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

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SECTION 45-340

45-340 ADJUSTED TAX ON ADJUSTED TAXABLE INCOME OR ON ADJUSTED WITHHOLDING INCOME

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Your adjusted tax on your *adjusted taxable income, or on your *adjusted withholding income, for the *base year is worked out as follows: Method statement

Step 1.

The income tax payable on your *adjusted taxable income, or on your *adjusted withholding income, for the *base year is worked out disregarding any *tax offset under:

(aa) section 61-110 of the Income Tax Assessment Act 1997 (the Low Income tax offset); or

(a) Subdivision 61-G of the Income Tax Assessment Act 1997 (the private health insurance tax offset); or

(b) (Repealed by No 49 of 2019)

(d) (Repealed by No 20 of 2015)

(da) Subdivision 61-L of the Income Tax Assessment Act 1997 (tax offset for Medicare levy surcharge (lump sum payments in arrears)); or

(db) Division 160 of the Income Tax Assessment Act 1997 (the corporate loss carry back tax offset for 2020-21, 2021-22 or 2022-23 for businesses with turnover under $5 billion); or

(dc) (Repealed by No 96 of 2014)

(e) section 205-70 of the Income Tax Assessment Act 1997 (the tax offset for *franking deficit tax liabilities); or

(f) (Repealed by No 92 of 2020)

(g) section 290-230 of the Income Tax Assessment Act 1997 (the tax offset for superannuation contributions made for a spouse); or

(ga) Subdivision 360-A of the Income Tax Assessment Act 1997 (the tax offset for early stage investors in innovation companies); or

(h) Subdivision 418-B of the Income Tax Assessment Act 1997 (the junior minerals exploration incentive tax offset).

Step 2.

The *Medicare levy payable on your *adjusted taxable income, or on your *adjusted withholding income, for the *base year is worked out disregarding sections 8B , 8C , 8D , 8E , 8F and 8G of the Medicare Levy Act 1986 (which increase Medicare levy in certain cases).

Step 3.

The amount (if any) that you would have been liable to pay for the *base year in respect of an *accumulated HELP debt if your taxable income for the base year had been your *adjusted taxable income, or your *adjusted withholding income, for that year is worked out.

Step 3AAA.

The amount (if any) that you would have been liable to pay for the *base year in respect of an *accumulated VETSL debt if your taxable income for the base year had been your *adjusted taxable income, or your *adjusted withholding income, for that year is worked out.

Step 3AA.

The amount (if any) that you would have been liable to pay for the *base year in respect of an *accumulated SSL debt if your taxable income for the base year had been your *adjusted taxable income, or your *adjusted withholding income, for that year is worked out.

Step 3AB.

The amount (if any) that you would have been liable to pay for the *base year in respect of an *accumulated ABSTUDY SSL debt if your taxable income for the base year had been your *adjusted taxable income, or your *adjusted withholding income, for that year is worked out.

Step 3AC.

The amount (if any) that you would have been liable to pay for the *base year in respect of an *accumulated AASL debt if your taxable income for the base year had been your *adjusted taxable income, or your *adjusted withholding income, for that year is worked out.

Step 3A.

The amount (if any) that you would have been liable to pay for the *base year by way of an *FS assessment debt if your taxable income for the base year had been your *adjusted taxable income, or your *adjusted withholding income, for that year is worked out.

Step 4.

The results of steps 1, 2, 3, 3AAA, 3AA, 3AB, 3AC and 3A are added together. The result is your adjusted tax on your *adjusted taxable income, or on your *adjusted withholding income.

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History

S 45-340 amended by No 61 of 2023, s 3 and Sch 1 item 144, by substituting " AASL " for " TSL " in method statement, step 3AC, effective 1 January 2024. For transitional provisions, see note under s 11-1 .

S 45-340 amended by No 8 of 2022, s 3 and Sch 6 item 23, by substituting " , 2021-22 or 2022-23 " for " or 2021-22 " in para (db) of step 1 of the method statement, effective 1 April 2022.

S 45-340 amended by No 92 of 2020, s 3 and Sch 2 item 36, by inserting para (db) in step 1 of the method statement, effective 1 January 2021.

S 45-340 amended by No 92 of 2020, s 3 and Sch 1 item 22, by repealing para (f) in step 1 of method statement, effective 15 October 2020 and applicable in relation to assessments for the 2020-21 income year or a later income year. Para (f) formerly read:

(f) section 159N of the Income Tax Assessment Act 1936 (the tax offset for certain low income earners); or

S 45-340 amended by No 49 of 2019, s 3 and Sch 4 item 108, by repealing para (b) in step 1 of method statement, effective 1 July 2019. Para (b) formerly read:

(b) Subdivision 61-IA of the Income Tax Assessment Act 1997 (the child care tax offset); or

S 45-340 amended by No 116 of 2018, s 3 and Sch 1 items 55 and 56, by inserting step 3AAA of the method statement and " 3AAA, " in step 4 of the method statement, effective 1 July 2019.

S 45-340 amended by No 47 of 2018, s 3 and Sch 1 item 8, by inserting para (aa) in step 1 of the method statement, effective 1 July 2018.

S 45-340 amended by No 15 of 2018, s 3 and Sch 1 item 27, by substituting " junior minerals exploration incentive " for " exploration development incentive " in para (h) in step 1 of the method statement, effective 1 April 2018. For application and transitional provisions, see note under s 3F .

