Additional method of working out the amount of monthly instalment liabilities
11 Nov 2013
Additional method of working out the amount of monthly instalment liabilities in accordance with the Taxation Administration Act 1953 - November 2013 was made on 12 November 2013 and registered on the Federal Register of Legislative Instruments on 14 November 2013 as Legislative Instrument F2013L01933.
The purpose of the instrument is to provide certain monthly Pay As You Go instalment payers with a simplified method of working out their monthly instalment.
The instrument applies to persons if they are a monthly payer in accordance with s 45-136 of Schedule 1 to the Taxation Administration Act 1953 and they make a valid choice according to clause 6 of the instrument to work out the amount of their monthly instalment in accordance with s 45-114(3) of Schedule 1 to the Taxation Administration Act 1953.
Clause 4 of the instrument provides the additional method that certain monthly payers can use when working out their monthly instalment.
To work out their monthly instalment for the first and second month of the current quarter they can determine their instalment income by using a reasonable estimate.
To work out their monthly instalment for the third month of that quarter, they are required to calculate their actual instalment income for the quarter and subtract the instalment income used in calculating the monthly instalments for the first and second month of that quarter. The amount that results from this calculation cannot be less than zero.
For a copy of the Explanatory Statement, click on the Explanatory Statement tab.