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Arrangement for payment of tax under Section 47 of the Taxation Administration Act, 1996 (deferred payment arrangement)

CPI-Adjusted Concessional Rate of Interest for Certain Premium Property Tax Liabilities

Ruling number	TAA 002
Date issued	1 July 1999
Issued by	JW Purcell Chief Commissioner of Stamp Duties
Effective from	1 January 1998
Effective to	-
Status	Current

The following guidelines relate to the exercise of the Chief Commissioner's discretion under s.47 of the Taxation Administration Act, 1996, to impose interest at an approved or concessional rate as a condition of an extension of time to pay a tax liability specifically, certain liabilities under the Premium Property Tax Act 1998 or the since repealed s.9(3) of the Land Tax Management Act, 1956.
The guidelines are effective as from 1 January, 1998.

The 1998 NSW Budget provided for a commitment to assist taxpayers who are pensioners or self-funded retirees and who may have difficulty in meeting a state taxation liability under the Premium Property Tax Act, 1998.
The Budget measures provided for a deferral of payment of a premium property tax liability at a concessional, inflation-adjusted rate of interest for holders of the following Commonwealth Concession Cards:
- Commonwealth Pensioner Concession Card, and
- Commonwealth Seniors Health Care Card
The concession is only intended to apply from the date that the taxpayer becomes eligible for the relevant concession card. Prior to the period of qualification the market rate of interest under the Taxation Administration Act, 1996 will be applied.
The taxpayer is required to confirm on an annual basis that he/she wishes the arrangement to continue.

The concessional interest rates for the 1998 and 1999 land tax years¹ are:
1998: 0.2%
1999: 1.2%
(Reference: Australian Bureau of Statistics, (Sydney) Consumer Price Index - 6401.1 December Quarter 1998 Table 1, Page 5)

The CPI Indexation Factor will be applied as a concessional rate of interest on the same basis as the interest rate under s.21 of the Taxation Administration Act 1996, is applied - that is, as an annual rate calculated daily, from the original due date for payment of the liability until the date of payment.

1998 Liability: Taxpayer entitled to Concessional Rate of Interest

Amount of Liability: $2,000.00

Original due date: 10 August, 1998

Deferment to: 10 August, 1999

11 August, 1998 to 28 February, 1999 (202 days) @ 0.2%
202/365 X 0.2% X $2,000 = $2.21
1 March, 1999 to 10 August, 1999 (163 days) @ 1.2%
163/365 X 1.2% X $2,000 = $10.72
Total Debt 10 August 1998 - 10 August 1999
Land Tax liability $2,000.00
Interest @ 0.2% 2.21
Interest @ 1.2% 10.72
Total $2,012.93