Taxation Administration Act 1953

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

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Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax

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

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Division 45 - Instalment payments

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Subdivision 45-DA - Monthly payers

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SECTION 45-138 MONTHLY PAYER REQUIREMENT

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45-138(1)
You satisfy the requirement in this subsection for an income year if at the start of your *MPR test day for that income year, your base assessment instalment income (within the meaning of section 45-320 ) for the *base year equals or exceeds:

(a) $20 million; or

(b) if regulations made for the purposes of this paragraph specify a different amount - that amount.

45-138(2)
However, you do not satisfy the requirement in subsection (1) for an income year if, at the start of your *MPR test day for that income year:

(a) you have (or, if you are a *member of a *GST group, the *representative member of the GST group has) an obligation to give the Commissioner a *GST return for a quarterly *tax period; and

(b) you are not the *head company of a *consolidated group nor the *provisional head company of a *MEC group; and

(c) your base assessment instalment income (within the meaning of section 45-320 ) for the *base year is less than $100 million.

45-138(3)
For the purposes of subsections (1) and (2), at the start of an entity ' s *MPR test day:

(a) determine the amount of the entity ' s base assessment instalment income (within the meaning of section 45-320 ) for the *base year only on the basis of the information provided by the Commissioner to the entity before that start of that day; and

(b) in determining on that day whether an entity has an obligation mentioned in paragraph (2)(a), disregard any creation or removal of such an obligation after that day (even if that change is made retrospective to that day).

45-138(4)
An entity ' s MPR test day for an income year is:

(a) if the Commissioner gives the entity an instalment rate for the first time during an *instalment month in the income year - the last day of that month; or

(b) otherwise - the first day of the third last month of the previous income year.

45-138(5)
Subsection (6) applies if, disregarding that subsection, an entity does not satisfy the requirement in subsection (1) for an income year.

45-138(6)
For the purposes of this section, in determining the entity ' s base assessment instalment income (within the meaning of section 45-320 ) for the *base year:

(a) disregard subsection 45-120(2C) ; and

(b) disregard paragraph (3)(a) of this section, to the extent that that paragraph relates to the operation of subsection 45-120(2C) .

45-138(7)
If, because of subsection (6), the entity satisfies the requirement in subsection (1) for an income year, the entity must give the Commissioner a notice in the *approved form in respect of that income year before:

(a) if the *starting instalment month in the income year is determined under paragraph 45-136(2)(a) - the end of that starting instalment month; or

(b) if the starting instalment month in the income year is determined under paragraph 45-136(2)(b) - the start of that starting instalment month.

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History

S 45-138 inserted by No 124 of 2013, s 3 and Sch 1 item 19, applicable to starting instalment months that start on or after 1 January 2014. No 124 of 2013, s 3 and Sch 1 Pt 3 contains the following application and transitional provisions:

Part 3 - Application and transitional provisions
45 General application of amendments
45
The amendments made by this Schedule apply to starting instalment months that start on or after 1 January 2014. 46 Delayed application to non-corporate tax entities
46
Despite subsection 45-138(1) in Schedule 1 to the Taxation Administration Act 1953 , an entity cannot be a monthly payer at a time if:

(a) the entity is not a corporate tax entity at the time; and

(b) the time is before 1 January 2016. 47 Transitional MPR thresholds
(1)
Subitem (2) applies if an entity is a corporate tax entity.

(2)
If the entity ' s MPR test day for an income year mentioned in subsection 45-138(1) in Schedule 1 to the Taxation Administration Act 1953 is before 1 October 2015, treat the reference in paragraph (a) of that subsection to $20 million as a reference to:

(a) if that MPR test day is before 1 October 2014 - $1 billion; or

(b) otherwise - $100 million.

(3)
Subitem (4) applies if an entity is not a corporate tax entity.

(4)
If the entity ' s MPR test day for an income year mentioned in subsection 45-138(1) in Schedule 1 to the Taxation Administration Act 1953 is before 1 October 2016, treat the reference in paragraph (a) of that subsection to $20 million as a reference to $1 billion.

(5)
Disregard subitems (2) and (4) for the purposes of subsection 45-136(4) in Schedule 1 to the Taxation Administration Act 1953 (MP stop notice).
48 Additional MPR test days
(1)
This item applies if:

(a) (apart from this item) there is a time in an income year when you are not a monthly payer; and

(b) either:

(i) if you are a corporate tax entity at the time - the income year includes 1 January 2014, 1 January 2015 or 1 January 2016; or

(ii) if you are not a corporate tax entity at the time - the income year includes 1 January 2016 or 1 January 2017.

Note:

This item may have a separate application for each of a number of income years.

(2)
In determining whether you satisfy the requirement in subsection 45-138(1) in Schedule 1 to the Taxation Administration Act 1953 for the income year, treat your MPR test day for that income year as being:

(a) in a case where subparagraph (1)(b)(i) applies:

(i) if the income year includes 1 January 2014 - 1 October 2013; or

(ii) if the income year includes 1 January 2015 - 1 October 2014; or

(iii) if the income year includes 1 January 2016 - 1 October 2015; or

(b) in a case where subparagraph (1)(b)(ii) applies:

(i) if the income year includes 1 January 2016 - 1 October 2015; or

(ii) if the income year includes 1 January 2017 - 1 October 2016.

(3)
If you are a monthly payer at a time in an income year because of subitem (2), treat the starting instalment month in the income year as being:

(a) unless paragraph (b) applies - the first instalment month that starts on or after the following day (the application day ):

(i) if subparagraph (2)(a)(i) applies - 1 January 2014;

(ii) if subparagraph (2)(a)(ii) applies - 1 January 2015;

(iii) if subparagraph (2)(a)(iii) applies - 1 January 2016;

(iv) if subparagraph (2)(b)(i) applies - 1 January 2016;

(v) if subparagraph (2)(b)(ii) applies - 1 January 2017; or

(b) if:

(i) apart from subitem (2), you are a quarterly payer; and

(ii) the application day is not the first day of an instalment quarter;
the first instalment month that starts on or after the start of the next instalment quarter.

(4)
If you would (apart from subitem (2)) be an annual payer and you would (apart from this subitem) become a monthly payer at a time in the income year under paragraph (3)(a):

(a) you are taken not to satisfy the requirement in subsection 45-138(1) in Schedule 1 to the Taxation Administration Act 1953 for the income year because of the operation of subitem (2); and

(b) instead, you are taken to satisfy that requirement for the next income year.
Note:

In this case, you become a monthly payer in that next income year at the time specified in subsection 45-136(3) in Schedule 1 to the Taxation Administration Act 1953 .

49 Deadline for TOFA BAII calculation notice
(1)
Subitem (2) applies if an entity must give the Commissioner a notice under subsection 45-138(7) in Schedule 1 to the Taxation Administration Act 1953 in respect of an income year because its MPR test day for that income year is treated under item 48 as being a particular day (the additional MPR test day ).

(2)
Despite subsection 45-138(7) in Schedule 1 to the Taxation Administration Act 1953 , the entity must give the notice before the 1 January that follows the additional MPR test day.

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