Document ID: chunk:federal_register_of_legislation:C2025C00180:schedule:1:p1
Version: federal_register_of_legislation:C2025C00180
Segment Type: schedule
Provision Reference: sch 1 (pt 1/27)
Character Range: 707907–710652

Schedule 1—Collection and recovery of income tax and other liabilities

Chapter 2—Collection, recovery and administration of income tax

Part 2‑10—Pay as you go (PAYG) instalments

Division 45—Instalment payments

Table of Subdivisions
 Guide to Division 45
45‑A Basic rules
45‑B When instalments are due
45‑C Working out instalment amounts
45‑D Quarterly payers
45‑DA Monthly payers
45‑E Annual payers
45‑F Varying the instalment rate for quarterly payers who pay on the basis of instalment income
45‑G General interest charge payable in certain cases if instalments are too low
45‑H Partnership income
45‑I Trust income included in instalment income of beneficiary
45‑J How Commissioner works out your instalment rate and notional tax
45‑K How Commissioner works out your benchmark instalment rate and benchmark tax
45‑L How Commissioner works out amount of quarterly instalment on basis of GDP‑adjusted notional tax
45‑M How amount of quarterly instalment is worked out on basis of your estimate of your benchmark tax
45‑N How this Part applies to the trustee of a trust
45‑P Anti‑avoidance rules
45‑Q General rules for consolidated groups
45‑R Special rules for consolidated groups
45‑S MEC groups

Guide to Division 45

45‑1  What this Division is about

      If you have business or investment income, you must pay instalments towards your income tax liability. However, you do not have to do so unless the Commissioner has given you an instalment rate. Generally, instalments are payable for each quarter of your income year. Alternatively, instalments could be payable monthly or annually.
      Your instalments may be based on your previous year's income tax liability and notified to you by the Commissioner, or on your estimate of your income tax liability for the current income year. (In this case, you are a quarterly payer who pays on the basis of GDP adjusted notional tax). Generally, four quarterly instalments are payable annually on this basis, but you may only be required to pay two.
      If you are not eligible to pay instalments on that basis, or if you are so eligible but choose not to do so, you must work out the amount of your quarterly instalment by multiplying your instalment income for an instalment quarter by the rate the Commissioner gave you, or by a rate you choose yourself. (In this case, you are a quarterly payer who pays on the basis of instalment income).
      If your business or investment income exceeds a certain limit, you may have to pay an instalment after the end of each month. (In this case, you are a monthly payer).
      If you are not required to be registered for GST purposes, you may be able to choose to pay an annual instalment after the end of the income year. (In this case,