{"id":"F2024L00171","name":"Taxation Administration (Additional Method for Working Out the Amount of Monthly Instalment Liabilities) Determination 2024","slug":"taxation-administration-additional-method-for-working-out-the-amount-of-monthly-instalment-liabiliti","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":442272,"registerId":"F2024L00171-fast-fetch-1775957328315","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Taxation Administration (Additional Method for Working Out the Amount of Monthly Instalment Liabilities) Determination 2024","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n \n\n \n\nTaxation Administration (Additional Method for Working Out the Amount of Monthly Instalment Liabilities) Determination 2024\n\nI, Ben Kelly, Deputy Commissioner of Taxation, make the following determination.\n\nDated 24 January 2024\n\nBen Kelly\n\nDeputy Commissioner of Taxation\n\n \n\n \n\n \n\nContents\n\n1 Name\n\n2 Commencement\n\n3 Authority\n\n4 Definitions\n\n5 Schedules\n\n6 Circumstances where you may use the additional method\n\n7 Additional method\n\n8 Circumstances where you must not use the additional method\n\nSchedule 1—Repeals\n\nAdditional method of working out the amount of monthly instalment liabilities in accordance with the Taxation Administration Act 1953\n\n \n\n \n\n1 Name\n\n This instrument is the Taxation Administration (Additional Method for Working Out the Amount of Monthly Instalment Liabilities) Determination 2024.\n\n2 Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument The day after this instrument is registered.\n\n\nNote: This table relates only to the provisions of this determination as originally made. It will not be amended to deal with any later amendments of this determination.\n\n (2) Any information in column 3 of the table is not part of this determination. Information may be inserted in this column, or information in it may be edited, in any published version of this determination.\n\n3 Authority\n\n This instrument is made under section 45-114 in Schedule 1 to the Act.\n\n4 Definitions\n\nNote: A number of expressions used in this instrument have the same meaning as in Schedule 1 to the Act. Expressions in Schedule 1 to the Act have the same meaning as in the Income Tax Assessment Act 1997 (see section 3AA of the Act). The following expressions are relevantly defined in section 995-1 of the Income Tax Assessment Act 1997:\n\n(a) instalment income;\n\n(b) instalment month;\n\n(c) instalment quarter;\n\n(d) monthly payer;\n\n(e) consolidated group.\n\n In this instrument:\n\nAct means the Taxation Administration Act 1953.\n\nmonthly instalment means the amount of an instalment you are liable to pay for an instalment month.\n\n5 Schedules\n\n Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.\n\n6 Circumstances where you may use the additional method\n\n (1) Subject to section 8, if you are a monthly payer at the end of the first instalment month of an instalment quarter, you may choose to apply the additional method specified in section 7 to work out the amount of the instalment you are liable to pay for that instalment month.\n\n (2) If you choose to apply the additional method for the first instalment month of an instalment quarter under subsection 6(1), you are taken to have chosen that method for every other instalment month in that instalment quarter (provided you are a monthly payer at the end of each of those months).\n\n (3) If you choose not to apply the additional method for the first instalment month of an instalment quarter under subsection 6(1), you must not use the additional method for any other instalment month in that instalment quarter.\n\nNote 1: In these circumstances, you must use the method in subsection 45-114(1) in Schedule 1 to the Act to work out the amount of the instalment you are liable to pay for every instalment month in the instalment quarter (if you are a monthly payer at the end of each of those months).\n\nNote 2: You are not required to notify the Commissioner of the choice you have made under this section.\n\n7 Additional method\n\n (1) For the first and second instalment months of the instalment quarter, multiply the applicable instalment rate by a reasonable estimate of your instalment income for the instalment month.\n\n (2) For the third instalment month of the instalment quarter:\n\n (a) apply the following method statement:\n\n| Step 1 – add the estimated instalment income you used in calculating your monthly instalment for the first and second instalment months of the instalment quarter.
Step 2 – subtract the result of step 1 from your actual instalment income for the instalment quarter.
