A New Tax System (Goods and Services Tax) Act 1999
Note:
The special rules in this Part mainly modify the operation of Part 2-7 , but they may affect other Parts of Chapter 2 in minor ways.
Division 162 - Payment of GST by instalments Subdivision 162-D - Penalty payable in certain cases if varied instalment amounts are too low 162-175 GST payments are less than 85% of annual GST liability (1)You are liable to pay a penalty, for a * GST instalment quarter of an * instalment tax period applying to you, if you have a * varied instalment amount for the GST instalment quarter, and:
(a) if the instalment tax period is a * financial year - the sum of your * GST instalments for all the GST instalment quarters of the instalment tax period is less than 85% of your * annual GST liability for the instalment tax period; or
(b) if the instalment tax period is only part of a financial year - the sum of:
(i) your * GST instalments for all the GST instalment quarters of the instalment tax period; and
is less than 85% of your annual GST liability for the instalment tax period.
(ii) your * early net amounts for the financial year (subtracting any of those amounts that are less than zero);
(2)
The amount of the penalty, for a particular day, is worked out by applying the * general interest charge :
(a) for each day in the period in section 162-190 ; and
(b) in the way set out in subsection 8AAC(4) of the Taxation Administration Act 1953 ;
to your * GST instalment shortfall , under this section, for the * GST instalment quarter .
(3)
Your GST instalment shortfall , under this section, for the * GST instalment quarter is the amount worked out as follows:
![Formula](/law/view/sgif/cch-leg2/formula_13519156.gif)
where:
GST already payable
is the sum of:
(a) the * varied instalment amount ; and
(b) all your other * GST instalments (if any) for earlier * GST instalment quarters of the * instalment tax period in question; and
(c) if the instalment tax period is only part of a * financial year - your * early net amounts for the financial year (subtracting any of those amounts that are less than zero).
(4)
However, if:
(a) the * GST instalment quarter is not the first GST instalment quarter of the * instalment tax period in question; and
(b) you are liable for one or more penalties under this section in relation to any of the earlier GST instalment quarters of the instalment tax period;
then:
(c) your GST instalment shortfall , under this section, for the *GST instalment quarter is the difference between:
(i) the amount worked out using the formula in subsection (3); and
(ii) the sum of all your GST instalment shortfalls for those earlier GST instalment quarters; and
(d) if that sum is greater than the amount worked out using the formula in subsection (3) - you are not liable to pay a penalty under this section in relation to the GST instalment quarter.
(5)
The appropriate percentage for a * GST instalment quarter is:
(a) if the GST instalment quarter ends on 30 September - 25%; or
(b) if the GST instalment quarter ends on 31 December - 50%; or
(c) if the GST instalment quarter ends on 31 March - 75%; or
(d) if the GST instalment quarter ends on 30 June - 100%.
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