Tax Laws Amendment (2011 Measures No. 7) Act 2011 (147 of 2011)
Schedule 3 TOFA and PAYG instalments
Part 2 Application of amendments
3 Application of amendments
Main rule
(1) Subitem (2) applies to you if:
(a) the Commissioner gives you an instalment rate under section 45-15 in Schedule 1 to the Taxation Administration Act 1953 at a time that is:
(i) after this Act receives the Royal Assent; and
(ii) in the first instalment quarter in an income year (the commencing year ); and
(b) the base year that applies in working out that rate is your first TOFA year, or a later year.
(2) Subject to subitems (4) and (6), the amended instalment income definition applies to you in working out:
(a) your base assessment instalment income for the base year mentioned in paragraph (1)(b), and later years; and
(b) your instalment income for periods in the commencing year, and later years.
Partnerships
(3) Subitem (4) applies in relation to your instalment income for a period if:
(a) the period starts after this Act receives the Royal Assent; and
(b) you are a partner in a partnership at any time during the period; and
(c) in working out the amount to be included in your instalment income for the period under section 45-260 in Schedule 1 to the Taxation Administration Act 1953, the last income year mentioned in the numerator of the formula in subsection 45-260(1) in that Schedule is:
(i) the first TOFA year for the partnership; or
(ii) a later year.
(4) For the purpose of working out the amount to be included in your instalment income for the period (the current period ) under section 45-260 in Schedule 1 to the Taxation Administration Act 1953, the amended instalment income definition applies in working out the instalment income of the partnership for:
(a) the last income year mentioned in the numerator of the formula in subsection 45-260(1) in that Schedule; and
(b) the current period.
Trusts
(5) Subitem (6) applies in relation to your instalment income for a period if:
(a) the period starts after this Act receives the Royal Assent; and
(b) you are a beneficiary of a trust at any time during the period; and
(c) in working out the amount to be included in your instalment income for the period under section 45-280 in Schedule 1 to the Taxation Administration Act 1953, the last income year mentioned in the numerator of the formula in subsection 45-280(1) in that Schedule is:
(i) the first TOFA year for the trust; or
(ii) a later year.
(6) For the purpose of working out the amount to be included in your instalment income for the period (the current period ) under section 45-280 in Schedule 1 to the Taxation Administration Act 1953, the amended instalment income definition applies in working out the instalment income of the trust for:
(a) the last income year mentioned in the numerator of the formula in subsection 45-280(1) in that Schedule; and
(b) the current period.
Early opt-in for amended instalment income definition
(7) Subitem (8) applies to you if:
(a) the Commissioner gives you an instalment rate under section 45-15 in Schedule 1 to the Taxation Administration Act 1953 at a time that is:
(i) after this Act receives the Royal Assent; and
(ii) in the first instalment quarter in an income year (the commencing year ); and
(b) the base year that applies in working out that rate is an income year before your first TOFA year; and
(c) you elect to have subitem (8) apply to you; and
(d) the Commissioner, having regard to the object of Part 2-10 in Schedule 1 to the Taxation Administration Act 1953, is of the opinion that it is reasonable for that subitem to apply to you.
(8) Despite subitems (1) and (2), the amended instalment income definition applies to you in working out:
(a) your base assessment instalment income for the base year mentioned in paragraph (7)(b), and later years; and
(b) your instalment income for periods in the commencing year, and later years.
(9) If subitem (8) applies to you, in working out your base assessment instalment income for the base year (or a later income year that ends before your first TOFA year) (a pre-TOFA year ), the financial arrangement amendments (within the meaning of Part 3 of Schedule 1 to the Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009) are taken to apply:
(a) to you in a pre-TOFA year in the same way they apply to you in your first TOFA year; and
(b) to financial arrangements you have in a pre-TOFA year in the same way they apply to financial arrangements you have in your first TOFA year.