S 45-340 amended by No 54 of 2016, s 3 and Sch 1 item 15, by inserting para (ga) in step 1 of the method statement, applicable in relation to equity interests issued on or after 1 July 2016.

S 45-340 amended by No 169 of 2015, s 3 and Sch 1 items 95 and 96, by inserting steps 3AA and 3AB of the method statement and " 3AA, 3AB, " in step 4 of the method statement, effective 1 January 2016.

S 45-340 amended by No 21 of 2015, s 3 and Sch 6 items 27 and 28, by inserting " ; or " at the end of para (g) and inserting para (h) in step 1 of the method statement, applicable in relation to the 2015-16, 2016-17 and 2017-18 income years, but not in relation to any later income years.

S 45-340 amended by No 20 of 2015, s 3 and Sch 1 item 4, by repealing para (d) in step 1 of method statement, applicable to assessments for the 2014-15 income year and later income years. Para (d) formerly read:

(d) Subdivision 61-K of the Income Tax Assessment Act 1997 (the mature age worker tax offset); or

S 45-340 amended by No 109 of 2014, s 3 and Sch 10 item 18, by repealing para (db) in step 1 of method statement, effective 17 October 2014. Para (db) formerly read:

(db) Subdivision 61-M of the Income Tax Assessment Act 1997 (the education expenses tax offset); or

S 45-340 amended by No 96 of 2014, s 3 and Sch 2 item 41, by repealing para (dc) in step 1 of method statement, effective 30 September 2014 and applicable to assessments for the income year before the income year in which this Schedule commences, for the income year in which this Schedule commences and for later income years. No 96 of 2014, s 3 and Sch 2 item 43 contains the following transitional and saving provision:

43 Making and amending assessments, and doing other things, in relation to past matters
43(1)
Even though a part of an Act is repealed or amended by this Schedule, the repeal or amendment is disregarded for the purpose of doing any of the following under any Act or legislative instrument (within the meaning of the Legislation Act 2003 ):
(a) making or amending an assessment (including under a provision that is itself repealed or amended);
(b) exercising any right or power, performing any obligation or duty or doing any other thing (including under a provision that is itself repealed or amended);
in relation to any act done or omitted to be done, any state of affairs existing, or any period ending, before the repeal or amendment applies.

43(2)
This item does not limit the operation of the Acts Interpretation Act 1901 .

Para (dc) formerly read:

(dc) Division 160 of the Income Tax Assessment Act 1997 (the loss carry back tax offset);

S 45-340 amended by No 82 of 2014, s 3 and Sch 1 items 19 and 20, by inserting step 3AC of the method statement and substituting " , 3AC and 3A " for " and 3A " in step 4 of the method statement, effective 18 July 2014.

S 45-340 amended by No 88 of 2013, s 3 and Sch 6 item 66, by inserting para (dc) into step 1 of the method statement, effective 29 June 2013.

S 45-340 amended by No 23 of 2012, s 3 and Sch 1 item 9, by repealing para (c) in step 1 of method statement, applicable in relation to the 2012-13 income year and later income years. Para (c) formerly read:

(c) Subdivision 61-J of the Income Tax Assessment Act 1997 (the 25% entrepreneurs ' tax offset); or

S 45-340 amended by No 12 of 2012, s 3 and Sch 6 item 249, by omitting " , and reduced by what would have been your *FTB amount (if any) for the *base year if your taxable income for the base year had been your *adjusted taxable income, or your *adjusted withholding income, for that year " after " added together " from step 4 of method statement, applicable to a base year that is: (a) the 2009-10 income year; or (b) a later income year.

S 45-340 amended by No 12 of 2012, s 3 and Sch 6 item 242, by substituting " *Medicare levy " for " Medicare levy " (first occurring) in step 2 of method statement, applicable to income years starting on or after 1 July 2008.

S 45-340 amended by No 56 of 2010, s 3 and Sch 6 item 35, by substituting " an *accumulated HELP debt " for " an accumulated HEC debt under the Higher Education Funding Act 1988 , or an *accumulated HELP debt under the Higher Education Support Act 2003 , " in step 3 of the method statement, effective 3 June 2010.

S 45-340 amended by No 141 of 2008, s 3 and Sch 1 item 8, by inserting para (db) in Step 1, applicable to the 2008-2009 income year and later years.

S 45-340 amended by No 32 of 2007, s 3 and Sch 3 item 17, by substituting " Subdivision 61-G " for " Subdivision 61-H " in step 1, effective 1 July 2007.

S 45-340 amended by No 15 of 2007, s 3 and Sch 1 item 381, by substituting " section 290-230 of the Income Tax Assessment Act 1997 " for " section 159T of the Income Tax Assessment Act 1936 " in para (g) step 1 of the method statement, applicable to the 2007-2008 income year and later years.

S 45-340 amended by No 80 of 2006 , s 3 and Sch 6 item 10, by inserting para (da) in the method statement, effective 30 June 2006.

S 45-340 amended by No 160 of 2005, No 77 of 2005, No 41 of 2005, No 150 of 2003, No 107 of 2003, No 44 of 2000. No 107 of 2003 contains the following application provision:

20 Application
20
The amendment made by item 19 applies in relation to the calculation of an entity ' s adjusted tax:
(a) for a base year that is the first income year (within the meaning of section 205-75 of the Income Tax (Transitional Provisions) Act 1997 or a later income year; and
(b) only for the purposes of a PAYG instalment period that includes, or starts after, the day on which this Act receives the Royal Assent.

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