21KPart‑year adjustments

21K Part‑year adjustments

(1) This section applies in relation to a group at least one member of which paid or was liable to pay taxable wages or interstate wages for a continuous part of a financial year and no member of which paid or was liable to pay any such wages during the whole of that year. (2) In this section, group period, in relation to a group, in relation to a financial year, means a continuous part of a financial year for which at least one member of the group paid or was liable to pay taxable wages or interstate wages. (2A) This section does not apply in relation to a group period ending on or after the termination day. (3) A reference in this section to the total amount of tax paid or payable by the members of a group in respect of a group period in a financial year is a reference to the amount ascertained by applying the appropriate rate or rates of tax prescribed by the Pay‑roll Tax (Territories) Act 1971 to the amount calculated in accordance with the formula Image unavailable in extracted text where:

A is the total amount of the taxable wages paid or payable by the members of the group during that period; and

B is so much of the deductible amount in relation to the group in relation to the financial year as does not exceed the total amount of taxable wages paid or payable by the members of the group during the group period.

(4) A reference in this section to the actual amount of tax paid or payable in respect of a group period by the members of a group is a reference to the amount of tax referred to in section 10 that is payable by members of the group in respect of that period. (5) Where the actual amount of tax paid or payable in respect of a group period in a financial year by the members of a group exceeds the total amount of tax paid or payable by the members of that group in respect of that period, the Commissioner shall, upon application made before the end of the next succeeding financial year by the person who is the designated group employer in respect of the group at the end of the group period: (a) refund to the person the amount of the excess; or (b) apply the amount of the excess against any liability of the person to the Commonwealth, being a liability arising under, or by virtue of, this Act or any other Act of which the Commissioner has the general administration, and refund any part of the amount not so applied. (6) Where the total amount of tax paid or payable in respect of a group period in a financial year by the members of a group exceeds the actual amount of tax paid or payable in respect of that period by the members of the group: (a) the person who is the designated group employer in respect of that group at the end of the group period; and (b) the members of the group who paid, or were liable to pay, taxable wages during the group period; are jointly and severally liable to pay, in addition to tax referred to in section 10, tax equal to the amount of the excess, being tax in respect of those wages.