Taxation Administration Act 1953
This Division sets out how the Commissioner must treat the following kinds of amount:
(a) a payment the Commissioner receives in respect of a current or anticipated tax debt or tax debts of an entity;
(b) a credit (including an excess non-RBA credit) that an entity is entitled to under a taxation law;
(c) an RBA surplus of an entity. 8AAZL(2)
The Commissioner must treat each such amount using the method set out in section 8AAZLA or 8AAZLB (but not both).
In either case, section 8AAZLC has some additional rules that apply to RBA surpluses and to certain excess non-RBA credits.8AAZL(3)
However, the Commissioner does not have to treat an amount using either of those methods if doing so would require the Commissioner to apply the amount against a tax debt:
(a) that is due but not yet payable; or
(b) in respect of which the taxpayer has complied with an arrangement under section 255-15 to pay the debt by instalments; or
(c) in respect of which the Commissioner has agreed to defer recovery under section 255-5 .
Furthermore, the Commissioner does not have to treat an amount using either of those methods if:
(a) doing so would require the Commissioner to apply the amount against a tax debt; and
(b) the tax debt is a penalty that is due and payable under section 269-20 in Schedule 1 (penalties for directors of non-complying companies).