A New Tax System (Pay As You Go) Act 1999 (Cth)
This compilation was prepared on 8 October 2010
taking into account amendments up to Act No. 75 of 2010
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra
Contents
This Act may be cited as the
A New Tax System (Pay As You Go) Act 1999 .
(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.
(1A) Items 6, 8 and 72 to 78 of Schedule 1 commence, or are taken to have commenced, on 1 July 2000.
(2) Items 70 and 71 of Schedule 1 to this Act commence, or are taken to have commenced, immediately before the commencement of Schedule 1 to the
A New Tax System (Goods and Services Tax Administration) Act 1999 .
Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Insert in Part I:
(1) Schedule 1 has effect.
Application of interpretation provisions of Income Tax Assessment Act 1997
(2) An expression has the same meaning in Schedule 1 as in the
Income Tax Assessment Act 1997 .(3) Division 950 of the
Income Tax Assessment Act 1997 (which contains rules for interpreting that Act) applies to Schedule 1 to this Act as if the provisions in that Schedule were provisions of that Act.
Application of provisions of Income Tax Assessment Act 1936
(4) Section 264B of the
Income Tax Assessment Act 1936 (about signature or electronic signature for notices etc. given to the Commissioner) applies to Schedule 1 to this Act as if the provisions in that Schedule were provisions of that Act.
Add:
Note: See section 3AA.
To help taxpayers meet their annual income tax liability, they are required to pay amounts of their income at regular intervals as it is earned during the year. The system for collecting these amounts is called “Pay as you go”.
Amounts collected under this system also go towards meeting liability for Medicare levy and liability to repay contributions under the Higher Education Contribution Scheme (HECS).
6‑5 The Pay as you go (PAYG) system
6‑10 How the amounts collected are dealt with
(1) Parts 2‑5 and 2‑10 establish the PAYG system, which has 2 components:
• PAYG withholding (Part 2‑5)
• PAYG instalments (Part 2‑10).
PAYG withholding
(2) Under PAYG withholding, amounts are collected in respect of particular kinds of payments or transactions. Usually, someone who makes a payment to you is required to
withhold an amount from the payment, and then to pay the amount to the Commissioner.For a list of the payments and other transactions to which
PAYG withholding applies, see Division 10
PAYG instalments
(3) You pay PAYG instalments directly to the Commissioner. These are usually based on your ordinary income for a past period, but excluding:
• income subject to PAYG withholding (with certain exceptions)
• exempt income, or income that is otherwise not assessable.
An instalment is usually paid after each quarter, but some taxpayers are eligible to pay an annual instalment after the end of the income year.
You are entitled to credits for the amounts of your income that are collected under the PAYG system. The credits are applied under Division 3 of Part IIB against your tax debts, and any excess is refunded to you.
Under PAYG withholding, amounts are collected in respect of particular kinds of payments or transactions. Usually, someone who makes a payment to you is required to
withhold an amount from the payment, and then to pay the amount to the Commissioner.If a non‑cash benefit is provided instead of a payment, the provider must first pay to the Commissioner the amount that would have been withheld from the payment.
This Part also contains provisions about the obligations and rights of payers and recipients.
The payments and other transactions covered by PAYG withholding are called withholding payments. They are summarised in the table.
Note: The obligation to pay an amount to the Commissioner is imposed on the entity making the withholding payment (except for items 17, 19 and 22).
1 | A payment of salary etc. to an employee | 12‑35 |
1 | A payment of remuneration to the director of a company | 12‑40 |
2 | A payment of salary etc. to an office holder (e.g. a member of the Defence Force) | 12‑45 |
3 | A return to work payment to an individual | 12‑50 |
4 | A payment that is covered by a voluntary agreement | 12‑55 |
5 | A payment under a labour hire arrangement or a payment specified by regulations | 12‑60 |
6 | A payment of pension or annuity | 12‑80 |
7 | An eligible termination payment | 12‑85 |
8 | A payment for unused leave on an individual’s retirement or termination of employment | 12‑90 |
9 | A social security or similar payment (e.g. old age pension) | 12‑110 |
10 | A Commonwealth education or training payment | 12‑115 |
11 | A compensation, sickness or accident payment | 12‑120 |
12 | A payment arising from an investment where the recipient does not quote its tax file number, or in some cases, its ABN | 12‑140 |
13 | Investor becoming presently entitled to income of a unit trust | 12‑145 |
14 | A payment for a supply where the recipient of the payment does not quote its ABN | 12‑190 |
15 | A dividend payment to an overseas person | 12‑210 |
16 | A dividend payment received for a foreign resident | 12‑215 |
17 | An interest payment to an overseas person | 12‑245 |
18 | An interest payment received for a foreign resident | 12‑250 |
19 | An interest payment derived by a lender in carrying on business through overseas permanent establishment | 12‑255 |
20 | A royalty payment to an overseas person | 12‑280 |
21 | A royalty payment received for a foreign resident | 12‑285 |
22 | A mining payment | 12‑320 |
23 | A natural resource payment | 12‑325 |
11‑1 Object of this Part
11‑5 Constructive payment
The object of this Part is to ensure the efficient collection of:
(a) income tax; and
(b) Medicare levy; and
(c) amounts of liabilities to the Commonwealth under Chapter 5A of the
Higher Education Funding Act 1988 ; and(d) *withholding tax; and
(e) *mining withholding tax.
(1) In working out whether an entity has paid an amount to another entity, and when the payment is made, the amount is taken to have been paid to the other entity when the first entity applies or deals with the amount in any way on the other’s behalf or as the other directs.
(2) An amount is taken to be payable by an entity to another entity if the first entity is required to apply or deal with it in any way on the other’s behalf or as the other directs.
12‑A General rules
12‑B Payments for work and services
12‑C Retirement payments, eligible termination payments and annuities
12‑D Benefit and compensation payments
12‑E Payments where TFN or ABN not quoted
12‑F Dividend, interest and royalty payments
12‑G Payments in respect of mining on Aboriginal land, and natural resources
12‑1 General exceptions
12‑5 What to do if more than one provision requires a withholding
12‑10 Division does not apply to non‑cash benefits
12‑15 Amounts to be expressed in Australian currency
Exempt income of recipient
(1) An entity need not withhold an amount under section 12‑35, 12‑40, 12‑45, 12‑50, 12‑55, 12‑60, 12‑80, 12‑90, 12‑120 or 12‑190 from a payment if the whole of the payment is *exempt income of the entity receiving the payment.
Living‑away‑from‑home allowance benefit
(2) In working out how much to withhold under section 12‑35, 12‑40, 12‑45, 12‑115 or 12‑120 from a payment, disregard so much of the payment as is a living‑away‑from‑home allowance benefit as defined by section 136 of the
Fringe Benefits Tax Assessment Act 1986 .
Expense payment benefit
(3) In working out how much to withhold under section 12‑35, 12‑40, 12‑45, 12‑115 or 12‑120 from a payment, disregard so much of the payment as:
(a) is an expense payment benefit as defined by section 136 of the
Fringe Benefits Tax Assessment Act 1986 ; and(b) is
not an exempt benefit under section 22 of that Act (about reimbursement of car expenses on the basis of distance travelled).
(1) If more than one provision in this Division covers a payment, only one amount is to be withheld from the payment.
(2) The provision to apply is the one that is most specific to the circumstances of the payment. However, this general rule is subject to the specific rules in the table.
1 | section 12‑35, 12‑40, 12‑45 or 12‑50 | a payment for work or services | section 12‑60 (payment under a labour hire arrangement or specified by regulations); or section 12‑190 (payment for a supply where recipient does not quote its ABN) |
2 | section 12‑80, 12‑85 or 12‑90 | a retirement payment, an eligible termination payment or an annuity | section 12‑60 (payment under a labour hire arrangement or specified by regulations); or section 12‑190 (payment for a supply where recipient does not quote its ABN) |
3 | section 12‑110, 12‑115 or 12‑120 | a payment of benefit or compensation | section 12‑60 (payment under a labour hire arrangement or specified by regulations); or section 12‑190 (payment for a supply where recipient does not quote its ABN) |
4 | section 12‑60 | a payment under a labour hire arrangement or specified by regulations | section 12‑190 (payment for a supply where recipient does not quote its ABN) |
5 | section 12‑140 or 12‑145 | a payment arising from investment where the recipient does not quote tax file number | section 12‑210, 12‑215, 12‑245, 12‑250 or 12‑255 (payment of a dividend or interest) |
6 | section 12‑280 or 12‑285 | a payment of royalty | section 12‑325 (natural resource payment) |
Note: Some provisions of this Division clearly do not cover a payment covered by some other provisions. For example:
· Section 12‑55 (about voluntary agreements) covers a payment only if no other provision requires the payer to withhold an amount from the payment.
This Division does not apply to a payment in so far as it consists of providing a *non‑cash benefit.
Note: If a non‑cash benefit is provided in circumstances where a payment would give rise to a withholding obligation, the provider must pay an amount to the Commissioner: see Division 14.
The amount that this Division requires to be withheld from a payment made in foreign currency:
(a) is to be expressed in Australian currency; and
(b) is to be worked out on the basis of the exchange rate applicable when the amount is required to be withheld under this Division.
12‑35 Payment to employee
12‑40 Payment to company director
12‑45 Payment to office holder
12‑50 Return to work payment
12‑55 Voluntary agreement to withhold
12‑60 Payment under labour hire arrangement, or specified by regulations
An entity must withhold an amount from salary, wages, commission, bonuses or allowances it pays to an individual as an employee (whether of that or another entity).
For exceptions, see section 12‑1.
A company must withhold an amount from a payment of remuneration it makes to an individual:
(a) if the company is incorporated—as a director of the company, or as a person who performs the duties of a director of the company; or
(b) if the company is not incorporated—as a member of the committee of management of the company, or as a person who performs the duties of such a member.
