Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Act 2024 (135 of 2024)

Schedule 4   Reducing the use of cheques for tax refunds

Taxation Administration Act 1953

1   After section 8AAZLGB

Insert:

8AAZLGC Retaining refunds while Commissioner obtains financial institution details

Commissioner may retain an amount

(1) The Commissioner may retain an amount that the Commissioner otherwise would have to refund to an entity under section 8AAZLF, if the entity has not nominated in the approved form a financial institution account that is:

(a) maintained at a branch or office of the institution that is in Australia; and

(b) held by:

(i) the entity, or the entity and some other entity; or

(ii) the entity's registered tax agent or BAS agent; or

(iii) a legal practitioner as trustee or executor for the entity.

(2) However, the Commissioner may not retain under this section an amount of a refund of an RBA surplus, or excess non-RBA credit that relates to an RBA, if primary tax debts arising under:

(a) any of the BAS provisions (as defined in subsection 995-1(1) of the Income Tax Assessment Act 1997); or

(b) any of the petroleum resource rent tax provisions (as defined in that subsection);

have been allocated to that RBA.

Note: For refunds covered by this subsection, see instead section 8AAZLH.

Informing the entity of the retention of the amount

(3) The Commissioner must inform the entity (by serving a document on the entity or by other means) that the Commissioner has retained the amount under this section.

(4) In informing the entity that the amount is retained, the Commissioner must also notify the entity that:

(a) the entity may nominate in the approved form a financial institution account for the purposes of this section; and

(b) a failure to nominate such an account may delay payment of the amount.

(5) A failure to comply with subsection (3) or (4) does not affect the validity of the decision to retain the amount.

How long the amount may be retained

(6) The Commissioner may retain the amount until the earlier of:

(a) the end of the day after the entity gives to the Commissioner a nomination in the approved form of a financial institution account for the purposes of this section; and

(b) the end of the period of 90 days from when the Commissioner otherwise would have to refund the amount to the entity.