12ZFFS debt and accumulated FS debt

12ZF FS debt and accumulated FS debt

(1) If, at the end of the contract period in relation to a financial supplement contract between a participating corporation and another person, there was an amount outstanding under the contract, the person incurs on 1 June immediately following the end of that period a debt (FS debt) to the Commonwealth worked out using the formula: Start formula amount outstanding times indexation factor end formula where:

amount outstanding means the amount outstanding under the contract at the end of the contract period.

indexation factor means the factor calculated under subsection (6).

(2) If an FS debt or FS debts of a person that existed on 1 June in a year (the relevant date) are not, or do not include, an FS debt that existed on 1 June in the immediately preceding year, the person incurs on the relevant date an accumulated FS debt to the Commonwealth equal to that FS debt or the total of those FS debts. (3) If an FS debt or FS debts of a person that existed on 1 June in a year (the later date) are, or include, an FS debt or FS debts that existed on 1 June in the immediately preceding year (the earlier date), the person incurs on the later date an accumulated FS debt to the Commonwealth worked out using the formula: Start formula open bracket adjusted accumulated FS debt times indexation factor close bracket plus later FS debts end formula where:

adjusted accumulated FS debt means the adjusted accumulated FS debt at the earlier date.

indexation factor means the factor calculated under subsection (6).

later FS debts means any FS debt, or the total of any FS debts, of the person that did not exist on the earlier date.

Note: The formula in this subsection is modified for the purposes of working out the accumulated FS debt incurred by a person on 1 June 2025: see section 12ZFA.

(4) The reference in subsection (3) to the adjusted accumulated FS debt of a person at the earlier date is a reference to the amount worked out using the formula: Start formula accumulated FS debt minus open bracket FSA debts plus repayments plus increases in FSA debts minus reductions in FSA debts close bracket end formula where:

accumulated FS debt means the accumulated FS debt of the person at the earlier date.

FSA debts means the sum of:

(a) any FS assessment debt or FS assessment debts of the person assessed on or after the earlier date and before the later date excluding any such FS assessment debt assessed as a result of a return furnished before the earlier date; and
(b) any FS assessment debt or FS assessment debts of the person assessed on or after the later date as a result of a return furnished before the later date.