Working out instalment rate
45-320 Working out instalment rate
Except as provided by section 45‑775, an instalment rate that the Commissioner gives you must be the percentage worked out to 2 decimal places (rounding up if the third decimal place is 5 or more) using the formula:
Start formula start fraction Your *notional tax over Base assessment instalment income end fraction times 100 end formula
However, the instalment rate must be a nil rate if either component of the formula is nil.
For the purposes of the formula in subsection (1):
base assessment instalment income means so much of your assessable income, as worked out for the purposes of the *base assessment, as the Commissioner determines is *instalment income for the *base year.
The base assessment is the latest assessment for your most recent income year for which an assessment has been made. However, if the Commissioner is satisfied that there is a later income year for which you do not have a taxable income, the base assessment is the latest return or other information from which an assessment for that income year would have been made.
The base year is the income year to which the *base assessment relates.
When the Commissioner gives you the instalment rate, he or she must also notify you of the amount of your *notional tax, as worked out for the purposes of working out the instalment rate.
This Act’s bill:Second reading speech
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.