Taxation Administration Act 1953
SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES
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Hide history noteNote: 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-L - How Commissioner works out amount of quarterly instalment on basis of GDP-adjusted notional tax
SECTION 45-405 WORKING OUT YOUR GDP-ADJUSTED NOTIONAL TAX
45-405(1)
Except as provided by section 45-775 , your GDP-adjusted notional tax is worked out in the same way as your *notional tax would be worked out for the purposes of working out an instalment rate if that instalment rate were to be given to you at the same time as notice of the amount of the instalment referred to in section 45-400 or 45-402 (as appropriate).
45-405(2)
However, for the purposes of subsection (1) :
(a) your *adjusted taxable income for the *base year; and
(b) your *adjusted withholding income (if any) for the *base year;
are each increased in accordance with the formula:
| Original amount × (1 + GDP adjustment) |
45-405(3)
For the purposes of the formula in subsection (2) :
original amount
means the amount that, apart from subsection
(2)
, would be your *adjusted taxable income for the *base year, or your *adjusted withholding income for the *base year, as appropriate.
(a)
the percentage (rounded to the nearest whole number, rounding down a number ending in .5) worked out using the following formula; or
(b)
if the percentage worked out using the formula is negative
-
0%:
45-405(4)
For the purposes of the formula in subsection
(3)
:
sum of GDP amounts (current year)
means the sum of the *GDP amounts, for the *quarters in the last calendar year (the
later calendar year
) ending at least 3 months before the start of the current year, specified in the document referred to in subsection
(6)
.
sum of GDP amounts (previous year)
means the sum of the *GDP amounts, for the *quarters in the calendar year (the
earlier calendar year
) before the later calendar year, specified in the document referred to in subsection
(6)
.
45-405(5)
The
GDP amount
for a *quarter is the amount published by the Australian Statistician as the original gross domestic product at current prices for that quarter.
45-405(6)
The GDP adjustment must be worked out on the basis of the first document that:
(a) is published by the Australian Statistician after the end of the later calendar year; and
(b) sets out the *GDP amounts for all the *quarters in both the later calendar year and the earlier calendar year.
45-405(7)
To avoid doubt, subsections
45-325(4)
and
(5)
also have effect for the purposes of working out your *GDP-adjusted notional tax.
Nil
GDP adjustment
for 2020-21 income year
45-405(8)
Despite subsections
(3)
and
(6)
, if the current year is the 2020-21 income year, then for the purposes of the formula in subsection
(2)
the
GDP adjustment
is 0%.
Note:
This subsection will be repealed on 1 July 2025: see Part 2 of Schedule 5 to the Treasury Laws Amendment (2020 Measures No. 3) Act 2020 .
[ CCH Note: S 45-405(8) will be repealed by No 61 of 2020, s 3 and Sch 5 item 3, effective 1 July 2025.]
Reduced GDP adjustment for 2022-23 income year
45-405(9)
Despite subsections (3) and (6) , if the current year is the 2022-23 income year, then for the purposes of the formula in subsection (2) the GDP adjustment is 2%.
Note:
This subsection will be repealed on 1 July 2027: see Part 2 of Schedule 5 to the Treasury Laws Amendment (Cost of Living Support and Other Measures) Act 2022 .
[ CCH Note: S 45-405(9) will be repealed by No 14 of 2022, s 3 and Sch 5 item 3, effective 1 July 2027.]
Reduced GDP adjustment for 2023-24 income year
45-405(10)
Despite subsections
(3)
and
(6)
, if the current year is the 2023-24 income year, then for the purposes of the formula in subsection
(2)
the
GDP adjustment
is 6%.
Note:
This subsection will be repealed on 1 July 2028: see Part 2 of Schedule 4 to the Treasury Laws Amendment (2023 Measures No. 2) Act 2023 .
[ CCH Note: S 45-405(10) will be repealed by No 28 of 2023, s 3 and Sch 4 item 3, effective 1 July 2028.]
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