For exceptions, see section 12‑1.
(1) An entity must withhold an amount from salary, wages, commission, bonuses or allowances it pays to an individual as:
(a) a member of an *Australian legislature; or
(b) a person who holds, or performs the duties of, an appointment, office or position under the Constitution or an *Australian law; or
(c) a member of the Defence Force, or of a police force of the Commonwealth, a State or a Territory; or
(d) a person who is otherwise in the service of the Commonwealth, a State or a Territory; or
(e) a member of a local governing body to which subsection (3) applies.
For exceptions, see subsection (2) and section 12‑1.
(2) This section does not require an amount to be withheld from a payment to an individual as a member of a local governing body established by or under a *State law or *Territory law unless subsection (3) applies to the body.
(3) This subsection applies to a local governing body established by or under a *State law or *Territory law if:
(a) the body has unanimously resolved that it be treated as an eligible local governing body for the purposes of Division 2 of Part VI of the
Income Tax Assessment Act 1936 , or of this Division; and(b) that body has not unanimously resolved to cancel the resolution.
For rules about such resolutions, see section 221B of
the
Income Tax Assessment Act 1936 .
An entity must withhold an amount from a payment it makes to an individual if the payment is included in the individual’s assessable income under section 15‑3 of the
Income Tax Assessment Act 1997 (return to work payments).For exceptions, see section 12‑1.
(1) An entity must withhold an amount from a payment it makes to an individual if:
(a) the payment is made under an *arrangement the performance of which, in whole or in part, involves the performance of work or services (whether or not by the individual); and
(b) no other provision of this Division requires the entity to withhold an amount from the payment; and
(c) the entity and the individual are parties to an agreement (the
voluntary agreement ) that is in the *approved form and states that this section covers payments under the arrangement mentioned in paragraph (a), or under a series of such arrangements that includes that arrangement; and(d) the individual has an *ABN that is in force and is *quoted in that agreement.
For exceptions, see section 12‑1.
(2) Each party must keep a copy of the voluntary agreement from when it is made until 5 years after the making of the last payment covered by the agreement.
Penalty: 30 penalty units.
Note: See section 4AA of the
Crimes Act 1914 for the current value of a penalty unit.(3) A party to the voluntary agreement may terminate it at any time by notifying the other party in writing.
An entity that carries on an *enterprise must withhold an amount from a payment that it makes to an individual in the course or furtherance of the enterprise if:
(a) the payment is made under an *arrangement the performance of which, in whole or in part, involves the performance of work or services by the individual for a client of the entity; or
(b) the payment is, in whole or in part, for work or services and is of a kind prescribed by the regulations.
For exceptions, see section 12‑1.
12‑80 Payment of pension or annuity
12‑85 Eligible termination payment
12‑90 Payment for unused leave
An entity must withhold an amount from a payment it makes to an individual if the payment is:
(a) a pension within the meaning of the
Superannuation Industry (Supervision) Act 1993 or theRetirement Savings Account Act 1997 ; or(b) an annuity within the meaning of the
Superannuation Industry (Supervision) Act 1993 .For exceptions, see section 12‑1.
An entity must withhold an amount from an *eligible termination payment it makes to an individual.
An entity must withhold an amount from a payment it makes to an individual if the payment is included in the individual’s assessable income under:
(a) section 26AC (payment for unused annual leave); or
(b) section 26AD (payment for unused long service leave);
of the
Income Tax Assessment Act 1936 .For exceptions, see section 12‑1.
12‑110 Social Security or other benefit payment
12‑115 Commonwealth education or training payment
12‑120 Compensation, sickness or accident payment
(1) An entity must withhold an amount from a payment it makes to an individual if the payment is specified in:
(a) an item of the table in section 52‑10 of the
Income Tax Assessment Act 1997 (Social Security payments); or(b) an item of the table in section 52‑65 of that Act (Veterans’ Affairs payments); or
(c) section 52‑105, 53‑10, 55‑5 or 55‑10 of that Act.
Note: Payments specified in those provisions of the
Income Tax Assessment Act 1997 are made under various Commonwealth laws. (2) In working out the amount to be withheld, disregard so much of the payment as is *exempt income of the individual.
(1) An entity must withhold an amount from a *Commonwealth education or training payment it makes to an individual.
For exceptions, see subsection (2) and section 12‑1.
(2) In working out the amount to be withheld, disregard so much of the payment as is *exempt income of the individual.
An entity must withhold an amount from a payment of compensation, or of sickness or accident pay, it makes to an individual if the payment:
(a) is made because of that or another individual’s incapacity for work; and
(b) is calculated at a periodical rate; and
(c) is not a payment made under an insurance policy to the policy owner.
For exceptions, see section 12‑1.
Payment in respect of investment 12‑140 Recipient does not quote tax file number
12‑145 Investor becoming presently entitled to income of a unit trust
12‑150 Limited application of section 12‑140 to payment under eligible deferred interest investment
12‑155 When investor may quote ABN as alternative
12‑160 Investment body unaware that exemption from quoting TFN has stopped applying
12‑165 Exception for fully franked dividend
12‑170 Exception for payments below thresholds set by regulations
Payment for a supply 12‑190 Recipient does not quote ABN
(1) An *investment body must withhold an amount from a payment it makes to another entity in respect of a *Part VA investment if:
(a) all or some of the payment is *ordinary income or *statutory income of the other entity; and
(b) if the investment is non‑transferable—the other entity did not *quote its *tax file number in connection with the investment before the time when the payment became payable; and
(c) if the investment is transferable—the other entity did not quote its tax file number in connection with the investment before the time when the other entity had to be registered with the investment body as the *investor to be entitled to the payment.
Payment in respect of units in a trust or investment‑related betting chance
(2) If a *Part VA investment consists of:
(a) units in a unit trust (as defined in section 202A of the
Income Tax Assessment Act 1936 ); or(b) an investment‑related betting chance;
an entity (including the *investment body) must withhold an amount from a payment it makes to another entity in respect of the investment if the conditions in subsection (1) of this section are met.
For exceptions to the rules in this section, see sections 12‑155 to 12‑170.
(1) This section applies if:
(a) a *Part VA investment consists of units in a unit trust (as defined in section 202A of the
Income Tax Assessment Act 1936 ); and(b) the *investor becomes presently entitled, for the purposes of Division 6 of Part III of the
Income Tax Assessment Act 1936 , to a share of income of the trust at a time (theentitlement time ) before any of that share is paid to the investor.(2) The entity (including the *investment body) that would have to pay that share to the *investor if the share were due and payable at the entitlement time must withhold from the share, at that time, the amount (if any) that subsection 12‑140(2) would have required it to withhold if it had paid the share to the investor at that time.
For exceptions to the rules in this section, see sections 12‑155 to 12‑170.
(3) This Part (except section 12‑140 and this section) applies as if that entity had paid that share to the *investor at the entitlement time.
(4) If that entity withholds an amount from that share as required by subsection (2), subsection 12‑140(2) does not require an amount to be withheld from a payment of all or part of that share to the *investor.
Section 12‑140 applies to a payment in respect of an eligible deferred interest investment (as defined in subsection 221YHZA(1) of the
Income Tax Assessment Act 1936 ) only to the extent that is covered by one or both of these paragraphs:
(a) so much of the payment as consists of a periodic interest payment (within the meaning of Division 16E of Part III of that Act);
(b) if the payment became payable at the end of the term (within the meaning of Division 16E of Part III of that Act) of the investment—so much of the payment as does
not exceed what section 159GQ of that Act would include in the *investor’s assessable income for the income year in which that term ended if the adoption (under section 18 of that Act) of an accounting period ending on a day other than 30 June were disregarded for the purposes of this paragraph and that Division.Note: To the extent that section 12‑140 does not apply to the payment, TFN withholding tax may be payable on it. See Subdivision C of Division 3B of Part VI of the
Income Tax Assessment Act 1936 .
Section 12‑140 or 12‑145 does not require an amount to be withheld if:
(a) the other entity made the investment in the course or furtherance of an *enterprise carried on by it; and
(b) the other entity has an *ABN, and has *quoted it to the investment body, by the time referred to in paragraph 12‑140(1)(b) or (c).
Section 12‑140 or 12‑145 does not require an amount to be withheld if:
(a) a provision of Division 5 of Part VA of the
Income Tax Assessment Act 1936 has applied to the other entity in relation to the investment, but no longer applies when the payment is made; and(b) when the payment is made, the *investment body has not been informed of anything that resulted in the provision no longer applying.
Note: Division 5 of Part VA of that Act provides, in certain cases, that even though an entity has not quoted its tax file number it is taken to have done so.
Section 12‑140 does not require an amount to be withheld if:
(a) the investment consists of *shares in a public company (as defined in section 202A of the
Income Tax Assessment Act 1936 ); and(b) the payment is a *dividend that has been franked in accordance with section 160AQF of the
Income Tax Assessment Act 1936 ; and(c) the franking percentage (within the meaning of section 160APA of that Act) for the dividend is 100%.
(1) Section 12‑140 or 12‑145 does not require an amount to be withheld if the payment is less than the amount worked out under the regulations.
(2) Regulations made for the purposes of this section may deal differently with different payments.
(1) An entity (the
payer ) must withhold an amount from a payment it makes to another entity if:
(a) the payment is for a *supply that the other entity has made, or proposes to make, to the payer in the course or furtherance of an *enterprise *carried on in Australia by the other entity; and
(b) none of the exceptions in this section applies.
ABN correctly quoted
(2) The payer need not withhold an amount under this section if, when the payment is made:
(a) the other entity has given the payer an *invoice that relates to the supply and *quotes the other entity’s *ABN; or
(b) the payer has some other document relating to the supply on which the other entity’s ABN is *quoted.
