Taxation Administration Act 1953

s 45-412 — Working out amount of instalment—payers of 2 quarterly instalments

(1) This section applies if you are a * quarterly payer who pays 2 instalments annually on the basis of GDP ‑ adjusted notional tax at the end of an * instalment quarter in an income year. (2) If you are liable to pay an instalment for that quarter, the amount of that instalment for the purposes of paragraph 45 ‑ 112(1)(b) or (c) is: (a) the amount worked out, in accordance with this section, on the basis of the estimate of your * benchmark tax for that income year that section 45 ‑ 415 requires to be used, if that amount is positive; or (b) otherwise—nil. Note: If the amount is negative, you can claim a credit under section 45 ‑ 420. Instalment for third quarter (3) Subject to subsections (5) to (9), the amount of the instalment for the third * instalment quarter in that year is 75% of the estimate of your * benchmark tax. Instalment for fourth quarter (4) Subject to subsections (5) to (9), the amount of the instalment for the fourth * instalment quarter in that year is worked out by subtracting: (a) the amount of your instalment for the earlier instalment quarter in that year; from: (b) the estimate of your * benchmark tax. You receive instalment rate for the first time in second quarter (5) If the Commissioner gives you an instalment rate for the first time during the second * instalment quarter in the income year, the amount of the instalment for the third * instalment quarter in that year is 50% of the estimate of your * benchmark tax. (6) If the Commissioner gives you an instalment rate for the first time during the second * instalment quarter in the income year, the amount of the instalment for the fourth instalment quarter in that year is worked out by subtracting: (a) the amount of your instalment for the earlier instalment quarter in that year; from: (b) 75% of the estimate of your * benchmark tax. You receive instalment rate for the first time in third quarter (7) If the Commissioner gives you an instalment rate for the first time during the third * instalment quarter in the income year, the amount of the instalment for the third instalment quarter in that year is 25% of the estimate of your * benchmark tax. (8) If the Commissioner gives you an instalment rate for the first time during the third * instalment quarter in the income year, the amount of the instalment for the fourth instalment quarter in that year is worked out by subtracting: (a) the amount of your instalment for the earlier instalment quarter in that year; from: (b) 50% of the estimate of your * benchmark tax. You receive instalment rate for the first time in fourth quarter (9) If the Commissioner gives you an instalment rate for the first time during the fourth * instalment quarter in the income year, the amount of the instalment for that quarter is 25% of the estimate of your * benchmark tax.

Amendment history: Inserted by No 73 of 2001, effective sch 1 (items 21, 22, 58 ‑ 62(1)), sch 2 (items 1 ‑ 40, 53, 86 ‑ 95(1)), sch 3 (items 20 ‑ 33), sch 4 (items 1, 10), sch 5: 30 June 2001 (s 2(1)) sch 2 (items 48 ‑ 52): 1 Jan 2001 (s 2(2)) sch 3 (items 35, 36): 1 Apr 2001 (s 2(3))

s 45-415 — Estimating your benchmark tax

(1) If you choose under paragraph 45 ‑ 112(1)(b) to work out the amount of your instalment for an * instalment quarter in an income year on the basis of your estimate of your * benchmark tax for that income year, you must make the estimate on or before the day on which the instalment is due (disregarding subsection 45 ‑ 112(3)). (2) Having done so, you must use that estimate to work out the amount of that instalment. (You cannot later make another estimate for working out that amount.) Note: If your estimate leads you to pay an instalment that is too low, you may be liable to general interest charge under section 45 ‑ 232. (3) The Commissioner must also use that estimate to work out under this Subdivision the amount of each instalment: (a) that you are liable to pay for a later * instalment quarter in that income year; and (b) whose amount he or she must notify to you under paragraph 45 ‑ 112(1)(c); unless a later application of this subsection requires him or her to use a later estimate you make under subsection (1) of this section. Note: This means that if an estimate you have made is not appropriate for a later instalment quarter in the same income year, you should choose under paragraph 45 ‑ 112(1)(b) to work out the amount of your instalment for that later quarter on the basis of a new estimate under this section. If the instalment that the Commissioner works out on the basis of the earlier estimate is too low, you may be liable to general interest charge under section 45 ‑ 232.

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12))

s 45-420 — Credit in certain cases where amount of instalment is nil

(1) You are entitled to claim a credit if the amount of your instalment for an * instalment quarter (the current quarter ) in an income year is nil because the amount worked out for the current quarter in accordance with section 45 ‑ 410 or 45 ‑ 412 (as appropriate) is negative. The amount of the credit is equal to that amount, expressed as a positive amount. (2) A claim for a credit must be made in the * approved form on or before the day on which the instalment for the current quarter is due. Note: How the credit is applied is set out in Division 3 of Part IIB.

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12)) | Amended by No 73 of 2001, effective sch 1 (items 21, 22, 58 ‑ 62(1)), sch 2 (items 1 ‑ 40, 53, 86 ‑ 95(1)), sch 3 (items 20 ‑ 33), sch 4 (items 1, 10), sch 5: 30 June 2001 (s 2(1)) sch 2 (items 48 ‑ 52): 1 Jan 2001 (s 2(2)) sch 3 (items 35, 36): 1 Apr 2001 (s 2(3))

s 45-450 — Trustees to whom a single instalment rate is given

(1) This Part applies to a trustee covered by any of items 4 to 8, and 12 and 13, of the table in section 9 ‑ 1 of the Income Tax Assessment Act 1997 . (2) Such a trustee is called a single ‑ rate trustee . (3) This Part applies to the trustee of a trust that is a * public trading trust, for an income year as if the trustee had a taxable income for the income year equal to the net income of the trust for the income year.

Amendment history: Inserted by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8)) | Amended by No 73 of 2001, effective sch 1 (items 21, 22, 58 ‑ 62(1)), sch 2 (items 1 ‑ 40, 53, 86 ‑ 95(1)), sch 3 (items 20 ‑ 33), sch 4 (items 1, 10), sch 5: 30 June 2001 (s 2(1)) sch 2 (items 48 ‑ 52): 1 Jan 2001 (s 2(2)) sch 3 (items 35, 36): 1 Apr 2001 (s 2(3)) | Amended by No 14 of 2009, effective sch 2, sch 4 (items 37 ‑ 44): Royal Assent | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3)

s 45-455 — Trustees to whom several instalment rates are given

Trustee previously assessed in respect of beneficiary (1) This Part also applies for an income year (the current year ), to the trustee of a trust, in respect of a beneficiary of the trust, if for a previous income year the trustee of the trust was liable to be assessed, and to pay tax, under subsection 98(1) or (2) of the Income Tax Assessment Act 1936 in respect of that beneficiary. (2) However, this Part does not apply for the current year to the trustee in respect of that beneficiary if: (a) for that previous income year the trustee was liable to be assessed, and to pay tax, under subsection 98(1) of the Income Tax Assessment Act 1936 in respect of that beneficiary; and (b) that beneficiary will no longer be under a legal disability, or it is reasonable to expect that he or she will no longer be under a legal disability, at the end of the current year. Trustee previously assessed under section 99 or 99A (3) This Part also applies for an income year to the trustee of a trust if for a previous income year the trustee was liable to be assessed, and to pay tax, under section 99 or 99A of the Income Tax Assessment Act 1936 . Multiple applications of this Part to the same trustee for the same income year (4) The application of this Part for an income year, to the trustee of a trust, in respect of a beneficiary of the trust, because of subsection (1), is distinct from, and additional to, each of the following: (a) the application of this Part for that income year, to the trustee of the trust, in respect of another beneficiary; (b) the application of this Part for that income year, to the trustee of the trust, because of subsection (3); (c) the application of this Part for that income year to a beneficiary of the trust. (5) The application of this Part for an income year, to the trustee of a trust, because of subsection (3), is distinct from, and additional to, each of the following: (a) the application of this Part for that income year, to the trustee of the trust, in respect of a beneficiary of the trust, because of subsection (1); (b) the application of this Part for that income year to a beneficiary of the trust. (6) A multi ‑ rate trustee is a trustee to whom this Part applies because of this section.

Amendment history: Inserted by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8))

s 45-460 — Rest of Subdivision applies only to multi ‑ rate trustees

The rest of this Subdivision applies to you if, and only if, you are a * multi ‑ rate trustee. (It applies instead of Subdivisions 45 ‑ J and 45 ‑ K.) Note: Except as provided in the rest of this Subdivision or elsewhere, this Part applies according to its terms to a multi ‑ rate trustee. For example, a multi ‑ rate trustee can become an annual payer under Subdivision 45 ‑ E.

Amendment history: Inserted by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8))

s 45-465 — Meaning of instalment income

Your instalment income for a period is the whole of the trust’s * instalment income for that period.

Amendment history: Inserted by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8))

s 45-468 — Multi ‑ rate trustee may pay quarterly instalments

Subdivision 45 ‑ D (about quarterly payers) applies to you in the same way as it applies to an individual. Note: This means that a multi ‑ rate trustee may pay instalments on the basis of GDP ‑ adjusted notional tax if the trustee otherwise satisfies the relevant test that applies to an individual.

Amendment history: Inserted by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8)) | Amended by No 73 of 2001, effective sch 1 (items 21, 22, 58 ‑ 62(1)), sch 2 (items 1 ‑ 40, 53, 86 ‑ 95(1)), sch 3 (items 20 ‑ 33), sch 4 (items 1, 10), sch 5: 30 June 2001 (s 2(1)) sch 2 (items 48 ‑ 52): 1 Jan 2001 (s 2(2)) sch 3 (items 35, 36): 1 Apr 2001 (s 2(3)) | Amended by No 57 of 2002, effective sch 12 (items 36, 37): 15 Dec 2001 (s 2(1) items 40, 41) sch 12 (items 87 ‑ 94): 3 July 2002 (s 2(1) item 66)

s 45-470 — Working out instalment rate

(1) An instalment rate that the Commissioner gives you must be the percentage worked out to 2 decimal places (rounding up if the third decimal place is 5 or more) using the formula: However, the instalment rate must be a nil rate if either component of the formula is nil. (2) For the purposes of the formula in subsection (1): base assessment instalment income means so much of the assessable income of the trust, as worked out for the purposes of the * base assessment, as the Commissioner determines is * instalment income of the trust for the * base year. (3) The base assessment is the latest assessment for the most recent income year for which an assessment has been made of the tax payable by you: (a) under subsection 98(1) or (2) of the Income Tax Assessment Act 1936 in respect of the same beneficiary; or (b) under section 99 or 99A of the Income Tax Assessment Act 1936 ; as appropriate. (4) However, if the Commissioner is satisfied that there is a later income year for which no tax is payable as mentioned in subsection (3), the base assessment is the latest return or other information from which an assessment of tax so payable for that income year would have been made. (5) The base year is the income year to which the * base assessment relates.

Amendment history: Inserted by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8))

s 45-473 — Commissioner must notify you of notional tax

When the Commissioner gives you the instalment rate, he or she must also notify you of the amount of your * notional tax, as worked out for the purposes of working out the instalment rate.

Amendment history: Inserted by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8)) | Amended by No 81 of 2016, effective sch 1 (items 10 ‑ 25, 33, 36), sch 2 (items 19, 20), sch 10 (items 55 ‑ 65, 86 ‑ 93): 1 Jan 2017 (s 2(1) items 2, 6) sch 10 (items 1, 29 ‑ 47, 49 ‑ 54): 1 July 2018 (s 2(1) item 5)

s 45-475 — Working out your notional tax

Notional tax if no withholding income (1) Your notional tax is your * adjusted tax (worked out under section 45 ‑ 340) on your * adjusted taxable income (worked out under section 45 ‑ 480) for the * base year. Notional tax if trust has withholding income (2) However, your notional tax (as worked out under subsection (1)) is reduced if the trust’s assessable income for the * base assessment includes amounts in respect of * withholding payments (except * non ‑ quotation withholding payments). (3) It is reduced (but not below nil) by your * adjusted tax (worked out under section 45 ‑ 340) on your * adjusted withholding income (worked out under section 45 ‑ 485) for the * base year. Commissioner may take into account actual and proposed changes to the law (4) Subsections 45 ‑ 325(4) and (5) apply for the purposes of working out your * notional tax under this section.

Amendment history: Inserted by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8))

s 45-480 — Working out your adjusted taxable income

(1) Your adjusted taxable income for the * base year is worked out using the formula: (2) For the purposes of the formula in subsection (1): adjusted net income of the trust means the net income of the trust, as worked out for the purposes of the * base assessment and: (a) reduced by any * net capital gain included in the trust’s assessable income as so worked out; and (b) increased by any deductions for * tax losses that were made in so working out that net income; and (c) reduced by the amount of any tax loss, to the extent that it is * unutilised at the end of the * base year. reduced net income of the trust means the net income of the trust, as worked out for the purposes of the * base assessment and reduced by any * net capital gain included in the trust’s assessable income as so worked out. relevant share means the * reduced beneficiary’s share, or the * reduced no beneficiary’s share, as appropriate, of the net income of the trust, as worked out for the purposes of the * base assessment.

Amendment history: Inserted by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8)) | Amended by No 88 of 2013, effective sch 5 (items 22 ‑ 27): 1 July 2013 (s 2(1) item 10) sch 6 (items 44 ‑ 48, 66): 29 June 2013 (s 2(1) item 14) sch 7 (items 167 ‑ 183): 1 July 2012 (s 2(1) item 11) sch 7 (item 225): 28 June 2013 (s 2(1) item 23)

s 45-483 — Meaning of reduced beneficiary’s share and reduced no beneficiary’s share

(1) If the trustee of a trust is liable to be assessed, and to pay tax, for an income year under subsection 98(1) or (2) of the Income Tax Assessment Act 1936 in respect of a particular beneficiary, the reduced beneficiary’s share of the net income is the amount on which the trustee is so liable to be assessed and to pay tax, except so much of that amount as is attributable to a * net capital gain included in the trust’s assessable income for that income year. (2) If the trustee of a trust is liable to be assessed, and to pay tax, for an income year under section 99 or 99A of the Income Tax Assessment Act 1936 , the reduced no beneficiary’s share of the net income is the amount on which the trustee is so liable to be assessed and to pay tax, except so much of that amount as is attributable to a * capital gain made by the trust during that income year.

Amendment history: Inserted by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8))

s 45-485 — Working out your adjusted withholding income

(1) Your adjusted withholding income for the * base year is worked out using the formula: (2) For the purposes of the formula in subsection (1): net withholding income of the trust means: • the total of the amounts included in the trust’s assessable income for the * base assessment in respect of * withholding payments (except * non ‑ quotation withholding payments); reduced by: • the trust’s deductions for that year, as used in making that assessment, to the extent that they reasonably relate to those amounts. reduced net income of the trust has the meaning given by subsection 45 ‑ 480(2). relevant share has the meaning given by subsection 45 ‑ 480(2).

Amendment history: Inserted by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8))

s 45-525 — When Commissioner works out benchmark instalment rate and benchmark tax

(1) The Commissioner may work out your * benchmark instalment rate for an income year (the variation year ) if, under section 45 ‑ 205, you choose an instalment rate to work out the amount of your instalment for an * instalment quarter in that year. (2) The Commissioner may work out your * benchmark tax for an income year (the variation year ) if, under paragraph 45 ‑ 112(1)(b) or (c), the amount of your instalment for an * instalment quarter in an income year is worked out on the basis of your estimate of your * benchmark tax for that income year. (3) The Commissioner may work out your * benchmark tax for an income year (the variation year ) if, under paragraph 45 ‑ 115(1)(c), you estimate the amount of your annual instalment for that year.

Amendment history: Inserted by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8)) | Amended by No 101 of 2006, effective sch 3, 4: 1 Jan 2008 Remainder: Royal Assent

s 45-530 — How Commissioner works out benchmark instalment rate

(1) Your benchmark instalment rate for the variation year is the percentage worked out to 2 decimal places (rounding up if the third decimal place is 5 or more) using the formula: However, your benchmark instalment rate is a nil rate if either component of the formula is nil. (2) For the purposes of the formula in subsection (1): variation year instalment income means so much of the trust’s assessable income for the variation year as the Commissioner determines is * instalment income for that year.

Amendment history: Inserted by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8))

s 45-535 — Working out your benchmark tax

Benchmark tax if no withholding income (1) Your benchmark tax is your * adjusted assessed tax (worked out under section 45 ‑ 375) on the * reduced beneficiary’s share, or the * reduced no beneficiary’s share, as appropriate, of the net income of the trust for the variation year. Benchmark tax if you had withholding income (2) However, your benchmark tax (as worked out under subsection (1)) is reduced if the trust’s assessable income for the variation year includes amounts in respect of * withholding payments. (3) It is reduced (but not below nil) by the total amount of the credits to which you are entitled for the variation year under section 18 ‑ 25 (for amounts withheld from the withholding payments).

Amendment history: Inserted by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8))

s 45-595 — Object of this Subdivision

(1) The object of this Subdivision is to penalise an entity whose * tax position, so far as it relates to * PAYG instalments (and related credits and * general interest charge), is altered by a * scheme that is inconsistent with: (a) the purposes and objects of this Part ; or (b) the purposes and objects of any relevant provisions of this Part; (whether those purposes and objects are stated expressly or not). (2) This Subdivision is not intended to apply to a straightforward use of structural features of this Part if that use is consistent with the purposes and objects mentioned in subsection (1). (3) This Subdivision is to be interpreted and applied accordingly.

Amendment history: Inserted by No 89 of 2000, effective sch 2 (items 114, 116), sch 7: 22 Dec 1999 (s 2(6), (10)) sch 2 (items 115, 117): 30 June 2000 (s 2(1))

s 45-597 — Effect of Subdivision in relation to instalment months

This Subdivision has effect in relation to an * instalment month in the same way in which it has effect in relation to an * instalment quarter.

Amendment history: Inserted by No 124 of 2013, effective sch 1 (items 1 ‑ 36, 45 ‑ 49), sch 5 (items 1 ‑ 6, 8): 29 June 2013 (s 2(1) items 2, 10) sch 11 (items 26, 27): 30 June 2013 (s 2(1) item 17)

s 45-600 — General interest charge on tax benefit relating to instalments

(1) You are liable to pay the * general interest charge under section 45 ‑ 620 if: (a) you get a * tax benefit from a * scheme; and (b) the tax benefit relates to a * component of your * tax position for an income year, and that component is covered by section 45 ‑ 610; and (c) having regard to the matters referred to in subsection (3), it would be concluded that an entity that entered into or carried out the scheme (or part of it) did so for the sole or dominant purpose of: (i) an entity (whether you, that entity or another entity) getting one or more tax benefits from the scheme; or (ii) 2 or more entities (whether or not including you or that entity) each getting one or more tax benefits from the scheme. (2) It does not matter: (a) whether or not you entered into or carried out the * scheme (or part of it); or (b) whether the entity that entered into or carried out the scheme (or part of it) did so alone or together with one or more others; or (c) whether the scheme (or any part of it) was entered into or carried out inside or outside Australia; or (d) whether or not the * tax benefit you got is of the same kind as a tax benefit mentioned in paragraph (1)(c). Matters to be considered in determining purpose of scheme (3) In considering an entity’s purpose in entering into or carrying out a * scheme (or part of one), have regard to these matters: (a) the manner in which the scheme or part was entered into or carried out; (b) the form and substance of the scheme, including: (i) the legal rights and obligations involved in the scheme; and (ii) the economic and commercial substance of the scheme; (c) the purposes and objects of this Part and of any relevant provisions of this Part (whether those purposes and objects are stated expressly or not); (d) the timing of the scheme; (e) the period over which the scheme was entered into and carried out; (f) the effect that this Act would have in relation to the scheme apart from this Subdivision; (g) any change in your financial position that has resulted from the scheme, or may reasonably be expected to result from it; (h) any change that has resulted from the scheme, or may reasonably be expected to result from it, in the financial position of an entity that has or had a connection or dealing with you, whether the connection or dealing is or was of a family, business or other nature; (i) any other consequence for you, or for such an entity, of the scheme having been entered into or carried out; (j) the nature of the connection between you and such an entity, including the question whether the dealing is or was at * arm’s length. GIC is payable on each of 2 or more tax benefits (4) If you get 2 or more * tax benefits from the * scheme, this section has a separate application to each of them.

Amendment history: Inserted by No 89 of 2000, effective sch 2 (items 114, 116), sch 7: 22 Dec 1999 (s 2(6), (10)) sch 2 (items 115, 117): 30 June 2000 (s 2(1))

s 45-605 — When do you get a tax benefit from a scheme?

(1) This section describes how to work out whether you get a tax benefit from a * scheme and, if so, the amount of the tax benefit. (2) First, determine your actual * tax position for an income year (apart from this Subdivision). (3) Next, determine your * hypothetical tax position for the same income year (apart from this Subdivision). (4) Then compare each * component of the 2 positions. If the amount of that component of the actual * tax position is lower than the amount of that component of the * hypothetical tax position, the difference between the 2 amounts is a tax benefit that you get from the * scheme. Note 1: The difference between the 2 amounts is not a tax benefit to the extent that it is attributable to certain things for which the income tax law expressly provides. See section 45 ‑ 635. Note 2: An entity may get 2 or more tax benefits from the same scheme. One reason is that the scheme may affect 2 or more components of the entity’s tax position for an income year. Another reason is that the scheme may affect the tax position for 2 or more income years.

