Document ID: chunk:federal_register_of_legislation:C2025C00126:clause:3_4:p9
Version: federal_register_of_legislation:C2025C00126
Segment Type: clause
Provision Reference: sch 3 cl 4 (pt 9/24)
Character Range: 813581–816246

quarter of an *instalment tax period applying to you, if:
 (a) you are liable to pay a penalty under section 162‑175 or 162‑180 for a *GST instalment quarter of an *instalment tax period applying to you; and
 (b) for that or any other GST instalment quarter of an *instalment tax period:
 (i) you have a *notified instalment amount that is less than 25% of your *annual GST liability for the instalment tax period; or
 (ii) you do not have a notified instalment amount, but the Commissioner is satisfied that, if you had such a notified instalment amount, it would be less than 25% of your annual GST liability for the instalment tax period.
 (2) The *GST instalment shortfall is reduced by the amount worked out as follows:

where:
notified and other amounts is the sum of:
 (a) the *notified instalment amount, or, if you do not have a notified instalment amount for the *GST instalment quarter, the amount that the Commissioner is satisfied would have otherwise been that notified instalment amount; and
 (b) for each of the earlier GST instalment quarters (if any) of the *instalment tax period in question:
 (i) the notified instalment amount; or
 (ii) if you do not have a notified instalment amount for the *GST instalment quarter—the amount that the Commissioner is satisfied would have otherwise been that notified instalment amount; 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).
 (3) If, because of the reduction, your *GST instalment shortfall for the *GST instalment quarter is zero or less than zero, you are not liable to pay a penalty under section 162‑175 or 162‑180 (as the case requires) in relation to the GST instalment quarter.
 (4) If both this section and section 162‑200 apply to a particular *GST instalment shortfall, apply this section to the shortfall before applying section 162‑200.

162‑200  Reduction in penalties if GST instalment shortfall is made up in a later instalment
 (1) This section reduces your *GST instalment shortfall, for a *GST instalment quarter of an *instalment tax period applying to you, if:
 (a) you pay to the Commissioner a *GST instalment for a later GST instalment quarter of the instalment tax period; and
 (b) that GST instalment exceeds 25% of your *annual GST liability for the instalment tax period.
The amount of that excess is called the top up.
 (2) The *GST instalment shortfall is reduced by applying so much of the top up as does not exceed the GST instalment shortfall.
 (3) However, if some of the top up has already been applied (under any other application or