Payer has no reason to believe that ABN has been incorrectly quoted
(3) The payer also need not withhold an amount under this section if, when the payment is made:
(a) the other entity has given the payer an *invoice that relates to the supply and purports to *quote the other entity’s *ABN, or the payer has some other document that relates to the supply and purports to *quote the other entity’s ABN; and
(b) the other entity does not have an ABN, or the invoice or other document does not in fact quote the other entity’s ABN; and
(c) the payer has no reasonable grounds to believe that the other entity does not have an ABN, or that the invoice or other document does not quote the other entity’s ABN.
No need to quote ABN
(4) The payer need not withhold an amount under this section if:
(a) the payer is an individual and the payment is, for the payer, wholly of a private or domestic nature; or
(b) the payment does not exceed $50 or such higher amount as is specified in regulations in force for the purposes of subsection 29‑80(1) of the *GST Act; or
(c) the supply is made in the course or furtherance of an activity, or series of activities, done as a member of a local governing body established by or under a *State law or *Territory law.
(5) The payer need not withhold an amount under this section if the payment:
(a) is covered by section 12‑140 or 12‑145 (about not quoting *tax file number in respect of an investment in respect of which the payment is made); or
(b) would be covered by section 12‑140 or 12‑145 if the other entity had not quoted as mentioned in subsection 12‑140(1) or section 12‑155; or
(c) would be covered by section 12‑140 or 12‑145 apart from section 12‑160, 12‑165 or 12‑170 (which are exceptions to sections 12‑140 and 12‑145).
(6) The payer need not withhold an amount under this section if, when the payment is made:
(a) the other entity is an individual and has given the payer a written statement to the effect that:
(i) the supply is made in the course or furtherance of an activity, or series of activities, done as a private recreational pursuit or hobby; or
(ii) the supply is, for the other entity, wholly of a private or domestic nature; and
(b) the payer has no reasonable grounds to believe that the statement is false or misleading in a material particular.
Dividends 12‑210 Dividend payment to overseas person
12‑215 Dividend payment received for foreign resident
12‑220 Application to part of a dividend
12‑225 Application to distribution by a liquidator or other person
Interest 12‑245 Interest payment to overseas person
12‑250 Interest payment received for foreign resident
12‑255 Interest payment derived by lender in carrying on business through overseas permanent establishment
12‑260 Lender to notify borrower if interest derived through overseas permanent establishment
Royalties 12‑280 Royalty payment to overseas person
12‑285 Royalty payment received for foreign resident
General 12‑300 Limits on amount withheld under this Subdivision
A company that is an Australian resident must withhold an amount from a *dividend it pays if:
(a) according to the register of the company’s members, the entity, or any of the entities, holding the *shares on which the dividend is paid has an address outside Australia; or
(b) that entity, or any of those entities, has authorised or directed the company to pay the dividend to an entity or entities at a place outside Australia.
For limits on the amount to be withheld, see section 12‑300.
Immediately after receiving a payment of a *dividend of a company that is an Australian resident, an entity must withhold an amount from the dividend if:
(a) the entity is a person in Australia or an *Australian government agency; and
(b) a foreign resident is entitled:
(i) to receive the dividend or part of it from the entity, or to receive the amount of the dividend or of part of it from the entity; or
(ii) to have the entity credit to the foreign resident, or otherwise deal with on the foreign resident’s behalf or as the foreign resident directs, the dividend or part of it, or the amount of the dividend or of part of it.
For limits on the amount to be withheld, see section 12‑300.
This Part applies to a part of a *dividend in the same way as to a dividend.
This Part applies to a distribution that section 47 of the
Income Tax Assessment Act 1936 treats as a *dividend paid by a company, in the same way as this Part applies to a dividend paid by the company, and as if the liquidator or other person making the distribution were the company.
An entity must withhold an amount from interest (within the meaning of Division 11A of Part III of the
Income Tax Assessment Act 1936 ) it pays to an entity, or to entities jointly, if:
(a) the recipient or any of the recipients has an address outside Australia according to any record that is in the payer’s possession, or is kept or maintained on the payer’s behalf, about the transaction to which the interest relates; or
(b) the payer is authorised to pay the interest at a place outside Australia (whether to the recipient or any of the recipients or to anyone else).
For limits on the amount to be withheld, see section 12‑300.
Immediately after receiving a payment of interest (within the meaning of Division 11A of Part III of the
Income Tax Assessment Act 1936 ), an entity must withhold an amount from the payment if:
(a) the entity is a person in Australia or an *Australian government agency; and
(b) a foreign resident is entitled:
(i) to receive the interest or part of it from the entity, or to receive the amount of the interest or of part of it from the entity; or
(ii) to have the entity credit to the foreign resident, or otherwise deal with on the foreign resident’s behalf or as the foreign resident directs, the interest or part of it, or the amount of the interest or of part of it.
For limits on the amount to be withheld, see section 12‑300.
An entity must withhold an amount from interest (within the meaning of Division 11A of Part III of the
Income Tax Assessment Act 1936 ) it pays if it has been notified:
(a) under section 12‑260 of this Act that this section applies to the interest; or
(b) under subsection 221YL(2E) of the
Income Tax Assessment Act 1936 that that subsection applies to the interest.For limits on the amount to be withheld, see section 12‑300.
(1) If:
(a) interest (within the meaning of Division 11A of Part III of the
Income Tax Assessment Act 1936 ) is payable to:
(i) an entity that is, or entities at least one of whom is, an Australian resident; or
(ii) an *Australian government agency; and
(b) the entity liable to pay the interest is authorised to pay it at a place in Australia (whether to any of those entities or the agency, or to anyone else); and
(c) the interest is or will be *derived by any of those entities or the agency in carrying on business in a country outside Australia at or through a *permanent establishment it has in that country;
those entities, or the agency, must notify the entity liable to pay the interest that section 12‑255 applies to the interest.
(2) The notice must be given in writing, before the entities, or the agency, enter into the transaction in relation to which the interest is payable, or within one month afterwards.
(3) Immediately after giving the notice, those entities, or the agency, must notify the Commissioner of:
(a) the particulars of the transaction (including the dates on which interest is payable under it); and
(b) the day when the notice was given to the entity liable to pay the interest.
Failure to comply with this section may contravene section 8C of this Act.
An entity must withhold an amount from a *royalty it pays to an entity, or to entities jointly, if:
(a) the recipient or any of the recipients has an address outside Australia according to any record that is in the payer’s possession, or is kept or maintained on the payer’s behalf, about the transaction to which the royalty relates; or
(b) the payer is authorised to pay the royalty at a place outside Australia (whether to the recipient or any of the recipients or to anyone else).
For limits on the amount to be withheld, see section 12‑300.
Immediately after receiving a payment of a *royalty, an entity must withhold an amount from the royalty if:
(a) the entity is a person in Australia or an *Australian government agency; and
(b) a foreign resident is entitled:
(i) to receive the royalty or part of it from the entity, or to receive the amount of the royalty or of part of it from the entity; or
(ii) to have the entity credit to the foreign resident, or otherwise deal with on the foreign resident’s behalf or as the foreign resident directs, the royalty or part of it, or the amount of the royalty or of part of it.
For limits on the amount to be withheld, see section 12‑300.
This Subdivision does not require an entity:
(a) to withhold an amount from a *dividend, from interest (within the meaning of Division 11A of Part III of the
Income Tax Assessment Act 1936 ) or from a *royalty if no *withholding tax is payable in respect of the dividend, interest or royalty; or(b) to withhold from a dividend, from interest (within the meaning of that Division) or from a royalty more than the withholding tax payable in respect of the dividend, interest or royalty (reduced by each amount already withheld from it under this Subdivision).
Note: Section 128B of the
Income Tax Assessment Act 1936 deals with withholding tax liability.
Mining on Aboriginal land 12‑320 Mining payment
Natural resources 12‑325 Natural resource payment
12‑330 Payer must ask Commissioner how much to withhold
12‑335 Commissioner may exempt from section 12‑330, subject to conditions
(1) An entity must withhold an amount from a *mining payment that:
(a) it makes to another entity; or
(b) it applies for the benefit of another entity.
(2) Subsection (1) does not require the entity:
(a) to withhold an amount if no *mining withholding tax is payable in respect of the *mining payment; or
(b) to withhold more than the mining withholding tax payable in respect of the mining payment.
Note: Section 128V of the
Income Tax Assessment Act 1936 deals with mining withholding tax liability.
(1) An entity must withhold an amount from a payment it makes to a foreign resident, or to 2 or more entities at least one of which is a foreign resident, if the payment is worked out wholly or partly by reference to the value or quantity of *natural resources produced or recovered in Australia.
(2) The amount to be withheld is:
(a) the amount notified by the Commissioner under section 12‑330; or
(b) the amount worked out under a certificate in force under section 12‑335 that covers the payment;
as appropriate.
Exception
(3) Subsection (1) does not apply if:
(a) the Commissioner has notified the entity under section 12‑330 that the entity does not need to withhold an amount from the payment; or
(b) a certificate in force under section 12‑335 covers the payment and does not require the entity to withhold an amount from it.
(1) An entity must not, intentionally or recklessly, make a payment from which section 12‑325 requires it to withhold an amount, unless:
(a) the entity has notified the Commissioner in writing of the amount of the proposed payment; and
(b) the Commissioner has later notified the entity in writing of the amount (if any) that the entity must withhold from the payment in respect of tax that is or may become payable by a foreign resident to whom the payment is made;
or the payment is covered by a certificate in force under section 12‑335.
Penalty: 20 penalty units.
Note: See section 4AA of the
Crimes Act 1914 for the current value of a penalty unit.
Failure to notify not an offence against section 8C
(2) An entity that fails to notify the Commissioner as required by subsection (1) does not commit an offence against section 8C.
(1) The Commissioner may give an entity a written certificate exempting the entity from complying with section 12‑330 for specified payments.
