Taxation Administration Act 1953

Sch 1 inserted by No 178 of 1999 (as amended by No 179 of 1999 and No 44 of 2000).

Ch 2 title inserted by No 73 of 2006 , s 3 and Sch 5 item 40, effective 1 July 2006.

Pt 2-10 applies to the 2000/2001 income year and later income years. If the Commissioner gives an entity an instalment rate before the start of the 2000/2001 income year, s 45-50 applies as if the rate had been given on the first day of that income year.

S 45-120(1) amended by No 68 of 2002 and No 44 of 2000.

S 45-120(2) amended by No 70 of 2015, s 3 and Sch 1 items 154 and 155, by omitting " or " after " trust; " from para (c) and repealing para (ca), effective 1 July 2015. Para (ca) formerly read:

(ca) an *FHSA trust;

S 45-120(2) amended by No 45 of 2008, s 3 and Sch 1 item 58, by inserting para (ca), effective 26 June 2008.

S 45-120(2) amended by No 15 of 2007, s 3 and Sch 1 item 378, by substituting paras (a), (b) and (c), applicable to the 2007-2008 income year and later years. The paras formerly read:

(a) an eligible ADF (as defined in section 267 of the Income Tax Assessment Act 1936 ); or

(b) an eligible superannuation fund (as defined in that section); or

(c) a pooled superannuation trust (as defined in that section);

S 45-120(2A) amended by No 70 of 2015, s 3 and Sch 1 item 156, by substituting " superannuation " for " superannuation/FHSA " in para (b), effective 1 July 2015.

S 45-120(2A) amended by No 45 of 2008, s 3 and Sch 6 item 18, by substituting " complying superannuation/FHSA class " for " complying superannuation class " in para (b), effective 26 June 2008.

S 45-120(2A) substituted by No 16 of 2003, No 89 of 2000 and inserted by No 44 of 2000.

S 45-120(2B) inserted by No 118 of 2009, s 3 and Sch 2 item 4, applicable to you for the first applicable income year (within the meaning of item 102 of Schedule 1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 ) and later income years.

[ CCH Note: Items 102 and 103 of Schedule 1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 read:

102 Definitions  
102
In this Part:

financial arrangement amendments
means the amendments made by Parts 1 and 2 of this Schedule [ CCH Note: ie of No 15 of 2009 ].

first applicable income year
means the first income year for which the financial arrangement amendments apply to you under item 103.

lodgment date
means the due date for you to lodge an income tax return.

103 Application of financial arrangement amendments (income years)  
103(1)
Subject to subitem (2), the financial arrangement amendments apply to you for income years commencing on or after 1 July 2010.

103(2)
The financial arrangement amendments apply to you for income years commencing on or after 1 July 2009 if you elect to have this subitem apply to you.

Note:

For a consolidated group, it is the head entity that would make the election.

103(3)
An election under subitem (2) must be made on or before the first lodgment date that occurs on or after the start of your first income year commencing on or after 1 July 2009.

S 45-120(2B) repealed by No 118 of 2009, s 3 and Sch 2 item 1, applicable to you for the first applicable income year (within the meaning of item 102 of Schedule 1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 [ CCH Note: see above.]) and later income years.

No 118 of 2009, s 3 and Sch 2 item 3 also contains the following transitional provision:

3 Transitional  
3(1)
This item applies to you if:

(a) you are a quarterly payer who pays on the basis of instalment income at the end of the first instalment quarter ending after 4 December 2009; and

(b) an amount is included in your instalment income under subsection 45-120(2B) (disregarding the amendment) for an instalment quarter starting on or after 1 July 2009 and ending before 4 December 2009.

3(2)
For each instalment quarter mentioned in paragraph (1)(b), work out:

(a) your instalment income for the quarter (taking into account the amendment); and

(b) your instalment income for the quarter (disregarding the amendment).

3(3)
Next:

(a) work out the total of every amount worked out under paragraph (2)(a); and

(b) work out the total of every amount worked out under paragraph (2)(b); and

(c) subtract the amount worked out under paragraph (b) of this subitem from the amount worked out under paragraph (a) of this subitem.

