Income Tax Assessment Act 1997

CHAPTER 1 - INTRODUCTION AND CORE PROVISIONS  

PART 1-3 - CORE PROVISIONS  

Division 5 - How to work out when to pay your income tax  

Subdivision 5-A - How to work out when to pay your income tax  

SECTION 5-5   When income tax is payable  

Scope

5-5(1)  
This section tells you when income tax you must pay for a *financial year is due and payable.

Note:

The Commissioner may defer the time at which the income tax is due and payable: see section 255-10 in Schedule 1 to the Taxation Administration Act 1953 .

5-5(2)  
The income tax is only due and payable if the Commissioner makes an *assessment of your income tax for the year.

5-5(3)  
However, if the Commissioner does make an *assessment of your income tax for the year, the tax may be taken to have been due and payable at a time before your assessment was made.

Note:

This is to ensure that general interest charge begins to accrue from the same date for all like entities. General interest charge on unpaid income tax is calculated from when the tax is due and payable, not from when the assessment is made: see section 5-15 .

Original assessments - self-assessment entities

5-5(4)  
If you are a *self-assessment entity, the income tax is due and payable on the first day of the sixth month after the end of the income year.

Example:

If your income year is the same as the financial year, your income tax would be due and payable on 1 December.

Original assessments - other entities

5-5(5)  
If you are not a *self-assessment entity, the income tax is due and payable 21 days after the day (the return day ) on or before which you are required to lodge your *income tax return with the Commissioner.

Note:

For rules about income tax returns and when they are due, see Part IV of the Income Tax Assessment Act 1936 .

5-5(6)  
However, if you lodge your return on or before the return day and the Commissioner gives you a notice of *assessment (other than an amended assessment) after the return day, the income tax is due and payable 21 days after the Commissioner gives you the notice. Amended assessments

5-5(7)  
If the Commissioner amends your *assessment, any extra income tax resulting from the amendment is due and payable 21 days after the day on which the Commissioner gives you notice of the amended assessment.

Note:

Shortfall interest charge may be payable, on any amount of extra income tax payable as a result of the amended assessment, for each day in the period that:

  • (a) starts at the time income tax was due and payable on your original assessment; and
  • (b) ends the day before the day on which the Commissioner gives you notice of the amended assessment.

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