Taxation Administration Act 1953

You are liable to pay the *general interest charge under this section if:

the amount of your instalment for an *instalment quarter (the variation quarter) in an income year is worked out under paragraph 45‑112(1)(b) or (c) on the basis of your estimate of your *benchmark tax for that income year; and

the estimate used is less than 85% of your *benchmark tax for the income year (which the Commissioner works out under section 45‑365).

You are liable to pay the *general interest charge on the amount worked out as follows (if it is a positive amount):

the amount of your instalment, as worked out on the basis of the estimate; or

if, as a result of using the estimate, you claimed a credit under section 45‑420 for the variation quarter—the amount of the credit, expressed as a negative amount.

If you are a *quarterly payer who pays 4 instalments annually on the basis of GDP‑adjusted notional tax, the acceptable amount of your instalment for that instalment quarter is:

if the amount of the instalment is worked out under paragraph 45‑112(1)(b) or (c)—the amount worked out using the table in this subsection (which can be a negative amount); or

otherwise—the amount notified to you by the Commissioner under paragraph 45‑112(1)(a) as the amount of your instalment for that *instalment quarter.

Subject to subsections (3B), (3C) and (3D), if you are a *quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax, the acceptable amount of your instalment for an *instalment quarter in an income year is:

if the amount of the instalment is worked out under paragraph 45‑112(1)(b) or (c)—the amount worked out using the table in this subsection (which can be a negative amount); or

otherwise—the amount notified to you by the Commissioner under paragraph 45‑112(1)(a) as the amount of your instalment for that instalment quarter.

If:

you are a *quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax; and

the Commissioner first gives you an instalment rate during the second *instalment quarter in an income year;

if the amount of the instalment is worked out under paragraph 45‑112(1)(b) or (c)—the amount worked out using the table in this subsection (which can be a negative amount); or

otherwise—the amount notified to you by the Commissioner under paragraph 45‑112(1)(a) as the amount of your instalment for that instalment quarter.

If:

you are a *quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax; and

the Commissioner first gives you an instalment rate during the third *instalment quarter in an income year;

if the amount of the instalment is worked out under paragraph 45‑112(1)(b) or (c)—the amount worked out using the table in this subsection (which can be a negative amount); or

otherwise—the amount notified to you by the Commissioner under paragraph 45‑112(1)(a) as the amount of your instalment for that instalment quarter.

If:

you are a *quarterly payer who pays 2 instalments annually on the basis of GDP‑adjusted notional tax; and

the Commissioner first gives you an instalment rate during the fourth *instalment quarter in an income year;

the amount that the Commissioner notified to you under paragraph 45‑112(1)(a) as the amount of your instalment for that instalment quarter;

25% of your *benchmark tax for the income year (which the Commissioner works out under section 45‑365).

You are liable to pay the charge for each day in the period that:

started at the beginning of the day by which the instalment for the variation quarter was due to be paid; and

finishes at the end of the day on which your assessed tax for the income year is due to be paid.

The Commissioner must give you written notice of the *general interest charge to which you are liable under subsection (2). You must pay the charge within 14 days after the notice is given to you.

If any of the *general interest charge to which you are liable under subsection (2) remains unpaid at the end of the 14 days referred to in subsection (5), you are also liable to pay the *general interest charge on the unpaid amount for each day in the period that:

starts at the end of those 14 days; and

finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:

the unpaid amount;

general interest charge on the unpaid amount.

Subsections (1) to (6) apply to you with the modifications set out in subsections (8) to (10) if the variation quarter is in a *consolidation transitional year for you as a *subsidiary member of a *consolidated group.

For the purposes of subsection (7), a reference in subsection (1), (3), (3A), (3B), (3C) and (3D) to your *benchmark tax for that year is taken to be a reference to the amount worked out as follows:

For the purposes of subsection (7), a reference in this section to:

the acceptable amount of your instalment for an *instalment quarter in an income year; or

the acceptable amount of your instalment for the earlier instalment quarter in an income year; or

the acceptable amounts of your instalments for the earlier instalment quarters in an income year;

For the purposes of subsection (7), a reference to the actual amount in subsection (2) is taken to be a reference to so much of the actual amount worked out under that subsection as is reasonably attributable to the period in the variation quarter during which you are not a *subsidiary member of the group.