Amendment history: Inserted by No 89 of 2000, effective sch 2 (items 114, 116), sch 7: 22 Dec 1999 (s 2(6), (10)) sch 2 (items 115, 117): 30 June 2000 (s 2(1))

s 45-610 — What is your tax position for an income year?

Your tax position for an income year consists of a number of components . The table sets out each component, and how to work out the amount of the component. Components of your tax position that relate to PAYG instalments and credits Item Each of these is a component : The amount of that component is: 1 Your instalment for each * instalment quarter in the income year is a quarterly instalment component . The amount worked out as follows: (a) if you are liable to pay an instalment for that instalment quarter—the amount of the instalment; or (b) if for any reason you are not liable to pay an instalment for that instalment quarter—nil (even if you are an * annual payer or a * quarterly payer who pays 2 instalments annually on the basis of GDP ‑ adjusted notional tax); or (c) if you are entitled to claim a credit for that instalment quarter under section 45 ‑ 420 (because the instalment for that quarter is to be worked out on the basis of your estimated benchmark tax)—the amount of the credit (expressed as a negative amount). 2 Your annual instalment for the income year is the annual instalment component . The amount worked out as follows: (a) if you are liable to pay an annual instalment for the income year—the amount of the instalment; or (b) if for any reason you are not liable to pay an annual instalment for the income year—nil (even if you are a * quarterly payer). 3 A variation credit component is a credit arising under section 45 ‑ 215 because the amount of your instalment for an * instalment quarter in the income year is to be worked out using an instalment rate you chose under section 45 ‑ 205. The amount worked out as follows: (a) if you are entitled to the credit—the amount of the credit (expressed as a negative amount); or (b) otherwise—nil. 4 A variation GIC component is the * general interest charge you are liable to pay under: (a) subsection 45 ‑ 230(2) (varied instalment rate); or (b) subsection 45 ‑ 232(2) (estimated benchmark tax); or (c) subsection 45 ‑ 235(2) or (3) (annual instalment); because of how your instalment for an * instalment quarter in the income year, or for the income year, was worked out. The amount worked out as follows: (a) if you are liable to pay the charge—the amount of the charge; or (b) otherwise—nil. Example: A scheme results in X Pty Ltd being able to choose to be an annual payer for the 2000 ‑ 01 income year. The following table shows the actual tax position of X Pty Ltd for that year, and also its hypothetical tax position as defined in section 45 ‑ 615. X Pty Ltd has got 4 tax benefits from the scheme: one for each of the 4 instalment quarters. 2000 ‑ 01 income year For this component: The amount of that component of the actual tax position is: The amount of that component of the hypothetical tax position is: Quarterly instalment component for first instalment quarter nil $3,000 Quarterly instalment component for second instalment quarter nil $4,000 Quarterly instalment component for third instalment quarter nil $3,000 Quarterly instalment component for fourth instalment quarter nil $2,000 Annual instalment component $12,000 nil

Amendment history: Inserted by No 89 of 2000, effective sch 2 (items 114, 116), sch 7: 22 Dec 1999 (s 2(6), (10)) sch 2 (items 115, 117): 30 June 2000 (s 2(1)) | Amended by No 73 of 2001, effective sch 1 (items 21, 22, 58 ‑ 62(1)), sch 2 (items 1 ‑ 40, 53, 86 ‑ 95(1)), sch 3 (items 20 ‑ 33), sch 4 (items 1, 10), sch 5: 30 June 2001 (s 2(1)) sch 2 (items 48 ‑ 52): 1 Jan 2001 (s 2(2)) sch 3 (items 35, 36): 1 Apr 2001 (s 2(3))

s 45-615 — What is your hypothetical tax position for an income year?

Your hypothetical tax position for an income year is what would have been, or what could reasonably be expected to have been, your * tax position for the income year if the * scheme had not been entered into or carried out.

Amendment history: Inserted by No 89 of 2000, effective sch 2 (items 114, 116), sch 7: 22 Dec 1999 (s 2(6), (10)) sch 2 (items 115, 117): 30 June 2000 (s 2(1))

s 45-620 — Amount on which GIC is payable, and period for which it is payable

(1) You are liable to pay the * general interest charge on twice the * tax benefit mentioned in paragraph 45 ‑ 600(1)(a). Note 1: To the extent that you also got a tax detriment from the scheme, you get a credit: see section 45 ‑ 625. Note 2: In special circumstances the Commissioner can remit some or all of the general interest charge: see section 45 ‑ 640. (2) You are liable to pay the charge for each day in the period that: (a) started at the beginning of the day by which your instalment for the period mentioned in the applicable item of the table in section 45 ‑ 610 was due to be paid, or would have been due to be paid if you had been liable to pay an instalment for that period; and (b) finishes at the end of the day on which your assessed tax for the income year is due to be paid. (3) The Commissioner must give you written notice of the * general interest charge to which you are liable under subsection (1). You must pay the charge within 14 days after the notice is given to you. (4) If any of the * general interest charge to which you are liable under subsection (1) remains unpaid at the end of the 14 days referred to in subsection (3), you are also liable to pay the general interest charge on the unpaid amount for each day in the period that: (a) starts at the end of those 14 days; and (b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid: (i) the unpaid amount; (ii) general interest charge on the unpaid amount.

Amendment history: Inserted by No 89 of 2000, effective sch 2 (items 114, 116), sch 7: 22 Dec 1999 (s 2(6), (10)) sch 2 (items 115, 117): 30 June 2000 (s 2(1))

s 45-625 — Credit if you also got a tax detriment from the scheme

(1) You are entitled to a credit if: (a) you are liable to pay * general interest charge under section 45 ‑ 620 because you got one or more * tax benefits from the * scheme; and (b) the Commissioner is satisfied that: (i) you got a * tax detriment from the scheme; and (ii) the tax detriment relates to a * component of your * tax position for an income year, and that component is covered by section 45 ‑ 610. (It does not matter whether that income year is the same as the one referred to in section 45 ‑ 600.) Note: How the credit is applied is set out in Division 3 of Part IIB. (2) The credit is equal to the * general interest charge on twice the amount of the * tax detriment for each day in the period that: (a) started at the beginning of the day by which your instalment for the period mentioned in the item of the table in section 45 ‑ 610 that applies for the purposes of working out the amount of the tax detriment: (i) was due to be paid; or (ii) would have been due to be paid if you had been liable to pay an instalment for that period; and (b) finishes at the end of the day on which your assessed tax for the income year is due to be paid. (3) However, the credit cannot exceed the total * general interest charge you are liable to pay under section 45 ‑ 620 because you got one or more * tax benefits from the * scheme. Credit for each of 2 or more tax detriments (4) If you get 2 or more * tax detriments from the scheme, subsections (1) and (2) have a separate application to each of them. However, the total of the credits cannot exceed the total * general interest charge referred to in subsection (3).

Amendment history: Inserted by No 89 of 2000, effective sch 2 (items 114, 116), sch 7: 22 Dec 1999 (s 2(6), (10)) sch 2 (items 115, 117): 30 June 2000 (s 2(1))

s 45-630 — When do you get a tax detriment from a scheme?

(1) This section describes how to work out whether you get a tax detriment from a * scheme and, if so, the amount of the tax detriment. (2) First, determine your actual * tax position for an income year (apart from this Subdivision). (3) Next, determine your * hypothetical tax position for the same income year (apart from this Subdivision). (4) Then compare each * component of the 2 positions. If the amount of that component of the actual * tax position is higher than the amount of that component of the * hypothetical tax position, the difference between the 2 amounts is a tax detriment that you get from the * scheme. Example: In the fact situation in the example in section 45 ‑ 610, X Pty Ltd gets a tax detriment from the scheme for the annual instalment component of its tax position for the income year. Note 1: The difference between the 2 amounts is not a tax detriment to the extent that it is attributable to certain things for which the income tax law expressly provides. See section 45 ‑ 635. Note 2: An entity may get 2 or more tax detriments from the same scheme. One reason is that the scheme may affect 2 or more components of the entity’s tax position for an income year. Another reason is that the scheme may affect the tax position for 2 or more income years.

Amendment history: Inserted by No 89 of 2000, effective sch 2 (items 114, 116), sch 7: 22 Dec 1999 (s 2(6), (10)) sch 2 (items 115, 117): 30 June 2000 (s 2(1)) | Amended by No 84 of 2013, effective sch 8 (items 33 ‑ 37): 28 June 2013 (s 2(1) item 4)

s 45-635 — No tax benefit or detriment results from choice for which income tax law expressly provides

Choice under the income tax law generally (1) The difference between the 2 amounts referred to in subsection 45 ‑ 605(4) or 45 ‑ 630(4) is not a * tax benefit or * tax detriment if there would have been no difference between the 2 amounts but for one or more matters covered by subsection (3). (2) The difference between the 2 amounts is not a * tax benefit or * tax detriment to the extent that the difference between the 2 amounts would have been less but for one or more matters covered by subsection (3). (3) This subsection covers: (a) an entity making an agreement, choice, declaration, election or selection; or (b) an entity giving a notice or exercising an option; for which this Act expressly provides. However, this subsection does not cover an entity doing such a thing under: (c) Subdivision 126 ‑ B (about CGT roll ‑ overs involving certain companies in the same wholly ‑ owned group) of the Income Tax Assessment Act 1997 ; or (d) Subdivision 170 ‑ B of that Act (about transferring a net capital loss between certain companies in the same wholly ‑ owned group). Matters excluded in applying subsection (1) or (2) (4) Subsection (1) or (2) does not apply to a matter covered by subsection (3) if an entity entered into or carried out the * scheme (or part of it) for the sole or dominant purpose of creating a circumstance or state of affairs whose existence is necessary for the entity referred to in subsection (3): (a) to make the agreement, choice, declaration, election or selection; or (b) to give the notice or exercise the option. Choice under some CGT provisions (5) The difference between the 2 amounts is not a * tax benefit or * tax detriment if: (a) there would have been no difference between the 2 amounts but for one or more matters covered by subsection (7); and (b) the * scheme consisted wholly of that matter or those matters. (6) Also, the difference between the 2 amounts is not a * tax benefit or * tax detriment to the extent that the difference between the 2 amounts would have been less but for one or more matters covered by subsection (7), but only if the * scheme consisted wholly of that matter or those matters. (7) This subsection covers: (a) a choice made under Subdivision 126 ‑ B (about CGT roll ‑ overs involving certain companies in the same wholly ‑ owned group) of the Income Tax Assessment Act 1997 ; or (b) an agreement made under Subdivision 170 ‑ B of that Act (about transferring a net capital loss between certain companies in the same wholly ‑ owned group);

Amendment history: Inserted by No 89 of 2000, effective sch 2 (items 114, 116), sch 7: 22 Dec 1999 (s 2(6), (10)) sch 2 (items 115, 117): 30 June 2000 (s 2(1)) | Amended by No 117 of 2002, effective sch 11 (items 12 ‑ 15), sch 14 (items 14, 15): 24 Oct 2002 (s 2(1) item 9)

s 45-640 — Commissioner may remit general interest charge in special cases

(1) The Commissioner may, if he or she is satisfied that because special circumstances exist it would be fair and reasonable to do so, remit the whole or any part of any * general interest charge payable under section 45 ‑ 620. (2) If the Commissioner does so, section 45 ‑ 625 (about credits for tax detriments from schemes) applies, and is taken always to have applied, as if the remitted amount had never been payable.

Amendment history: Inserted by No 89 of 2000, effective sch 2 (items 114, 116), sch 7: 22 Dec 1999 (s 2(6), (10)) sch 2 (items 115, 117): 30 June 2000 (s 2(1))

s 45-700 — What this Subdivision is about

This Subdivision allows the members of a consolidated group to be treated as a single entity for the purposes of Pay as you go (PAYG) instalments. Generally, the head company of the group is the entity liable to pay PAYG instalments. The PAYG instalments provisions in this Part apply to the head company in much the same way as they apply to any other company. However, the operation of some of these provisions is modified by this Subdivision. This Subdivision also contains special rules to deal with changes in the membership of the group. Note 1: Subdivision 45 ‑ R contains special rules that apply to members of a consolidated group before they are treated as a single entity for the purposes of this Part. It also contains special rules that affect the operation of this Subdivision (see sections 45 ‑ 880 and 45 ‑ 885). Note 2: Subdivision 45 ‑ S extends the operation of this Subdivision so that it can apply to members of a MEC group. It contains modifications of this Subdivision for the purposes of that extended operation. Table of sections Application of Subdivision 45 ‑ 703 Effect of this Subdivision and Subdivision 45 ‑ R in relation to monthly payers 45 ‑ 705 Application of Subdivision to head company Usual operation of this Part for consolidated group members 45 ‑ 710 Single entity rule 45 ‑ 715 When instalments are due—modification of section 45 ‑ 61 45 ‑ 720 Head company cannot be an annual payer—modification of section 45 ‑ 140 Membership changes 45 ‑ 740 Change of head company 45 ‑ 755 Entry rule (for an entity that becomes a subsidiary member of a consolidated group) 45 ‑ 760 Exit rule (for an entity that ceases to be a subsidiary member of a consolidated group) 45 ‑ 775 Commissioner’s power to work out different instalment rate or GDP ‑ adjusted notional tax

Amendment history: Inserted by No 68 of 2002, effective 24 Oct 2002 ( see s 2) | Amended by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19)

s 45-703 — Effect of this Subdivision and Subdivision 45 ‑ R in relation to monthly payers

(1) If: (a) a company is the * head company of a * consolidated group; and (b) the company is a * monthly payer; this Subdivision and Subdivision 45 ‑ R have effect in relation to the company as the head company of the group in respect of an * instalment month in the same way in which they have effect in relation to a company that is a * quarterly payer as the head company of a consolidated group in respect of an * instalment quarter. (2) If: (a) an entity is a * subsidiary member of a * consolidated group; and (b) the entity is a * monthly payer; this Subdivision and Subdivision 45 ‑ R have effect in relation to the entity in respect of an * instalment month in the same way in which they have effect in relation to an entity that is a * quarterly payer in respect of an * instalment quarter. (3) However, those effects are subject to any modifications set out in those Subdivisions. Note: Subdivision 45 ‑ S can also have effect in relation to a monthly payer because of the operation of this section and section 45 ‑ 910.

Amendment history: Inserted by No 124 of 2013, effective sch 1 (items 1 ‑ 36, 45 ‑ 49), sch 5 (items 1 ‑ 6, 8): 29 June 2013 (s 2(1) items 2, 10) sch 11 (items 26, 27): 30 June 2013 (s 2(1) item 17)

s 45-705 — Application of Subdivision to head company

Period during which Subdivision applies to head company (1) Subject to sections 45 ‑ 880 and 45 ‑ 885, this Subdivision applies to a company as the * head company of a * consolidated group during the period: (a) starting at the start of the * instalment quarter of the company determined under subsection (2), (3) or (4); and (b) ending: (i) at the end of the instalment quarter of the company determined under paragraph (5)(a) or (b); or (ii) just before the instalment quarter of the company determined under paragraph (5)(c) or (d). When the period begins—initial head company instalment rate (2) This Subdivision starts to apply to a company as the * head company of a * consolidated group at the start of an * instalment quarter under this subsection if, during that quarter, the Commissioner gives the company (as that head company) the * initial head company instalment rate. Note: The operation of this subsection may be affected by section 45 ‑ 885. When the period begins—group created from MEC group (3) This Subdivision starts to apply to a company as the * head company of a * consolidated group at the start of an * instalment quarter (the starting quarter ) under this subsection if all of the following conditions are satisfied: (a) the consolidated group is * created from a * MEC group during the starting quarter; (b) the company is the head company of the consolidated group when the consolidated group is created from the MEC group; (c) either of the following applies: (i) this Subdivision applied, in accordance with Subdivision 45 ‑ S, to the * provisional head company of the MEC group at the end of the previous instalment quarter; (ii) the Commissioner gives the * initial head company instalment rate to the provisional head company of the MEC group during the starting quarter. Note: For the application of this Subdivision to a provisional head company of a MEC group: see section 45 ‑ 915. When the period begins—new head company (4) This Subdivision starts to apply to a company as the * head company of a * consolidated group at the start of an * instalment quarter (the starting quarter ) under this subsection if all of the following conditions are satisfied: (a) the company is an interposed company mentioned in subsection 615 ‑ 30(2) of the Income Tax Assessment Act 1997 ; (b) the company chooses under that subsection that the consolidated group is to continue in existence at and after the completion time mentioned in that subsection; (c) the completion time occurs during the starting quarter; (d) one of the following subparagraphs applies: (i) this Subdivision applied to the original entity mentioned in that subsection (as the head company of the consolidated group) at the end of the previous instalment quarter; (ii) the Commissioner gives the * initial head company instalment rate to the original entity mentioned in that subsection (as the head company of the consolidated group) during the starting quarter; (iii) the consolidated group is * created from a * MEC group during the starting quarter and this Subdivision applied to the * provisional head company of the MEC group at the end of the previous instalment quarter; (iv) the consolidated group is created from a MEC group during the starting quarter and the Commissioner gives the initial head company instalment rate to the provisional head company of the MEC group during the starting quarter. When the period begins—modified timing for head company that is monthly payer (4A) Subsection (4B) applies if: (a) apart from subsection (4B), this Subdivision starts to apply to a company as the * head company of a * consolidated group at a particular time because of the operation of subsection (2), (3) or (4); and (b) the company is a * monthly payer; and (c) the Commissioner gave the * initial head company instalment rate as mentioned in subsection (2), subparagraph (3)(c)(ii), subparagraph (4)(d)(ii) or subparagraph (4)(d)(iv) in an * instalment month. (4B) Treat subsection (2), (3) or (4) (as the case requires) as providing that this Subdivision starts to apply to the company as the * head company of the group at the start of the next * instalment month. Note: For the application of this Subdivision to a monthly payer, see section 45 ‑ 703. When the period ends (5) This Subdivision stops applying to a company as the * head company of a * consolidated group at the earliest of the following times after the company becomes the head company: (a) the end of the * instalment quarter during which the consolidated group ceases to exist (other than because a * MEC group is * created from the consolidated group); (b) the end of the instalment quarter during which the Commissioner is notified of the creation of a MEC group from the consolidated group if the MEC group is created during that instalment quarter; (c) just before the instalment quarter during which the Commissioner is notified of the creation of a MEC group from the consolidated group if the MEC group was created before that instalment quarter; (d) just before the instalment quarter that includes the completion time mentioned in subsection 615 ‑ 30(2) of the Income Tax Assessment Act 1997 where an interposed company mentioned in that subsection chooses under that subsection that the consolidated group is to continue in existence. Note: The operation of this subsection because of paragraph (a) may be affected by section 45 ‑ 880. (6) For the purposes of subsection (5), the Commissioner is notified of the creation of a * MEC group from a * consolidated group when the Commissioner receives a notice of the consolidation of the MEC group under subsection 719 ‑ 40(1) of the Income Tax Assessment Act 1997 . (7) If this Subdivision stops applying to a company as the * head company of a * consolidated group just before an * instalment quarter under paragraph (5)(c), then, for the purposes of this Part, this Act has effect for the company and other * members of the group as if: (a) the consolidated group had continued to exist until just before the start of that quarter; and (b) the company were the head company of the group until just before the start of that quarter. (8) To avoid doubt, this Subdivision does not apply to a company as the * head company of a * consolidated group for any time at all if: (a) subsection (2), (3) or (4), and subsection (5), would, apart from this subsection, apply to the company; but (b) the time at which this Subdivision would stop applying to the company under subsection (5) is before the time at which this Subdivision would start to apply to the company under subsection (2), (3) or (4). (9) To avoid doubt, and apart from the operation of subsection (7), this Subdivision may apply to a company as the * head company of a * consolidated group at a time when the company is not in fact the head company of the group. Note: An example of this is when an interposed company becomes the new head company of a consolidated group. Under this section and section 45 ‑ 740, this Subdivision may start applying to the company as if it had already become the head company when it is not yet such a company.

Amendment history: Inserted by No 68 of 2002, effective 24 Oct 2002 ( see s 2) | Repealed and substituted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19) | Amended by No 124 of 2013, effective sch 1 (items 1 ‑ 36, 45 ‑ 49), sch 5 (items 1 ‑ 6, 8): 29 June 2013 (s 2(1) items 2, 10) sch 11 (items 26, 27): 30 June 2013 (s 2(1) item 17) | Amended by No 133 of 2014, effective sch 1 (items 33 ‑ 36, 39), sch 2 (items 4, 5): 12 Dec 2014 (s 2(1) item 2)

s 45-710 — Single entity rule

If an entity is a * subsidiary member of a * consolidated group for any period during which this Subdivision applies to the * head company of the group: (a) that entity; and (b) any other subsidiary member of the group; are taken for the purposes of this Part to be parts of that head company (rather than separate entities) during that period. Note: That means, amongst other things, the head company would be liable to pay instalments for that period as if the subsidiary members were parts of the head company.

