Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:7_2
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 7 cl 2
Character Range: 331391–333400

2  Section 45‑5 in Schedule 1
Repeal the section, substitute:

45‑5  Object of this Part

 (1) The object of this Part is to ensure the efficient collection of:
 (a) income tax; and
 (b) Medicare levy; and
 (c) amounts of liabilities to the Commonwealth under Chapter 5A of the Higher Education Funding Act 1988; and
 (d) amounts of liabilities to the Commonwealth under Part 2B.3 of the Social Security Act 1991; and
 (e) amounts of liabilities to the Commonwealth under Division 6 of Part 4A of the Student Assistance Act 1973;
through the application of the principles set out in the rest of this section.

 (2) As you earn *instalment income, you pay instalments after the end of each *instalment quarter worked out on the basis of your instalment income for that quarter. (There are limited exceptions to this).

 (3) The total of your instalments for an income year is as close as possible to the total of your liabilities for the income year that are covered by subsection (1), except so far as the amounts of those liabilities are attributable to a *net capital gain. (The exception does not apply to the entities listed in subsections 45‑120(2) and (2A).)

 (4) Consequently, the additional amounts you have to pay to discharge those liabilities, after an assessment of your income tax for the income year is made, are as low as possible.

 (5) The amount of each of your instalments for an income year is the same proportion (as nearly as possible, subject to the principles in subsections (3) and (4)) of the total of those instalments as your *instalment income for that *instalment quarter is of your total instalment income for the income year.

 (6) When instalments are payable, and how their amount is calculated, are the same for different kinds of entities, except as expressly provided.

Note: Subdivision 45‑P penalises an entity whose tax position, so far as it relates to PAYG instalments and related matters, is altered by a scheme that is inconsistent with the object of this Part.