3(4)
If the amount worked out under paragraph (3)(c) is more than nil, increase your instalment income for the first instalment quarter ending after 4 December 2009 by that amount.

S 45-120(2B) formerly read:

Net gains under Division 230 included in instalment income

45-120(2B)
Your instalment income for a period also includes the difference between:

(a) a gain (or gains) you make from a *financial arrangement to the extent to which it is (or they are):

(i) assessable under Division 230 of the Income Tax Assessment Act 1997 ; and

(ii) reasonably attributable to that period; and

(b) a loss (or losses) you make from a financial arrangement to the extent to which it is (or they are):

(i) allowable to you as a deduction under Division 230 of the Income Tax Assessment Act 1997 ; and

(ii) reasonably attributable to that period.

This is so only if the gain (or gains) referred to in paragraph (a) exceeds the loss (or losses) referred to in paragraph (b).

S 45-120(2B) substituted by No 15 of 2009 , s 3 and Sch 1 item 101, effective 26 March 2009. S 45-120(2B) formerly read:

45-120(2B)
Your instalment income for a period also includes the difference between:

(a) a gain (or gains) you make from a *financial arrangement to the extent to which it is (or they are):

(i) assessable under Subdivision 250-E of the Income Tax Assessment Act 1997 ; and

(ii) reasonably attributable to that period; and

(b) a loss (or losses) you make from a financial arrangement to the extent to which it is (or they are):

(i) allowable to you as a deduction under Subdivision 250-E of the Income Tax Assessment Act 1997 ; and

(ii) reasonably attributable to that period.

This is so only if the gain (or gains) referred to in paragraph (a) exceeds the loss (or losses) referred to in paragraph (b).

S 45-120(2B) inserted by No 164 of 2007 , s 3 and Sch 1 item 69, applicable in relation to an income year that begins on or after 1 July 2008.

S 45-120(2C) inserted by No 147 of 2011, s 3 and Sch 3 item 1, effective 29 November 2011. For application provisions, see note under s 45-120(2E) .

S 45-120(2D) inserted by No 147 of 2011, s 3 and Sch 3 item 1, effective 29 November 2011. For application provisions, see note under s 45-120(2E) .

S 45-120(2E) inserted by No 147 of 2011, s 3 and Sch 3 item 1, effective 29 November 2011.

No 147 of 2011, s 3 and Sch 3 items 2 and 3 contains the following application provisions:

2 Definitions  
2
In this Part:

amended instalment income definition
means section 45-120 in Schedule 1 to the Taxation Administration Act 1953 as amended by this Schedule.

first TOFA year
means the first income year commencing on or after 1 July 2010 for which:

(a) either or both of the following applies:

(i) a gain (or gains) from a financial arrangement is included in your assessable income under Division 230 of the Income Tax Assessment Act 1997 ;

(ii) a loss (or losses) from a financial arrangement is allowable to you as a deduction under that Division; and

(b) at least one gain or loss referred to in paragraph (a) is from a financial arrangement other than a qualifying security.

3 Application of amendments  
Main rule

(1)
Subitem (2) applies to you if:

(a) the Commissioner gives you an instalment rate under section 45-15 in Schedule 1 to the Taxation Administration Act 1953 at a time that is:

(i) after this Act receives the Royal Assent; and

(ii) in the first instalment quarter in an income year (the commencing year ); and

(b) the base year that applies in working out that rate is your first TOFA year, or a later year.

(2)
Subject to subitems (4) and (6), the amended instalment income definition applies to you in working out:

(a) your base assessment instalment income for the base year mentioned in paragraph (1)(b), and later years; and

(b) your instalment income for periods in the commencing year, and later years.