Amendment history: Inserted by No 68 of 2002, effective 24 Oct 2002 ( see s 2)

s 45-715 — When instalments are due—modification of section 45 ‑ 61

(1) If: (a) the * head company of a * consolidated group is liable to pay an instalment for an * instalment quarter; and (b) this Subdivision applies to the head company during that quarter; then, despite subsection 45 ‑ 61(2), the instalment is due on or before the 21st day of the month after the end of that quarter whether or not the head company is a * deferred BAS payer on that day. (2) Subsection (3) applies if section 45 ‑ 703 applies to the * head company of the * consolidated group (because it is a * monthly payer). (3) Treat the reference in subsection (1) to subsection 45 ‑ 61(2) as instead being a reference to subsection 45 ‑ 67(2).

Amendment history: Inserted by No 68 of 2002, effective 24 Oct 2002 ( see s 2) | Amended by No 124 of 2013, effective sch 1 (items 1 ‑ 36, 45 ‑ 49), sch 5 (items 1 ‑ 6, 8): 29 June 2013 (s 2(1) items 2, 10) sch 11 (items 26, 27): 30 June 2013 (s 2(1) item 17)

s 45-720 — Head company cannot be an annual payer—modification of section 45 ‑ 140

Despite any other provisions in this Part, the * head company of a * consolidated group cannot choose to be an * annual payer under section 45 ‑ 140 while this Subdivision applies to the head company. Note: You stop being an annual payer when this Subdivision starts applying to you as the head company of a consolidated group: see section 45 ‑ 160.

Amendment history: Inserted by No 68 of 2002, effective 24 Oct 2002 ( see s 2) | Amended by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19)

s 45-740 — Change of head company

Object (1) The object of this section (except subsection (8)) is to ensure that, for the purposes of this Part, when a company becomes the new * head company of a * consolidated group: (a) the company inherits the history of the former head company of the group; and (b) the history of the new head company is effectively ignored. (2) This section applies to a * head company of a * consolidated group if: (a) the company is an interposed company mentioned in subsection 45 ‑ 705(4) (an interposed company that chooses under subsection 615 ‑ 30(2) of the Income Tax Assessment Act 1997 that the consolidated group is to continue in existence at and after the completion time mentioned in that subsection); and (b) the conditions in subsection 45 ‑ 705(4) are satisfied in relation to the interposed company (whether or not this Subdivision applies to the company as the head company of the group for any period of time). (3) Everything that happened before the completion time in relation to the company (the original company ) that was the * head company of the * consolidated group immediately before the completion time: (a) is taken to have happened in relation to the interposed company instead of in relation to the original company; and (b) is taken to have happened in relation to the interposed company instead of what would (apart from this section) be taken to have happened in relation to the interposed company before the completion time; just as if, at all times before the completion time: (c) the interposed company had been the original company; and (d) the original company had been the interposed company. (4) To avoid doubt, subsection (3) also covers everything that, immediately before the completion time, was taken to have happened in relation to the original company because of: (a) section 701 ‑ 1 of the Income Tax Assessment Act 1997 (single entity rule); or (b) section 701 ‑ 5 of that Act (entry history rule); or (c) section 703 ‑ 75 of that Act (effects of an interposed company becoming the * head company of a * consolidated group); or (d) section 719 ‑ 90 of that Act (effects of a change of head company of a * MEC group); or (e) section 45 ‑ 710 in this Schedule (single entity rule for the purposes of this Part), including an application of that section under Subdivision 45 ‑ S in this Schedule; or (f) this section; or (g) section 45 ‑ 920 in this Schedule (effects of a change of * provisional head company of a MEC group for the purposes of this Part); or (h) one or more previous applications of any of the provisions covered by paragraphs (a) to (g). (5) In addition, and without affecting subsection (3): (a) an assessment of the original company for an income year that ends before the income year that includes the completion time; or (b) an amendment of the assessment; is taken to be something that had happened to the interposed company, whether or not the assessment or amendment is made before the completion time. (6) This section has effect for the purposes of applying this Part to * members of the * consolidated group in relation to an * instalment quarter of the interposed company that ends after the completion time. Note: An assessment mentioned in subsection (5) may therefore be taken to be the base assessment of the interposed company for the purposes of this Part. (7) Subsections (1) to (6) are to be disregarded in applying section 45 ‑ 705 (about the application of this Subdivision to a company as the * head company of a * consolidated group). Note: For example, if the Commissioner has given an initial head company instalment rate to the original company during an earlier instalment quarter, the rate is not, despite this section, treated as if it had been given to the interposed company for the purposes of section 45 ‑ 705. Subject to the other provisions in that section, this Subdivision therefore starts applying to the interposed company under subsection 45 ‑ 705(4). Special rule for the original company (8) A provision of this Part that applies on an entity becoming a * subsidiary member of a * consolidated group does not apply to the original company when it is taken to have become such a member at the completion time as a result of section 703 ‑ 70 of the Income Tax Assessment Act 1997 . Note: Section 45 ‑ 755 (the entry rule) therefore does not apply to the original company on the company becoming a subsidiary member of the consolidated group.

Amendment history: Inserted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19) | Amended by No 133 of 2014, effective sch 1 (items 33 ‑ 36, 39), sch 2 (items 4, 5): 12 Dec 2014 (s 2(1) item 2)

s 45-755 — Entry rule (for a n entity that becomes a subsidiary member of a consolidated group)

(1) Despite any other provisions in this Part, an entity is liable to pay an instalment for an * instalment quarter or income year (as appropriate) during which the entity becomes a * subsidiary member of a * consolidated group if: (a) this Subdivision applies to the * head company of the group at any time during that quarter or year (as appropriate); and (b) the entity would otherwise be liable to pay an instalment for that quarter or year (as appropriate) if it had not become a subsidiary member of the group; and (c) the entity becomes a subsidiary member of the group on a day other than the first day of that quarter or the first day of that year (as appropriate). Note: Under paragraph (b), this section could apply to an entity that, at the time of becoming a subsidiary member of the group, was not a subsidiary member of another consolidated group, or was a member of another consolidated group but this Subdivision did not apply to the head company of that other group at that time. Modifications for a quarterly payer who pays 4 instalments annually on the basis of GDP ‑ adjusted notional tax (2) Subsections (3) and (4) apply to the entity if: (a) the entity would have been a * quarterly payer who pays 4 instalments annually on the basis of GDP ‑ adjusted notional tax at the end of the * instalment quarter mentioned in subsection (1) if it had not become a * subsidiary member of the group; and (b) the amount of the instalment payable by the entity for that quarter would have been worked out under paragraph 45 ‑ 112(1)(b); and (c) that quarter is not the fourth instalment quarter in an income year. (3) For the purposes of working out the amount of the instalment payable by the entity for that * instalment quarter, subsection 45 ‑ 410(5) applies to the entity as if that quarter were the fourth instalment quarter in the income year for which the entity is liable to pay an instalment. (4) For the purposes of working out the * acceptable amount of the entity’s instalment for that instalment quarter, subsection 45 ‑ 232(3) applies to the entity as if that quarter were the fourth instalment quarter in the income year for which the entity is liable to pay an instalment.

Amendment history: Inserted by No 68 of 2002, effective 24 Oct 2002 ( see s 2)

s 45-760 — Exit rule (for an entity that ceases to be a subsidiary member of a consolidated group)

(1) This section applies to an entity if all of the following conditions are satisfied: (a) the entity ceases to be a * subsidiary member of a * consolidated group during an * instalment quarter of the * head company of the group; (b) this Subdivision applies to the head company of the group during that instalment quarter; (c) the entity does not, at the time it ceases to be a subsidiary member of the group, become: (i) a subsidiary member of another consolidated group the head company of which is one to which this Subdivision applies at that time; or (ii) a member (other than the * provisional head company) of a * MEC group the provisional head company of which is one to which this Subdivision applies, in accordance with Subdivision 45 ‑ S, at that time; (d) this Part applies to the entity under section 45 ‑ 10. (2) This Part applies to the entity as if: (a) the Commissioner had given the entity an instalment rate equal to the most recent instalment rate given to the * head company mentioned in paragraph (1)(a) before the end of the * instalment quarter mentioned in that paragraph; and (b) the entity were a * quarterly payer who pays on the basis of instalment income at the end of that instalment quarter, and of each subsequent instalment quarter, until: (i) if the Commissioner first gives the entity an instalment rate worked out on the basis of the * base assessment covered by subsection (3) during the first instalment quarter of an income year—immediately before the end of that first instalment quarter; or (ii) if that rate is given to the entity during any other instalment quarter of an income year—immediately after the end of the last instalment quarter of that year. (3) This section only covers the first * base assessment of the entity for an income year that is, or includes, a period after the entity ceases to be a * subsidiary member of the group.

Amendment history: Inserted by No 68 of 2002, effective 24 Oct 2002 ( see s 2) | Amended by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19)

s 45-775 — Commissioner’s power to work out different instalment rate or GDP ‑ adjusted notional tax

(1) This section applies if any of the following changes (the membership change ) occurs in relation to a * consolidated group while this Subdivision applies to the * head company of the group: (a) an entity becomes a * subsidiary member of the group or a number of entities become subsidiary members of the group; (b) an entity ceases to be a subsidiary member of the group or a number of entities cease to be subsidiary members of the group. (2) If the Commissioner, having regard to the object of this Part and the membership change, is of the opinion that it would be reasonable to do so, the Commissioner may work out: (a) an instalment rate that is higher, or lower, than the most recent instalment rate given by the Commissioner to the * head company under section 45 ‑ 15; or (b) an amount of * GDP ‑ adjusted notional tax that is higher, or lower, than the amount of GDP ‑ adjusted notional tax worked out for the purposes of the most recent amount of instalment notified by the Commissioner to the head company under paragraph 45 ‑ 112(1)(a). (3) The new instalment rate or amount of * GDP ‑ adjusted notional tax must be a rate or amount that, in the opinion of the Commissioner, is reasonable having regard to the object of this Part and the membership change. Note 1: Subdivision 45 ‑ J does not apply for the purpose of working out an instalment rate under this section. Note 2: Section 45 ‑ 405 does not apply for the purpose of working out an amount of GDP ‑ adjusted notional tax under this section. Additional applications of subsection (2) (4) If, after exercising the power in relation to the membership change under subsection (2) for the first time, and on the basis of an assessment (including an amendment) of the * head company for the income year in which the change occurs, or for an earlier year, the Commissioner has worked out: (a) another instalment rate under section 45 ‑ 320 for the company (whether or not the Commissioner has given that rate to the company); or (b) another amount of * GDP ‑ adjusted notional tax under section 45 ‑ 405 for the company (whether or not the Commissioner has notified the company an amount of instalment based on that other amount); the Commissioner may again exercise the power under subsection (2) in relation to the membership change, as if: (c) the rate mentioned in paragraph (a) were the most recent instalment rate mentioned in paragraph (2)(a); and (d) the amount of GDP ‑ adjusted notional tax mentioned in paragraph (b) were the amount of GDP ‑ adjusted notional tax worked out for the purposes of the most recent amount of instalment that is mentioned in paragraph (2)(b). (5) To avoid doubt, in relation to the membership change, the Commissioner: (a) may exercise the power under subsection (2) by applying subsection (4) more than once; but (b) must not exercise that power more than once in relation to a particular instalment rate mentioned in paragraph (4)(a) or a particular amount of * GDP ‑ adjusted notional tax mentioned in paragraph (4)(b).

Amendment history: Inserted by No 68 of 2002, effective 24 Oct 2002 ( see s 2) | Amended by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19)

s 45-850 — What this Subdivision is about

This Subdivision deals with the application of this Part to members of a consolidated group after the group has come into existence but before the members are treated as a single entity for the purposes of this Part. This Subdivision also contains special rules in relation to the application of Subdivision 45 ‑ Q to members of a consolidated group in these circumstances: (a) a group whose members were treated as a single entity under that Subdivision (a mature group ) is acquired by another group (see section 45 ‑ 880); or (b) a member of a mature group ceases to be such a member and becomes the head company of a new group (see section 45 ‑ 885). Note: Subdivision 45 ‑ S extends the operation of this Subdivision so that it can apply to members of a MEC group. It contains modifications of this Subdivision for the purposes of that extended operation. Table of sections Operative provisions 45 ‑ 855 Section 701 ‑ 1 disregarded for certain purposes 45 ‑ 860 Member having a different instalment period 45 ‑ 865 Credit rule 45 ‑ 870 Head company’s liability to GIC on shortfall in quarterly instalment 45 ‑ 875 Other rules about the general interest charge 45 ‑ 880 Continued application of Subdivision 45 ‑ Q to the head company of an acquired group 45 ‑ 885 Early application of Subdivision 45 ‑ Q to the head company of a new group

Amendment history: Inserted by No 68 of 2002, effective 24 Oct 2002 ( see s 2) | Repealed and substituted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19)

s 45-855 — Section 701 ‑ 1 disregarded for certain purposes

If: (a) an amount is required to be worked out for the purpose of determining the * instalment income of an entity that is a * member of a * consolidated group for a period that is all or a part of a * consolidation transitional year for the entity; and (b) the period ends before Subdivision 45 ‑ Q starts to apply, because of subsection 45 ‑ 705(2) or subparagraph 45 ‑ 705(3)(c)(ii), (4)(d)(ii) or (iv), to the * head company of the group; that amount must be worked out without regard to any application of section 701 ‑ 1 of the Income Tax Assessment Act 1997 to the entity in relation to the period.

Amendment history: Inserted by No 68 of 2002, effective 24 Oct 2002 ( see s 2) | Amended by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19)

s 45-860 — Member having a different instalment period

Different instalment period—instalment quarter (1) If: (a) but for Subdivision 45 ‑ Q, a * subsidiary member of a * consolidated group would be liable to pay an instalment for an * instalment quarter of the subsidiary member that includes the starting time; and (b) that quarter starts before the start of the instalment quarter of the * head company of the group that includes the starting time; then, despite section 45 ‑ 710, the subsidiary member is liable to pay an instalment for that quarter. Different instalment period—income year (2) If: (a) but for Subdivision 45 ‑ Q, a * subsidiary member of a * consolidated group would be liable to pay an annual instalment for an income year of the subsidiary member that includes the starting time; and (b) that year ends before the end of the income year of the * head company of the group that includes the starting time; then, despite section 45 ‑ 710, the subsidiary member is liable to pay an instalment for that year. Assumptions for working out amount of instalment (3) The amount of the instalment must be worked out on the following assumptions: (a) that the * instalment quarter or income year of the * subsidiary member (as appropriate) consists only of the period that is the part of the quarter or year occurring before the starting time; (b) that an amount required to be worked out for the purpose of determining the * instalment income of the subsidiary member for that period is worked out under section 45 ‑ 855. (4) For the purposes of this section, the starting time is the time at which Subdivision 45 ‑ Q starts to apply to the * head company of the group because of subsection 45 ‑ 705(2) or subparagraph 45 ‑ 705(3)(c)(ii), (4)(d)(ii) or (iv).

Amendment history: Inserted by No 68 of 2002, effective 24 Oct 2002 ( see s 2) | Amended by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19) | Amended by No 124 of 2013, effective sch 1 (items 1 ‑ 36, 45 ‑ 49), sch 5 (items 1 ‑ 6, 8): 29 June 2013 (s 2(1) items 2, 10) sch 11 (items 26, 27): 30 June 2013 (s 2(1) item 17)

s 45-865 — Credit rule

(1) When the Commissioner makes an assessment: (a) of the income tax that the * head company of a * consolidated group is liable to pay for a * consolidation transitional year for the head company; or (b) that no income tax is payable by the head company for that year; the head company is, in addition to any credit to which it is entitled under section 45 ‑ 30 for that year, entitled to a credit in relation to instalments payable by an entity that is a * subsidiary member of the group at any time during that year. (2) The credit is equal to: (a) the sum of so much of each instalment payable by the entity (even if it has not paid it) for an * instalment quarter of a * consolidation transitional year for the entity, or for that year, as is reasonably attributable to so much of that quarter or year: (i) which is, or is included in, the consolidation transitional year for the * head company; and (ii) during which the entity is a * subsidiary member of the group; minus (b) the sum of so much of each credit that the entity has claimed under section 45 ‑ 215 or 45 ‑ 420 for each instalment quarter covered by paragraph (a) as is reasonably attributable to: (i) for a credit under section 45 ‑ 215—so much of the preceding instalment quarters of that consolidation transitional year for the entity which is covered by subparagraphs (a)(i) and (ii); or (ii) for a credit under section 45 ‑ 420—so much of that instalment quarter and the preceding instalment quarters of that consolidation transitional year for the entity which is covered by subparagraphs (a)(i) and (ii). (3) To avoid doubt, if: (a) during the * instalment quarter or the * consolidation transitional year mentioned in paragraph (2)(a), the entity is a * subsidiary member of: (i) 2 or more * consolidated groups; or (ii) one or more consolidated groups and one or more * MEC groups; and (b) an amount is taken into account under that paragraph or paragraph (2)(b) in working out the credit to which the * head company of one of the groups is entitled under subsection (1); that amount is not to be taken into account in working out the credit to which the head company of another of those groups is entitled under that subsection. (4) A reference in subsection (3) to subsection (1) or paragraph (2)(a) or (b) includes a reference to that provision in its extended operation in relation to a * MEC group under Subdivision 45 ‑ S. Note: This section applies to members of a MEC group with the modifications set out in section 45 ‑ 930.

Amendment history: Inserted by No 68 of 2002, effective 24 Oct 2002 ( see s 2) | Amended by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19) | Amended by No 161 of 2005, effective sch 1 (items 27 ‑ 37, 46 ‑ 56, 59), sch 2 (items 1, 16 ‑ 32): Royal Assent

s 45-870 — Head company’s liability to GIC on shortfall in quarterly instalment

Liability for the general interest charge (1) Subject to subsections (3) and (4), the * head company of a * consolidated group is liable to pay the * general interest charge under this section for an * instalment quarter in a * consolidation transitional year for the head company if: (a) the instalment payable by at least one * member of the group for that quarter is worked out: (i) under paragraph 45 ‑ 112(1)(b) or (c); or (ii) by using an instalment rate under section 45 ‑ 205; and (b) the sum of instalments payable by the members of the group for that quarter, reduced by credits claimed by those members under section 45 ‑ 215 or 45 ‑ 420 for that quarter, is less than 17 / 80 of the head company’s * benchmark tax for that consolidation transitional year. Note: 17 / 80 of the head company’s benchmark tax represents an amount that is 85% of one quarter of that benchmark tax. Amount on which the charge is payable (2) Subject to subsections (3) and (4), the * general interest charge is payable on the amount worked out in accordance with the following method statement (if the amount is a positive amount). Method statement Step 1. Work out the amount that is 1 / 4 of the * benchmark tax of the * head company for that * consolidation transitional year of that head company. Step 2. Work out the sum of instalments that would have been payable by all the * members of the group for that * instalment quarter of that * head company if none of the members had worked out its instalment for that quarter under paragraph 45 ‑ 112(1)(b) or (c) or by using an instalment rate under section 45 ‑ 205. Step 3. Work out the sum of instalments payable by all the * members of the group for that * instalment quarter, reduced by credits claimed by the members under section 45 ‑ 215 or 45 ‑ 420 for that quarter. Step 4. Reduce the lesser of the results of steps 1 and 2 by the result of step 3. The result of this step is the amount on which the * general interest charge is payable if it is a positive amount. No general interest charge is payable if the result of this step is nil or a negative amount. Amounts of instalments or credits that are taken into account (3) In working out an amount of instalment or credit for a * subsidiary member of the group for the purposes of any of the following provisions: (a) paragraph (1)(b); (b) step 2 or 3 of the method statement; take into account only an amount of instalment or credit covered by that provision that is reasonably attributable to a period in that * consolidation transitional year of the * head company during which it is a subsidiary member of the group. Members having different instalment quarters (4) In working out an amount of instalment or credit for a * subsidiary member whose * instalment quarters differ from those of the * head company for the purposes of any of the following provisions: (a) paragraph (1)(a) or (b); (b) step 2 or 3 of the method statement; a reference to an instalment quarter in a * consolidation transitional year of the head company in any of those provisions includes a reference to the last instalment quarter of that subsidiary member ending before the end of that instalment quarter of the head company. (5) Subsections (6) and (7) apply if: (a) the * head company of the * consolidated group is a * monthly payer at a time in an * instalment month (the current month ); and (b) any of the other * members of the group (the subsidiary quarterly payers ) are * quarterly payers at a time in the * instalment quarter (the current quarter ) in which the current month starts. (6) Apply the following rules: (a) treat the reference in subsection (1) to an * instalment quarter as being a reference to the current month; (b) treat the references in this section to that quarter (or that instalment quarter) as being references to the current month. (7) Also apply the following rules, for the purposes of subsections (1) to (5): (a) treat the subsidiary quarterly payers as * monthly payers for each * instalment month (a notional instalment month ) that starts (disregarding paragraph (6)(a)) in the current quarter; (b) apply this section separately in relation to each of those notional instalment months; (c) treat the amount of instalment or credit for a subsidiary quarterly payer in respect of a notional instalment month as being the extent to which the amount of instalment or credit for the subsidiary quarterly payer for the current quarter is attributable to that notional instalment month.

