Taxation (Interest on Overpayments and Early Payments) Act 1983

PART IIB - INTEREST ON OVERPAYMENTS RESULTING FROM ASSESSMENTS  

SECTION 8G   ENTITLEMENT TO INTEREST - FULL SELF-ASSESSMENT TAXPAYERS  

8G(1)   [Interest payable - first crediting]  

If:

(a) a person who is a full self-assessment taxpayer furnishes a return of income for a year of income; and

(b) after the person furnishes the return, the Commissioner credits, applies or refunds (which crediting, applying or refunding is the first crediting ) one or more income tax crediting amounts in relation to the income tax payable by the person for the year of income; and

(c) the Commissioner has not previously credited, applied or refunded any income tax crediting amount in relation to the income tax payable by the person for the year of income; and

(d) the sum of the income tax crediting amounts in paragraph (b) exceeds the sum of the following amounts:

(i) income tax payable by the person for the year of income (after allowing any rebate, except a tax offset that is subject to the refundable tax offset rules, or deduction under subsection 100(2) of the Tax Act and before any crediting, applying or other payment);

(ii) (Repealed by No 101 of 2006 )

(iii) interest for the year of income payable by the person under section 102AAM of the Tax Act immediately before the first crediting; and

(e) if the person furnishes the return of income for the year of income 30 days or more before the due date for payment of the assessed tax - the first crediting occurs 30 days or more after the day on which the person furnishes the return; and

(f) if the person furnishes the return of income for the year of income after 30 days or more before the due date for payment of the assessed tax - the first crediting occurs after the due date for payment of the assessed tax;

interest is payable by the Commissioner to the person on the excess mentioned in paragraph (d), calculated in respect of the period applicable under section 8H at the rate specified in section 8I .

Note:

Division 67 of the Income Tax Assessment Act 1997 lists the tax offsets that are subject to the refundable tax offset rules.

8G(2)   [Interest payable - later crediting]  

If:

(a) a person who is a full self-assessment taxpayer furnishes a return of income for a year of income; and

(b) after the first crediting, the Commissioner credits, applies or refunds (which crediting, applying or refunding is a later crediting ) one or more income tax crediting amounts in relation to the income tax payable by the person for the year of income; and

(c) the sum of the income tax crediting amounts in paragraph (b) exceeds the sum of the following amounts:

(i) income tax payable for the year of income by the person immediately before the later crediting;

Note:

This is the income tax payable for the year of income as reduced by any rebate, deduction under subsection 100(2) of the Tax Act, crediting, applying or other payment made before the later crediting.

(ii) (Repealed by No 101 of 2006 )

(iii) interest for the year of income payable by the person under section 102AAM of the Tax Act immediately before the later crediting; and

interest is payable by the Commissioner to the person on the excess mentioned in paragraph (c), calculated in respect of the period applicable under section 8H at the rate specified in section 8I .