(2) A certificate is subject to:
(a) a condition that the entity must withhold from a payment covered by the certificate the amount (if any) worked out in accordance with the certificate in respect of tax that is or may become payable by a foreign resident to whom the payment is made; and
(b) such other conditions as the certificate specifies.
However, the entity does not contravene subsection 12‑330(1) because it contravenes a condition.
(3) The Commissioner may, by written notice given to the entity:
(a) revoke a certificate, whether or not a condition of it has been contravened; or
(b) vary a certificate by revoking, changing or adding to its conditions.
Note: A person who is dissatisfied with a decision under this section may object against the decision in the manner set out in Part IVC.
[The next Division is Division 14.]
14‑1 Object of this Division
14‑5 Provider of non‑cash benefit must pay amount to the Commissioner if payment would be subject to withholding
14‑10 Dividend, interest or royalty received, for a foreign resident, in the form of a non‑cash benefit
14‑15 Payer can recover amount paid to the Commissioner
The object of this Division is:
(a) to put entities that provide *non‑cash benefits, and entities that receive them, in a position similar to their position under Division 12 if payments of money had been made instead of the non‑cash benefits being provided; and
(b) in that way, to prevent entities from avoiding their obligations under Division 12 by providing non‑cash benefits.
(1) An entity (the
payer ) must pay an amount to the Commissioner before providing a *non‑cash benefit to another entity (therecipient ) if Division 12 would require the payer to withhold an amount (thenotionally withheld amount ) if, instead of providing the benefit to the recipient, the payer made a payment to the recipient in money equal to the *market value of the benefit when the benefit is provided.(2) The amount to be paid to the Commissioner is equal to the notionally withheld amount.
Example: Nick is a building contractor who has entered into a voluntary agreement with Mike for the purposes of section 12‑55. Nick proposes to give Mike his old utility van (whose market value is $1,000) as payment for work Mike has done for him over a fortnight.
If Nick were instead to pay Mike $1,000, Nick would have had to withhold $203 under Division 12 (in accordance with withholding rates current at the time).
This section requires Nick to pay $203 to the Commissioner before giving the van to Mike.
(3) This section does not apply to providing:
(a) a *fringe benefit; or
(b) a benefit that is an exempt benefit under the
Fringe Benefits Tax Assessment Act 1986 ; or(c) a benefit that would be an exempt benefit under that Act if paragraphs (d) and (e) of the definition of
employer in subsection 136(1) of that Act were omitted; or(d) a benefit constituted by the acquisition of a share or right under an employee share scheme (within the meaning of Division 13A of Part III of the
Income Tax Assessment Act 1936 ).
If:
(a) an entity (the
payer ) receives in the form of a *non‑cash benefit:
(i) a *dividend of a company; or
(ii) interest (within the meaning of Division 11A of Part III of the
Income Tax Assessment Act 1936 ); or(iii) a *royalty; and
(b) section 12‑215, 12‑250 or 12‑285 would have required the payer to withhold an amount if the dividend, interest or royalty had been a payment in money;
the payer must pay that amount to the Commissioner before providing the benefit (or part of it) to another entity.
(1) The payer may recover from the recipient as a debt an amount that the payer has paid to the Commissioner under section 14‑5.
(2) If the payer has paid an amount to the Commissioner under section 14‑10, the payer may:
(a) if the payer has provided all of the benefit to another entity— recover the amount from that other entity as a debt; or
(b) if the payer has provided a part of the benefit to another entity—recover from that other entity as a debt the corresponding proportion of the amount paid to the Commissioner.
(3) If the payer can recover an amount from another entity under this section, the payer is entitled to set the amount off against debts due by the payer to the other entity.
[The next Division is Division 16.]
Guide to Division 16
16‑A To withhold
16‑B To pay withheld amounts to the Commissioner
16‑C To provide information
16‑D Additional rights and obligations of entity that makes a dividend, interest or royalty payment
This Division sets out the obligations and rights of an entity required to withhold an amount under Division 12, or to pay an amount to the Commissioner under Division 14.
Note: The entity may also have obligations under other legislation. See, for example, the obligation to keep records under section 262A of the
Income Tax Assessment Act 1936 .
When and how much to withhold 16‑5 When to withhold an amount
16‑10 How much to withhold
16‑15 Variation of amounts required to be withheld
16‑20 Payer discharged from liability to recipient for amount withheld
Penalties for not withholding 16‑25 Failure to withhold: offence
16‑30 Failure to withhold: civil penalty for entity other than exempt Australian government agency
16‑35 Failure to withhold: civil penalty for exempt Australian government agency in relation to payment other than dividend, interest or royalty
16‑40 Failure to withhold: civil penalty for exempt Australian government agency in relation to dividend, interest or royalty payment
16‑45 Remission of penalty under section 16‑30, 16‑35 or 16‑40
16‑50 General interest charge on unpaid penalty
If Division 12 requires an entity to withhold an amount from a payment, the entity must do so when making the payment.
Note 1: An entity is required to withhold an amount under section 12‑145 when an investor becomes presently entitled to income of a unit trust.
Note 2: If section 12‑215, 12‑250 or 12‑285 requires an entity to withhold an amount from a payment received by the entity, the entity must do so immediately after receiving the payment.
(1) The amount that Division 12 requires to be withheld from a payment (except one covered by section 12‑325) is to be worked out under the regulations.
(2) Regulations made for the purposes of this section may deal differently with different payments.
Note: The Commissioner may vary an amount required to be withheld. See section 16‑15.
(1) The Commissioner may, for the purposes of meeting the special circumstances of a particular case or class of cases, vary the *amount required to be withheld by an entity from a *withholding payment (except a withholding payment covered by section 12‑140 or 12‑145). If the Commissioner does so, the amount is varied accordingly.
Note: Section 12‑140 is about a payment arising from an investment where the recipient does not quote its tax file number (or, in some cases, its ABN). Section 12‑145 is about an investor becoming presently entitled to income of a unit trust.
(2) The Commissioner’s power to vary an amount includes the power to reduce the amount to nil.
(3) A variation must be made by a written notice:
(a) if it applies to a particular entity— that is given to that entity; or
(b) if it applies to a class of entities—that is given to each of the entities, or a copy of which is published in the
Gazette .
An entity that:
(a) withholds an amount as required by Division 12; or
(b) pays to the Commissioner an amount as required by Division 14;
is discharged from all liability to pay or account for that amount to any entity except the Commissioner.
Note: The entity may be required to refund the amount in some circumstances. See Subdivision 18‑B.
(1) An entity must not fail to withhold an amount as required by Division 12.
Penalty: 10 penalty units.
Note 1: See section 4AA of the
Crimes Act 1914 for the current value of a penalty unit.Note 2: See sections 16‑30, 16‑35 and 16‑40 for an alternative civil penalty.
(2) An entity must not fail to pay to the Commissioner an amount as required by Division 14.
Penalty: 10 penalty units.
Note 1: See section 4AA of the
Crimes Act 1914 for the current value of a penalty unit.Note 2: See sections 16‑30, 16‑35 and 16‑40 for an alternative civil penalty.
(3) An offence against subsection (1) or (2) is a strict liability offence.
(4) If a person is convicted of an offence in relation to:
(a) a failure by that person or someone else to withhold an amount as required by Division 12; or
(b) a failure by that person or someone else to pay to the Commissioner an amount as required by Division 14;
the court may order the convicted person to pay to the Commissioner an amount up to the *amount required to be withheld. The court may so order in addition to imposing a penalty on the convicted person.
(1) An entity (except an *exempt Australian government agency) that:
(a) fails to withhold an amount as required by Division 12; or
(b) fails to pay an amount to the Commissioner as required by Division 14;
is liable to pay to the Commissioner a penalty (the
penalty amount ) equal to that amount.
(2) The penalty amount is due at the time when the entity would have had to pay to the Commissioner the amount referred to in subsection (1).
Note: An entity may become liable under this section in respect of a payment it made or received that is taken to have been subject to withholding tax as a result of a Commissioner’s determination under subsection 177F(2A) of the
Income Tax Assessment Act 1936 (see also subsection 177F(2F) of that Act).
(1) An *exempt Australian government agency that:
(a) fails to withhold an amount as required by Division 12; or
(b) fails to pay to the Commissioner an amount as required by Division 14;
is liable to pay to the Commissioner a penalty of 20 penalty units.
Note: See section 4AA of the
Crimes Act 1914 for the current value of a penalty unit.
(2) The Commissioner must give written notice to the agency about its liability under this section. The notice may be included in any other notice the Commissioner gives to the agency.
(3) The penalty becomes due for payment on the day specified in the notice, which must be at least 14 days after the notice is given to the agency.
Exception
(4) This section does not apply in relation to an *amount required to be withheld from a *withholding payment covered by Subdivision 12‑F (about dividend, interest or royalty payment).
(1) An *exempt Australian government agency that:
(a) fails to withhold an amount as required by Division 12 from a *withholding payment covered by Subdivision 12‑F (about dividend, interest or royalty payment); or
(b) fails to pay to the Commissioner an amount as required by Division 14 in respect of a withholding payment covered by that Subdivision;
is liable to pay to the Commissioner a penalty (the
penalty amount ) equal to that amount.
(2) The penalty amount is due at the time when the entity would have had to pay to the Commissioner the *amount required to be withheld.
Note: An entity may become liable under this section in respect of a payment it made or received that is taken to have been subject to withholding tax as a result of a Commissioner’s determination under subsection 177F(2A) of the
Income Tax Assessment Act 1936 (see also subsection 177F(2F) of that Act).
(1) The Commissioner may remit all or a part of a penalty under section 16‑30, 16‑35 or 16‑40.
(2) If the Commissioner decides:
(a) to remit only part of a penalty; or
(b) not to remit any part of a penalty;
the Commissioner must give written notice of the decision to the entity liable to pay the penalty.