Amendment history: Inserted by No 68 of 2002, effective 24 Oct 2002 ( see s 2) | Amended by No 124 of 2013, effective sch 1 (items 1 ‑ 36, 45 ‑ 49), sch 5 (items 1 ‑ 6, 8): 29 June 2013 (s 2(1) items 2, 10) sch 11 (items 26, 27): 30 June 2013 (s 2(1) item 17)

s 45-875 — Other rules about the general interest charge

(1) The * general interest charge under section 45 ‑ 870 for an * instalment quarter in an income year is payable by the * head company for each day in the period that: (a) started at the beginning of the day by which the instalment for that quarter was due to be paid; and (b) finishes at the end of the day on which the head company’s assessed tax for that income year is due to be paid. (2) The Commissioner must give the * head company written notice of the * general interest charge. The head company must pay the charge within 14 days after the notice is given to the head company. (3) If any of the * general interest charge remains unpaid at the end of the 14 days, the * head company is also liable to pay the general interest charge on the unpaid amount for each day in the period that: (a) starts at the end of those 14 days; and (b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid: (i) the unpaid amount; (ii) general interest charge on the unpaid amount. (4) The Commissioner may, if he or she is satisfied that because special circumstances exist it would be fair and reasonable to do so, remit the whole or any part of any * general interest charge payable under section 45 ‑ 870.

Amendment history: Inserted by No 68 of 2002, effective 24 Oct 2002 ( see s 2)

s 45-880 — Continued application of Subdivision 45 ‑ Q to the head company of an acquired group

(1) This section applies to a company for which all of the following conditions are satisfied in relation to a particular time (the takeover time ): (a) just before the takeover time, Subdivision 45 ‑ Q applied to the company as the * head company of a * consolidated group; (b) at the takeover time, the company becomes a * wholly ‑ owned subsidiary of a * member of another consolidated group or * MEC group; (c) that other group is consolidated at or before the takeover time under section 703 ‑ 50 or 719 ‑ 50 of the Income Tax Assessment Act 1997 ; (d) the Commissioner receives the choice (or notice) under that section for the consolidation of that other group not later than 28 days after the takeover time, or within such further period (if any) as the Commissioner allows; (e) at the takeover time, Subdivision 45 ‑ Q (including that Subdivision as applied under Subdivision 45 ‑ S) does not apply to the head company or the * provisional head company of that other group. (2) For the purposes of this Part only, this Act has effect in relation to the company and the other * members of the * consolidated group mentioned in paragraph (1)(a) (the preserved group ) as if, during the period covered by subsection (5): (a) the preserved group had continued to exist as a consolidated group; and (b) the company were still the * head company of the preserved group; and (c) Subdivision 45 ‑ Q had continued to apply to the company as the head company of the preserved group; and (d) an entity, while being a * subsidiary member of the preserved group, were not treated as a member of the group mentioned in paragraph (1)(b) (the new group ). (3) Subsection (2) does not stop the company from being a member of the new group for the purposes of this Part during the period covered by subsection (5). Note: This means, for example, sections 45 ‑ 855 and 45 ‑ 860 apply to the head company as a member of the new group. (4) However, for the purposes of applying section 45 ‑ 855 to the company, a reference in that section to an application of section 701 ‑ 1 of the Income Tax Assessment Act 1997 to the company in relation to the period mentioned in section 45 ‑ 855 is taken to be: (a) a reference only to an application of section 701 ‑ 1 of that Act to the company as a member of the new group during that period; and (b) not a reference to an application (because of subsection (2) of this section) of section 701 ‑ 1 of that Act to the company as the * head company of the preserved group during that period. (5) This subsection covers the period that starts from the start of the * instalment quarter of the company that includes the takeover time and ends at the earlier of the following times: (a) the end of the instalment quarter of the company during which the company ceases to be a member of the new group; (b) just before the instalment quarter of the company during which the Commissioner gives the * initial head company instalment rate to the * head company, or the * provisional head company, of the new group. (6) The Commissioner may, on the application of the company made not later than 28 days after the takeover time, allow such extension of time for the purposes of paragraph (1)(d) as he or she considers appropriate. (7) To avoid doubt, nothing in this section prevents the operation of section 45 ‑ 755 or 45 ‑ 760 to * members of the preserved group while it continues to exist under subsection (2).

Amendment history: Inserted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19)

s 45-885 — Early application of Subdivision 45 ‑ Q to the head company of a new group

(1) This section applies to a company for which all of the following conditions are satisfied in relation to a particular time (the starting time ): (a) just before the starting time, the company was a * subsidiary member of a * consolidated group, or a member of a * MEC group; (b) just before the starting time, the consolidated group or MEC group was a mature group (see subsection (4)); (c) at the starting time, either of the following applies: (i) the company ceases to be a subsidiary member of the consolidated group, or a member of the MEC group; (ii) the group ceases to exist (otherwise than because a MEC group or consolidated group is * created from the group, or because its * head company or * provisional head company becomes a * wholly ‑ owned subsidiary of a member of another mature group); (d) at the starting time, the company is the head company of another consolidated group; (e) within 28 days after the starting time, or within such further period (if any) as the Commissioner allows, the Commissioner receives the notice under section 703 ‑ 58 of the Income Tax Assessment Act 1997 in relation to the choice to consolidate, at and after the starting time, that other consolidated group under section 703 ‑ 50 of the Income Tax Assessment Act 1997 . (2) For the purposes of this Part: (a) the instalment rate that the Commissioner is taken to have given to the company under paragraph 45 ‑ 760(2)(a) has effect as if it were the * initial head company instalment rate for the company as the * head company of the * consolidated group mentioned in paragraph (1)(d); and (b) an instalment rate that would otherwise be the initial head company instalment rate for the company as the head company of that consolidated group is not to be treated as that initial head company instalment rate. Note: This means, subject to the provisions in section 45 ‑ 705, Subdivision 45 ‑ Q starts applying to the company as the head company of the consolidated group at the start of the instalment quarter that includes the starting time: see subsection (2) of that section and paragraph 45 ‑ 760(2)(a). (3) The Commissioner may, on the application of the company made within 28 days after the starting time, allow such extension of time for the purposes of paragraph (1)(e) as he or she considers appropriate. Mature group (4) For the purposes of this section, a * consolidated group or a * MEC group is a mature group at a particular time if: (a) for a consolidated group—Subdivision 45 ‑ Q applies to its * head company at that time; or (b) for a MEC group—Subdivision 45 ‑ Q, as applied under Subdivision 45 ‑ S, applies to its * provisional head company at that time.

Amendment history: Inserted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19) | Amended by No 56 of 2010, effective s 4(2), sch 3 (items 9, 10(1), (5)), sch 5 (items 191 ‑ 193), sch 6 (items 12 ‑ 14, 27 ‑ 36, 44 ‑ 53, 110, 111, 116, 159, 160): 3 June 2010 (s 2(1) items 1, 7, 11, 15, 20, 23) sch 1 (item 8): 17 Dec 2010 (s 2(1) item 4) sch 2 (items 3, 4), sch 6 (items 58 ‑ 97, 101 ‑ 105): 4 June 2010 (s 2(1) items 6, 16, 17)

s 45-900 — What this Subdivision is about

This Subdivision sets out how this Part applies in relation to MEC groups and their members. Table of sections Preliminary 45 ‑ 905 Objects of Subdivision General modification rules 45 ‑ 910 Extended operation of Part to cover MEC groups Extended operation of Subdivision 45 ‑ Q 45 ‑ 913 Sections 45 ‑ 705 and 45 ‑ 740 do not apply to members of MEC groups 45 ‑ 915 Application of Subdivision 45 ‑ Q to provisional head company 45 ‑ 917 Assumption for applying section 45 ‑ 710 (single entity rule) 45 ‑ 920 Change of provisional head company 45 ‑ 922 Life insurance company Extended operation of Subdivision 45 ‑ R 45 ‑ 925 Additional modifications of sections 45 ‑ 855 and 45 ‑ 860 45 ‑ 930 Modifications of sections 45 ‑ 865 and 45 ‑ 870 and a related provision 45 ‑ 935 Additional modifications of section 45 ‑ 885

Amendment history: Inserted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19)

s 45-905 — Objects of Subdivision

The objects of this Subdivision are to: (a) extend the operation of this Part (except sections 45 ‑ 705 and 45 ‑ 740 and this Subdivision) so that it can apply in relation to * MEC groups and their members; and (b) modify the rules in this Part for that extended operation so that they take account of the special characteristics of MEC groups.

Amendment history: Inserted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19)

s 45-910 — Extended operation of Part to cover MEC groups

(1) This Part (except sections 45 ‑ 705 and 45 ‑ 740 and this Subdivision) has effect in relation to members of a * MEC group in the same way in which it has effect in relation to * members of a * consolidated group. (2) However, that effect is subject to the modifications set out in the following table and elsewhere in this Subdivision. Modifications of this Part Item A reference in this Part to: Is taken to be a reference to: 1 a * consolidated group a * MEC group 2 the * head company of a * consolidated group the * provisional head company of a * MEC group 3 a * subsidiary member of a * consolidated group a member (other than the * provisional head company) of a * MEC group Exceptions (3) The modifications set out in the table do not apply to the following provisions: (a) this Subdivision; (b) subsection 45 ‑ 30(4) (see section 45 ‑ 930); (d) note 2 at the end of section 45 ‑ 700; (e) sections 45 ‑ 705 and 45 ‑ 740 (see sections 45 ‑ 913, 45 ‑ 915 and 45 ‑ 920); (f) subparagraphs 45 ‑ 760(1)(c)(i) and (ii); (g) the note at the end of section 45 ‑ 850; (h) sections 45 ‑ 865 and 45 ‑ 870 (see section 45 ‑ 930); (i) paragraphs (1)(b), (c), (d) and (e), and subsection (5), of section 45 ‑ 880; (j) paragraphs (1)(a), (b) and (c), and subsection (4), of section 45 ‑ 885. Note: The provisions covered by paragraphs (d), (f), (g), (i) and (j) apply to members of a MEC group without any modifications.

Amendment history: Inserted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19) | Amended by No 12 of 2012, effective sch 6 (items 27 ‑ 29): 22 Dec 1999 (s 2(1) item 11) sch 6 (items 84 ‑ 93, 186, 187, 191, 192, 212, 213, 218, 241 ‑ 246, 248 ‑ 251): 21 Mar 2012 (s 2(1) items 14, 31) sch 6 (item 182): 3 Oct 2008 (s 2(1) item 30)

s 45-913 — Sections 45 ‑ 705 and 45 ‑ 740 do not apply to members of MEC groups

In applying Subdivision 45 ‑ Q to members of a * MEC group, the Subdivision has effect as if: (a) section 45 ‑ 705 had no effect and section 45 ‑ 915 had effect instead; and (b) section 45 ‑ 740 had no effect and section 45 ‑ 920 had effect instead.

Amendment history: Inserted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19)

s 45-915 — Application of Subdivision 45 ‑ Q to provisional head company

Period during which Subdivision applies to provisional head company (1) Subject to sections 45 ‑ 880 and 45 ‑ 885 (as applied under this Subdivision), Subdivision 45 ‑ Q applies to a company as the * provisional head company of a * MEC group during the period: (a) starting at the start of the * instalment quarter of the company determined under subsection (2), (3) or (4); and (b) ending: (i) at the end of the instalment quarter of the company determined under paragraph (6)(a) or (b); or (ii) just before the instalment quarter of the company determined under paragraph (6)(c). Note: The application of Subdivision 45 ‑ Q to the provisional head company is subject to the modifications set out in this section and elsewhere in this Subdivision. When the period begins—initial head company instalment rate (2) Subdivision 45 ‑ Q starts to apply to a company as the * provisional head company of a * MEC group at the start of an * instalment quarter under this subsection if, during that quarter, the Commissioner gives the company (as that provisional head company) the * initial head company instalment rate. Note: The operation of this subsection may be affected by section 45 ‑ 885 (as applied under this Subdivision). When the period begins—group created from consolidated group (3) Subdivision 45 ‑ Q starts to apply to a company as the * provisional head company of a * MEC group at the start of an * instalment quarter (the starting quarter ) under this subsection if all of the following conditions are satisfied: (a) during the starting quarter, the Commissioner is notified of the creation of the MEC group from a * consolidated group (see subsection (5)); (b) the company is the provisional head company of the MEC group when the Commissioner is so notified; (c) either of the following applies: (i) Subdivision 45 ‑ Q applied to the * head company of the consolidated group at the end of the previous instalment quarter; (ii) the Commissioner gives the * initial head company instalment rate to the head company of the consolidated group during the starting quarter. Note: For the application of Subdivision 45 ‑ Q to a head company of a consolidated group: see section 45 ‑ 705. When the period begins—new provisional head company (4) Subdivision 45 ‑ Q starts to apply to a company as the * provisional head company of a * MEC group at the start of an * instalment quarter (the starting quarter ) under this subsection if both of the following conditions are satisfied: (a) the company is appointed as the provisional head company of the MEC group under subsection 719 ‑ 60(3) of the Income Tax Assessment Act 1997 during the starting quarter; (b) one of the following applies: (i) Subdivision 45 ‑ Q applied to the former provisional head company of the MEC group at the end of the previous instalment quarter; (ii) the Commissioner gives the * initial head company instalment rate to the former provisional head company of the MEC group during the starting quarter; (iii) the Commissioner is notified during the starting quarter of the creation of the MEC group from a * consolidated group and Subdivision 45 ‑ Q applied to the * head company of the consolidated group at the end of the previous instalment quarter; (iv) the Commissioner is notified during the starting quarter of the creation of the MEC group from a consolidated group and the Commissioner gives the initial head company instalment rate to the head company of the consolidated group during the starting quarter. When the period begins—modified timing for provisional head company that is monthly payer (4A) Subsection (4B) applies if: (a) apart from subsection (4B), Subdivision 45 ‑ Q starts to apply to a company as the * provisional head company of a * MEC group at a particular time because of the operation of subsection (2), (3) or (4); and (b) the company is a * monthly payer; and (c) the Commissioner gave the * initial head company instalment rate as mentioned in subsection (2), subparagraph (3)(c)(ii), subparagraph (4)(b)(ii) or subparagraph (4)(b)(iv) in an * instalment month. (4B) Treat subsection (2), (3) or (4) (as the case requires) as providing that Subdivision 45 ‑ Q starts to apply to the company as the * provisional head company of the * MEC group at the start of the next * instalment month. Note: For the application of this Subdivision to a monthly payer, see sections 45 ‑ 703 and 45 ‑ 910. Notification of creation of MEC group from consolidated group (5) For the purposes of subsections (3) and (4), the Commissioner is notified of the creation of a * MEC group from a * consolidated group when the Commissioner receives a notice of the consolidation of the MEC group under subsection 719 ‑ 40(1) of the Income Tax Assessment Act 1997 . When the period ends (6) Subdivision 45 ‑ Q stops applying to a company as the * provisional head company of a * MEC group at the earliest of the following times after the company becomes the provisional head company: (a) the end of the * instalment quarter during which the MEC group ceases to exist (other than because a * consolidated group is * created from the MEC group); (b) the end of the instalment quarter during which a consolidated group is created from the MEC group; (c) just before the instalment quarter during which another company is appointed as the provisional head company of the MEC group under subsection 719 ‑ 60(3) of the Income Tax Assessment Act 1997 . Note: The operation of this subsection because of paragraph (a) may be affected by section 45 ‑ 880 (as applied under this Subdivision). (7) To avoid doubt, Subdivision 45 ‑ Q does not apply to a company as the * provisional head company of a * MEC group for any time at all if: (a) subsection (2), (3) or (4), and subsection (6), would, apart from this subsection, apply to the company; but (b) the time at which Subdivision 45 ‑ Q would stop applying to the company under subsection (6) is before the time at which that Subdivision would start to apply to the company under subsection (2), (3) or (4). (8) To avoid doubt, Subdivision 45 ‑ Q may apply to a company as the * provisional head company of a * MEC group at a time when the company is not in fact the provisional head company of the group. Note: An example of this is when a company replaces another company as the provisional head company of a MEC group. Under this section and section 45 ‑ 920, Subdivision 45 ‑ Q may start applying to the company as if it had already become the provisional head company when it is not yet such a company.

Amendment history: Inserted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19) | Amended by No 124 of 2013, effective sch 1 (items 1 ‑ 36, 45 ‑ 49), sch 5 (items 1 ‑ 6, 8): 29 June 2013 (s 2(1) items 2, 10) sch 11 (items 26, 27): 30 June 2013 (s 2(1) item 17)

s 45-917 — Assumption for applying section 45 ‑ 710 (single entity rule)

In applying section 45 ‑ 710 to members of a * MEC group at a particular time, the company that is the * provisional head company of the group at that time must be assumed to be the * head company of the group at all times during the period: (a) throughout which the group is in existence; and (b) that is all or a part of the income year of the company that includes that particular time.

Amendment history: Inserted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19)

s 45-920 — Change of provisional head company

Object (1) The object of this section (except subsection (9)) is to ensure that, for the purposes of this Part, when a company becomes the new * provisional head company of a * MEC group: (a) the company inherits the history of the former provisional head company; and (b) the history of the new provisional head company is effectively ignored. (2) This section applies to a * provisional head company of a * MEC group (the new provisional head company ) that is appointed under subsection 719 ‑ 60(3) of the Income Tax Assessment Act 1997 if one of the following conditions is satisfied: (a) the conditions in subsection 45 ‑ 915(4) are satisfied in relation to the new provisional head company (whether or not Subdivision 45 ‑ Q applies to the company as the provisional head company of the group for any period of time); (b) the new provisional head company is so appointed during the * instalment quarter of the company in which the MEC group is * created from a * consolidated group and either: (i) the Commissioner gives the * initial head company instalment rate to the * head company of the consolidated group during that instalment quarter; or (ii) Subdivision 45 ‑ Q applied to the head company of the consolidated group at the end of the previous instalment quarter. (3) Everything that happened before the starting time in relation to the company (the former company ) that was the * provisional head company of the * MEC group immediately before the starting time: (a) is taken to have happened in relation to the new provisional head company instead of in relation to the former company; and (b) is taken to have happened in relation to the new provisional head company instead of what would (apart from this section) be taken to have happened in relation to the new provisional head company before the starting time; just as if, at all times before the starting time: (c) the new provisional head company had been the former company; and (d) the former company had been the new provisional head company. (4) For the purposes of this section, the starting time is the time at which the * cessation event happened to the former company (the event that results in the appointment of the new provisional head company). (5) To avoid doubt, subsection (3) also covers everything that, immediately before the starting time, was taken to have happened in relation to the former company because of: (a) section 701 ‑ 1 of the Income Tax Assessment Act 1997 (single entity rule); or (b) section 701 ‑ 5 of that Act (entry history rule); or (c) section 703 ‑ 75 of that Act (effects of an interposed company becoming the * head company of a * consolidated group); or (d) section 719 ‑ 90 of that Act (effects of a change of head company of a * MEC group); or (e) section 45 ‑ 710 in this Schedule (single entity rule for the purposes of this Part), including an application of that section under this Subdivision; or (f) section 45 ‑ 740 in this Schedule (effects of an interposed company becoming the head company of a consolidated group for the purposes of this Part); or (g) this section; or (h) one or more previous applications of any of the provisions covered by paragraphs (a) to (g). (6) In addition, and without affecting subsection (3): (a) an assessment of the former company for an income year that ends before the income year that includes the starting time; or (b) an amendment of the assessment; is taken to be something that had happened to the new provisional head company, whether or not the assessment or amendment is made before the starting time. (7) This section has effect for the purposes of applying this Part to members of the * MEC group in relation to an * instalment quarter of the new provisional head company that ends after the starting time. Note: An assessment mentioned in subsection (6) may therefore be taken to be the base assessment of the new provisional head company for the purposes of this Part. (8) Subsections (1) to (7) are to be disregarded in applying section 45 ‑ 915 (about the application of Subdivision 45 ‑ Q to a company as the * provisional head company of a * MEC group). Note: For example, if the Commissioner has given an initial head company instalment rate to the former company during an earlier instalment quarter, the rate is not, despite this section, treated as if it had been given to the new provisional head company for the purposes of section 45 ‑ 915. Subject to the other provisions in that section, Subdivision 45 ‑ Q therefore starts applying to the new provisional head company under subsection 45 ‑ 915(4). Special rule for the former company (9) A provision of this Part that applies on an entity becoming a member (other than the * provisional head company) of a * MEC group does not apply to the former company when it becomes such a member at the starting time. Note: Section 45 ‑ 755 (the entry rule, as applied under this Subdivision) therefore does not apply to the former company on the company becoming such a member of the MEC group.

Amendment history: Inserted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19)

s 45-922 — Life insurance company

In applying Subdivision 45 ‑ Q to members of a * MEC group for an * instalment quarter of the * provisional head company of the group in an income year of the provisional head company, the company is taken to be a * life insurance company for that quarter if: (a) one or more life insurance companies are members of the group at any time during that quarter; or (b) one or more life insurance companies were members of the group at any time during a previous instalment quarter of the company in that year.

Amendment history: Inserted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19)

s 45-925 — Additional modifications of sections 45 ‑ 855 and 45 ‑ 860

In applying sections 45 ‑ 855 and 45 ‑ 860 to members of a * MEC group, those sections have effect as if, in addition to the modifications set out in the table in section 45 ‑ 910: (a) a reference in those sections to subsection 45 ‑ 705(2) were a reference to subsection 45 ‑ 915(2); and (b) a reference in those sections to subparagraph 45 ‑ 705(3)(c)(ii), (4)(d)(ii) or (iv) were a reference to subparagraph 45 ‑ 915(3)(c)(ii), (4)(b)(ii) or (iv).

