Taxation Administration Act 1953
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Hide history noteNote: See section 3AA .
Chapter 2 - Collection, recovery and administration of income taxYour tax position for an income year consists of a number of components . The table sets out each component, and how to work out the amount of the component.
| Components of your tax position that relate to PAYG instalments and credits | ||||
| Item | Each of these is a component : | The amount of that component is: | ||
| 1 | Your instalment for each *instalment quarter in the income year is a quarterly instalment component . | The amount worked out as follows: | ||
| (a) | if you are liable to pay an instalment for that instalment quarter - the amount of the instalment; or | |||
| (b) | if for any reason you are not liable to pay an instalment for that instalment quarter - nil (even if you are an *annual payer or a *quarterly payer who pays 2 instalments annually on the basis of GDP-adjusted notional tax); or | |||
| (c) | if you are entitled to claim a credit for that instalment quarter under section 45-420 (because the instalment for that quarter is to be worked out on the basis of your estimated benchmark tax) - the amount of the credit (expressed as a negative amount). | |||
| 2 | Your annual instalment for the income year is the annual instalment component . | The amount worked out as follows: | ||
| (a) | if you are liable to pay an annual instalment for the income year - the amount of the instalment; or | |||
| (b) | if for any reason you are not liable to pay an annual instalment for the income year - nil (even if you are a *quarterly payer). | |||
| 3 | A variation credit component is a credit arising under section 45-215 because the amount of your instalment for an *instalment quarter in the income year is to be worked out using an instalment rate you chose under section 45-205 . | The amount worked out as follows: | ||
| (a) | if you are entitled to the credit - the amount of the credit (expressed as a negative amount); or | |||
| (b) | otherwise - nil. | |||
| 4 | A variation GIC component is the *general interest charge you are liable to pay under: | The amount worked out as follows: | ||
| (a) | subsection 45-230(2) (varied instalment rate); or | (a) | if you are liable to pay the charge - the amount of the charge; or | |
| (b) | subsection 45-232(2) (estimated benchmark tax); or | (b) | otherwise - nil. | |
| (c) | subsection 45-235(2) or (3) (annual instalment); | |||
| because of how your instalment for an *instalment quarter in the income year, or for the income year, was worked out. |
Example:
A scheme results in X Pty Ltd being able to choose to be an annual payer for the 2000-01 income year.
The following table shows the actual tax position of X Pty Ltd for that year, and also its hypothetical tax position as defined in section 45-615 . X Pty Ltd has got 4 tax benefits from the scheme: one for each of the 4 instalment quarters.
| 2000-01 income year | ||
| For this component: | The amount of that component of the actual tax position is: | The amount of that component of the hypothetical tax position is: |
| Quarterly instalment component for first instalment quarter | nil | $3,000 |
| Quarterly instalment component for second instalment quarter | nil | $4,000 |
| Quarterly instalment component for third instalment quarter | nil | $3,000 |
| Quarterly instalment component for fourth instalment quarter | nil | $2,000 |
| Annual instalment component | $12,000 | nil |
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