Step 3 – multiply the applicable instalment rate by the result of step 2. |\n| --- |\n\n\n \n\n (b) if the amount of the instalment you have worked out applying the method statement in paragraph (a) is less than zero:\n\n (i) your instalment income for the third instalment month is taken to be zero; and\n\n (ii) you can revise your instalment income for the previous instalment months of the instalment quarter in the approved form, starting with the second instalment month.\n\n8 Circumstances where you must not use the additional method\n\n If the Commissioner notifies you in writing that you have not used the additional method in accordance with this instrument, you must use the method specified in subsection 45‑114(1) in Schedule 1 to the Act (rather than the additional method) to work out your monthly instalments:\n\n (a) for the period specified in the notice; or\n\n (b) if no period is specified in the notice, until the Commissioner provides you with another notice that says you can use the additional method.\n\nSchedule 1—Repeals\n\nAdditional method of working out the amount of monthly instalment liabilities in accordance with the Taxation Administration Act 1953\n\n1 The whole of the instrument\n\nRepeal the instrument\n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"This instrument expressly repeals the whole of the prior additional-method instrument (Schedule 1—Repeals) and re-establishes the alternative monthly-instalment calculation rules set out here. The instrument therefore changes the statutory instruments in force; the source text does not include the prior instrument’s wording, so whether the substantive operational scope differs from that earlier instrument cannot be determined from this instrument alone."},"complexity_factors":["Cross-references to Schedule 1 of the Taxation Administration Act 1953 and defined terms in the Income Tax Assessment Act 1997 (definitions needed to apply the method).","Estimation and reconciliation mechanics across a three-month instalment quarter (different rules for months 1–2 and month 3).","Conditional election mechanism: choice must be made at the end of the first instalment month and, if chosen, applies to the whole instalment quarter (subsections 6(1)–(3)).","Administrative requirement to make revisions in an approved form when certain negative reconciliations occur (section 7(2)(b)(ii)).","Commissioner discretion to prohibit use of the additional method by written notice, switching taxpayers back to the s45‑114(1) method for a specified or indefinite period (section 8).","Repeal of an earlier instrument via Schedule 1, which raises a transition/interpretation consideration absent the prior text."],"plain_english_summary":"This determination lets a monthly payer use an alternative calculation for monthly instalment liabilities for an instalment quarter: estimate instalment income for months 1–2 and reconcile month 3 against the quarter’s actual instalment income, with rules for negative reconciliations and limited revision rights. The Commissioner may require the standard method instead if the additional method is not used in accordance with the instrument. It affects any monthly payer (including consolidated groups) who opts in, altering reporting timing, estimation incentives and modest compliance duties."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This is a straightforward remake of an existing legislative instrument (the previous 'Additional method of working out the amount of monthly instalment liabilities' is repealed in Schedule 1). The scope remains limited to providing an optional computational method for monthly PAYG instalments and does not expand beyond this specific administrative purpose."},"complexity_factors":["Cross-references to multiple Acts: requires understanding of the Taxation Administration Act 1953 (Schedule 1, section 45-114) and the Income Tax Assessment Act 1997 (section 995-1 definitions)","Defined terms imported by reference: 'instalment income', 'instalment month', 'instalment quarter', 'monthly payer', and 'consolidated group' are not defined in this instrument but rely on external statutory definitions","Conditional logic with lock-in effects: subsection 6(2) creates an automatic deemed choice for subsequent months; subsection 6(3) creates a prohibition based on an earlier negative choice","Method statement with computational steps in section 7(2)(a) requiring sequential calculation","Nested conditional in section 7(2)(b): negative result triggers both a deemed zero income and a revision right for previous months","Commissioner discretion in section 8 allowing written notice to override the method, with alternative timing triggers (specified period vs indefinite until further notice)"],"plain_english_summary":"This determination creates an optional method for monthly PAYG instalment payers—typically larger businesses—to estimate income for months 1 and 2 of a quarter and then true up in month 3 by paying the balance of the quarter’s actual tax. You must adopt it in month 1 (which binds you for that quarter), it’s self-assessed, the ATO can disallow misuse, and it replaces the prior instrument. It’s intended to ease monthly cash‑flow and administrative burdens."}},"importantCases":[],"_links":{"self":"/api/acts/taxation-administration-additional-method-for-working-out-the-amount-of-monthly-instalment-liabiliti","history":"/api/acts/taxation-administration-additional-method-for-working-out-the-amount-of-monthly-instalment-liabiliti/history","analysis":"/api/acts/taxation-administration-additional-method-for-working-out-the-amount-of-monthly-instalment-liabiliti/analysis","conflicts":"/api/acts/taxation-administration-additional-method-for-working-out-the-amount-of-monthly-instalment-liabiliti/conflicts","importantCases":"/api/acts/taxation-administration-additional-method-for-working-out-the-amount-of-monthly-instalment-liabiliti/important-cases","documents":"/api/acts/taxation-administration-additional-method-for-working-out-the-amount-of-monthly-instalment-liabiliti/documents"}}