Note: A person who is dissatisfied with a decision under this section may object against the decision in the manner set out in Part IVC.
If a penalty under section 16‑30, 16‑35 or 16‑40 remains unpaid after it is due, the entity liable to pay the penalty amount is liable to pay *general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the penalty amount was due to be paid; and
(b) finishes at the end of the last day, at the end of which, any of the following remains unpaid:
(i) the penalty amount;
(ii) general interest charge on any of the penalty amount.
When and how to pay amounts to the Commissioner 16‑70 Entity to pay amounts to Commissioner
16‑75 When amounts must be paid to Commissioner
16‑80 Penalty for failure to pay within time
16‑85 How amounts are to be paid
16‑90 Large withholder—penalty for non‑electronic payment
Who is a large, medium or small withholder 16‑95 Meaning of
large withholder 16‑100 Meaning of
medium withholder 16‑105 Meaning of
small withholder 16‑110 Commissioner may vary withholder’s status downwards
16‑115 Commissioner may vary withholder’s status upwards
Special rules for 2000‑01 16‑120 When certain amounts must be paid to the Commissioner
16‑125 Meaning of
large withholder 16‑130 When and how some large withholders must pay amounts for July and August 2000
16‑135 Meaning of
medium withholder
(1) An entity that withholds an amount under Division 12 must pay the amount to the Commissioner in accordance with this Subdivision.
(2) An entity required to pay an amount to the Commissioner under Division 14 must pay that amount to the Commissioner in accordance with this Subdivision (except sections 16‑75 and 16‑80).
Large withholder
(1) A *large withholder must pay to the Commissioner as shown in the table an amount it withholds under Division 12 during a month.
1 | Saturday or Sunday | The second Monday after that day |
2 | Monday or Tuesday | The first Monday after that day |
3 | Wednesday | The second Thursday after that day |
4 | Thursday or Friday | The first Thursday after that day |
Note: A different rule applies for certain kinds of amounts withheld during 2000‑01. See section 16‑120.
Medium withholders
(2) A *medium withholder must pay to the Commissioner an amount that it withholds during a month under Division 12 by the end of the 21st day of the next month.
Small withholders
(3) If a *small withholder withholds an amount under Division 12 during a month in a *quarter, it must pay the amount to the Commissioner by the end of the 21st day of the month after the end of that quarter.
Note: A different rule applies for certain kinds of amounts withheld during 2000‑01. See section 16‑120.
If an amount that an entity must pay to the Commissioner under subsection 16‑70(1) remains unpaid after the time by which it is due to be paid, the entity is liable to pay *general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the unpaid amount was due to be paid; and
(b) finishes at the end of the last day, at the end of which, any of the following remains unpaid:
(i) the unpaid amount;
(ii) general interest charge on any of the unpaid amount.
Large withholder
(1) A *large withholder must pay to the Commissioner by a means of *electronic payment:
(a) an amount that it withholds under Division 12; and
(b) an amount that it pays to the Commissioner under Division 14.
Note: A different rule applies for some large withholders for July and August 2000. See section 16‑130.
Medium or small withholder
(2) A *medium withholder or *small withholder must pay to the Commissioner:
(a) any amount that it withholds under Division 12; and
(b) any amount that it pays to the Commissioner under Division 14;
by a means of *electronic payment, or any other means approved in writing by the Commissioner.
Commissioner may vary payment method
(3) The Commissioner may, with an entity’s agreement, vary the means by which the withholder pays amounts to the Commissioner under this Subdivision. The variation must be by written notice given to the entity.
(1) A *large withholder that pays an amount by a means that does not comply with this Division is liable to a penalty of 5 penalty units.
Note: See section 4AA of the
Crimes Act 1914 for the current value of a penalty unit.
Remission
(2) However, the Commissioner may remit all or a part of the penalty amount.
(3) If the Commissioner decides:
(a) to remit only part of a penalty amount; or
(b) not to remit any part of a penalty amount;
the Commissioner must give written notice of the decision to the entity liable to pay the penalty amount.
Note: A person who is dissatisfied with a decision under this section may object against the decision in the manner set out in Part IVC.
(4) The Commissioner must give written notice to the *large withholder about its liability under this section. The notice may be included in any other notice the Commissioner gives to the large withholder.
(5) The penalty becomes due for payment on the day specified in the notice, which must be at least 14 days after the notice is given to the *large withholder.
General interest charge
(6) If any of the penalty remains unpaid after it is due, the *large withholder is liable to pay the *general interest charge on the unpaid penalty amount for each day in the period that:
(a) started at the beginning of the day by which the penalty amount was due to be paid; and
(b) finishes at the end of the last day, at the end of which, any of the following remains unpaid:
(i) the penalty amount;
(ii) general interest charge on any of the penalty amount.
Exception
(7) This section does not apply if:
(a) the *large withholder is an *exempt Australian government agency; or
(b) the Commissioner has varied under section 16‑85 the means by which the large withholder pays amounts to the Commissioner.
(1) An entity is a
large withholder for a particular month (thecurrent month ) in a *financial year starting on or after 1 July 2001 if:
(a) it was a *large withholder for June 2001 because of section 16‑125; or
(b) the *amounts withheld by the entity during a financial year ending at least 2 months before the current month exceeded $1 million; or
(c) both of the following apply:
(i) at the end of a financial year (the
threshold year ) ending at least 2 months before the current month, the entity was one of a number of companies that were at that time all members of the same *wholly‑owned group;(ii) the amounts withheld by those companies during the threshold year exceeded $1 million; or
(d) the Commissioner determines under section 16‑115 that the entity is a large withholder for the current month.
Note: Different rules apply for working out who is a large withholder for a month in 2000‑01. See section 16‑125.
Exception
(2) However, the entity is not a *large withholder if the Commissioner determines under section 16‑110 that it is a *medium withholder or a *small withholder for the current month.
(1) An entity is a
medium withholder for a particular month (thecurrent month ) in a *financial year starting on or after 1 July 2001 if it is not a *large withholder for that month and:
(a) it was a *medium withholder for June 2001 because of section 16‑135; or
(b) the *amounts withheld by the entity during a financial year ending before the current month exceeded $25,000; or
(c) the Commissioner determines under section 16‑110 or 16‑115 that the entity is a medium withholder for the current month.
Note: Different rules apply for working out who is a large withholder for a month in 2000‑01. See section 16‑125.
(2) However, the entity is not a *medium withholder if the Commissioner determines under section 16‑110 or 16‑115 that the entity is a *large withholder or a *small withholder for the current month.
An entity is a
small withholder for a particular month if:
(a) there is at least one *amount withheld by the entity during that month; and
(b) the entity is neither a *large withholder nor a *medium withholder for that month.
(1) The Commissioner may, by giving written notice to a *withholder:
(a) make the following determinations:
(i) a determination that a *large withholder is a *medium withholder or a *small withholder;
(ii) a determination that a medium withholder is a small withholder; or
(b) revoke or vary any such determination.
(2) The notice must state that the determination applies:
(a) for specified months; or
(b) for all months from and including a specified month.
(3) The determination has no effect for a particular month unless the notice is given before that month.
(4) An entity that would otherwise be a *large withholder or a *medium withholder for a particular month may apply in writing to the Commissioner for a determination under this section.
Note: A person who is dissatisfied with a decision under this section may object against the decision in the manner set out in Part IVC.
(1) The Commissioner may, by giving written notice to a *withholder:
(a) make the following determinations:
(i) a determination that a *small withholder is a *medium withholder or a *large withholder;
(ii) a determination that a medium withholder is a large withholder; or
(b) revoke or vary any such determination.
(2) The notice must state that the determination applies:
(a) for specified months; or
(b) for all months from and including a specified month.
(3) A determination that a *small withholder is a *medium withholder has no effect for a particular month unless the notice is given before that month.
(4) Any other determination under this section has no effect for a month that is earlier than the second month after the month in which the notice is given.
(5) The Commissioner may, in making a determination under this section, have regard to the following:
(a) the sum of the amounts that the Commissioner considers to be likely to be the *amounts required to be withheld by the entity in the following 12 months;
(b) the extent (if any) to which the entity makes or receives *withholding payments that were previously made or received by another entity;
(c) any failure by the entity to comply with its obligations under this Part;
(d) any *arrangement that was entered into or carried out for the purpose of lengthening the intervals at which the entity is required to pay to the Commissioner amounts withheld from withholding payments;
(e) such other matters as the Commissioner considers relevant.
Note: A person who is dissatisfied with a decision under this section may object against the decision in the manner set out in Part IVC.
If an entity withholds an amount under a provision listed in the table during a month in the *financial year starting on 1 July 2000, it must pay the amount to the Commissioner by the end of the 21st day of the next month.
1 | Section 12‑140 | Payment arising from investment: recipient does not quote tax file number |
2 | Section 12‑145 | Investor becoming presently entitled to income of a unit trust |
3 | Section 12‑210 | Dividend payment to overseas person |
4 | Section 12‑215 | Dividend payment received for a foreign resident |
5 | Section 12‑245 | Interest payment to overseas person |
6 | Section 12‑250 | Interest payment received for a foreign resident |
7 | Section 12‑255 | Interest payment derived by lender in carrying on business through overseas permanent establishment |
8 | Section 12‑280 | Royalty payment to overseas person |
9 | Section 12‑285 | Royalty payment received for a foreign resident |
10 | Section 12‑320 | Mining payment |
11 | Section 12‑325 | Natural resource payment |
(1) An entity is a
large withholder for a particular month (thecurrent month ) in the *financial year starting on 1 July 2000 if:
(a) the entity was a large remitter in relation to June 2000 because of section 220AAB of the
Income Tax Assessment Act 1936 ; or(b) the total of the deductions that the entity made under Division 2 of Part VI of that Act for the financial year ending on 30 June 2000 exceeded $1 million; or
(c) the total of the entity’s *labour hire notional withheld amounts (see subsections (2) to (4)) exceed $1 million; or
(d) at the end of 30 June 2000 the entity was included in a company group as defined in section 220AAI of that Act, and:
(i) the total of the deductions under Division 2 of Part VI of that Act, for the financial year ending on that day, made by the entities that were included in that company group at the end of that day, exceeded $1 million; or
(ii) the total of the labour hire notional withheld amounts (see subsections (2) to (4)) of entities that were included in that company group at the end of that day exceed $1 million; or
(e) the Commissioner determines under section 16‑115 that the entity is a large withholder for the current month.