Amendment history: Inserted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19)

s 45-930 — Modifications of sections 45 ‑ 865 and 45 ‑ 870 and a related provision

(1) In applying sections 45 ‑ 865 and 45 ‑ 870, and subsection 45 ‑ 30(4) (which is related to section 45 ‑ 865), to members of a * MEC group, those provisions have effect as if: (a) a reference in those provisions to a * consolidated group were a reference to a * MEC group; and (b) a reference in those provisions to a MEC group were a reference to a consolidated group. Note: This means a reference in those provisions to the head company of a consolidated group has effect as if it were a reference to the head company of a MEC group. Similarly, a reference in those provisions to a subsidiary member of a consolidated group has effect as if it were a reference to a subsidiary member of a MEC group. (2) However, the modifications in subsection (1) do not apply to subsection 45 ‑ 865(4) and the note at the end of section 45 ‑ 865. Note: This means subsection 45 ‑ 865(4) and the note apply to members of a MEC group without any modifications.

Amendment history: Inserted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19)

s 45-935 — Additional modifications of section 45 ‑ 885

In applying section 45 ‑ 885 to members of a * MEC group, that section has effect as if, in addition to the modifications set out in the table in section 45 ‑ 910, it had been modified as set out in the following table: Modifications of section 45 ‑ 885 Item Provision: Modification: 1 Paragraph 45 ‑ 885(1)(e) The paragraph is taken to have been replaced by the following paragraph: (e) within 28 days after the starting time, or within such further period (if any) as the Commissioner allows, the Commissioner receives a notice under section 719 ‑ 76 of the Income Tax Assessment Act 1997 in relation the consolidation of that other MEC group, at and after the starting time, under section 719 ‑ 50 of the Income Tax Assessment Act 1997 . 2 Subsection 45 ‑ 885(2) (including the note at the end of the subsection) A reference to paragraph 45 ‑ 760(2)(a) is taken to be a reference to that paragraph as applied under this Subdivision 3 The note at the end of subsection 45 ‑ 885(2) The reference to section 45 ‑ 705 is taken to be a reference to section 45 ‑ 915

Amendment history: Inserted by No 16 of 2003, effective sch 4 (items 8 ‑ 10), sch 6 (items 11, 12), sch 14 (items 8 ‑ 12), sch 23 (item 14), sch 24 (items 1 ‑ 19): 24 Oct 2002 (s 2(1) items 3, 4, 9, 13, 14) sch 28 (items 14 ‑ 18, 19(3)): 29 June 2002 (s 2(1) items 17, 19) | Amended by No 56 of 2010, effective s 4(2), sch 3 (items 9, 10(1), (5)), sch 5 (items 191 ‑ 193), sch 6 (items 12 ‑ 14, 27 ‑ 36, 44 ‑ 53, 110, 111, 116, 159, 160): 3 June 2010 (s 2(1) items 1, 7, 11, 15, 20, 23) sch 1 (item 8): 17 Dec 2010 (s 2(1) item 4) sch 2 (items 3, 4), sch 6 (items 58 ‑ 97, 101 ‑ 105): 4 June 2010 (s 2(1) items 6, 16, 17)

s 70-1 — What this Division is about

The Commissioner must provide you with a tax receipt for an income year if you are an individual taxpayer and the total tax assessed to you for the income year is $100 or more (or such other amount as determined by the Commissioner from time to time). The tax receipt must include information about how the total tax assessed to you for the income year is notionally used to finance different categories of Commonwealth government expenditure. The tax receipt must also include information about the total amount of Commonwealth government debt, for the current and previous financial years, and the expected total amount of interest to be paid on that debt during the current financial year.

Amendment history: Inserted by No 110 of 2014, effective sch 4 (items 2, 3), sch 5 (items 68 ‑ 75, 123 ‑ 140): 16 Oct 2014 (s 2(1) items 3, 4, 7)

s 70-5 — Tax receipt to be provided to certain individual taxpayers

(1) The Commissioner must give you a * tax receipt in respect of an income year if: (a) the Commissioner is required to give you a notice of assessment in respect of the income year and has not previously given you a notice in respect of the income year; and (b) you are an individual; and (c) the amount of income tax you owe (as worked out under step 4 of subsection 4 ‑ 10(3) of the Income Tax Assessment Act 1997 ) for the * financial year that corresponds to the income year is equal to or greater than: (i) if subparagraph (ii) does not apply—$100; or (ii) if the Commissioner has made a determination under subsection (2)—the amount specified in the determination; and (d) the notice is given to you within the period of 18 months after the end of the income year. (2) The Commissioner may, by legislative instrument, make a determination that specifies an amount for the purposes of subparagraph (1)(c)(ii). (3) The * tax receipt must include the following information: (a) your name; (b) the amount mentioned in paragraph (1)(c); (c) how the amount mentioned in paragraph (1)(c) is notionally used to finance different categories of Commonwealth government expenditure (other than expenditure that relates to amounts collected under the * GST law that are paid to the States and Territories); (d) an estimate of the total face value of Commonwealth stock and securities on issue at the end of the previous * financial year; (e) an estimate of the expected total face value of Commonwealth stock and securities on issue at the end of the financial year; (f) the expected total interest to be paid during the financial year in respect of the Commonwealth stock and securities referred to in paragraph (e). Note: The allocation of how the total tax assessed to you is spent is a notional calculation and may not represent how the tax assessed to you is actually spent. (4) For the purposes of determining the amounts in paragraphs (2)(d) to (f), the Commissioner must use the information in the budget economic and fiscal outlook report prepared for the purpose of section 10 of the Charter of Budget Honesty Act 1998 in respect of the * financial year referred to in paragraph (1)(c). (5) For the purposes of determining the form of the information to be included in the * tax receipt, the Commissioner must seek the advice of the Minister and take that advice into account. (6) The Commissioner must give you the * tax receipt as soon as practicable.

Amendment history: Inserted by No 110 of 2014, effective sch 4 (items 2, 3), sch 5 (items 68 ‑ 75, 123 ‑ 140): 16 Oct 2014 (s 2(1) items 3, 4, 7)

s 90-1 — Laws apply in relation to Medicare levy and Medicare levy surcharge as they apply in relation to income tax

Except so far as the contrary intention appears, this Schedule and the Income Tax Assessment Act 1997 apply, and are taken always to have applied, in relation to the following in the same way as they apply in relation to income tax and * tax: (a) * Medicare levy; (b) * Medicare levy (fringe benefits) surcharge.

Amendment history: Inserted by No 56 of 2010, effective s 4(2), sch 3 (items 9, 10(1), (5)), sch 5 (items 191 ‑ 193), sch 6 (items 12 ‑ 14, 27 ‑ 36, 44 ‑ 53, 110, 111, 116, 159, 160): 3 June 2010 (s 2(1) items 1, 7, 11, 15, 20, 23) sch 1 (item 8): 17 Dec 2010 (s 2(1) item 4) sch 2 (items 3, 4), sch 6 (items 58 ‑ 97, 101 ‑ 105): 4 June 2010 (s 2(1) items 6, 16, 17) | Amended by No 12 of 2012, effective sch 6 (items 27 ‑ 29): 22 Dec 1999 (s 2(1) item 11) sch 6 (items 84 ‑ 93, 186, 187, 191, 192, 212, 213, 218, 241 ‑ 246, 248 ‑ 251): 21 Mar 2012 (s 2(1) items 14, 31) sch 6 (item 182): 3 Oct 2008 (s 2(1) item 30)

s 97-1 — What this Subdivision is about

The Commissioner must give you a determination stating the amount of your excess concessional contributions. Table of sections Operative provisions 97 ‑ 5 Determination of excess concessional contributions 97 ‑ 10 Review

Amendment history: Inserted by No 118 of 2013, effective sch 1 (items 2, 29 ‑ 36, 81 ‑ 84, 101 ‑ 110): 29 June 2013 (s 2(1) items 2, 10, 11) | Amended by No 45 of 2021, effective sch 2 (items 5 ‑ 12, 14): 1 July 2021 (s 2(1) item 2)

s 97-5 — Determination of excess concessional contributions

(1) If you have * excess concessional contributions for a * financial year, the Commissioner must make a written determination stating the amount of those excess concessional contributions. (2) A determination under this section is an excess concessional contributions determination . (3) The Commissioner may amend a determination at any time. (5) Notice of a determination given by the Commissioner under this section is prima facie evidence of the matters stated in the notice.

Amendment history: Inserted by No 118 of 2013, effective sch 1 (items 2, 29 ‑ 36, 81 ‑ 84, 101 ‑ 110): 29 June 2013 (s 2(1) items 2, 10, 11) | Amended by No 81 of 2016, effective sch 1 (items 10 ‑ 25, 33, 36), sch 2 (items 19, 20), sch 10 (items 55 ‑ 65, 86 ‑ 93): 1 Jan 2017 (s 2(1) items 2, 6) sch 10 (items 1, 29 ‑ 47, 49 ‑ 54): 1 July 2018 (s 2(1) item 5) | Amended by No 45 of 2021, effective sch 2 (items 5 ‑ 12, 14): 1 July 2021 (s 2(1) item 2)

s 97-10 — Review

If you are dissatisfied with an * excess concessional contributions determination made in relation to you, you may object against the determination in the manner set out in Part IVC.

Amendment history: Inserted by No 118 of 2013, effective sch 1 (items 2, 29 ‑ 36, 81 ‑ 84, 101 ‑ 110): 29 June 2013 (s 2(1) items 2, 10, 11)

s 97-20 — What this Subdivision is about

The Commissioner must give you a determination stating: (a) the amount by which your non ‑ concessional contributions exceed your non ‑ concessional contributions cap; and (b) a proxy amount for your associated earnings on this excess; and (c) the total amount that can be released from your superannuation interests in relation to this excess and those earnings. Table of sections Operative provisions 97 ‑ 25 Excess non ‑ concessional contributions determinations 97 ‑ 30 Associated earnings 97 ‑ 35 Review

Amendment history: Inserted by No 21 of 2015, effective sch 1 (items 18 ‑ 49), sch 5, sch 7 (items 33 ‑ 43): 20 Mar 2015 (s 2(1) items 2, 6, 15) sch 2 (items 39 ‑ 46): 1 May 2015 (s 2(1) item 3) sch 4 (items 8, 9): 1 July 2015 (s 2(1) item 5) sch 6 (items 26 ‑ 37, 73): 19 Mar 2015 (s 2(1) item 11, 13) sch 6 (items 60 ‑ 72, 74 ‑ 79): never commenced (s 2(1) items 12, 14)

s 97-25 — Excess non ‑ concessional contributions determinations

(1) If your * non ‑ concessional contributions for a * financial year (the contributions year ) exceed your * non ‑ concessional contributions cap for the contributions year, the Commissioner must make a written determination stating: (a) the amount of the excess; and (b) the amount of your associated earnings worked out under section 97 ‑ 30; and (c) the following amount (the total release amount ): (2) A determination under this section is an excess non ‑ concessional contributions determination . (3) The Commissioner may amend a determination at any time. (5) Notice of a determination given by the Commissioner under this section is prima facie evidence of the matters stated in the notice.

Amendment history: Inserted by No 21 of 2015, effective sch 1 (items 18 ‑ 49), sch 5, sch 7 (items 33 ‑ 43): 20 Mar 2015 (s 2(1) items 2, 6, 15) sch 2 (items 39 ‑ 46): 1 May 2015 (s 2(1) item 3) sch 4 (items 8, 9): 1 July 2015 (s 2(1) item 5) sch 6 (items 26 ‑ 37, 73): 19 Mar 2015 (s 2(1) item 11, 13) sch 6 (items 60 ‑ 72, 74 ‑ 79): never commenced (s 2(1) items 12, 14) | Amended by No 81 of 2016, effective sch 1 (items 10 ‑ 25, 33, 36), sch 2 (items 19, 20), sch 10 (items 55 ‑ 65, 86 ‑ 93): 1 Jan 2017 (s 2(1) items 2, 6) sch 10 (items 1, 29 ‑ 47, 49 ‑ 54): 1 July 2018 (s 2(1) item 5)

s 97-30 — Associated earnings

(1) You are taken to have associated earnings equal to the sum (rounded down to the nearest dollar) of the amounts worked out under the following formula for each of the days during the period: (a) starting on the first day of the contributions year; and (b) ending on the day the Commissioner makes the first * excess non ‑ concessional contributions determination you receive for the contributions year. where: excess means the amount of the excess referred to in paragraph 97 ‑ 25(1)(a). proxy rate means the lower of: (a) the rate worked out under subsection 8AAD(1) for the first day of that period as if the base interest rate (within the meaning of subsection 8AAD(2)) for that day were the average of the base interest rates for each of the days of the contributions year; and (b) a rate determined under subsection (2) for the contributions year. sum of earlier daily proxy amounts means the sum of the amounts worked out under the formula for each of the earlier days (if any) during that period. Note: Any excess non ‑ concessional contributions determination you receive after the first one for the contributions year is an amended determination. (2) The Minister may, by legislative instrument, determine a rate for a specified * financial year.

Amendment history: Inserted by No 21 of 2015, effective sch 1 (items 18 ‑ 49), sch 5, sch 7 (items 33 ‑ 43): 20 Mar 2015 (s 2(1) items 2, 6, 15) sch 2 (items 39 ‑ 46): 1 May 2015 (s 2(1) item 3) sch 4 (items 8, 9): 1 July 2015 (s 2(1) item 5) sch 6 (items 26 ‑ 37, 73): 19 Mar 2015 (s 2(1) item 11, 13) sch 6 (items 60 ‑ 72, 74 ‑ 79): never commenced (s 2(1) items 12, 14)

s 97-35 — Review

If you are dissatisfied with an * excess non ‑ concessional contributions determination made in relation to you, you may object against the determination in the manner set out in Part IVC.

Amendment history: Inserted by No 21 of 2015, effective sch 1 (items 18 ‑ 49), sch 5, sch 7 (items 33 ‑ 43): 20 Mar 2015 (s 2(1) items 2, 6, 15) sch 2 (items 39 ‑ 46): 1 May 2015 (s 2(1) item 3) sch 4 (items 8, 9): 1 July 2015 (s 2(1) item 5) sch 6 (items 26 ‑ 37, 73): 19 Mar 2015 (s 2(1) item 11, 13) sch 6 (items 60 ‑ 72, 74 ‑ 79): never commenced (s 2(1) items 12, 14)

s 105-1 — What this Division is about

This Division contains rules relating to the administration of the indirect tax laws. Note 1: Administration rules relevant to particular indirect tax laws are in Divisions 110, 111 and 112. Note 2: For assessment of assessable amounts under indirect tax laws, see Division 155. The rules in this Division deal with the following: (c) limits on credits, refunds and recovering amounts; (e) the effect of not passing on refunds of overpaid amounts; (f) charges and penalties; (h) refunding indirect tax because of Australia’s international obligations; (i) requirements for notifications.

Amendment history: Inserted by No 73 of 2006, effective sch 5 (items 39 ‑ 60, 160 ‑ 165): 1 July 2006 (s 2(1) items 18, 19, 21) | Amended by No 74 of 2010, effective sch 1 (items 41, 42, 45, 56 ‑ 63): Royal Assent sch 2 (items 13 ‑ 46): 1 July 2010 | Amended by No 39 of 2012, effective sch 1 (items 1, 2, 29, 190 ‑ 223, 231 ‑ 240): 1 July 2012 (s 2(1) item 2) sch 1 (items 255 ‑ 264): 1 Jan 2017 (s 2(1) item 3) sch 4 (items 19 ‑ 24): 15 Apr 2012 (s 2(1) item 8) | Amended by No 70 of 2015, effective sch 1 (items 151 ‑ 174, 195 ‑ 205): 1 July 2015 (s 2(1) items 3, 6) sch 6 (items 51 ‑ 59): 25 June 2015 (s 2(1) item 17)

s 105-80 — General interest charge

(1) If any of an amount (the liability ) to which this section applies remains unpaid after the time by which it is due to be paid, you are liable to pay the * general interest charge on the unpaid amount of the liability for each day in the period that: (a) started at the beginning of the day by which the liability was due to be paid; and (b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid: (i) the liability; (ii) general interest charge on any of the liability. Note: The general interest charge is worked out under Division 1 of Part IIA. (2) This section applies to either of the following amounts that you are liable to pay: (a) an * assessed net fuel amount; (b) an assessed amount of * indirect tax (including an * assessed net amount).

Amendment history: Inserted by No 73 of 2006, effective sch 5 (items 39 ‑ 60, 160 ‑ 165): 1 July 2006 (s 2(1) items 18, 19, 21) | Amended by No 39 of 2012, effective sch 1 (items 1, 2, 29, 190 ‑ 223, 231 ‑ 240): 1 July 2012 (s 2(1) item 2) sch 1 (items 255 ‑ 264): 1 Jan 2017 (s 2(1) item 3) sch 4 (items 19 ‑ 24): 15 Apr 2012 (s 2(1) item 8)

s 105-85 — Amending Acts cannot impose penalties or general interest charge earlier than 28 days after Royal Assent

(1) An Act that amends an * indirect tax law does not have the effect of making you liable to: (a) a penalty for an offence against an indirect tax law; or (b) * general interest charge under section 105 ‑ 80; for any act or omission that happens before the 28th day (the postponed day ) after the day on which the amending Act receives the Royal Assent. (2) If the amending Act would (apart from this section) have the effect of making you liable to such a penalty or charge because you contravened a requirement to do something: (a) within a specified period ending before the postponed day; or (b) before a specified time happening before the postponed day; the requirement has effect instead by reference to a period ending at the start of the postponed day, or by reference to the start of the postponed day, as the case requires. (3) This section does not relieve you from liability to such a penalty or charge to the extent to which the liability would have existed if the amending Act had not been enacted.

Amendment history: Inserted by No 73 of 2006, effective sch 5 (items 39 ‑ 60, 160 ‑ 165): 1 July 2006 (s 2(1) items 18, 19, 21)

s 105-120 — Refund scheme—defence related international obligations

(1) The Commissioner must, on behalf of the Commonwealth, pay you an amount equal to the amount of * indirect tax borne by you in respect of an acquisition (within the meaning of the * GST Act) if: (a) you are in a class of entities determined by the * Defence Minister; and (b) the acquisition is covered by a determination of the Defence Minister; and (c) the acquisition is made: (i) by or on behalf of a * visiting force that is; or (ii) by a member (within the meaning of the Defence (Visiting Forces) Act 1963 ) of the visiting force who is; or (iii) by any other entity that is; covered by a determination of the Defence Minister; and (d) at the time of the acquisition, it was intended for: (i) the official use of the visiting force; or (ii) the use of a member (within the meaning of the Defence (Visiting Forces) Act 1963 ) of the visiting force; or (iii) any other use; and that use is covered by a determination of the Defence Minister; and (e) you claim the amount in the * approved form. (2) The amount is payable: (a) in accordance with the conditions and limitations; and (b) within the period and manner; determined by the * Defence Minister. (3) The * Defence Minister may only determine an entity under subparagraph (1)(c)(iii) or a use under subparagraph (1)(d)(iii) if the Commonwealth is under an international obligation to grant * indirect tax concessions in relation to the kind of entity or the kind of use. (4) A determination under this section is a legislative instrument.

Amendment history: Inserted by No 73 of 2006, effective sch 5 (items 39 ‑ 60, 160 ‑ 165): 1 July 2006 (s 2(1) items 18, 19, 21)

s 105-125 — Refund scheme—international obligations

(1) The Commissioner must, on behalf of the Commonwealth, pay you, or an entity in a class of entities determined by the Commissioner, an amount equal to the amount of * indirect tax borne by you in respect of an acquisition (within the meaning of the * GST Act) made by you if: (a) you are a kind of entity specified in the regulations; and (b) the acquisition is of a kind specified in the regulations; and (c) you or the entity claims the amount in the * approved form. (2) The amount is payable: (a) in accordance with the conditions and limitations; and (b) within the period and manner; set out in the regulations. (3) The regulations may only specify a kind of entity for the purposes of paragraph (1)(a) or a kind of acquisition for the purposes of paragraph (1)(b) if the Commonwealth is under an international obligation to grant * indirect tax concessions in relation to the kind of entity or the kind of acquisition. (4) A determination by the Commissioner under subsection (1) is not a legislative instrument.

Amendment history: Inserted by No 73 of 2006, effective sch 5 (items 39 ‑ 60, 160 ‑ 165): 1 July 2006 (s 2(1) items 18, 19, 21)

s 105-145 — Commissioner must give things in writing

(1) Any notice, approval, direction, authority or declaration that the Commissioner may give, or must give, to you under an * indirect tax law must be in writing. (2) However, this does not prevent the Commissioner giving any of those things to you by electronic transmission if a provision of an * indirect tax law allows the Commissioner to do so.

Amendment history: Inserted by No 73 of 2006, effective sch 5 (items 39 ‑ 60, 160 ‑ 165): 1 July 2006 (s 2(1) items 18, 19, 21)

s 110-1 — What this Division is about

This Division gives you the right to object against reviewable GST decisions that relate to you. Section 110 ‑ 50 sets out the reviewable GST decisions.

