Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-10 - PAY AS YOU GO (PAYG) INSTALMENTS  

Division 45 - Instalment payments  

Subdivision 45-G - General interest charge payable in certain cases if instalments are too low  

SECTION 45-232   LIABILITY TO GIC ON SHORTFALL IN QUARTERLY INSTALMENT WORKED OUT ON THE BASIS OF ESTIMATED BENCHMARK TAX  

45-232(1)    
You are liable to pay the *general interest charge under this section if:

(a) the amount of your instalment for an *instalment quarter (the variation quarter ) in an income year is worked out under paragraph 45-112(1)(b) or (c) on the basis of your estimate of your *benchmark tax for that income year; and

(b) the estimate used is less than 85% of your *benchmark tax for the income year (which the Commissioner works out under section 45-365 ).

Amount on which the charge is payable

45-232(2)    
You are liable to pay the *general interest charge on the amount worked out as follows (if it is a positive amount):

*Acceptable amount of the instalment − Actual amount

where:

acceptable amount
, of your instalment for an *instalment quarter in an income year, has the meaning given by subsections (3), (3A), (3B), (3C) and (3D).

actual amount
means:

(a) the amount of your instalment, as worked out on the basis of the estimate; or

(b) if, as a result of using the estimate, you claimed a credit under section 45-420 for the variation quarter - the amount of the credit, expressed as a negative amount.

45-232(3)    

If you are a *quarterly payer who pays 4 instalments annually on the basis of GDP-adjusted notional tax, the acceptable amount of your instalment for that instalment quarter is:

(a) if the amount of the instalment is worked out under paragraph 45-112(1)(b) or (c) - the amount worked out using the table in this subsection (which can be a negative amount); or

(b) otherwise - the amount notified to you by the Commissioner under paragraph 45-112(1)(a) as the amount of your instalment for that *instalment quarter.

Acceptable amount of an instalment
Item	If the *instalment quarter is:	The acceptable amount of your instalment for that instalment quarter is:
1	the first in that income year for which you are liable to pay an instalment	the lower of:
		(a)	the amount that the Commissioner notified to you under paragraph 45-112(1)(a) as the amount of your instalment for that *instalment quarter; and
		(b)	25% of your *benchmark tax for the income year (which the Commissioner works out under section 45-365 ).
2	the second in that income year for which you are liable to pay an instalment	the lower of:
		(a)	the amount that the Commissioner would have notified to you under paragraph 45-112(1)(a) as the amount of your instalment for that *instalment quarter if the amounts of all your instalments for that income year had been required to be worked out under Subdivision 45-L ; and
		(b)	the amount worked out by subtracting:
			•	the *acceptable amount of your instalment for the earlier instalment quarter in that income year;
			from:
			•	50% of your *benchmark tax for the income year (which the Commissioner works out under section 45-365 ).
3	the third in that income year for which you are liable to pay an instalment	the lower of:
		(a)	the amount that the Commissioner would have notified to you under paragraph 45-112(1)(a) as the amount of your instalment for that *instalment quarter if the amounts of all your instalments for that income year had been required to be worked out under Subdivision 45-L ; and
		(b)	the amount worked out by subtracting:
			•	the total of the *acceptable amounts of your instalments for the earlier instalment quarters in that income year;
			from:
			•	75% of your *benchmark tax for the income year (which the Commissioner works out under section 45-365 ).
4	the fourth in that income year for which you are liable to pay an instalment	the lower of:
		(a)	the amount that the Commissioner would have notified to you under paragraph 45-112(1)(a) as the amount of your instalment for that *instalment quarter if the amounts of all your instalments for that income year had been required to be worked out under Subdivision 45-L ; and
		(b)	the amount worked out by subtracting:
			•	the total of the *acceptable amounts of your instalments for the earlier instalment quarters in that income year;
			from:
			•	100% of your *benchmark tax for the income year (which the Commissioner works out under section 45-365 ).

45-232(3A)    

Subject to subsections (3B), (3C) and (3D), if you are a *quarterly payer who pays 2 instalments annually on the basis of GDP-adjusted notional tax, the acceptable amount of your instalment for an *instalment quarter in an income year is:

(a) if the amount of the instalment is worked out under paragraph 45-112(1)(b) or (c) - the amount worked out using the table in this subsection (which can be a negative amount); or

(b) otherwise - the amount notified to you by the Commissioner under paragraph 45-112(1)(a) as the amount of your instalment for that instalment quarter.

Acceptable amount of an instalment
Item	If the *instalment quarter is:	The acceptable amount of your instalment for that instalment quarter is:
1	the third *instalment quarter in that income year	the lower of:
		(a)	the amount that the Commissioner notified to you under paragraph 45-112(1)(a) as the amount of your instalment for that *instalment quarter; and
		(b)	75% of your *benchmark tax for the income year (which the Commissioner works out under section 45-365 ).
2	the fourth *instalment quarter in that income year	the lower of:
		(a)	the amount that the Commissioner would have notified to you under paragraph 45-112(1)(a) as the amount of your instalment for that *instalment quarter if the amounts of all your instalments for that income year had been required to be worked out under Subdivision 45-L ; and
		(b)	the amount worked out by subtracting:
			•	the *acceptable amount of your instalment for the earlier instalment quarter in that income year;
			from:
			•	100% of your *benchmark tax for the income year (which the Commissioner works out under section 45-365 ).