Meaning of labour hire notional withheld amount
(2) If during the *financial year ending on 30 June 2000 an entity made a payment from which section 12‑60 (about payments under labour hire arrangements) would have required it to withhold an amount (if that section had applied to payments made during that financial year), that amount is a
labour hire notional withheld amount of the entity.(3) If:
(a) during the *financial year ending on 30 June 2000 an entity provided a *non‑cash benefit to an individual; and
(b) section 12‑60 (about payments under labour hire arrangements) would have required the entity to withhold an amount if:
(i) instead of providing the benefit, the entity had paid the individual the *market value of the benefit; and
(ii) that section had applied to payments made during that financial year;
that amount is a
labour hire notional withheld amount of the entity.
(4) For the purposes of subsections (2) and (3), disregard paragraph 12‑60(b) (which allows the scope of section 12‑60 to be extended by regulations).
Exception
(5) However, an entity is not a *large withholder for a month if the Commissioner determines under section 16‑110 that it is a *medium withholder or a *small withholder for that month.
(1) This section applies to an entity that is a *large withholder for July or August 2000 (otherwise than because of paragraph 16‑125(1)(a)).
(2) The entity must pay to the Commissioner an amount that it withholds during that month under Division 12 by the end of the 21st day after the end of that month.
(3) The entity must pay to the Commissioner:
(a) any amount that it withholds under Division 12 during that month; and
(b) any amount that it pays to the Commissioner under Division 14 during that month;
by a means of *electronic payment, or any other means approved in writing by the Commissioner.
(1) An entity is a
medium withholder for a particular month (thecurrent month ) in the *financial year starting on 1 July 2000 if the entity is not a *large withholder for that month and:
(a) the entity:
(i) was a medium remitter in relation to June 2000 because of section 220AAJ of the
Income Tax Assessment Act 1936 ; and(ii) would still have been a medium remitter in relation to June 2000 because of that section if the only deductions taken into account under that section were deductions made under Division 2 of Part VI of that Act; or
(b) the total of the deductions that the entity made under Division 2 of Part VI of that Act for the *financial year ending on 30 June 2000 exceeded $25,000; or
(c) the Commissioner determines under section 16‑110 or 16‑115 that the entity is a medium withholder for the current month.
(2) However, the entity is not a *medium withholder if the Commissioner determines under section 16‑110 or 16‑115 that the entity is a *large withholder or a *small withholder for the current month.
To the Commissioner 16‑150 Commissioner must be notified of amounts
To recipients of withholding payments 16‑155 Annual payment summary
16‑160 Part‑year payment summary
16‑165 Payment summary for eligible termination payment
16‑170 Form and content of payment summary
16‑175 Penalty for not providing payment summary
(1) An entity that must pay an amount to the Commissioner under:
(a) subsection 16‑70(1) (about amounts withheld under Division 12); or
(b) Division 14 (about payments in respect of non‑cash benefits);
must notify the Commissioner of the amount on or before the day on which the amount is due to be paid (regardless of whether it is paid). The notification must be in the *approved form and lodged with the Commissioner.
(2) If the entity fails to do so, or notifies the Commissioner of an amount that is less than the correct amount, the entity is liable to pay the *failure to notify penalty on the amount, or on the amount of the shortfall, for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be paid; and
(b) finishes at the end of the day before the Commissioner receives notification from the entity, or otherwise becomes aware, of the correct amount.
(1) Within 14 days after the end of a *financial year, an entity (the
payer ) must give a *payment summary (and a copy of it) to another entity (therecipient ) if:
(a) during the year the payer made one or more *withholding payments (other than withholding payments covered by section 12‑85, 12‑215, 12‑250 or 12‑285) to the recipient; or
(b) during the year the payer received one or more withholding payments covered by section 12‑215, 12‑250 or 12‑285 and, in relation to each of them, the recipient is the foreign resident mentioned in the section; or
(c) the recipient is an individual and has a *reportable fringe benefits amount, for the income year ending at the end of that financial year, in respect of his or her employment (within the meaning of the
Fringe Benefits Tax Assessment Act 1986 ) by the payer.(2) The *payment summary must cover:
(a) if paragraph (1)(a) or (b) applies—each of the *withholding payments mentioned in that paragraph, except one covered by a previous payment summary (and a copy of it) given by the payer to the recipient under section 16‑160; and
(b) if paragraph (1)(c) applies—the *reportable fringe benefits amount, except so much of it as is covered by a previous payment summary (and a copy of it) given by the payer to the recipient under this section.
(1) An entity (the
payer ) must give a *payment summary (and a copy of it) to another entity (therecipient ) if, not later than 21 days before the end of a *financial year, the recipient asks in writing for a payment summary covering:
(a) one or more *withholding payments (other than withholding payments covered by section 12‑85, 12‑215, 12‑250 or 12‑285) that the payer made to the recipient during the year; or
(b) one or more withholding payments covered by section 12‑215, 12‑250 or 12‑285, or a part of each such payment, that the payer received during the year for the recipient, if the recipient is the foreign resident mentioned in the section;
other than a payment covered by a previous payment summary (and a copy of it) given under this section.
(2) The payer must comply with the request within 14 days after receiving it, unless the recipient is an individual and has a *reportable fringe benefits amount, for the income year ending at the end of that *financial year, in respect of his or her employment (within the meaning of the
Fringe Benefits Tax Assessment Act 1986 ) by the payer.
Within 14 days after an entity (the
payer ) makes a *withholding payment covered by section 12‑85 (about *eligible termination payments) to another entity (therecipient ), the payer must give the recipient a *payment summary (and a copy of it) that covers that payment. (The summary must cover only that payment.)
(1) A
payment summary is a written statement that:
(a) names the payer and the recipient; and
(b) if the recipient has given the recipient’s *tax file number or *ABN to the payer—states the tax file number or ABN; and
(c) states the total of the *withholding payments (if any) that it covers, and the total of the *amounts withheld by the payer from those withholding payments; and
(d) specifies the *financial year in which the withholding payments were made; and
(e) specifies the *reportable fringe benefits amount (if any) that it covers and the income year to which that amount relates; and
(f) includes other information that the Commissioner requires to be included in the payment summary.
(2) The Commissioner may, in writing, require particular information to be included in a *payment summary or a class of payment summaries.
(3) A *payment summary may consist of 2 or more statements that each complies with subsection (1) and together cover what section 16‑155, 16‑160 or 16‑165 (as appropriate) requires the payment summary to cover.
(4) The Commissioner may vary any requirements under subsection (1), (2) or (3) by written notice given to an entity. The Commissioner may do so in such instances and to such extent as the Commissioner thinks fit.
An entity must not fail to comply with any requirements under section 16‑155, 16‑160 or 16‑165, or subsection 16‑170(1), (2) or (3) (including any requirements varied by the Commissioner under subsection 16‑170(4)).
Penalty: 20 penalty units.
Note: See section 4AA of the
Crimes Act 1914 for the current value of a penalty unit.
16‑195 Payer’s right to recover amounts of penalty: withholding tax and mining withholding tax
16‑200 Payer’s liability and right: additional withholding tax
An entity that has paid an amount of penalty under section 16‑30, 16‑35 or 16‑40 for a *withholding payment covered by:
(a) Subdivision 12‑F (about a dividend, interest or royalty payment); or
(b) section 12‑320 (about a mining payment);
may recover an amount equal to the amount of penalty from the person liable to pay the *withholding tax, or *mining withholding tax, for the withholding payment.
Note Sections 16‑30, 16‑35 and 16‑40 provide for a civil penalty for failing to comply with Division 12 or 14.
Penalty
(1) An entity that is required:
(a) to withhold an amount from a *withholding payment covered by Subdivision 12‑F (about dividend, interest or royalty payment); or
(b) to pay to the Commissioner an amount under Division 14 for a withholding payment covered by that Subdivision;
must pay to the Commissioner an amount of penalty equal to the amount of penalty that a taxpayer is liable to pay under subsection 226(1A) of the
Income Tax Assessment Act 1936 in relation to that withholding payment.Note: Subsection 226(1A) of the
Income Tax Assessment Act 1936 requires a taxpayer to pay additional withholding tax following a calculation of the taxpayer’s withholding tax liability that takes into account determinations made under subsection 177F(2A) of that Act.
(2) The amount is due at the time when the taxpayer becomes liable to pay the penalty.
(3) If the entity pays the amount to the Commissioner, it may recover an amount equal to that amount from the taxpayer.
General interest charge
(4) If any of the amount payable by the entity under this section remains unpaid after it is due, the entity is liable to pay *general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be paid; and
(b) finishes at the end of the last day, at the end of which, any of the following remains unpaid:
(i) the amount;
(ii) general interest charge on any of the amount.
[The next Division is Division 18.]
18‑A Crediting withheld amounts against liability for income tax, withholding tax or mining withholding tax
18‑B Refund of certain withheld amounts
18‑C Recipient’s obligations
In general, an entity:
• that receives a withholding payment (except one covered by section 12‑215, 12‑250 or 12‑285); or
• that is the foreign resident for which a withholding payment covered by section 12‑215, 12‑250 or 12‑285 (or a part of it) is received;
is entitled to a credit for the amount withheld from the withholding payment.
However, if that entity is a partnership or trust, a partner, beneficiary or trustee may be entitled to the credit.