Amendment history: Inserted by No 73 of 2006, effective sch 5 (items 39 ‑ 60, 160 ‑ 165): 1 July 2006 (s 2(1) items 18, 19, 21)

s 110-50 — Reviewable GST decisions

(1) You may object, in the manner set out in Part IVC, against a decision you are dissatisfied with that is: (a) a * reviewable GST decision relating to you; or (b) a * reviewable GST transitional decision relating to you. (2) Each of the following decisions is a reviewable GST decision : Reviewable GST decisions under GST Act Item Decision Provision of GST Act under which decision is made 1 refusing to register you subsection 25 ‑ 5(1) 2 registering you subsection 25 ‑ 5(2) 3 deciding the date of effect of your registration section 25 ‑ 10 4 refusing to cancel your registration subsection 25 ‑ 55(1) 5 cancelling your registration subsection 25 ‑ 55(2) 6 refusing to cancel your registration section 25 ‑ 57 7 deciding the date on which the cancellation of your registration takes effect section 25 ‑ 60 8 determining that the * tax periods that apply to you are each individual month subsection 27 ‑ 15(1) 9 deciding the date of effect of a determination subsection 27 ‑ 15(2) 10 refusing to revoke your election under section 27 ‑ 10 subsection 27 ‑ 22(1) 11 deciding the date of effect of a revocation subsection 27 ‑ 22(3) 12 refusing to revoke a determination under section 27 ‑ 15 subsection 27 ‑ 25(1) 13 deciding the date of effect of a revocation subsection 27 ‑ 25(2) 14 determining that a specified period is a * tax period that applies to you section 27 ‑ 30 15 refusing a request for a determination section 27 ‑ 37 16 revoking a determination under section 27 ‑ 37 subsection 27 ‑ 38(1) 17 deciding the date of a revocation subsection 27 ‑ 38(2) 18 refusing to permit you to account on a cash basis subsection 29 ‑ 45(1) 19 deciding the date of effect of your permission to account on a cash basis subsection 29 ‑ 45(2) 20 revoking your permission to account on a cash basis subsection 29 ‑ 50(3) 21 deciding the date of effect of the revocation of your permission to account on a cash basis subsection 29 ‑ 50(4) 22 refusing an application for a decision that an event is a * fund ‑ raising event paragraph 40 ‑ 165(1)(c) 23 approving another day of effect paragraph 48 ‑ 71(1)(b) 24 revoking an approval of a day of effect subsection 48 ‑ 71(2) 29 refusing an application for approval section 49 ‑ 5 30 refusing an application for approval or revocation subsection 49 ‑ 70(1) 31 revoking an approval under Division 49 subsection 49 ‑ 70(2) 32 refusing an application for revocation subsection 49 ‑ 75(1) 33 revoking the approval of a * GST religious group subsection 49 ‑ 75(2) 34 deciding the date of effect of any approval, or any revocation of an approval, under Division 49 section 49 ‑ 85 35 approving another day of effect paragraph 51 ‑ 75(1)(b) 36 revoking an approval of a day of effect subsection 51 ‑ 75(2) 42 refusing an application for registration section 54 ‑ 5 43 deciding the date of effect of registration as a * GST branch section 54 ‑ 10 44 refusing to cancel the registration of a * GST branch subsection 54 ‑ 75(1) 45 cancelling the registration of a * GST branch subsection 54 ‑ 75(2) 46 deciding the date of effect of the cancellation of the registration of a * GST branch section 54 ‑ 80 47 cancelling the registration of an Australian resident agent subsection 57 ‑ 25(1) 48 determining that the * tax periods that apply to a resident agent are each individual month subsection 57 ‑ 35(1) 49 deciding the date of effect of a determination subsection 57 ‑ 35(2) 49A cancelling the registration of a * representative of an * incapacitated entity subsection 58 ‑ 25(1) 49B deciding to direct a * representative of an * incapacitated entity to give to the Commissioner a * GST return paragraph 58 ‑ 50(1)(b) 50 cancelling the registration of a * non ‑ profit sub ‑ entity subsection 63 ‑ 35(1) 51 refusing to allow, or allowing, a further period within which to make an agreement that the margin scheme is to apply paragraph 75 ‑ 5(1A)(b) 52 refusing a request to allow an annual apportionment election to take effect from the start of another * tax period paragraph 131 ‑ 10(2)(b) 53 disallowing an annual apportionment election subsection 131 ‑ 20(3) 53A refusing to make requested decision about excess GST subsection 142 ‑ 15(1) 55 refusing a request to allow an annual * tax period election to take effect from the start of another tax period paragraph 151 ‑ 10(2)(b) 56 refusing a request to be allowed to make an annual * tax period election on a specified day subsection 151 ‑ 20(3) 57 disallowing an annual * tax period election subsection 151 ‑ 25(3) 58 refusing a request to allow an election to pay * GST by instalments to take effect from the start of another * tax period paragraph 162 ‑ 15(2)(b) 59 refusing a request to be allowed to make an election on a specified day subsection 162 ‑ 25(3) 60 disallowing an election to pay * GST by instalments subsection 162 ‑ 30(3) 62 making a declaration to negate or reduce a GST disadvantage subsection 165 ‑ 45(3) 63 deciding whether to grant a request for a declaration to negate or reduce a GST disadvantage subsection 165 ‑ 45(5) (3) A decision under section 24B of the A New Tax System (Goods and Services Tax Transition) Act 1999 refusing an application for a determination under that section, or making a determination under that section, is a reviewable GST transitional decision .

Amendment history: Inserted by No 73 of 2006, effective sch 5 (items 39 ‑ 60, 160 ‑ 165): 1 July 2006 (s 2(1) items 18, 19, 21) | Amended by No 97 of 2008, effective sch 3 (items 177 ‑ 185): Royal Assent | Amended by No 118 of 2009, effective sch 1 (items 47 ‑ 49, 51(2), 53, 54), sch 2: 4 Dec 2009 (s 2(1) items 4 ‑ 6) | Amended by No 74 of 2010, effective sch 1 (items 41, 42, 45, 56 ‑ 63): Royal Assent sch 2 (items 13 ‑ 46): 1 July 2010 | Amended by No 39 of 2012, effective sch 1 (items 1, 2, 29, 190 ‑ 223, 231 ‑ 240): 1 July 2012 (s 2(1) item 2) sch 1 (items 255 ‑ 264): 1 Jan 2017 (s 2(1) item 3) sch 4 (items 19 ‑ 24): 15 Apr 2012 (s 2(1) item 8)

s 111-1 — What this Division is about

This Division gives you the right to object against decisions that relate to you disallowing the whole or part of a claim for a wine tax credit. It also explains how contracts to supply wine or a luxury car are affected if a wine tax law or luxury car tax law changes.

Amendment history: Inserted by No 73 of 2006, effective sch 5 (items 39 ‑ 60, 160 ‑ 165): 1 July 2006 (s 2(1) items 18, 19, 21)

s 111-50 — Reviewable wine tax decisions

(1) You may object, in the manner set out in Part IVC, against a decision you are dissatisfied with that is a * reviewable wine tax decision relating to you. (2) Each of the following decisions is a reviewable wine tax decision : Reviewable wine tax decisions Item Decision Provision of Wine Tax Act under which decision is made 1 disallowing the whole or a part of your claim for a * wine tax credit section 17 ‑ 45 2 deciding the date of effect of your approval as a New Zealand participant section 19 ‑ 7 3 refusing to approve you as a New Zealand participant section 19 ‑ 7 4 revoking your approval as a New Zealand participant section 19 ‑ 8 5 deciding the date of effect of revocation of your approval as a New Zealand participant section 19 ‑ 8

Amendment history: Inserted by No 73 of 2006, effective sch 5 (items 39 ‑ 60, 160 ‑ 165): 1 July 2006 (s 2(1) items 18, 19, 21) | Amended by No 73 of 2006, effective sch 5 (items 39 ‑ 60, 160 ‑ 165): 1 July 2006 (s 2(1) items 18, 19, 21) | Amended by No 39 of 2012, effective sch 1 (items 1, 2, 29, 190 ‑ 223, 231 ‑ 240): 1 July 2012 (s 2(1) item 2) sch 1 (items 255 ‑ 264): 1 Jan 2017 (s 2(1) item 3) sch 4 (items 19 ‑ 24): 15 Apr 2012 (s 2(1) item 8)

s 111-60 — Alteration of contracts if cost of complying with agreement is affected by later alteration to wine tax or luxury car tax laws

(1) If, after a contract involving a * supply, or a * taxable dealing in relation to * wine, has been made, an alteration to the * wine tax law or the * luxury car tax law happens and the alteration directly causes an increase or decrease in the cost to a party to the agreement of complying with the agreement, then the contract is altered as follows: (a) if the cost is increased—by allowing the party to add the increase to the contract price; (b) if the cost is decreased—by allowing the other party to deduct the decrease from the contract price. (2) The contract is not altered if: (a) the contract has express written provision to the contrary; or (b) it is clear from the terms of the contract that the alteration of the * wine tax law or the * luxury car tax law has been taken into account in the agreed contract price.

Amendment history: Inserted by No 73 of 2006, effective sch 5 (items 39 ‑ 60, 160 ‑ 165): 1 July 2006 (s 2(1) items 18, 19, 21) | Amended by No 70 of 2015, effective sch 1 (items 151 ‑ 174, 195 ‑ 205): 1 July 2015 (s 2(1) items 3, 6) sch 6 (items 51 ‑ 59): 25 June 2015 (s 2(1) item 17)

s 112-1 — What this Division is about

This Division gives you the right to object against reviewable fuel tax decisions that relate to you. Section 112 ‑ 50 sets out the reviewable fuel tax decisions.

Amendment history: Inserted by No 73 of 2006, effective sch 5 (items 39 ‑ 60, 160 ‑ 165): 1 July 2006 (s 2(1) items 18, 19, 21)

s 112-50 — Reviewable fuel tax decisions

(1) You may object, in the manner set out in Part IVC, against a decision you are dissatisfied with that is a * reviewable fuel tax decision relating to you. (2) Each of the following decisions is a reviewable fuel tax decision : Reviewable fuel tax decisions Item Decision Provision of the Fuel Tax Act 2006 under which decision is made 2 making a declaration to negate or reduce a * fuel tax disadvantage subsection 75 ‑ 45(3) 3 deciding whether or not to grant a request to negate or reduce a * fuel tax disadvantage subsection 75 ‑ 45(5)

Amendment history: Inserted by No 73 of 2006, effective sch 5 (items 39 ‑ 60, 160 ‑ 165): 1 July 2006 (s 2(1) items 18, 19, 21) | Amended by No 39 of 2012, effective sch 1 (items 1, 2, 29, 190 ‑ 223, 231 ‑ 240): 1 July 2012 (s 2(1) item 2) sch 1 (items 255 ‑ 264): 1 Jan 2017 (s 2(1) item 3) sch 4 (items 19 ‑ 24): 15 Apr 2012 (s 2(1) item 8)

s 115-1 — What this Division is about

An ADI that is liable to pay levy under the Major Bank Levy Act 2017 must give quarterly returns to the Commissioner. An amount of levy is due and payable when an ADI’s last PAYG instalment within an instalment quarter is due. Table of sections 115 ‑ 5 Returns 115 ‑ 10 When major bank levy is due and payable

Amendment history: Inserted by No 14 of 2012, effective sch 1, sch 2 (items 1 ‑ 9): 1 July 2012 (s 2(1) items 2, 3) sch 2 (items 17 ‑ 28): never commenced (s 2(1) item 4) | Amended by No 88 of 2013, effective sch 5 (items 22 ‑ 27): 1 July 2013 (s 2(1) item 10) sch 6 (items 44 ‑ 48, 66): 29 June 2013 (s 2(1) item 14) sch 7 (items 167 ‑ 183): 1 July 2012 (s 2(1) item 11) sch 7 (item 225): 28 June 2013 (s 2(1) item 23) | Repealed by No 96 of 2014, effective sch 1 (items 54 ‑ 108, 122 ‑ 124), sch 2 (items 41 ‑ 43): 30 Sept 2014 (s 2(1) item 2, F2014L01256) | Inserted by No 64 of 2017, effective sch 1 (items 14 ‑ 23): 24 June 2017 (s 2(1) item 2)

s 115-5 — Returns

(1) An * ADI that is liable to pay levy for a * quarter under the Major Bank Levy Act 2017 must give to the Commissioner a return relating to the levy, in the * approved form. (2) The return must be given on or before the * MBL reporting day for the * quarter. (3) The MBL reporting day for the * quarter is the day by which the * ADI is required to give to * APRA a report, in accordance with a standard determined by APRA under section 13 of the Financial Sector (Collection of Data) Act 2001 , that: (a) relates to the * quarter; and (b) states the total liabilities amount (within the meaning of the Major Bank Levy Act 2017 ) for the quarter in relation to the ADI.

Amendment history: Inserted by No 14 of 2012, effective sch 1, sch 2 (items 1 ‑ 9): 1 July 2012 (s 2(1) items 2, 3) sch 2 (items 17 ‑ 28): never commenced (s 2(1) item 4) | Repealed by No 96 of 2014, effective sch 1 (items 54 ‑ 108, 122 ‑ 124), sch 2 (items 41 ‑ 43): 30 Sept 2014 (s 2(1) item 2, F2014L01256) | Inserted by No 64 of 2017, effective sch 1 (items 14 ‑ 23): 24 June 2017 (s 2(1) item 2)

s 115-10 — When major bank levy is due and payable

(1) An amount of levy under the Major Bank Levy Act 2017 that an * ADI is liable to pay for a * quarter is due and payable on the first day: (a) that occurs on or after the * MBL reporting day for the quarter; and (b) on which the last instalment that the ADI is liable to pay within an * instalment quarter is due under Subdivision 45 ‑ B. (2) If that amount remains unpaid after it is due and payable, the * ADI is liable to pay * general interest charge on the unpaid amount for each day in the period that: (a) started at the beginning of the day by which the amount was due to be paid; and (b) finishes at the end of the last day at the end of which either of the following remains unpaid: (i) the amount; (ii) general interest charge on any of the amount.

Amendment history: Inserted by No 14 of 2012, effective sch 1, sch 2 (items 1 ‑ 9): 1 July 2012 (s 2(1) items 2, 3) sch 2 (items 17 ‑ 28): never commenced (s 2(1) item 4) | Repealed by No 96 of 2014, effective sch 1 (items 54 ‑ 108, 122 ‑ 124), sch 2 (items 41 ‑ 43): 30 Sept 2014 (s 2(1) item 2, F2014L01256) | Inserted by No 64 of 2017, effective sch 1 (items 14 ‑ 23): 24 June 2017 (s 2(1) item 2)

s 117-1 — What this Division is about

This Division applies to deter schemes that give entities MBL benefits. If the sole or dominant purpose of entering into a scheme is to give an entity such a benefit, the Commissioner may negate the MBL benefit an entity gets from the scheme by making a determination.

Amendment history: Inserted by No 14 of 2012, effective sch 1, sch 2 (items 1 ‑ 9): 1 July 2012 (s 2(1) items 2, 3) sch 2 (items 17 ‑ 28): never commenced (s 2(1) item 4) | Repealed by No 96 of 2014, effective sch 1 (items 54 ‑ 108, 122 ‑ 124), sch 2 (items 41 ‑ 43): 30 Sept 2014 (s 2(1) item 2, F2014L01256) | Inserted by No 64 of 2017, effective sch 1 (items 14 ‑ 23): 24 June 2017 (s 2(1) item 2)

s 117-5 — Object of this Division

The object of this Division is to deter * schemes to give entities benefits that reduce or defer liabilities to levy under the Major Bank Levy Act 2017 .

Amendment history: Inserted by No 14 of 2012, effective sch 1, sch 2 (items 1 ‑ 9): 1 July 2012 (s 2(1) items 2, 3) sch 2 (items 17 ‑ 28): never commenced (s 2(1) item 4) | Repealed by No 96 of 2014, effective sch 1 (items 54 ‑ 108, 122 ‑ 124), sch 2 (items 41 ‑ 43): 30 Sept 2014 (s 2(1) item 2, F2014L01256) | Inserted by No 64 of 2017, effective sch 1 (items 14 ‑ 23): 24 June 2017 (s 2(1) item 2)

s 117-10 — Application of this Division

(1) This Division applies if: (a) an entity gets or got an * MBL benefit from a * scheme; and (b) taking account of the matters described in section 117 ‑ 20, it is reasonable to conclude that an entity that (whether alone or with others) entered into or carried out the scheme, or part of the scheme, did so for the sole or dominant purpose of that entity or another entity getting an MBL benefit from the scheme; and (c) the scheme: (i) has been or is entered into at or after 7.30 pm, by legal time in the Australian Capital Territory, on 9 May 2017; or (ii) has been or is carried out or commenced at or after that time (other than a scheme that was entered into before that time). (2) It does not matter whether the * scheme, or any part of the scheme, was entered into or carried out inside or outside Australia.

Amendment history: Inserted by No 14 of 2012, effective sch 1, sch 2 (items 1 ‑ 9): 1 July 2012 (s 2(1) items 2, 3) sch 2 (items 17 ‑ 28): never commenced (s 2(1) item 4) | Repealed by No 96 of 2014, effective sch 1 (items 54 ‑ 108, 122 ‑ 124), sch 2 (items 41 ‑ 43): 30 Sept 2014 (s 2(1) item 2, F2014L01256) | Inserted by No 64 of 2017, effective sch 1 (items 14 ‑ 23): 24 June 2017 (s 2(1) item 2)

s 117-15 — Meaning of MBL benefit

(1) An entity gets an MBL benefit from a * scheme, if: (a) an amount of levy under the Major Bank Levy Act 2017 that is payable by the entity under this Act apart from this Division is, or could reasonably be expected to be, smaller than it would be apart from the scheme or a part of the scheme; or (b) all or part of an amount of levy under the Major Bank Levy Act 2017 that is payable by the entity under this Act apart from this Division is, or could reasonably be expected to be, payable later than it would have been apart from the scheme or a part of the scheme. (2) To avoid doubt, a smaller liability mentioned in paragraph (1)(a) includes a case where the liability is zero, or there is no such liability for a particular * quarter.

Amendment history: Inserted by No 14 of 2012, effective sch 1, sch 2 (items 1 ‑ 9): 1 July 2012 (s 2(1) items 2, 3) sch 2 (items 17 ‑ 28): never commenced (s 2(1) item 4) | Repealed by No 96 of 2014, effective sch 1 (items 54 ‑ 108, 122 ‑ 124), sch 2 (items 41 ‑ 43): 30 Sept 2014 (s 2(1) item 2, F2014L01256) | Inserted by No 64 of 2017, effective sch 1 (items 14 ‑ 23): 24 June 2017 (s 2(1) item 2)

s 117-20 — Matters to be considered in determining purpose

The following matters are to be taken into account under section 117 ‑ 10 in considering an entity’s purpose in entering into or carrying out the * scheme, or part of the scheme: (a) the manner in which the scheme was entered into or carried out; (b) the form and substance of the scheme; (c) the time at which the scheme was entered into and the length of the period during which the scheme was carried out; (d) the effect that the Major Bank Levy Act 2017 , and any other * taxation law to the extent that it applies in relation to that Act, would have in relation to the scheme apart from this Division; (e) any change in the financial position of the entity that has resulted, or may reasonably be expected to result, from the scheme; (f) any change that has resulted, or may reasonably be expected to result, from the scheme in the financial position of an entity (a connected entity ) that has or had a connection or dealing with the entity, whether the connection or dealing is or was of a business or other nature; (g) any other consequence for the entity or a connected entity of the scheme having been entered into or carried out; (h) the nature of the connection (whether of a business or other nature) between the entity and a connected entity.

Amendment history: Inserted by No 14 of 2012, effective sch 1, sch 2 (items 1 ‑ 9): 1 July 2012 (s 2(1) items 2, 3) sch 2 (items 17 ‑ 28): never commenced (s 2(1) item 4) | Amended by No 88 of 2013, effective sch 5 (items 22 ‑ 27): 1 July 2013 (s 2(1) item 10) sch 6 (items 44 ‑ 48, 66): 29 June 2013 (s 2(1) item 14) sch 7 (items 167 ‑ 183): 1 July 2012 (s 2(1) item 11) sch 7 (item 225): 28 June 2013 (s 2(1) item 23) | Repealed by No 96 of 2014, effective sch 1 (items 54 ‑ 108, 122 ‑ 124), sch 2 (items 41 ‑ 43): 30 Sept 2014 (s 2(1) item 2, F2014L01256) | Repealed by No 96 of 2014, effective sch 1 (items 54 ‑ 108, 122 ‑ 124), sch 2 (items 41 ‑ 43): 30 Sept 2014 (s 2(1) item 2, F2014L01256) | Inserted by No 64 of 2017, effective sch 1 (items 14 ‑ 23): 24 June 2017 (s 2(1) item 2)

s 117-25 — Commissioner may negate entity’s MBL benefits

(1) For the purpose of negating an * MBL benefit the entity mentioned in paragraph 117 ‑ 10(1)(a) gets or got from the * scheme, the Commissioner may: (a) make a determination stating the amount that is (and has been at all times) the entity’s liability for levy under the Major Bank Levy Act 2017 , for a specified * quarter that has ended; or (b) make a determination stating the amount that is (and has been at all times) a particular amount mentioned in paragraph 5(2)(a) or (b) of that Act, for a specified quarter that has ended. (2) A determination under this section is not a legislative instrument. (3) The Commissioner may take such action as the Commissioner considers necessary to give effect to the determination.

