Income Tax Assessment Act 1936
The notional tax amount for a distant accrual year is calculated in accordance with the formula:
|Arrears amount × Average tax rate on recent arrears|
Arrears amount is the annual arrears amount in relation to the accrual year.
Average tax rate on recent arrears is the average of the rates calculated in accordance with the following formula in respect of each of the recent accrual years:
Increased normal tax
Increased normal tax is the gross tax on the normal taxable income of the recent accrual year, being that normal taxable income adjusted as follows:
Normal tax is the gross tax on the normal taxable income of the recent accrual year, being that normal taxable income adjusted as follows (if applicable):
Arrears amount is the annual arrears amount for the recent accrual year.159ZRD(2) [Calculation of rate]
A rate calculated for the purposes of subsection (1) in respect of a recent accrual year shall be calculated as a decimal fraction to 3 decimal places.159ZRD(3) [Increase of rate]
If a rate so calculated would end with a number greater than 4 if it were calculated to 4 decimal places, the rate shall be increased by 0.001.