This Subdivision tells you:
• who is entitled to a credit; and
• how to work out the amount of the credit.
How a credit is applied is set out in Division 3 of Part IIB.
General exception 18‑5 No credit for refunded amount
Entitlement to credits: income tax liability 18‑10 Application of sections 18‑15, 18‑20 and 18‑25
18‑15 Tax credit for recipient of withholding payments
18‑20 Tax credit where recipient is a partnership
18‑25 Tax credit where recipient is a trust
Entitlement to credits: dividend, interest or royalty 18‑30 Credit: dividend, interest or royalty
18‑35 Credit: penalty under section 16‑30 or 16‑40 or related general interest charge
18‑40 Credit: liability under section 16‑200
Entitlement to credit: mining payment 18‑45 Credit—mining payment
[This is the end of the Guide.]
A person is
not entitled to a credit under this Subdivision for an *amount withheld from a *withholding payment to the extent that the amount must be refunded under Subdivision 18‑B.
The rules set out in sections 18‑15, 18‑20 and 18‑25 do
not apply to an *amount withheld from a *withholding payment that is covered by Subdivision 12‑F (about dividend, interest or royalties) or section 12‑320 (about mining payments).
A person is entitled to a credit equal to the total of the *amounts withheld from *withholding payments made to the person during an income year if:
(a) an assessment has been made of the income tax payable by the person for the income year; or
(b) the Commissioner is satisfied that no income tax is payable by the person for the income year.
(1) A person is entitled to a credit in respect of *amounts withheld from *withholding payments made to a partnership during an income year if:
(a) the person has an individual interest in the net income or partnership loss of the partnership for that income year that is wholly or partly attributable to those withholding payments; and
(b) the *income tax return of the partnership for the income year has been lodged with the Commissioner; and
(c) either an assessment has been made of the tax payable by the person for the income year, or the Commissioner is satisfied that no tax is payable.
(2) The amount of the credit is worked out using the formula:
where:
amounts withheld means the sum of the *amounts withheld from the *withholding payments.
individual interest means so much of the individual interest of the partner as is attributable to the *withholding payments.
net income/partnership loss means so much of the net income or partnership loss for that income year as is attributable to the *withholding payments.
(1) A person is entitled under subsection (2), (4), (6) or (8) to a credit in respect of *amounts withheld (the
amounts withheld ) from *withholding payments made to the trustee of a trust during an income year.
Trust—section 97
(2) A beneficiary of the trust is entitled to a credit if:
(a) an amount is included in the assessable income of the beneficiary under section 97 of the
Income Tax Assessment Act 1936 in respect of a share of the net income of the trust; and(b) the share is wholly or partly attributable to the *withholding payments; and
(c) either an assessment has been made of the tax payable by the beneficiary for the income year, or the Commissioner is satisfied that no tax is payable.
Repeal the subsections.
Omit “170, 172, 174”, substitute “204”.
Omit “the general interest charge”, substitute “a penalty”.
Repeal the note.
Repeal the section, substitute:
(1) A large remitter that pays an amount other than by electronic transfer is liable to a penalty of the greater of:
(a) $500; or
(b) assuming that the general interest charge applied to the amount that was paid other than by electronic transfer—an amount equal to the general interest charge that would be payable for each day in a period of 7 days starting at the beginning of the day on which the payment became due.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .(2) However, the Commissioner may remit some or all of the penalty.
(3) The penalty becomes due for payment on the day the payment was made.
(4) If any of the penalty remains unpaid after the time by which it is due to be paid, the large remitter is liable to pay the general interest charge on the unpaid penalty amount for each day in the period that:
(a) started at the beginning of the day by which the penalty amount was due to be paid; and
(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:
(i) the penalty amount;
(ii) general interest charge on any of the penalty amount.
(5) This section does not apply to an exempt Australian government agency (as defined in subsection 995‑1(1) of the
Income Tax Assessment Act 1997 ).
Omit “220AAX(5)”, substitute “220AAW(2)”.
Add “The credit arises when the Commissioner makes an assessment of the income tax payable by the taxpayer or determines that no income tax is payable.”
Add:
(3) A person who is dissatisfied with a decision of the Commissioner under subsection (1) in relation to the person may object against it in the manner set out in Part IVC of the
Taxation Administration Act 1953 .
Add:
(3) If any of the additional tax payable under this section remains unpaid after the last day for which it is payable, the taxpayer is liable to pay the general interest charge on the unpaid additional tax for each day in the period that:
(a) started at the beginning of the next day; and
(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:
(i) the additional tax;
(ii) general interest charge on any of the additional tax.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Insert:
(1AAA) A person who deducts, or purports to deduct, under subsection 221YHZC(1), an amount from a payment to a non‑resident must pay the amount to the Commissioner within 14 days after the end of the month in which the person makes the payment to the non‑resident.
After “Penalty”, insert “for a contravention of this subsection”.
Omit “subsection (1)”, substitute “subsection (1AAA)”.
Omit “a provision of this Act”, substitute “section 163AA, section 170AA, subsection 204(3), subsection 221AZMAA(1), subsection 221AZP(1), subsection 221YD(3) or section 221YDB”.
Omit “a provision of this Act”, substitute “section 163AA, section 170AA, subsection 204(3), subsection 221AZMAA(1), subsection 221AZP(1), subsection 221YD(3) or section 221YDB”.
Omit “a provision of this Act”, substitute “section 163AA, section 170AA, subsection 204(3), subsection 221AZMAA(1), subsection 221AZP(1), subsection 221YD(3) or section 221YDB”.
Omit “a provision of this Act”, substitute “section 163AA, section 170AA, subsection 204(3), subsection 221AZMAA(1), subsection 221AZP(1), subsection 221YD(3) or section 221YDB”.
Omit “a provision of this Act”, substitute “section 163AA, section 170AA, subsection 204(3), subsection 221AZMAA(1), subsection 221AZP(1), subsection 221YD(3) or section 221YDB”.
Repeal the section, substitute:
If any of the family trust distribution tax which a person is liable to pay remains unpaid 60 days after the day by which it is due to be paid, the person is liable to pay the general interest charge on the unpaid amount for each day in the period that:
(a) started at the beginning of the 60th day after the day by which the family trust distribution tax was due to be paid; and
(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:
(i) the family trust distribution tax;
(ii) general interest charge on any of the family trust distribution tax.
Note: The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .
Omit “, and any unpaid additional tax payable under section 271‑80,”.
Omit “general interest charge”, substitute “*general interest charge”.
Omit “general interest charge”, substitute “*general interest charge”.
Add:
No double deduction for general interest charge on a running balance account
(7) If you deduct *general interest charge that applies to an RBA deficit debt, you can’t also deduct the corresponding general interest charge on tax debts that have been allocated to the RBA.
Note: RBAs (running balance accounts) are dealt with in Part IIB of the
Taxation Administration Act 1953 .
Omit “
Taxation Administration Act 1955 ”, substitute “Taxation Administration Act 1953 ”.
After “fails to notify”, insert “the amount of tax payable on”.
Note: The heading to section 95A is altered by omitting “
of ” and substituting “amount of tax payable on ”.
Omit “the assessable dealing”, substitute “the tax payable”.
Omit “an amount of”, substitute “the amount of tax payable on”.
Omit “the assessable dealing”, substitute “the tax payable”.
Add “(other than failure to notify penalty under section 95A)”.
After “this Part”, insert “(other than section 95A)”.
After “this Part”, insert “(other than failure to notify penalty under section 95A)”.
Add:
Note: The Commissioner may remit failure to notify penalty under section 8AAM of the
Taxation Administration Act 1953 .
Insert:
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Repeal the subsection.
Insert:
If the amount of the charge payable for any period is not a multiple of 5 cents, the Commissioner may round it down to the nearest multiple of 5 cents.
79
Subsection 8AAP(4) (table item 3, entry headed “Topic”) Omit “PPS payment summary”, substitute “PPS payment reconciliation statement form”.
Omit “reconciliation statement”, substitute “statement, report or form”.
Omit “debt; or”, substitute “debt.”.
Repeal the paragraph.
83
Subsection 3(1) (paragraphs (baa), (ba) and (bb) of the definition of relevant tax ) Repeal the paragraphs, substitute:
(baa) an amount payable to the Commissioner under subsection 220AS(1) of the Tax Act;
(ba) an amount payable to the Commissioner under subsection 221EAA(1) of the Tax Act;
(bb) an amount payable to the Commissioner under subsection 221YHH(1) of the Tax Act;
84
Subsection 3(1) (paragraph (caa) of the definition of relevant tax ) Repeal the paragraph.
After “under” (last occurring), insert “section 163AA, section 170AA,”.
Omit “subsection 221AZP(1)”, substitute “subsection 204(3), subsection 221AZMAA(1), subsection 221AZP(1), subsection 221YD(3)”.
Repeal the items.
Note: These items contained misdescribed amendments. The correct amendments are in items 44 and 45 of this Schedule.
Repeal the items.
Note: These items contained misdescribed amendments. The correct amendment is in item 83 of this Schedule.
Repeal the subitems.
Omit “where”, substitute “to the extent that”.
Omit “starts”, substitute “occurs”.
The amendments made by this Part apply in relation to amounts that are due to be paid on or after 1 July 1999.
(1) This item applies to an amount (including an amount of penalty or interest) that a person owes to the Commonwealth directly under a taxation law (including a law that has been repealed or amended) and that became payable at any time before 1 July 1999, if all or some of the amount (the
unpaid debt ) remains unpaid at the beginning of 1 July 1999.(2) The person is liable, and is taken to have been liable, to pay general interest charge on the unpaid debt for each day in the period that:
(a) started at the beginning of the day by which the amount was due to be paid; and
(b) finishes at the end of the last day on which, at the end of the day, any of the following remains unpaid:
(i) the unpaid debt;
(ii) general interest charge on any of the unpaid debt.
