amount to the Commissioner as shown in
the table:
|
Payments by *deferred BAS
payers |
||
|---|---|---|
|
Item |
If the amount is withheld during the
*quarter ending on: |
the amount must be paid to the Commissioner by the end of: |
|
1 |
30 September |
the following 28 October |
|
2 |
31 December |
the following 28 February |
|
3 |
31 March |
the following 28 April |
|
4 |
30 June |
the following 28 July |
27 Section 16-120 in
Schedule 1
Omit “If”, substitute “Subject to subsection (2),
if”.
28 At the end of section 16-120 in
Schedule 1
Add:
(2) If:
(a) the amount is withheld during March 2001 or June 2001; and
(b) the entity is a *deferred BAS payer
on the 21st day of the month (the next month) after the month in
which that amount is withheld;
the entity must pay that amount to the Commissioner by the end of the 28th
day of the next month.
29 Application
The amendments of the Taxation Administration Act 1953 made by
items 20 to 28 of this Schedule apply, and are taken to have applied, in
respect of amounts that are required to be paid to the Commissioner on or after
1 April 2001.
30 After subsection 388-50(1) in
Schedule 1
Insert:
(1A) Despite subsection (1), a document that satisfies
paragraphs (1)(a), (b) and (d) but not paragraph (1)(c) is also in the
approved form if it contains the information required by the
Commissioner. The Commissioner must specify the requirement in
writing.
31 Paragraphs 388-75(2)(a) and (b) in
Schedule 1
Repeal the paragraphs, substitute:
(a) if the document so requires—a declaration made by you with your
signature; and
(b) if the document so requires—a declaration made by your agent
with the agent’s signature.
32 Application
The amendments of the Taxation Administration Act 1953 made by
items 30 and 31 of this Schedule apply, and are taken to have applied, in
respect of returns, notices, statements, applications or other documents that
are required to be given to the Commissioner under a taxation law on or after
1 April 2001.
33 Transitional rules for PAYG
instalments
(1) This item applies to an instalment quarter (the transitional
quarter) in the 2000-2001 income year that ends on or after 1 March
2001.
(2) Subitem (3) applies to an entity whose income year ends on
30 June and subitem (4) applies to an entity whose income year ends on
a day other than 30 June.
(3) Despite any other provisions, if:
(a) but for this item, subsection 45-60(1) in Schedule 1 to the
Taxation Administration Act 1953 as in force immediately before the
commencement of Part 1 of Schedule 2 to this Act would have applied to
an entity in relation to a transitional quarter that ends on 31 March 2001
or 30 June 2001; and
(b) the entity is a deferred BAS payer on the 21st day of the month after
the end of that quarter;
that instalment is instead due on or before the 28th day of the month after
the end of that quarter.
(4) Despite any other provisions, if:
(a) but for this item, subsection 45-60(3) in Schedule 1 to the
Taxation Administration Act 1953 as in force immediately before the
commencement of Part 1 of Schedule 2 to this Act would have applied to
an entity in relation to a transitional quarter; and
(b) the entity is a deferred BAS payer on the 21st day of the month after
the end of that quarter;
that instalment is instead due on or before:
(c) the 28th day of the month after the end of that quarter unless all or
a part of a December falls within the last month of that quarter; or
(d) if all or a part of a December falls within the last month of that
quarter—the next 28 February.
(5) In this item:
deferred BAS payer has the same meaning as in subsection
995-1(1) of the Income Tax Assessment Act 1997.
instalment quarter has the same meaning as in subsection
995-1(1) of the Income Tax Assessment Act 1997.
Part 3—Weekends
and public holidays
Income Tax Assessment Act
1997
34 Subsection 995-1(1)
Insert:
business day means a day other than:
(a) a Saturday or a Sunday; or
(b) a day which is a public holiday for the whole of:
(i) any State; or
(ii) the Australian Capital Territory; or
(iii) the Northern Territory.
Taxation Administration
Act 1953
35 After
section 8AAZMA
Insert:
(1) Where, apart from this section, an amount in respect of a tax debt is
due and payable by, or on, a day (the payment day) that is not a
business day, the payment is due and payable on the first business day after the
payment day.
(2) In this section:
business day means a day other than:
(a) a Saturday or a Sunday; or
(b) a day which is a public holiday for the whole of:
(i) any State; or
(ii) the Australian Capital Territory; or
(iii) the Northern Territory.
tax debt does not include general interest charge.
36 After section 388-50 in
Schedule 1
Insert:
Where an *approved form is required to
be given to the Commissioner or to another entity by, or on, a day (the
lodgment day) that is not a
*business day, the approved form may be given
on the first business day after the lodgment day.