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-J - How Commissioner works out your instalment rate and notional tax  

SECTION 45-325   WORKING OUT YOUR NOTIONAL TAX  

Notional tax if you have no withholding income

45-325(1)    
Your notional tax is your *adjusted tax (worked out under section 45-340 ) on your *adjusted taxable income (worked out under section 45-330 ) for the *base year.

Notional tax if you have no-TFN contributions income

45-325(1A)    

In working out the notional tax of a *complying superannuation fund, *non-complying superannuation fund or *RSA provider for the *base year, assume that the entity had no *no-TFN contributions income for the base year and that the entity was not entitled to a *tax offset for the base year under Subdivision 295-J of the Income Tax Assessment Act 1997 .

Notional tax if you have withholding income

45-325(2)    
However, your notional tax (as worked out under subsection (1)) is reduced if your assessable income for the *base assessment includes amounts in respect of *withholding payments (except *non-quotation withholding payments).

45-325(3)    
It is reduced (but not below nil) by your *adjusted tax (worked out under section 45-340 ) on your *adjusted withholding income (worked out under section 45-335 ) for the *base year.

Commissioner may take into account effect of the law, as applying to income years after base year

45-325(4)    
For the purposes of working out your *notional tax, the Commissioner may work out an amount as if provisions of an Act or regulations, as they may reasonably be expected to apply for the purposes of your assessment for a later income year, had applied for the purposes of the *base assessment.

Commissioner may take into account proposed changes to the law so as to reduce instalment rate

45-325(5)    
For the purposes of working out your *notional tax, the Commissioner may work out an amount as if provisions of an Act or regulations that, in the Commissioner ' s opinion, are likely to be enacted or made had applied for the purposes of the *base assessment. But the Commissioner may do so only if, as a result, the instalment rate given to you is reduced.

45-325(6)    

If the *base year is the income year immediately preceding the income year in which 1 July 2000 occurred, subsections (4) and (5) apply for the purpose of working out the *base assessment instalment income of a *life insurance company in the same way as they apply for the purpose of working out such a company ' s *notional tax.