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-A - Basic rules  

SECTION 45-5   OBJECT OF THIS PART  

45-5(1)    
The object of this Part is to ensure the efficient collection of:

(a)    income tax; and

(b)    

*Medicare levy; and

(c)    

(Repealed by No 56 of 2010)

(ca)    amounts of liabilities to the Commonwealth under Chapter 4 of the Higher Education Support Act 2003 ; and

(caa)    amounts of liabilities to the Commonwealth under Part 3A of the VET Student Loans Act 2016 ; and

(cb)    

amounts of liabilities to the Commonwealth under Chapter 2AA of the Social Security Act 1991 ; and

(cc)    

amounts of liabilities to the Commonwealth under Part 2 of the Student Assistance Act 1973 ; and

(cd)    

amounts of liabilities to the Commonwealth under Chapter 3 of the Australian Apprenticeship Support Loans Act 2014 ; and

(d)    amounts of liabilities to the Commonwealth under Part 2B.3 of the Social Security Act 1991 ; and

(e)    amounts of liabilities to the Commonwealth under Division 6 of Part 4A of the Student Assistance Act 1973 ;

through the application of the principles set out in the rest of this section.

45-5(2)    

As you earn *instalment income, you pay instalments after the end of each *instalment quarter worked out on the basis of your instalment income for that quarter if you are required or choose to work out your instalment on this basis. However, you may be able to pay an amount notified by the Commissioner. (There are exceptions to this).

45-5(2A)    

Alternatively:

(a)    you may be required to pay instalments after the end of each *instalment month worked out on the basis of your instalment income for that month; or

(b)    you may be able to choose to pay an annual instalment for the income year.

45-5(3)    

The total of your instalments for an income year is as close as possible to the total of your liabilities for the income year that are covered by subsection (1) , except so far as the amounts of those liabilities are attributable to a *net capital gain. (The exception does not apply to the entities listed in subsections 45-120(2) and (2A) or the net capital gains specified in subsection 45-120(2B) .)

45-5(4)    
Consequently, the additional amounts you have to pay to discharge those liabilities, after an assessment of your income tax for the income year is made, are as low as possible.

45-5(5)    

If you are a *quarterly payer who pays on the basis of instalment income, the amount of each of your instalments for an income year is the same proportion (as nearly as possible, subject to the principles in subsections (3) and (4) ) of the total of those instalments as your *instalment income for that *instalment quarter is of your total instalment income for the income year.

45-5(5A)    

If you are a *monthly payer, the amount of each of your instalments for an income year is the same proportion (as nearly as possible, subject to the principles in subsections (3) and (4) ) of the total of those instalments as your *instalment income for that *instalment month is of your total instalment income for the income year.

45-5(6)    
When instalments are payable, and how their amount is calculated, are the same for different kinds of entities, except as expressly provided.

Note:

Subdivision 45-P penalises an entity whose tax position, so far as it relates to PAYG instalments and related matters, is altered by a scheme that is inconsistent with the object of this Part.