45-232(3B)    

If:

(a) you are a *quarterly payer who pays 2 instalments annually on the basis of GDP-adjusted notional tax; and

(b) the Commissioner first gives you an instalment rate during the second *instalment quarter in an income year;

the acceptable amount of your instalment for an instalment quarter in that income year is:

(c) if the amount of the instalment is worked out under paragraph 45-112(1)(b) or (c) - the amount worked out using the table in this subsection (which can be a negative amount); or

(d) otherwise - the amount notified to you by the Commissioner under paragraph 45-112(1)(a) as the amount of your instalment for that instalment quarter.

Acceptable amount of an instalment
Item	If the *instalment quarter is:	The acceptable amount of your instalment for that instalment quarter is:
1	the third *instalment quarter in that income year	the lower of:
		(a)	the amount that the Commissioner notified to you under paragraph 45-112(1)(a) as the amount of your instalment for that *instalment quarter; and
		(b)	50% of your *benchmark tax for the income year (which the Commissioner works out under section 45-365 ).
2	the fourth *instalment quarter in that income year	the lower of:
		(a)	the amount that the Commissioner would have notified to you under paragraph 45-112(1)(a) as the amount of your instalment for that *instalment quarter if the amounts of all your instalments for that income year had been required to be worked out under Subdivision 45-L ; and
		(b)	the amount worked out by subtracting:
			•	the *acceptable amount of your instalment for the earlier instalment quarter in that income year;
			from:
			•	75% of your *benchmark tax for the income year (which the Commissioner works out under section 45-365 ).

45-232(3C)    

If:

(a) you are a *quarterly payer who pays 2 instalments annually on the basis of GDP-adjusted notional tax; and

(b) the Commissioner first gives you an instalment rate during the third *instalment quarter in an income year;

the acceptable amount of your instalment for an instalment quarter in that income year is:

(c) if the amount of the instalment is worked out under paragraph 45-112(1)(b) or (c) - the amount worked out using the table in this subsection (which can be a negative amount); or

(d) otherwise - the amount notified to you by the Commissioner under paragraph 45-112(1)(a) as the amount of your instalment for that instalment quarter.

Acceptable amount of an instalment
Item	If the *instalment quarter is:	The acceptable amount of your instalment for that instalment quarter is:
1	the third *instalment quarter in that income year	the lower of:
		(a)	the amount that the Commissioner notified to you under paragraph 45-112(1)(a) as the amount of your instalment for that *instalment quarter; and
		(b)	25% of your *benchmark tax for the income year (which the Commissioner works out under section 45-365 ).
2	the fourth *instalment quarter in that income year	the lower of:
		(a)	the amount that the Commissioner would have notified to you under paragraph 45-112(1)(a) as the amount of your instalment for that *instalment quarter if the amounts of all your instalments for that income year had been required to be worked out under Subdivision 45-L ; and
		(b)	the amount worked out by subtracting:
			•	the *acceptable amount of your instalment for the earlier instalment quarter in that income year;
			from:
			•	50% of your *benchmark tax for the income year (which the Commissioner works out under section 45-365 ).

45-232(3D)    
If:

(a) you are a *quarterly payer who pays 2 instalments annually on the basis of GDP-adjusted notional tax; and

(b) the Commissioner first gives you an instalment rate during the fourth *instalment quarter in an income year;

the acceptable amount of your instalment for an instalment quarter in that income year is the lower of the following amounts:

(c) the amount that the Commissioner notified to you under paragraph 45-112(1)(a) as the amount of your instalment for that instalment quarter;

(d) 25% of your *benchmark tax for the income year (which the Commissioner works out under section 45-365 ).

Period for which the charge is payable

45-232(4)    
You are liable to pay the charge for each day in the period that:

(a) started at the beginning of the day by which the instalment for the variation quarter was due to be paid; and

(b) finishes at the end of the day on which your assessed tax for the income year is due to be paid.

Commissioner to notify you

45-232(5)    
The Commissioner must give you written notice of the *general interest charge to which you are liable under subsection (2). You must pay the charge within 14 days after the notice is given to you.

Further charge if charge under subsection (2) remains unpaid

45-232(6)    
If any of the *general interest charge to which you are liable under subsection (2) remains unpaid at the end of the 14 days referred to in subsection (5), you are also liable to pay the *general interest charge on the unpaid amount for each day in the period that:

(a) starts at the end of those 14 days; 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 unpaid amount;

(ii) general interest charge on the unpaid amount.

Modifications for subsidiary member of consolidated group

45-232(7)    

Subsections (1) to (6) apply to you with the modifications set out in subsections (8) to (10) if the variation quarter is in a *consolidation transitional year for you as a *subsidiary member of a *consolidated group.

45-232(8)    

For the purposes of subsection (7), a reference in subsection (1), (3), (3A), (3B), (3C) and (3D) to your *benchmark tax for that year is taken to be a reference to the amount worked out as follows:

	Your *benchmark tax for that year	× 365
	Number of days in that year when you are not a *subsidiary member of the group

45-232(9)    

For the purposes of subsection (7), a reference in this section to:

(a) the acceptable amount of your instalment for an *instalment quarter in an income year; or

(b) the acceptable amount of your instalment for the earlier instalment quarter in an income year; or

(c) the acceptable amounts of your instalments for the earlier instalment quarters in an income year;

is taken to be a reference to so much of the acceptable amount of instalment or acceptable amounts of instalments, worked out under subsection (3), (3A), (3B), (3C) or (3D) for that quarter or those quarters (as appropriate), as is reasonably attributable to the period in that quarter or those quarters (as appropriate) during which you are not a *subsidiary member of the group.

45-232(10)    

For the purposes of subsection (7), a reference to the actual amount in subsection (2) is taken to be a reference to so much of the actual amount worked out under that subsection as is reasonably attributable to the period in the variation quarter during which you are not a *subsidiary member of the group.