INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 3 - Provisional tax  

Subdivision A - General provisions  

SECTION 221YCAA   UPLIFTED PROVISIONAL TAX AMOUNT  

221YCAA(1)   [Calculation of uplifted provisional tax amount]  

The uplifted provisional tax amount of a taxpayer for a year of income (in this section called the ``current year of income'' ) is:

(a) if the taxpayer's provisional income for the current year of income is equal to the taxpayer's taxable income for the year of income (in this section called the ``preceding year of income'' ) that immediately preceded the current year of income - the basic uplifted provisional tax amount of the taxpayer for the current year of income worked out under subsection (2); or

(b) in any other case - the adjusted uplifted provisional tax amount of the taxpayer for the current year of income worked out under subsection (3).

221YCAA(2)   [Basic uplifted provisional tax amount]  

The basic uplifted provisional tax amount of the taxpayer for the current year of income is calculated using the formula:

Adjusted preceding year's tax   −   Qualifying reductions

where:

`` Adjusted preceding year's tax '' means the amount of income tax that would have been assessed in respect of the amount that would have been the taxable income of the taxpayer of the preceding year of income if:

(a) the taxable income of the taxpayer of the preceding year of income had (except for the purpose of determining the notional income for the purpose of section 59AB or 86 of this Act or section 42-300 of the Income Tax Assessment Act 1997 ) been increased by the provisional tax uplift factor for the current year of income; and

(b) the Income Tax Rates Act 1986 (other than Division 4 of Part II ), as that Act applies to assessments in respect of the current year of income, had been in force and applied to assessments in respect of the preceding year of income; and

(c) the Medicare Levy Act 1986 (other than sections 8B , 8C , 8D , 8E , 8F and 8G ), as that Act applies to assessments in respect of the current year of income, had been in force and applied to assessments in respect of the preceding year of income; and

(ca) the Higher Education Funding Act 1988 , as that Act applies to assessments in respect of the current year of income, had been in force and applied to assessments in respect of the preceding year of income; and

(d) where:

(i) for the purposes of Division 6AA of Part III , the taxpayer's eligible taxable income of the preceding year of income exceeded $416; and

(ii) Subdivision C of Division 3 of Part II of the Income Tax Rates Act 1986 applied to the taxpayer for the preceding year of income;

 

that eligible taxable income had been increased by the provisional tax uplift factor for the current year of income; and

(e) where:

(i) for the purposes of Division 6AA of Part III , the taxpayer had an eligible taxable income of the preceding year of income; and

(ii) Subdivision D of Division 3 of Part II of the Income Tax Rates Act 1986 applied to the taxpayer for the preceding year of income;

 

that eligible taxable income had been increased by the provisional tax uplift factor for the current year of income; and

(f) the taxpayer's taxable professional income for the preceding year of income had been increased by the provisional tax uplift factor for the current year of income, for the purposes of Division 405 of the Income Tax Assessment Act 1997 (which deals with above-average special professional income) except working out the taxpayer's average taxable professional income for the current year of income; and

(ga) any averaging component of the taxpayer worked out under section 392-90 of the Income Tax Assessment Act 1997 for the preceding year of income had been increased by the provisional tax uplift factor for the current year of income; and

(g) for the purposes of section 156 , the deemed taxable income from primary production of the taxpayer of the preceding year of income had been increased by the provisional tax uplift factor for the current year of income; and

(h) where Division 392 (Long-term averaging of primary producers' tax liability) of the Income Tax Assessment Act 1997 or Division 16 of Part III of this Act applied in the taxpayer's assessment in respect of the preceding year of income - that Division had applied as if the conditions set out in paragraphs (a) to (g) (inclusive) were applicable for the purposes of making that assessment (other than for the purpose of determining the average income of the taxpayer for the purposes of the application of that Division); and

(j) the taxpayer had not been entitled to any rebate (except a tax offset under subsection 392-35(2) of the Income Tax Assessment Act 1997 (which provides tax offsets for some primary producers), or a rebate under section 156 of this Act, applicable in relation to the taxpayer in accordance with paragraph (h)) in the taxpayer's assessment; and

(k) the assessable income of the taxpayer of the preceding year of income had not included any net capital gain; and

(ka) no amount had been included in the taxpayer's assessable income of the preceding year of income under section 26AJ ;

`` Qualifying reductions '' means the sum of:

(m) the rebates (other than a rebate under section 23AB , 79A , 79B , 156 , 159J , 159K , 159L , 159N , 159T , 160ACE , 160AQU , 160AQX , 160AQY or 160AQZ or a tax offset under Subdivision 61-A or subsection 392-35(2) of the Income Tax Assessment Act 1997 ) and credits (other than a credit under section 160AF , 220AZ , 220AZA , 220AZB or 221YHZK ) to which the taxpayer was entitled in the taxpayer's assessment in respect of income of the preceding year of income; and

Note:

A reference in this Act to rebates generally also includes a reference to a tax offset under the Income Tax Assessment Act 1997 : see section 160ADA of this Act.

