64APenalty for underestimating adjusted taxable income

64A Penalty for underestimating adjusted taxable income

(1) A parent is liable to pay the Registrar a penalty of the amount worked out under subsection (2) if: (a) the parent made an election under section 60 relating to a child support period; and (b) the total of the parent’s real remaining period adjusted taxable income is at least 110% of the amount the parent estimated at step 2 of the method statement in subsection 60(5) for the purposes of making the election. (2) The amount of the penalty is 10% of the difference between: (a) the administrative assessment of child support that would have been made if it were based entirely on the amount of adjusted taxable income in the election; and (b) the administrative assessment of child support made under section 64. (3) The penalty is due and payable upon the issue of the administrative assessment under section 64 and is a debt due to the Commonwealth. (4) The Registrar may remit the whole or a part of the penalty if: (a) paragraph (1)(b) applies because of an amendment of an Income Tax Assessment Act, or because of a ruling or determination under an Income Tax Assessment Act; or (b) paragraph (1)(b) applies for some other reason, and the Registrar is satisfied that it would be fair and reasonable in the circumstances to remit the whole or that part of the penalty. (5) If the Registrar makes a decision to remit only part of a penalty payable under this section, or not to remit any part of the penalty, the Registrar must serve written notice of the decision on the parent by whom the penalty is, or but for the remission would be, payable. (6) The notice must include, or be accompanied by, a statement to the effect: (a) that the parent may, subject to the Registration and Collection Act, object to the decision (the original decision); and (b) that if the parent is aggrieved by a later decision on an objection to the original decision, he or she may, subject to that Act, apply to the SSAT for review of the later decision. (7) A contravention of subsection (6) in relation to a decision does not affect the validity of the decision. (8) In this section:

real remaining period adjusted taxable income of a parent who made an election under section 60 has the meaning given by subsection 64(6).