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INCOME TAX ASSESSMENT ACT 1997 - SECT 5.15

General interest charge payable on unpaid income tax or shortfall interest charge

    If an amount of income tax or * shortfall interest charge that you are liable to pay remains unpaid after the time by which it is due to be paid, you are liable to pay the * general interest charge on the unpaid amount for each day in the period that:

  (a)   starts at the beginning of the day on which the amount 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 income tax or shortfall interest charge;

  (ii)   general interest charge on any of the income tax or shortfall interest charge.

Note 1:   The general interest charge is worked out under Part   IIA of the Taxation Administration Act 1953 .

Note 2:   Shortfall interest charge is worked out under Division   280 in Schedule   1 to that Act.

Method statement

Step 1.   Work out your taxable income for the income year.

To do this, see section   4 - 15.

Step 2.   Work out your basic income tax liability on your taxable income using:

  (a)   the income tax rate or rates that apply to you for the income year; and

  (b)   any special provisions that apply to working out that liability.

See the Income Tax Rates Act 1986 and section   4 - 25.

Step 3.   Work out your tax offsets for the income year. A tax offset reduces the amount of income tax you have to pay.

For the list of tax offsets, see section   13 - 1.

Step 4.   Subtract your * tax offsets from your basic income tax liability. The result is how much income tax you owe for the * financial year.

Method statement

Step 1.   Add up all your assessable income for the income year.

To find out about your assessable income, see Division   6.

Step 2.   Add up your deductions for the income year.

To find out what you can deduct, see Division   8.

Step 3.   Subtract your deductions from your assessable income (unless they exceed it). The result is your taxable income. (If the deductions equal or exceed the assessable income, you don't have a taxable income.)

If your assessed income tax liability exceeds the credits available to you under the PAYG system, this Division explains when you must pay the excess to the Commissioner.

If your assessment is amended so that you must pay income tax, or pay more income tax than under the previous assessment, this Division explains:

  (a)   when you must pay the additional tax; and

  (b)   when any associated interest charges must be paid.

  Note:   For provisions about the collection and recovery of income tax and other tax - related liabilities, see Part   4 - 15 in Schedule   1 to the Taxation Administration Act 1953 .

Table of sections

6 - 1   Diagram showing relationships among concepts in this Division

Operative provisions

6 - 5   Income according to ordinary concepts ( ordinary income )

6 - 10   Other assessable income ( statutory income )

6 - 15   What is not assessable income

6 - 20   Exempt income

6 - 23   Non - assessable non - exempt income

6 - 25   Relationships among various rules about ordinary income


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