Partnerships

(3)
Subitem (4) applies in relation to your instalment income for a period if:

(a) the period starts after this Act receives the Royal Assent [ CCH Note: No 147 of 2011 gained Royal Assent on 29 November 2011]; and

(b) you are a partner in a partnership at any time during the period; and

(c) in working out the amount to be included in your instalment income for the period under section 45-260 in Schedule 1 to the Taxation Administration Act 1953 , the last income year mentioned in the numerator of the formula in subsection 45-260(1) in that Schedule is:

(i) the first TOFA year for the partnership; or

(ii) a later year.

(4)
For the purpose of working out the amount to be included in your instalment income for the period (the current period) under section 45-260 in Schedule 1 to the Taxation Administration Act 1953 , the amended instalment income definition applies in working out the instalment income of the partnership for:

(a) the last income year mentioned in the numerator of the formula in subsection 45-260(1) in that Schedule; and

(b) the current period.

Trusts

(5)
Subitem (6) applies in relation to your instalment income for a period if:

(a) the period starts after this Act receives the Royal Assent; and

(b) you are a beneficiary of a trust at any time during the period; and

(c) in working out the amount to be included in your instalment income for the period under section 45 280 in Schedule 1 to the Taxation Administration Act 1953, the last income year mentioned in the numerator of the formula in subsection 45 280(1) in that Schedule is:

(i) the first TOFA year for the trust; or

(ii) a later year.

(6)
For the purpose of working out the amount to be included in your instalment income for the period (the current period ) under section 45-280 in Schedule 1 to the Taxation Administration Act 1953 , the amended instalment income definition applies in working out the instalment income of the trust for:

(a) the last income year mentioned in the numerator of the formula in subsection 45-280(1) in that Schedule; and

(b) the current period.

Early opt-in for amended instalment income definition

(7)
Subitem (8) applies to you if:

(a) the Commissioner gives you an instalment rate under section 45-15 in Schedule 1 to the Taxation Administration Act 1953 at a time that is:

(i) after this Act receives the Royal Assent; and

(ii) in the first instalment quarter in an income year (the commencing year ); and

(b) the base year that applies in working out that rate is an income year before your first TOFA year; and

(c) you elect to have subitem (8) apply to you; and

(d) the Commissioner, having regard to the object of Part 2-10 in Schedule 1 to the Taxation Administration Act 1953 , is of the opinion that it is reasonable for that subitem to apply to you.

(8)
Despite subitems (1) and (2), the amended instalment income definition applies to you in working out:

(a) your base assessment instalment income for the base year mentioned in paragraph (7)(b), and later years; and

(b) your instalment income for periods in the commencing year, and later years.

(9)
If subitem (8) applies to you, in working out your base assessment instalment income for the base year (or a later income year that ends before your first TOFA year) (a pre-TOFA year ), the financial arrangement amendments (within the meaning of Part 3 of Schedule 1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009 ) are taken to apply:

(a) to you in a pre-TOFA year in the same way they apply to you in your first TOFA year; and

(b) to financial arrangements you have in a pre-TOFA year in the same way they apply to financial arrangements you have in your first TOFA year.

S 45-120(3) amended by No 32 of 2008 , s 3 and Sch 1 item 54, by inserting para (c), applicable to fund payments made in relation to the first income year starting on or after the first 1 July after 23 June 2008 and later income years.

S 45-120(3) amended by No 169 of 2001 and substituted by No 86 of 2000.

S 45-120(4) amended by No 79 of 2010 , s 3 and Sch 4 item 48, by substituting " section 393-5 of the Income Tax Assessment Act 1997 " for " section 393-10 in Schedule 2G to the Income Tax Assessment Act 1936 " , applicable to assessments for: (a) the 2010-11 income year; and (b) later income years.

S 45-120(5) amended by No 79 of 2010 , s 3 and Sch 4 item 49, by substituting " section 393-10 of the Income Tax Assessment Act 1997 " for " section 393-15 in Schedule 2G to the Income Tax Assessment Act 1936 " , applicable to assessments for: (a) the 2010-11 income year; and (b) later income years.

S 45-120(5A) inserted by No 132 of 2011, s 3 and Sch 2 item 73, effective 2 April 2012.