9Payments of unattributed amounts — penalty is paid first

9 Payments of unattributed amounts – penalty is paid first

(1) This section applies if: (a) tax is payable by a person; and (b) the person did not pay the tax on the due day; and (c) penalty is payable by the person; and (d) the person pays an amount to the ACMA, on behalf of the Commonwealth; and (e) at the time the person paid the amount, the person did not specify whether the amount was attributable, in whole or in part, to the tax, the penalty, or both the tax and the penalty. (2) If, at the time the person pays the amount: (a) the amount is less than or equal to all the penalty payable in relation to the tax at that time – the payment is taken to be of the proportion of all that penalty equal to the amount; (b) if the amount is greater than all the penalty payable in relation to the tax at that time – the payment is taken to be of all that penalty and, to the extent the amount is greater than all that penalty, payment of the tax.

Note 1: Even if paragraph (b) applies, penalty may continue to become payable for each subsequent day that the whole of the tax remains unpaid.

Note 2: For overpayments of tax, see section 10B of the Act. For overpayments of penalty, see subsection 7A(1B) of the Act.