Amendment history: Inserted by No 14 of 2012, effective sch 1, sch 2 (items 1 ‑ 9): 1 July 2012 (s 2(1) items 2, 3) sch 2 (items 17 ‑ 28): never commenced (s 2(1) item 4) | Repealed by No 96 of 2014, effective sch 1 (items 54 ‑ 108, 122 ‑ 124), sch 2 (items 41 ‑ 43): 30 Sept 2014 (s 2(1) item 2, F2014L01256) | Inserted by No 64 of 2017, effective sch 1 (items 14 ‑ 23): 24 June 2017 (s 2(1) item 2)

s 117-30 — Determination has effect according to its terms

For the purpose of making an * assessment, a statement in a determination under this Subdivision has effect according to its terms, despite the provisions of a * taxation law outside of this Division.

Amendment history: Inserted by No 14 of 2012, effective sch 1, sch 2 (items 1 ‑ 9): 1 July 2012 (s 2(1) items 2, 3) sch 2 (items 17 ‑ 28): never commenced (s 2(1) item 4) | Repealed by No 96 of 2014, effective sch 1 (items 54 ‑ 108, 122 ‑ 124), sch 2 (items 41 ‑ 43): 30 Sept 2014 (s 2(1) item 2, F2014L01256) | Inserted by No 64 of 2017, effective sch 1 (items 14 ‑ 23): 24 June 2017 (s 2(1) item 2)

s 117-35 — Commissioner may disregard scheme in making determinations

For the purposes of making a determination under this Subdivision, the Commissioner may: (a) treat a particular event that actually happened as not having happened; and (b) treat a particular event that did not actually happen as having happened and, if appropriate, treat the event as: (i) having happened at a particular time; and (ii) having involved particular action by a particular entity; and (c) treat a particular event that actually happened as: (i) having happened at a time different from the time it actually happened; or (ii) having involved particular action by a particular entity (whether or not the event actually involved any action by that entity).

Amendment history: Inserted by No 64 of 2017, effective sch 1 (items 14 ‑ 23): 24 June 2017 (s 2(1) item 2)

s 117-40 — One determination may cover several quarters etc.

To avoid doubt, statements relating to different * quarters and different * MBL benefits may be included in a single determination under this Subdivision.

Amendment history: Inserted by No 64 of 2017, effective sch 1 (items 14 ‑ 23): 24 June 2017 (s 2(1) item 2)

s 117-45 — Commissioner must give copy of determination to entity affected

(1) The Commissioner must give a copy of a determination under this Subdivision to the entity whose liability for levy under the Major Bank Levy Act 2017 is stated in the determination. (2) A failure to comply with subsection (1) does not affect the validity of the determination.

Amendment history: Inserted by No 64 of 2017, effective sch 1 (items 14 ‑ 23): 24 June 2017 (s 2(1) item 2)

s 117-50 — Objections

If the entity whose liability for levy under the Major Bank Levy Act 2017 is stated in a determination under this Subdivision is dissatisfied with the determination, the entity may object against it in the manner set out in Part IVC of the Taxation Administration Act 1953 .

Amendment history: Inserted by No 64 of 2017, effective sch 1 (items 14 ‑ 23): 24 June 2017 (s 2(1) item 2)

s 125-1 — What this Division is about

You must give the Commissioner a return relating to Laminaria and Corallina decommissioning levy if you are a leviable entity for a financial year. An amount of levy is due and payable 21 days after the day the Commissioner gives you a notice of assessment. This Division contains other rules relating to the administration of the levy, including rules dealing with charges and assessments. Table of sections Operative provisions 125 ‑ 5 Returns 125 ‑ 10 When Laminaria and Corallina decommissioning levy and related charges are due and payable 125 ‑ 15 Assessments of Laminaria and Corallina decommissioning levy

Amendment history: Inserted by No 14 of 2012, effective sch 1, sch 2 (items 1 ‑ 9): 1 July 2012 (s 2(1) items 2, 3) sch 2 (items 17 ‑ 28): never commenced (s 2(1) item 4) | Repealed by No 96 of 2014, effective sch 1 (items 54 ‑ 108, 122 ‑ 124), sch 2 (items 41 ‑ 43): 30 Sept 2014 (s 2(1) item 2, F2014L01256) | Inserted by No 24 of 2022, effective sch 1 (items 7 ‑ 21): 2 Apr 2022 (s 2(1) item 1)

s 125-5 — Returns

(1) You must give the Commissioner a return relating to * Laminaria and Corallina decommissioning levy in the * approved form if you are a leviable entity (within the meaning of the Offshore Petroleum (Laminaria and Corallina Decommissioning Cost Recovery Levy) Act 2022 ) for a financial year that is a levy year (within the meaning of that Act). Note: You are required to give the Commissioner a return in accordance with this subsection even if the amount of that levy you are liable to pay is nil. (2) The return must be given within 6 months after the end of the financial year.

Amendment history: Inserted by No 24 of 2022, effective sch 1 (items 7 ‑ 21): 2 Apr 2022 (s 2(1) item 1)

s 125-10 — When Laminaria and Corallina decommissioning levy and related charges are due and payable

Original assessments (1) If you are liable to pay an amount of * Laminaria and Corallina decommissioning levy for a financial year, the amount is due and payable 21 days after the day the Commissioner gives you a notice of assessment for the financial year. Amended assessments (2) If the Commissioner amends your assessment of an amount of * Laminaria and Corallina decommissioning levy, any extra levy resulting from the amendment is due and payable 21 days after the day the Commissioner gives you notice of the amended assessment. Shortfall interest charge (3) If you are liable to pay an amount of * shortfall interest charge under section 280 ‑ 102D, the amount is due and payable 21 days after the day the Commissioner gives you notice of the charge. General interest charge (4) If an amount of levy or * shortfall interest charge payable under this section remains unpaid after it is due and payable, you are liable to pay * general interest charge on the unpaid amount for each day in the period that: (a) started at the beginning of the day by which the amount was due to be paid; and (b) finishes at the end of the last day at the end of which any of the following remains unpaid: (i) the amount of levy or shortfall interest charge; (ii) general interest charge on any of the amount of levy or shortfall interest charge.

Amendment history: Inserted by No 24 of 2022, effective sch 1 (items 7 ‑ 21): 2 Apr 2022 (s 2(1) item 1)

s 125-15 — Assessments of Laminaria and Corallina decommissioning levy

(1) In applying Division 155 in relation to an amount of * Laminaria and Corallina decommissioning levy: (a) apply the provisions of that Division with the modification set out in subsection (2) of this section; and (b) disregard section 155 ‑ 70. (2) Despite subsection 155 ‑ 35(2), the period of review , for an assessment of an amount of * Laminaria and Corallina decommissioning levy, is: (a) the period: (i) starting on the day on which the Commissioner first gives notice of the assessment to you under section 155 ‑ 10; and (ii) ending on the last day of the period of 6 months starting the day after that day; or (b) if the period of review is extended under subsection 155 ‑ 35(3) or (4)—the period as so extended.

Amendment history: Inserted by No 24 of 2022, effective sch 1 (items 7 ‑ 21): 2 Apr 2022 (s 2(1) item 1)

s 127-1 — What this Division is about

Certain Group Entities of an Applicable MNE Group must give the Commissioner a GloBE Information Return, Australian IIR/UTPR tax return and Australian DMT tax return. An amount of Australian IIR/UTPR tax and Australian DMT tax for a Fiscal Year is usually due and payable on the last day of the 15th month after the end of the Fiscal Year. This Division contains other rules relating to the administration of the taxes, including rules dealing with charges and assessments.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-5 — GloBE Information Returns

Giving GloBE Information Returns (1) A * Group Entity of an * Applicable MNE Group for a * Fiscal Year must give the Commissioner a * GloBE Information Return in respect of the Applicable MNE Group for the Fiscal Year if the Group Entity is * GloBE located in Australia for the Fiscal Year. Note: The Group Entity is required to give the Commissioner a GloBE Information Return even if the amount of Australian IIR/UTPR tax and Australian DMT tax the Group Entity is liable to pay in relation to the Fiscal Year is nil. (2) The * GloBE Information Return given under subsection (1) must: (a) be * lodged electronically; and (b) be in the * approved form. (3) A GloBE Information Return , in respect of an * Applicable MNE Group for a * Fiscal Year, is a return that: (a) if a determination under subsection (4) specifies requirements—is in accordance with those requirements; and (b) if paragraph (a) does not apply—is in accordance with the standardised return developed in accordance with the * GloBE Implementation Framework, as amended from time to time; and (c) contains the following information concerning the Applicable MNE Group: (i) identification of the * Constituent Entities of the Applicable MNE Group, including the jurisdiction in which they are * GloBE located for the Fiscal Year and their status under the * GloBE Rules; (ii) information on the overall corporate structure of the Applicable MNE group in the Fiscal Year; (iii) information relevant to the determination of Effective Tax Rates (within the meaning of the GloBE Rules), Top ‑ up Tax (within the meaning of the GloBE Rules) and allocation of Top ‑ up Tax for the Fiscal Year; (iv) elections made, for the Fiscal Year, in accordance with the relevant provisions of the GloBE Rules; (v) other information that is agreed as part of the GloBE Implementation Framework and is necessary to carry out the administration of the GloBE Rules. (4) For the purposes of paragraph (3)(a), the Commissioner may, by legislative instrument, make a determination specifying requirements for a return.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-10 — GloBE Information Returns given by Designated Local Entities

(1) This section applies if a * Designated Local Entity in relation to a * GloBE Information Return in respect of an * Applicable MNE Group for a * Fiscal Year gives the GloBE Information Return to the Commissioner in accordance with subsection 127 ‑ 5(2). (2) Each other * Group Entity of the * Applicable MNE Group that is * GloBE located in Australia for the * Fiscal year is taken to give the * GloBE Information Return to the Commissioner at the time the * Designated Local Entity gives the GloBE Information Return to the Commissioner.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-15 — Meaning of Designated Local Entity

A Designated Local Entity , of an * Applicable MNE Group for a * Fiscal Year, is a * Group Entity of the Applicable MNE Group that: (a) is * GloBE located in Australia for the Fiscal Year; and (b) has been appointed by every other Group Entity of the Applicable MNE Group that is GloBE located in Australia for the Fiscal Year to give to the Commissioner: (i) the * GloBE Information Return in respect of the Applicable MNE Group for the Fiscal Year; or (ii) a notice mentioned in paragraph 127 ‑ 20(2)(b) in respect of the Applicable MNE Group for the Fiscal Year.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-20 — GloBE Information Returns given to foreign government agencies

(1) This section applies in relation to an * Applicable MNE Group for a * Fiscal Year if: (a) either: (i) the * GloBE Ultimate Parent Entity of the Applicable MNE Group is * GloBE located in a foreign country or part of a foreign country that has a * Qualifying Competent Authority Agreement in effect with Australia for the Fiscal Year; or (ii) a * Designated Filing Entity in relation to the * GloBE Information Return in respect of the Applicable MNE Group for the Fiscal Year is GloBE located in a foreign country or part of a foreign country that has a Qualifying Competent Authority Agreement in effect with Australia for the Fiscal Year; and (b) the GloBE Ultimate Parent Entity or Designated Filing Entity gives a GloBE Information Return in respect of the Applicable MNE Group for the Fiscal Year to a * foreign government agency of the foreign country or part of the foreign country no later than the time specified in section 127 ‑ 60 in relation to the Fiscal Year. (2) Each * Group Entity of the * Applicable MNE Group that is required to give a * GloBE Information Return in respect of the Applicable MNE Group for the * Fiscal Year to the Commissioner: (a) is taken to give the GloBE Information Return to the Commissioner, in accordance with subsection 127 ‑ 5(2), at the time the * GloBE Ultimate Parent Entity or * Designated Filing Entity gives the GloBE Information Return to the * foreign government agency; and (b) must give the Commissioner a notice in accordance with subsection 127 ‑ 30(1) in respect of the Applicable MNE Group for the Fiscal Year. (3) A foreign country or part of a foreign country has a Qualifying Competent Authority Agreement in effect with Australia for a * Fiscal Year if an agreement or arrangement that: (a) is between 2 or more competent authorities: (i) at least one of which is a competent authority of Australia; and (ii) at least one of which is a competent authority of that foreign country or part of a foreign country; and (b) provides for the automatic exchange of annual * GloBE Information Returns for the Fiscal Year; is in effect. Commissioner may require Group Entity to give GloBE Information Return (4) If: (a) under subsection (2), a * Group Entity of the * Applicable MNE Group is taken to give a * GloBE Information Return in respect of the Applicable MNE Group for the * Fiscal Year to the Commissioner because the GloBE Information Return is given to a * foreign government agency; and (b) the relevant * Qualifying Competent Authority Agreement provides for the GloBE Information Return to be given to the Commissioner by a specified time; and (c) that time has passed, but the GloBE Information Return has not been given to the Commissioner under the Qualifying Competent Authority Agreement; the Commissioner may, by written notice given to the Group Entity, request the Group Entity to give to the Commissioner a GloBE Information Return in respect of the Applicable MNE Group for the Fiscal Year in accordance with subsection 127 ‑ 5(2). (5) The * Group Entity must comply with the request in accordance with subsection (6). (6) The * GloBE Information Return given under subsection (5) must be * lodged electronically.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-25 — Meaning of Designated Filing Entity

A Designated Filing Entity , in relation to a * GloBE Information Return in respect of an * Applicable MNE Group for a * Fiscal Year, is a * Group Entity of the Applicable MNE Group that has been appointed by the Applicable MNE Group to file the GloBE Information Return on behalf of the Applicable MNE Group.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-30 — GloBE Information Returns given to foreign government agencies—notification requirement

(1) For the purposes of paragraph 127 ‑ 20(2)(b), the notice mentioned in that paragraph: (a) must be given to the Commissioner no later than the time specified in section 127 ‑ 60 in relation to the * Fiscal Year; and (b) must state: (i) the identity of the * GloBE Ultimate Parent Entity or * Designated Filing Entity that gives the * GloBE Information Return to the * foreign government agency; and (ii) the jurisdiction in which that GloBE Ultimate Parent Entity or Designated Filing Entity is * GloBE located; and (c) must be in the * approved form; and (d) must be * lodged electronically. (2) Subsection (3) applies if a * Designated Local Entity of the * Applicable MNE Group gives the notice mentioned in subsection (1) in accordance with that subsection. (3) Each other * Group Entity of the * Applicable MNE Group that is * GloBE located in Australia for the * Fiscal year is taken to give the notice to the Commissioner at the time the * Designated Local Entity gives the notice to the Commissioner.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-35 — Australian IIR/UTPR tax returns

(1) The purpose of this section is to provide, for the purposes of administering the * Australian IIR/UTPR tax, for a return that supplements the * GloBE Information Return. (2) Subject to subsection (4), a * Group Entity of an * Applicable MNE Group for a * Fiscal Year must give the Commissioner a return under this subsection (an Australian IIR/UTPR tax return ) for the Fiscal Year if the Group Entity has an * Australian IIR/UTPR tax amount for the Fiscal Year (including a nil amount). (3) The return must: (a) be * lodged electronically; and (b) be in the * approved form. (4) However, the return need not be lodged in circumstances set out in a determination under subsection (5). (5) The Commissioner may, by legislative instrument, make a determination specifying circumstances in which a * Group Entity need not lodge a return under subsection (2).

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-40 — Australian IIR/UTPR tax returns given by Designated Local Entities

(1) This section applies if: (a) a * Designated Local Entity of an * Applicable MNE Group for a * Fiscal Year has been appointed, by each * Group Entity of the Applicable MNE Group that is required to give the Commissioner an * Australian IIR/UTPR tax return for the Fiscal Year, to give an Australian IIR/UTPR tax return for the Fiscal Year to the Commissioner on behalf of the Group Entity; and (b) the Designated Local Entity gives an Australian IIR/UTPR tax return for the Fiscal Year to the Commissioner on behalf of those Group Entities in accordance with subsection 127 ‑ 35(3). (2) Each of those * Group Entities is taken to give the * Australian IIR/UTPR tax return to the Commissioner at the time at which the * Designated Local Entity gives the Australian IIR/UTPR tax return to the Commissioner.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-45 — Australian DMT tax returns

(1) The purpose of this section is to provide, for the purposes of administering the * Australian DMT tax, for a return that supplements the * GloBE Information Return. (2) Subject to subsection (5), a * Group Entity of an * Applicable MNE Group for a * Fiscal Year must give the Commissioner a return under this subsection (an Australian DMT tax return ) for the Fiscal Year if the Group Entity has a * Australian DMT tax amount for the Fiscal Year (including a nil amount). Note: The Group Entity is required to give the Commissioner a DMT return if the Group Entity has an Australian DMT tax amount for the Fiscal Year, even if the amount of Australian DMT tax the Group Entity is liable to pay in relation to the Fiscal Year is nil. (3) The return must: (a) be * lodged electronically; and (b) be in the * approved form. (4) However, the return need not be lodged in circumstances set out in a determination under subsection (5). (5) The Commissioner may, by legislative instrument, make a determination specifying circumstances in which a * Group Entity need not lodge a return under subsection (2).

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-50 — Australian DMT tax returns given by Designated Local Entities

(1) This section applies if: (a) a * Designated Local Entity of an * Applicable MNE Group for a * Fiscal Year has been appointed, by each * Group Entity of the Applicable MNE Group that is required to give the Commissioner an * Australian DMT tax return for the Fiscal Year, to give an Australian DMT tax return for the Fiscal Year to the Commissioner on behalf of the Group Entity; and (b) the Designated Local Entity gives an Australian DMT tax return for the Fiscal Year to the Commissioner on behalf of those Group Entities in accordance with subsection 127 ‑ 45(3). (2) Each of those * Group Entities is taken to give the * Australian DMT tax return to the Commissioner at the time at which the * Designated Local Entity gives the Australian DMT tax return to the Commissioner.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-55 — GloBE Joint Ventures and GloBE JV Subsidiaries

(1) This section applies if, in relation to an * Applicable MNE Group, any of the following has an * Australian DMT tax amount for a Fiscal Year (including a nil amount): (a) a * GloBE Joint Venture of the Applicable MNE Group; (b) a * GloBE JV Subsidiary of a GloBE Joint Venture of the * Applicable MNE Group. (2) In addition to the application that they have under this subsection, sections 127 ‑ 45 and 127 ‑ 50 apply, for the Fiscal Year, in relation to the * GloBE Joint Venture or the * GloBE JV Subsidiary in the same way they apply in relation to a * Group Entity of an Applicable MNE Group. (3) For the purposes of subsection (2), treat: (a) the * GloBE Joint Venture and its * GloBE JV Subsidiaries as * Group Entities of a separate * Applicable MNE Group for the * Fiscal Year; and (b) the GloBE Joint Venture as the * GloBE Ultimate Parent Entity of that separate Applicable MNE Group. (4) Subsection (5) applies if: (a) a * Designated Local Entity of the * Applicable MNE Group mentioned in subsection (1) for a * Fiscal Year has been appointed, by each Entity mentioned in paragraphs (1)(a) and (b) that is required to give the Commissioner an * Australian DMT tax return for the Fiscal Year (each of which is a reporting Entity ), to give an Australian DMT tax return for the Fiscal Year to the Commissioner on behalf of the reporting Entity; and (b) the Designated Local Entity gives an Australian DMT tax return for the Fiscal Year to the Commissioner on behalf of those reporting Entities in accordance with subsection 127 ‑ 45(3). (5) Each of the reporting Entities is taken to give the * Australian DMT tax return to the Commissioner at the time at which the * Designated Local Entity gives the Australian DMT tax return to the Commissioner. (6) However, subsection (5) does not apply to the reporting Entities if any reporting Entity appoints more than one * Designated Local Entity under paragraph (4)(a) for the Fiscal Year. Note: In these circumstances, section 127 ‑ 50 may still apply.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-60 — When returns must be given

(1) A * GloBE Information Return, * Australian IIR/UTPR tax return or * Australian DMT tax return for a * Fiscal Year must be given to the Commissioner no later than 15 months after the end of the Fiscal Year. (2) However: (a) if the * Fiscal Year is the relevant * Applicable MNE Group’s * GloBE Transition Year, the * GloBE Information Return, * Australian IIR/UTPR tax return or * Australian DMT tax return must be given to the Commissioner no later than 18 months after the end of the Fiscal Year; and (b) a GloBE Information Return that a * Group Entity is required to give to the Commissioner under subsection 127 ‑ 20(5) must be given no later than the later of: (i) the day by which the Group Entity would, apart from section 127 ‑ 20, be required to give the GloBE Information Return to the Commissioner under section 127 ‑ 5; and (ii) 21 days after the Commissioner gives the request under subsection 127 ‑ 20(4) to the Group Entity. (3) Section 388 ‑ 55 (Commissioner may defer time for lodgment) does not apply to the requirement to give a * GloBE Information Return or a notice under paragraph 127 ‑ 20(2)(b).

