Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p13
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 13/18)
Character Range: 5458708–5461199

give it to the Commissioner by the time you lodge your *income tax return for the income year to which your choice relates. However, the Commissioner may allow you to give the choice later.
 (3) Your choice cannot be revoked after it is given to the Commissioner.

Subdivision 392‑B—What kind of averaging adjustment must you make?

Guide to Subdivision 392‑B

392‑30  What this Subdivision is about
      This Subdivision explains how to work out whether you are entitled to a tax offset for the current year or whether you must pay extra income tax for the current year.

Table of sections

Tax offset or extra income tax
392‑35 Will you get a tax offset or have to pay extra income tax?

How to work out the comparison rate
392‑40 Identify income years for averaging your basic taxable income
392‑45 Work out your average income for those years
392‑50 Work out the income tax on your average income at basic rates
392‑55 Work out the comparison rate

Tax offset or extra income tax

392‑35  Will you get a tax offset or have to pay extra income tax?
 (1) Compare:
 (a) the amount (the income tax you would pay at the comparison rate) worked out using the formula:
 (b) the amount of income tax that you would pay on your *basic taxable income for the *current year at *basic rates.
Note: You must disregard some provisions of this Act in working out amounts of income tax for the purposes of this subsection: see subsection (5).

Tax offset
 (2) You are entitled to a *tax offset equal to the *averaging adjustment worked out under Subdivision 392‑C if the income tax you would pay at the comparison rate is less than the amount of income tax you would pay at *basic rates.

Extra income tax
 (3) You must pay extra income tax on the *averaging component of your *basic taxable income if the income tax you would pay at the comparison rate is more than the amount of income tax you would pay at *basic rates.
Note 1: Section 12A of the Income Tax Rates Act 1986 sets the rate at which you must pay extra income tax on the averaging component of your basic taxable income.
Note 2: It does so in such a way that, generally, the extra income tax you must pay equals the averaging adjustment worked out under Subdivision 392‑C.

Meaning of basic rates
 (4) The basic rates at which you would pay income tax are:
 (a) if you are a resident taxpayer as defined in the Income Tax Rates Act 1986—the rates of income tax in paragraph (1)(b) of Part I of Schedule 7 to that Act, taking into account