Division 3—What this Act is about

Table of sections

3-1 What this Act is about

3-5 Annual income tax

3-10 Your other obligations as a taxpayer

3-15 Your obligations other than as a taxpayer

3-1 What this Act is about

This Act is mainly about income tax, and this Division is concerned only with income tax.

However, this Act also deals with a variety of other topics that may affect you:

Item

For a guide to this topic:

See:

1.

Medicare levy

Division 785

2.

HECS (Higher Education Contribution Scheme)

Division 786

3.

Withholding taxes

 

 

· on dividends, interest and royalties

Division 765

 

· on payments for mining operations on Aboriginal land

Division 766

 

· on interest paid by companies on bearer debentures

Division 767

 

· on certain income notionally accruing under deferred interest investments

Division 768

3-5 Annual income tax

(1) Income tax is payable for each year by each individual and company, and by some other entities.

Note 1: Individuals who are Australian residents, and some trustees, are also liable to pay Medicare levy for each year. See Division 785.

Note 2: Income tax is imposed by the Income Tax Act 1986 and the other Acts referred to in the definition of income tax in section 995-1.

(2) Most entities have to pay instalments of income tax before the income tax they actually have to pay can be worked out.

(3) This Act answers these questions:

1. What instalments of income tax do you have to pay? When and how do you pay them?

See section 750-1.

2. How do you work out how much income tax you must pay?

See Division 4, starting at section 4-1.

3. What happens if your income tax is more than the instalments you have paid? When and how must you pay the rest?

See Division 1 (sections 204 to 220) of Part VI of the Income Tax Assessment Act 1936.

4. What happens if your income tax is less than the instalments you have paid? How do you get a refund?

See section 750-20.

5. What are your other obligations as a taxpayer, besides paying instalments and the rest of your income tax?

See section 3-10.

6. Do you have any other obligations under the income tax law?

See section 3-15.

7. If a dispute between you and the Commissioner of Taxation cannot be settled by agreement, what procedures for objection, review and appeal are available?

See Part IVC (sections 14ZL to 14ZZS) of the Taxation Administration Act 1953.

3-10 Your other obligations as a taxpayer

(1) Besides paying instalments and the rest of your income tax, your main obligations as a taxpayer are:

(a) to keep records and provide information as required by:

· the Income Tax Assessment Act 1936; and

· Division 900 (which sets out substantiation rules) of this Act; and

(b) to lodge returns as required by:

· the Income Tax Assessment Act 1936.

Tax file numbers

(2) Under Part VA of the Income Tax Assessment Act 1936, a tax file number can be issued to you. You are not obliged to apply for a tax file number. However, if you do not quote one in certain situations:

· you may become liable for instalments of income tax that would not otherwise have been payable;

· the amount of certain of your instalments of income tax may be increased.

3-15 Your obligations other than as a taxpayer

Your main obligations under the income tax law, other than as a taxpayer are:

· in certain situations, to deduct from money you owe to another person, and to remit to the Commissioner, instalments of income tax payable by that person.

See Part 4-5 (Collection of income tax instalments),
starting at section 750-1.

 

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