Tax Laws Amendment (2013 Measures No. 2) Act 2013 (124 of 2013)

Schedule 1   Monthly PAYG instalments

Part 1   Main amendments

Taxation Administration Act 1953

11   After section 45-112 in Schedule 1

Insert:

45-114 How to work out amount of monthly instalment

(1) Work out the amount of an instalment you are liable to pay for an *instalment month as follows if, at the end of that instalment month, you are a *monthly payer:

(Applicable instalment rate x Your *instalment income for that instalment month)

(2) For the purposes of the formula in subsection (1):

applicable instalment rate means:

(a) unless paragraph (b) or (c) applies - the most recent instalment rate given to you by the Commissioner under section 45-15 before the end of that month; or

(b) if you have chosen an instalment rate for that month under section 45-205 - that rate; or

(c) if you have chosen an instalment rate under section 45-205 for an earlier *instalment month in that income year (and paragraph (b) does not apply) - that rate.

Note: If you believe the Commissioner’s rate is not appropriate for the current income year, you may choose a different instalment rate under Subdivision 45-F.

(3) The Commissioner may, by legislative instrument, determine one or more specified additional methods by which a specified class of entity that is a *monthly payer at the end of an *instalment month may work out, in specified circumstances, the amount of an instalment that it is liable to pay for the instalment month.

Note: For specification by class, see subsection 13(3) of the Legislative Instruments Act 2003.

(4) You may choose a method specified in the determination:

(a) unless paragraph (b) applies - for any *instalment month; or

(b) if the determination provides that that method can be chosen only for the first instalment month in an *instalment quarter - for the first instalment month in an instalment quarter.

(5) The determination may provide that an entity that chooses a method in accordance with paragraph (4)(b) for the first *instalment month in an *instalment quarter is taken to have chosen that method under subsection (4) for the other instalment months in that quarter. The determination has effect accordingly.

(6) Subsection (7) applies if:

(a) the Commissioner has made a determination under subsection (3); and

(b) at the end of an *instalment month, you are a *monthly payer; and

(c) you choose under subsection (4), for that month:

(i) if the determination specifies one additional method to work out that amount - that method; or

(ii) if the determination specifies more than one additional method to work out that amount - one of those methods.

(7) Despite subsection (1), work out the amount of an instalment you are liable to pay for that *instalment month in accordance with the method that you chose for that month under subsection (4).