Document ID: chunk:federal_register_of_legislation:C2004C01268:clause:1_29:p10
Version: federal_register_of_legislation:C2004C01268
Segment Type: clause
Provision Reference: sch 1 cl 29 (pt 10/14)
Character Range: 31299–33954

finish of a 3 month tax period could vary by up to 7 days from the start or finish of a normal quarter.

Subdivision 162‑D—Penalty payable in certain cases if varied instalment amounts are too low

162‑170  What this Subdivision is about

There are 3 circumstances where a penalty can arise if a varied instalment amount is too low:

 (a) your payments are too low a proportion of your annual GST liability (see section 162‑175);

 (b) your estimated annual GST amount is too low a proportion of your annual GST liability (see section 162‑180);

 (c) the varied instalment amount is too low a proportion of your estimated annual GST amount (see section 162‑185).

The penalty is based on the general interest charge rate, and the machinery provisions of Division 298 in Schedule 1 to the Taxation Administration Act 1953 apply.

Note: This section is an explanatory section.

162‑175  GST payments are less than 85% of annual GST liability

 (1) You are liable to pay a penalty, for a *GST instalment quarter of an *instalment tax period applying to you, if you have a *varied instalment amount for the GST instalment quarter, and:
 (a) if the instalment tax period is a *financial year—the sum of your *GST instalments for all the GST instalment quarters of the instalment tax period is less than 85% of your *annual GST liability for the instalment tax period; or
 (b) if the instalment tax period is only part of a financial year—the sum of:
 (i) your *GST instalments for all the GST instalment quarters of the instalment tax period; and
 (ii) your *early net amounts for the financial year (subtracting any of those amounts that are less than zero);
  is less than 85% of your annual GST liability for the instalment tax period.

 (2) The amount of the penalty, for a particular day, is worked out by applying the *general interest charge:
 (a) for each day in the period in section 162‑190; and
 (b) in the way set out in subsection 8AAC(4) of the Taxation Administration Act 1953;
to your *GST instalment shortfall, under this section, for the *GST instalment quarter.

 (3) Your GST instalment shortfall, under this section, for the *GST instalment quarter is the amount worked out as follows:
where:

GST already payable is the sum of:
 (a) the *varied instalment amount; and
 (b) all your other *GST instalments (if any) for earlier *GST instalment quarters of the *instalment tax period in question; and
 (c) if the instalment tax period is only part of a *financial year—your *early net amounts for the financial year (subtracting any of those amounts that are less than zero).

 (4) However, if:
 (a) the *GST instalment quarter is not