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-65 — GloBE Main Entities and GloBE Permanent Establishments

(1) This section applies if a * Group Entity of an * Applicable MNE Group for a * Fiscal year is a * GloBE Main Entity in respect of a * GloBE Permanent Establishment. (2) This Subdivision: (a) applies to the * Group Entity in its own capacity; and (b) also applies to the Group Entity in its capacity as the * GloBE Main Entity in respect of the * GloBE Permanent * Establishment. (3) If the * Group Entity is not * GloBE located in Australia and the * GloBE Permanent * Establishment is GloBE located in Australia, sections 127 ‑ 5 to 127 ‑ 30 apply in relation to the Group Entity in the same way that they apply in relation to a Group Entity that is GloBE located in Australia.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-70 — When Australian IIR/UTPR tax and Australian DMT tax and related charges are due and payable

Original assessments (1) If a * Group Entity of an * Applicable MNE Group is liable to pay an amount of * Australian IIR/UTPR tax or * Australian DMT tax for a * Fiscal Year, the amount is due and payable on the last day of the 15th month after the end of the Fiscal Year. (2) However, if the * Fiscal Year is the * Applicable MNE Group’s * GloBE Transition Year, the amount is due and payable on the last day of the 18th month after the end of the Fiscal Year. Amended assessments (3) If the Commissioner amends a * Group Entity’s assessment of an amount of * Australian IIR/UTPR tax or * Australian DMT tax, any extra such tax resulting from the amendment is due and payable 21 days after the day the Commissioner gives the Group Entity notice of the amended assessment. Shortfall interest charge (4) If a * Group Entity is liable to pay an amount of * shortfall interest charge under section 280 ‑ 102E, the amount is due and payable 21 days after the day the Commissioner gives the Group Entity notice of the charge. General interest charge (5) If an amount of * Australian IIR/UTPR tax or * Australian DMT tax or * shortfall interest charge payable under this section remains unpaid after it is due and payable, the * Group Entity is liable to pay * general interest charge on the unpaid amount for each day in the period that: (a) started at the beginning of the day by which the amount was due to be paid; and (b) finishes at the end of the last day at the end of which any of the following remains unpaid: (i) the amount of such tax or shortfall interest charge; (ii) general interest charge on any of the amount of such tax or shortfall interest charge.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-75 — Assessments of Australian IIR/UTPR tax and Australian DMT tax

(1) In applying Division 155 in relation to an amount of * Australian IIR/UTPR tax or * Australian DMT tax, apply the provisions of that Division with the modification set out in subsection (2) of this section. (2) Despite subsection 155 ‑ 35(2), the period of review , for an assessment of an amount of * Australian IIR/UTPR tax for a * Fiscal Year, is: (a) the period of 4 years starting on the later of: (i) the day on which the * GloBE Information Return for the relevant * Applicable MNE Group for the Fiscal Year is given to the Commissioner; and (ii) the day on which the * Australian IIR/UTPR tax return for the relevant * Group Entity for the Fiscal Year is given to the Commissioner; or (b) if the period of review is extended under subsection 155 ‑ 35(3) or (4)—the period as so extended. (3) Despite subsection 155 ‑ 35(2), the period of review , for an assessment of an amount of * Australian DMT tax for a * Fiscal Year, is: (a) the period of 4 years starting on the later of: (i) the day on which the * GloBE Information Return for the relevant * Applicable MNE Group for the Fiscal Year is given to the Commissioner; and (ii) the day on which the * Australian DMT tax return for the relevant * Group Entity for the Fiscal Year is given to the Commissioner; or (b) if the period of review is extended under subsection 155 ‑ 35(3) or (4)—the period as so extended.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 127-80 — Provisions do not apply to GloBE Excluded Entities

A reference in this Division to a * Group Entity does not include a reference to a * GloBE Excluded Entity.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 128-1 — What this Division is about

This Division extends onto other entities the obligations and liabilities of various entities under the Minimum Tax law.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 128-5 — Additional liability of Group Entities of Applicable MNE Group

(1) If an amount is payable under the * Minimum Tax law by a * Group Entity of an * Applicable MNE Group for a * Fiscal Year: (a) that Group Entity; and (b) each other Group Entity of the Applicable MNE Group (other than a Group Entity excluded by subsection (2)); are jointly and severally liable to pay the amount. (2) For the purposes of subsection (1), a * Group Entity is excluded by this subsection if it is, at the time the amount becomes due and payable, prohibited according to the effect of an * Australian law from entering into any arrangement under which the Group Entity becomes subject to a liability referred to in that subsection.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 128-10 — Additional liability of Entities in a JV Group

(1) Subsection (2) applies if an amount is payable under the * Minimum Tax law by any of the following: (a) a * GloBE Joint Venture of an * Applicable MNE Group; (b) a * GloBE JV Subsidiary of a GloBE Joint Venture of an Applicable MNE Group. (2) Each of the following Entities (other than an Entity excluded by subsection (3)) is jointly and severally liable to pay the amount: (a) the * GloBE Joint Venture; (b) a * GloBE JV Subsidiary of the GloBE Joint Venture; (c) a * Group Entity of the * Applicable MNE Group that holds a Direct Ownership Interest (within the meaning of the * Minimum Tax Act) in the GloBE Joint Venture. (3) For the purposes of subsection (2), an Entity is excluded by this subsection if it is, at the time the amount becomes due and payable, prohibited according to the effect of an * Australian law from entering into any arrangement under which the Entity becomes subject to a liability referred to in subsection (2).

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 128-15 — Trusts

Obligations (1) Subject to subsection (2), if an obligation is imposed under the * Minimum Tax law on a trust, the obligation is imposed on each of the following entities, but may be discharged by any such entity: (a) an entity that is the trustee of the trust at the time the obligation arises; (b) an entity that is the trustee of the trust at a time that is: (i) after the obligation arises; and (ii) before the obligation has been discharged. Liabilities to pay an amount (2) If an amount is payable under the * Minimum Tax law by a trust, joint and several liability to pay the amount is imposed as set out in the table: Amounts payable by trusts Item Column 1 If the amount is: Column 2 then the following entities are jointly and severally liable to pay the amount: 1 * Australian IIR/UTPR tax or * Australian DMT tax for a * Fiscal Year each of the following entities: (a) an entity that is the trustee of the trust at the end of the Fiscal Year; (b) an entity that is the trustee of the trust at a time that is: (i) after the end of the Fiscal Year; and (ii) before the tax has been paid. 2 * general interest charge on the unpaid amount of * Australian IIR/UTPR tax or * Australian DMT tax for a * Fiscal Year each of the following entities: (a) an entity that is the trustee of the trust at the end of the Fiscal Year; (b) an entity that is the trustee of the trust at a time that is: (i) after the end of the Fiscal Year; and (ii) before the general interest charge has been paid. 3 * shortfall interest charge in relation to a * Fiscal Year each of the following entities: (a) an entity that is the trustee of the trust at the end of the Fiscal Year; (b) an entity that is the trustee of the trust at a time that is: (i) after the end of the Fiscal Year; and (ii) before the shortfall interest charge has been paid. Commissioner has direct access to trust assets (3) For the purpose of ensuring the payment of an amount payable by an entity under this section in relation to a liability of a trust, the Commissioner has the same remedies against the property of the trust as the Commissioner would have against the property of the entity. Right of indemnity (4) An entity that pays an amount of a liability it has under this section is entitled to be indemnified out of the assets of the trust for the liability. Offences (5) Any offence against the * Minimum Tax law that is committed by a trust is taken to have been committed by the trustee of the trust, or, if the trust has more than one trustee, by each of the trustees. (6) In a prosecution of an entity for an offence that the entity is taken to have committed because of subsection (5), it is a defence if the entity proves that the entity: (a) did not aid, abet, counsel or procure the relevant act or omission; and (b) was not in any way knowingly concerned in, or party to, the relevant act or omission (whether directly or indirectly and whether by any act or omission of the entity). Note 1: The defence in subsection (6) does not apply in relation to offences under Part 2.4 of the Criminal Code . Note 2: A defendant bears a legal burden in relation to the matters in subsection (6): see section 13.4 of the Criminal Code .

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 128-20 — Partnerships

Application (1) This section applies in relation to a * GloBE partnership that is not : (a) a * GloBE Joint Venture of an * Applicable MNE Group; or (b) a * GloBE JV Subsidiary of a GloBE Joint Venture of an Applicable MNE Group. Obligations (2) Subject to subsection (3), if an obligation is imposed under the * Minimum Tax law on the * GloBE partnership, the obligation is imposed on each partner of the GloBE partnership, but may be discharged by any such partner. Liabilities to pay an amount (3) If an amount is payable under the * Minimum Tax law by the * GloBE partnership, the partners of the GloBE partnership are jointly and severally liable to pay the amount. Offences (4) Any offence against the * Minimum Tax law that is committed by the * GloBE partnership is taken to have been committed by each partner of the GloBE partnership. (5) In a prosecution of an entity for an offence that the entity is taken to have committed because of subsection (4), it is a defence if the entity proves that the entity: (a) did not aid, abet, counsel or procure the relevant act or omission; and (b) was not in any way knowingly concerned in, or party to, the relevant act or omission (whether directly or indirectly and whether by any act or omission of the entity). Note 1: The defence in subsection (5) does not apply in relation to offences under Part 2.4 of the Criminal Code . Note 2: A defendant bears a legal burden in relation to the matters in subsection (5): see section 13.4 of the Criminal Code . Meaning of GloBE partnership (6) A GloBE partnership is a partnership (within the meaning of paragraph 13(1)(b) of the * Minimum Tax Act). (7) To avoid doubt, section 94K of the Income Tax Assessment Act 1936 (about corporate limited partnerships) does not apply in relation to this section.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 128-25 — Unincorporated GloBE Joint Ventures, etc. and certain unincorporated Group Entities

Obligations (1) Subject to subsection (2), if an obligation is imposed under the * Minimum Tax law on a * GloBE Entity of a kind specified in an item in the table in subsection (5), the obligation is imposed on each liable entity specified in the item, but may be discharged by any such entity. Liabilities to pay an amount (2) If an amount is payable under the * Minimum Tax law by a * GloBE Entity of a kind specified in an item in the table in subsection (5), the liable entities specified in the item are jointly and severally liable to pay the amount. Offences (3) Any offence against the * Minimum Tax law that is committed by a * GloBE Entity of a kind specified in an item in the table in subsection (5) is taken to have been committed by each liable entity specified in the item. (4) In a prosecution of an entity for an offence that the entity is taken to have committed because of subsection (3), it is a defence if the entity proves that the entity: (a) did not aid, abet, counsel or procure the relevant act or omission; and (b) was not in any way knowingly concerned in, or party to, the relevant act or omission (whether directly or indirectly and whether by any act or omission of the entity). Note 1: The defence in subsection (4) does not apply in relation to offences under Part 2.4 of the Criminal Code . Note 2: A defendant bears a legal burden in relation to the matters in subsection (4): see section 13.4 of the Criminal Code . Liable entities (5) For the purposes of subsections (1) to (3), the following kinds of * GloBE Entity and liable entities are specified: Liable Entities Item Kind of * GloBE Entity Liable entity 1 unincorporated * GloBE Joint Venture of an * Applicable MNE Group that is a * GloBE partnership each partner of the unincorporated GloBE Joint Venture that is a * Group Entity of the Applicable MNE Group 2 unincorporated * GloBE Joint Venture of an * Applicable MNE Group, that is not a trust or a * GloBE partnership each * Group Entity of the Applicable MNE Group that holds a Direct Ownership Interest (within the meaning of the * Minimum Tax Act) in the GloBE Joint Venture 3 unincorporated * GloBE JV Subsidiary of a * GloBE Joint Venture of an * Applicable MNE Group, where the GloBE JV Subsidiary is a * GloBE partnership each partner of the unincorporated GloBE JV Subsidiary that is: (a) the GloBE Joint Venture; or (b) another GloBE JV Subsidiary of the GloBE Joint Venture; or (c) a * Group Entity of the Applicable MNE Group 4 unincorporated * GloBE JV Subsidiary of a * GloBE Joint Venture of an * Applicable MNE Group, where the GloBE JV Subsidiary is not a trust or a * GloBE partnership each of the following: (a) the GloBE Joint Venture; (b) a * Group Entity of the Applicable MNE Group that holds a Direct Ownership Interest (within the meaning of the * Minimum Tax Act) in the GloBE Joint Venture 5 unincorporated * Group Entity of an * Applicable MNE Group that is not a trust or a * GloBE partnership each Group Entity of the Applicable MNE Group: (a) to which a portion of the unincorporated Group Entity’s assets, income, expenses, cash flows and liabilities belong; or (b) that is a member of the committee of management of the unincorporated Group Entity

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 128-30 — Provisions do not apply to GloBE Excluded Entities

A reference in this Division to a * Group Entity does not include a reference to a * GloBE Excluded Entity.

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 128-35 — Joint and several liability does not extend to GloBE Securitisation Entities

(1) For the purposes of paragraph 128 ‑ 5(1)(b), treat a * Group Entity that is a * GloBE Securitisation Entity as being a Group Entity excluded by subsection 128 ‑ 5(2). (2) For the purposes of subsection 128 ‑ 10(2), treat a * Group Entity that is a * GloBE Securitisation Entity as being an Entity excluded by subsection 128 ‑ 10(3).

Amendment history: Inserted by No 134 of 2024, effective sch 1 (items 32 ‑ 64, 68, 69): 11 Dec 2024 (s 2(1) item 1)

s 131-1 — What this Subdivision is about

You may request the Commissioner to require the release of an amount from your superannuation interests if you are given: (a) an excess concessional contributions determination or excess non ‑ concessional contributions determination; or (b) a notice of assessment of an amount of Division 293 tax; or (ba) a notice of assessment of an amount of Division 296 tax; or (c) a first home super saver determination. The Commissioner may also require the release of an amount from your superannuation interests in related circumstances. Superannuation providers must usually pay the amount required to be released. However, for defined benefit superannuation interests the provider may choose whether or not to pay. Released amounts are paid to the Commissioner. You get a credit for the released amount. Surplus credits are refunded to you under Division 3A of Part IIB. Table of sections Requesting a release authority 131 ‑ 5 Requesting the release of amounts from superannuation interests 131 ‑ 10 Restrictions on the total amount you can request to be released 131 ‑ 12 Withdrawing or amending your request for a release authority relating to an FHSS determination Issuing a release authority to superannuation provider 131 ‑ 15 Issuing release authorities 131 ‑ 20 Amount to be stated in a release authority 131 ‑ 25 Contents of a release authority 131 ‑ 30 Varying or revoking a release authority Complying with a release authority 131 ‑ 35 Obligations of superannuation providers 131 ‑ 40 Voluntary compliance with a release authority relating to defined benefit interests 131 ‑ 45 Meaning of maximum available release amount 131 ‑ 50 Notifying Commissioner 131 ‑ 55 Notifying you 131 ‑ 60 Compensation for acquisition of property Consequences of releasing amounts 131 ‑ 65 Entitlement to credits 131 ‑ 70 Interest for late payments of money received by the Commissioner in accordance with release authority 131 ‑ 75 Income tax treatment of amounts released—proportioning rule does not apply Repayments if your entitlement to a credit ceases for a release authority relating to an FHSS determination 131 ‑ 80 Repayments if your entitlement to a credit ceases for a release authority relating to an FHSS determination

Amendment history: Inserted by No 81 of 2016, effective sch 1 (items 10 ‑ 25, 33, 36), sch 2 (items 19, 20), sch 10 (items 55 ‑ 65, 86 ‑ 93): 1 Jan 2017 (s 2(1) items 2, 6) sch 10 (items 1, 29 ‑ 47, 49 ‑ 54): 1 July 2018 (s 2(1) item 5) | Amended by No 132 of 2017, effective sch 1 (items 1 ‑ 5, 13 ‑ 20): 1 July 2018 (s 2(1) item 2) sch 2 (items 6, 7): 1 Jan 2018 (s 2(1) item 3) | Amended by No 8 of 2026, effective sch 1 (items 61 ‑ 91), sch 2 (item 11): 1 Apr 2026 (s 2(1) items 2, 3)

s 131-5 — Requesting the release of amounts from superannuation interests

(1) You may make a request under this section for a * financial year if you are given any of the following: (a) an * excess concessional contributions determination for the financial year; (b) an * excess non ‑ concessional contributions determination for the financial year; (c) a notice of assessment of an amount of * Division 293 tax payable for the income year that corresponds to the financial year; (ca) a notice of assessment of an amount of * Division 296 tax payable for the income year that corresponds to the financial year; (d) a * first home super saver determination. (2) You make the request by: (a) notifying the Commissioner of the total amount to be released; and (b) identifying your * superannuation interest or interests from which that total amount is to be released; and (c) if you identify more than one superannuation interest—stating the amount to be released from each such interest. (3) The request must: (a) ensure that the total amount to be released for the determination or assessment complies with section 131 ‑ 10; and (b) be in the * approved form; and (c) be given to the Commissioner within: (i) 60 days after the Commissioner issues the determination or notice referred to in subsection (1); or (ii) a further period allowed by the Commissioner. Unsuccessful requests—making a further request (4) If: (a) you make a valid request under this section; and (b) the Commissioner gives you a notice under subsection 131 ‑ 55(1) stating an amount (the unreleased amount ) that a * superannuation provider did not pay in relation to a release authority issued for that request; you may make a further request to release the unreleased amount from another of your * superannuation interests. (5) The further request must comply with subsection (2) and paragraphs (3)(a) and (b), and must be given to the Commissioner within: (a) 60 days after the Commissioner issues the notice mentioned in paragraph (4)(b); or (b) a further period allowed by the Commissioner. Most requests are irrevocable (6) Subject to section 131 ‑ 12 (about requests relating to FHSS determinations), a request under this section is irrevocable.

Amendment history: Inserted by No 81 of 2016, effective sch 1 (items 10 ‑ 25, 33, 36), sch 2 (items 19, 20), sch 10 (items 55 ‑ 65, 86 ‑ 93): 1 Jan 2017 (s 2(1) items 2, 6) sch 10 (items 1, 29 ‑ 47, 49 ‑ 54): 1 July 2018 (s 2(1) item 5) | Amended by No 132 of 2017, effective sch 1 (items 1 ‑ 5, 13 ‑ 20): 1 July 2018 (s 2(1) item 2) sch 2 (items 6, 7): 1 Jan 2018 (s 2(1) item 3) | Amended by No 75 of 2023, effective sch 4 (items 14 ‑ 30): 15 Sept 2024 (s 2(1) item 11) | Amended by No 8 of 2026, effective sch 1 (items 61 ‑ 91), sch 2 (item 11): 1 Apr 2026 (s 2(1) items 2, 3)

s 131-10 — Restrictions on the total amount you can request to be released

(1) The total amount you can request to be released complies with this section if that amount: (a) if item 1, 3, 3A or 4 of the following table applies—does not exceed the relevant amount referred to in that item; or (b) if item 2 of the following table applies—is nil or equals the relevant amount referred to in that item. Amount you can request to be released Item If the request relates to this kind of determination or assessment (see subsection 131 ‑ 5(1)): The relevant amount is: 1 an * excess concessional contributions determination 85% of the contributions stated in that determination 2 an * excess non ‑ concessional contributions determination the * total release amount stated in that determination 3 an assessment of an amount of * Division 293 tax that amount of Division 293 tax 3A an assessment of an amount of * Division 296 tax that amount of Division 296 tax 4 a * first home super saver determination the * FHSS maximum release amount stated in that determination (2) However, for an amended determination or assessment, reduce the relevant amount referred to in the above table by any amount released under this Subdivision for an earlier determination or assessment of that kind that you are given for the * financial year or corresponding income year. (3) An amendment of a determination or assessment does not affect the validity of a request you make under section 131 ‑ 5 before you are given the amended determination or the notice of the amended assessment.

Amendment history: Inserted by No 81 of 2016, effective sch 1 (items 10 ‑ 25, 33, 36), sch 2 (items 19, 20), sch 10 (items 55 ‑ 65, 86 ‑ 93): 1 Jan 2017 (s 2(1) items 2, 6) sch 10 (items 1, 29 ‑ 47, 49 ‑ 54): 1 July 2018 (s 2(1) item 5) | Amended by No 132 of 2017, effective sch 1 (items 1 ‑ 5, 13 ‑ 20): 1 July 2018 (s 2(1) item 2) sch 2 (items 6, 7): 1 Jan 2018 (s 2(1) item 3) | Amended by No 8 of 2026, effective sch 1 (items 61 ‑ 91), sch 2 (item 11): 1 Apr 2026 (s 2(1) items 2, 3)

s 131-12 — Withdrawing or amending your request for a release authority relating to an FHSS determination

(1) You may, by notifying the Commissioner in the * approved form, withdraw or amend your valid request made under section 131 ‑ 5 if: (a) your request relates to a * first home super saver determination given to you; and (b) in the case of amending your request—you satisfy paragraphs 138 ‑ 10(2)(a) and (b); and (c) the Commissioner has not already issued a release authority in relation to your request. (2) Your amended request is treated as a valid request under section 131 ‑ 5 if it complies with subsection 131 ‑ 5(2) and paragraphs 131 ‑ 5(3)(a) and (c). (3) Withdrawing your request does not prevent you from making a later request under section 131 ‑ 5 in relation to the * first home super saver determination.

Amendment history: Inserted by No 75 of 2023, effective sch 4 (items 14 ‑ 30): 15 Sept 2024 (s 2(1) item 11)