Subdiv C substituted by No 47 of 2006, s 3 and Sch 2 item 24, effective 22 May 2006. For saving provision, see note under definition of " compulsory repayment amount " in s 3(1). Subdiv C formerly read:

Subdivision C - Requirement to discharge indebtedness

SECTION 12ZK COMPULSORY PAYMENTS IN RESPECT OF ACCUMULATED FS DEBT  
12ZK(1)
If:

(a) the taxable income of a person in respect of a year of income is greater than the minimum prescribed amount in relation to that year of income; and

(b) the person had an accumulated FS debt on 1 June immediately before the making of an assessment in respect of the person's income of that year of income;

the person is liable to pay in accordance with this Division to the Commonwealth in reduction of the relevant debt an amount equal to so much of the relevant debt as does not exceed:

(c) if that taxable income is not greater than the intermediate prescribed amount in relation to that year of income - 2% of that taxable income; or

(d) if that taxable income is greater than the intermediate prescribed amount in relation to that year of income but is not greater than the maximum prescribed amount in relation to that year of income - 3% of that taxable income; or

(e) if that taxable income is greater than the maximum prescribed amount in relation to that year of income - 4% of that taxable income.

12ZK(2)
In subsection (1):

relevant debt
means:

(a) subject to paragraph (b) of this subsection, the person's accumulated FS debt referred to in paragraph (1)(b); or

(b) if an amount or amounts have been paid in reduction of that debt or an amount or amounts have been assessed under section 12ZM to be payable in respect of that debt - the amount (if any) remaining after deducting from that debt the amount or the sum of the amounts so paid or assessed to be payable.

12ZK(3)
A reference in paragraph (2)(b) to an amount assessed under section 12ZM to be payable in respect of a person's accumulated FS debt is, if the amount has been increased or reduced by an amendment of the relevant assessment, taken to be a reference to the increased or reduced amount, as the case may be.

12ZK(4)
For the purposes of subsection (1):

(a) the minimum prescribed amount is:

(i) in the case of the year of income ending on 30 June 1998 - $29,307; or

(ii) in the case of a subsequent year of income - the number of whole dollars in the amount worked out using the formula:

52   ×

AWE   5

(b) the intermediate prescribed amount is:

(i) in the case of the year of income ending on 30 June 1998 - $33,305; or

(ii) in the case of a subsequent year of income - the number of whole dollars in the amount worked out using the formula:

52   ×

AWE   5

×

33,305 29,307

(c) the maximum prescribed amount is:

(i) in the case of the year of income ending on 30 June 1998 - $46,629; or

(ii) in the case of a subsequent year of income - the number of whole dollars in the amount worked out using the formula:

52   ×

AWE   5

×

46,629 29,307

where:

AWE is the sum of:

(d) the average weekly earnings for all employees for the reference period in the December quarter immediately before that year of income, as published by the Australian Statistician; and

(e) the average weekly earnings for all employees for the reference period in each of the 4 quarters immediately before that December quarter, as published by the Australian Statistician.

12ZK(5)
For the purposes of subsection (4), the reference period in a particular quarter in a year is the period described by the Australian Statistician as the pay period ending on or before the third Friday of the middle month of that quarter.

12ZK(6)
The Minister must cause to be published in the Gazette :

(a) before the start of the year of income ending on 30 June 1999; and

(b) before the start of each following year of income;

the minimum prescribed amount, intermediate prescribed amount and maximum prescribed amount in respect of that year of income.

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History

S 12ZK amended by No 40 of 1998 and inserted by No 138 of 1992.

S 12ZK substituted by No 47 of 2006, s 3 and Sch 2 item 24, effective 22 May 2006. For saving provision, see note under definition of " compulsory repayment amount " in s 3(1). For former wording of s 12ZK, see note under subdiv C heading.