(n) where the taxpayer was entitled to a particular rebate (in this paragraph called the ``location rebate'' ) under section 23AB , 79A or 79B in the taxpayer's assessment in respect of income of the preceding year of income:

(i) if the location rebate was calculated by reference to one or more rebates (in this subparagraph called the ``concessional rebates'' ) of a particular kind to which the taxpayer was or, if the amendments made by Division 5 of Part 2 of the Taxation Laws Amendment Act (No. 3) 1994 had not been made, would have been entitled in respect of the preceding year of income under section 159J , 159K or 159L - the sum of the location rebate and 20% of the increase (if any) in the amount of each concessional rebate of that kind arising out of the operation of section 159HA in relation to the current year of income; or

(ii) in any other case - the amount of the location rebate; and

(p) where the taxpayer was entitled to a rebate of a particular kind under section 159J (other than in respect of a spouse of the taxpayer), 159K or 159L in the taxpayer's assessment in respect of income of the preceding year of income - the amount that would have been the amount of that rebate if increases in the amounts of rebates arising out of the operation of section 159HA in relation to the current year of income had been in force and had applied to assessments in respect of the preceding year of income; and

(pa) where the taxpayer was entitled to a rebate, in the taxpayer's assessment in respect of income of the preceding year of income, under section 159J in respect of a spouse of the taxpayer:

(i) if the preceding year of income was the 1993-94 year of income and subsection 159J(1B) applied in relation to the rebate - 25%; or

(ii) if the preceding year of income was the 1993-94 year of income and subsection 159J(1B) did not apply in relation to the rebate - 100%; or

(iii) if:

(A) the preceding year of income is the 1994-95 year of income or any later year of income; and

(B) that preceding year of income is not the first non-159J(1C) year of income or any later year of income; and

(C) subsection 159J(1C) did not apply in relation to the rebate;

100%; or

(iv) if the preceding year of income is the first non-159J(1C) year of income or any later year of income and neither of the following applies:

(A) on 30 June of that preceding year of income an amount of parenting payment that was PP (partnered) (within the meaning of the Social Security Act 1991 ) and that was exempt under section 52-10 of the Income Tax Assessment Act 1997 (other than a supplementary amount), became payable to the taxpayer or the spouse;

(B) that 30 June occurred fewer than 14 days after a day on which an amount of such parenting payment became payable to the taxpayer or the spouse;

100%;

of the amount that would have been the amount of that rebate if increases in the amounts of rebates arising out of the operation of section 159HA in relation to the current year of income had been in force and had applied to assessments in respect of the preceding year of income; and

(q) where the taxpayer was entitled to a credit under section 160AF , 220AZ , 220AZA , 220AZB or 221YHZK in the taxpayer's assessment in respect of income of the preceding year of income - the amount of that credit increased by the provisional tax uplift factor for the current year of income; and

(r) where the taxpayer was entitled to a rebate under section 160AQU , 160AQX , 160AQY or 160AQZ in the taxpayer's assessment in respect of income of the preceding year of income - the amount of that rebate increased by the provisional tax uplift factor for the current year of income.

221YCAA(2A)   [Rebates]  

For the purposes of paragraph (2)(m), a tax offset under section 61-305 or 61-335 of the Income Tax Assessment Act 1997 is not to be taken to be a rebate.

221YCAA(3)   [Adjusted uplifted provisional tax amount]  

The adjusted uplifted provisional tax amount of the taxpayer for the current year of income is:

(a) where paragraph (1)(a) of this section would have applied to the taxpayer if subsection 221YA(5) had not been enacted:

(i) if the taxpayer is a taxpayer to whom paragraph 221YA(5)(a) applies, but paragraph 221YA(5)(b) does not apply, in relation to the current year of income - the amount that would have been the basic uplifted provisional tax amount of the taxpayer for the current year if Division 16C of Part III , and Schedule 2G , were not applicable in relation to the preceding year of income; or

(ii) if the taxpayer is a taxpayer to whom paragraph 221YA(5)(b) applies, but paragraph 221YA(5)(a) does not apply, in relation to the current year of income - the amount that would have been the basic uplifted provisional tax amount of the taxpayer for the current year of income if the taxable income of the taxpayer of the preceding year of income had been increased by the sum of the deductions allowed or allowable to the taxpayer under sections 77F , 124ZAF and 124ZAFA in the taxpayer's assessment in respect of the preceding year of income; or

(iii) if the taxpayer is a taxpayer to whom paragraphs 221YA(5)(a) and (b) apply in relation to the current year of income - the amount that would have been the basic uplifted provisional tax amount of the taxpayer for the current year of income if:

(A) Division 16C of Part III , and Schedule 2G , were not applicable in relation to the preceding year of income; and

(B) the amount that, apart from this sub-subparagraph, would have been the taxable income of the taxpayer of the preceding year of income had been increased by the sum of the deductions allowed or allowable to the taxpayer under sections 77F , 124ZAF and 124ZAFA in the taxpayer's assessment in respect of the preceding year of income; or

(b) in any other case - the amount that would have been the basic uplifted provisional tax amount of the taxpayer for the current year of income if:

(i) the taxable income of the taxpayer of the preceding year of income had been equal to the amount that the Commissioner estimates would have been the provisional income of the taxpayer if Division 16C of Part III , and Schedule 2G , were not applicable in relation to the preceding year of income, increased by the sum of the deductions (if any) allowed or allowable to the taxpayer under sections 77F , 124ZAF and 124ZAFA in the taxpayer's assessment in respect of the preceding year of income; and

(ii) for the purposes of Division 392 of the Income Tax Assessment Act 1997 (Long-term averaging of primary producers' tax liability), the taxpayer's averaging component of the preceding year of income were such amount (if any) as the Commissioner determines; and

(iii) for the purposes of Division 6AA of Part III , the amount of the eligible taxable income of the taxpayer of the preceding year of income were such amount (if any) as the Commissioner determines; and

(iv) for the purposes of Division 405 of the Income Tax Assessment Act 1997 (which deals with above-average special professional income), the taxpayer's taxable professional income for the preceding year of income were any amount determined by the Commissioner.