TAXATION ADMINISTRATION ACT 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-10 - PAY AS YOU GO (PAYG) INSTALMENTS  

Division 45 - Instalment payments  

Subdivision 45-L - How Commissioner works out amount of quarterly instalment on basis of GDP-adjusted notional tax  

SECTION 45-405   WORKING OUT YOUR GDP-ADJUSTED NOTIONAL TAX  

45-405(1)  


Except as provided by section 45-775 , your GDP-adjusted notional tax is worked out in the same way as your *notional tax would be worked out for the purposes of working out an instalment rate if that instalment rate were to be given to you at the same time as notice of the amount of the instalment referred to in section 45-400 or 45-402 (as appropriate).

45-405(2)  


However, for the purposes of subsection (1):


(a) your *adjusted taxable income for the *base year; and


(b) your *adjusted withholding income (if any) for the *base year;

are each increased in accordance with the formula:


Original amount   ×   (1   +   GDP adjustment)

45-405(3)  


For the purposes of the formula in subsection (2):

original amount
means the amount that, apart from subsection (2), would be your *adjusted taxable income for the *base year, or your *adjusted withholding income for the *base year, as appropriate.

GDP adjustment
means:


(a) the percentage (rounded to the nearest whole number, rounding down a number ending in .5) worked out using the following formula; or


(b) if the percentage worked out using the formula is negative - 0%:

Graphic

45-405(4)  
For the purposes of the formula in subsection (3):

sum of GDP amounts (current year)
means the sum of the *GDP amounts, for the *quarters in the last calendar year (the later calendar year ) ending at least 3 months before the start of the current year, specified in the document referred to in subsection (6).

sum of GDP amounts (previous year)
means the sum of the *GDP amounts, for the *quarters in the calendar year (the earlier calendar year ) before the later calendar year, specified in the document referred to in subsection (6).

45-405(5)  
The GDP amount for a *quarter is the amount published by the Australian Statistician as the original gross domestic product at current prices for that quarter.

45-405(6)  


The GDP adjustment must be worked out on the basis of the first document that:


(a) is published by the Australian Statistician after the end of the later calendar year; and


(b) sets out the *GDP amounts for all the *quarters in both the later calendar year and the earlier calendar year.

45-405(7)  
To avoid doubt, subsections 45-325(4) and (5) also have effect for the purposes of working out your *GDP-adjusted notional tax.




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