(3) The general interest charge is worked out under Division 1 of Part IIA of the
Taxation Administration Act 1953 .(4) For the purposes of this item, the
general interest charge rate for a day before 1 July 1999 is taken to have been 12.72% divided by the number of days in the calendar year that the day was in.(5) If this item results in a person being liable, or being taken to have been liable, to pay both general interest charge and some other penalty or interest in respect of the same debt, the Commissioner must remit either that general interest charge or that other penalty or interest (the Commissioner chooses which).
Repeal the subparagraphs, substitute:
(i) if the annualised number of whole kilometres the car travelled during the year of tax was more than 40,000—0.07; or
(ii) if the annualised number of whole kilometres the car travelled during the year of tax was not less than 25,000 and not more than 40,000—0.11; or
(iii) if the annualised number of whole kilometres the car travelled during the year of tax was not less than 15,000 and not more than 24,999—0.20; or
(iv) in any other case—0.26;
Repeal the definition, substitute:
D is the number of days in the year of tax.
Repeal the definition, substitute:
D is the number of days in the year of tax.
Repeal the section, substitute:
(1) In this Subdivision, the
depreciated value of a car at a particular time (therelevant time ) is the amount worked out using the formula:where:
A is:
(a) if the car was owned by the person at the start of 1 July 1986—the depreciated value worked out under subsection (2); or
(b) in any other case—the cost price of the car to the person.
B is the total amount of depreciation (if any) that would have been taken to have been incurred by the person in respect of the car for the period after the start of 1 July 1986 and before the relevant time when the person owned the car, if the depreciation taken to have been incurred for that period were calculated in accordance with subsection 11(1).
(2) The
depreciated value of a car owned by a person at the start of 1 July 1986 is the cost price of the car to that person, reduced by the total amount of depreciation that would have been taken to have been incurred by the person in respect of the car for the period before that time when it was owned by the person if:
(a) the depreciation taken to have been incurred for that period were calculated in accordance with subsection 11(1); and
(b) each year starting on 1 July were a year of tax.
Omit all the words from and including “both”, substitute “a once‑only deduction (in this subsection called the
gross deduction ), other than a foreign income deduction, would, or would if not for section 82A, and Subdivisions F, GA and G of Division 3 of Part III, of theIncome Tax Assessment Act 1936 , and Divisions 28 and 900 of theIncome Tax Assessment Act 1997 , have been allowable to the recipient under either of those Acts in respect of the gross interest”.
Omit all the words from and including “allowable”, substitute “allowable as a once‑only deduction other than a foreign income deduction to the recipient under the
Income Tax Assessment Act 1936 or theIncome Tax Assessment Act 1997 in respect of that interest if that interest had been incurred and paid by the recipient on the last day of the loan period”.
Repeal the subparagraph.
Omit “in the case of the second standard year of tax or a subsequent year of tax—”.
Omit all the words and subparagraphs after “apply” to and including “recipient gives”, substitute “and the loan fringe benefit is a car loan benefit in respect of a car held by the recipient during a period (in this subsection also called the
holding period ) in the year of tax, the recipient gives”.
Repeal the paragraphs, substitute:
(a) purchase a particular car; or
(b) pay a Division 28 car expense;
Omit all the words and subparagraphs from and including “both”, substitute “a once‑only deduction (in this subsection called the
gross deduction ), other than a foreign income deduction, would, or would if not for section 82A, and Subdivisions F, GA and G of Division 3 of Part III, of theIncome Tax Assessment Act 1936 , and Divisions 28 and 900 of theIncome Tax Assessment Act 1997 , have been allowable to the recipient under either of those Acts in respect of the gross expenditure”.
Omit all the words and sub‑subparagraphs from and including “allowable” to and including “recipient under”, substitute “allowable as a once‑only deduction other than a foreign income deduction to the recipient under”.
Repeal the definition, substitute:
C is the number of days in the year of tax;
Repeal the definition, substitute:
B is the number of days in the current year of tax; and
Repeal the paragraph.
Repeal the definition, substitute:
DYT is the number of days in the current year of tax;
Repeal the subsection, substitute:
(3A) For the purposes of this section:
(a) the
single quarters statutory amount in relation to a year of tax is the amount calculated:
(i) by multiplying the indexation factor for that year of tax by the single quarters statutory amount in relation to the immediately preceding year of tax; or
(ii) if the amount ascertained that way is not an amount of whole dollars—by rounding the amount to the nearest dollar (rounding 50 cents upwards); and
(b) the
standard statutory amount in relation to a year of tax is the amount calculated:
(i) by multiplying the indexation factor for that year of tax by the standard statutory amount in relation to the immediately preceding year of tax; or
(ii) if the amount ascertained that way is not an amount of whole dollars—by rounding the amount to the nearest dollar (rounding 50 cents upwards).
Omit all the words and subparagraphs from and including “both”, substitute “a once‑only deduction (in this subsection called the
gross deduction ), other than a foreign income deduction, would, or would if not for section 82A, and Subdivisions F, GA and G of Division 3 of Part III, of theIncome Tax Assessment Act 1936 , and Divisions 28 and 900 of theIncome Tax Assessment Act 1997 , have been allowable to the recipient under either of those Acts in respect of the gross expenditure”.
Omit all the words and subparagraphs from and including “allowable”, substitute “allowable as a once‑only deduction other than a foreign income deduction to the recipient under either of those Acts in respect of that consideration if that consideration had been incurred and paid by the recipient at the provision time”.
Omit “in the case of a standard year of tax—”.
Omit all the words and subparagraphs from and including “both”, substitute “a once‑only deduction (in this subsection called the
gross deduction ), other than a foreign income deduction, would, or would if not for section 82A, and Subdivisions F, GA and G of Division 3 of Part III, of theIncome Tax Assessment Act 1936 , and Divisions 28 and 900 of theIncome Tax Assessment Act 1997 , have been allowable to the recipient under either of those Acts in respect of the gross expenditure”.
Omit all the words and sub‑subparagraphs from and including “allowable”, substitute “allowable as a once‑only deduction other than a foreign income deduction to the recipient under either of those Acts in respect of so much of that consideration as was taken into account for the purposes of section 48, 49, 50 or 51 of the
Income Tax Assessment Act 1936 , or section 4‑15 or 8‑1 of theIncome Tax Assessment Act 1997 , if that consideration had been incurred and paid by the recipient at the comparison time”.
Repeal the subparagraph.
Repeal the paragraphs, substitute:
(a) if the taxable value or the sum of the taxable values does not exceed $500—an amount equal to the taxable value or the sum of the taxable values; or
(b) in any other case—$500.
Omit “28 days after the end of the year”, substitute “21 May in the next year of tax”.
Omit “the twenty‑eighth day after the end of the”, substitute “21 May in the next”.
Omit all the words and paragraphs after “pay”, substitute “, in accordance with this Division, 4 instalments of tax in respect of each year of tax.”.
Repeal the sections, substitute:
Subject to this Division, the 4 instalments of tax payable in respect of a year of tax are due and payable as follows:
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An employer must notify the Commissioner, in the approved form, of the amount of an instalment on or before the day on which the instalment is due and payable.
(1) If:
(a) an employer is or was liable to pay an instalment of tax in respect of a year of tax; and
(b) the Commissioner makes an assessment of the tax payable, or determines that no tax is payable, by the employer in respect of that year of tax;
the employer is entitled to a credit equal to the amount of the instalment when the assessment or determination is made.
Note: How the credit is applied is set out in Division 3 of Part IIB of the
Taxation Administration Act 1953 .
(2) The making of the assessment or determination, and the resulting credit entitlement, do not affect the liability to pay the instalment.
Repeal the Subdivision.
123
Subdivision C of Division 2 of Part VII (heading) Repeal the heading, substitute:
124
Section 109 (definition of employer’s estimate ) Omit “standard”.
Omit “standard”.
Repeal the definition, substitute:
GIC period , in relation to an instalment in relation to a year of tax, means:
(a) for a first instalment—the period starting at the beginning of 21 July, and finishing at the end of 20 October, in the year of tax; or
(b) for a second instalment—the period starting at the beginning of 21 October, and finishing at the end of 20 January, in the year of tax; or
(c) for a third instalment—the period starting at the beginning of 21 January in the year of tax and finishing at the end of 20 April in the next year of tax; or
(d) for a fourth instalment—the period starting at the beginning of 21 April, and finishing at the end of 20 May, in the next year of tax.
Repeal the definition, substitute:
relevant fraction , in relation to an instalment, means:
(a) 0.25 for a first instalment; or
(b) 0.50 for a second instalment; or
(c) 0.75 for a third instalment; or
(d) 1.00 for a fourth instalment.
Repeal the subsection, substitute:
(1) Subject to this section, the notional tax amount of an employer in respect of a year of tax is the amount of the tax that was assessed in respect of the employer in respect of the immediately preceding year of tax.
Omit “standard”.
Omit “standard year of tax, being an instalment that becomes due and payable on the twenty‑eighth”, substitute “year of tax, being an instalment that becomes due and payable on the 21st”.
Omit “standard”.
Omit “twenty‑eighth”, substitute “21st”.
Omit “standard”.
Omit “standard”.
Omit “statement in writing”, substitute “written statement, in the approved form,”.
Insert:
approved form has the meaning given by subsection 995‑1(1) of theIncome Tax Assessment Act 1997 .
137
Subsection 136(1) (definition of standard year of tax ) Repeal the definition.
138
Subsection 136(1) (definition of transitional year of tax ) Repeal the definition.
Repeal the definition, substitute:
year of tax means the year starting on 1 April 1987, and each later year starting on 1 April.
The amendments made by this Part apply in relation to the year of tax starting on 1 April 2000 and all later years of tax.
Insert:
ABN has the meaning given by theA New Tax System (Australian Business Number) Act 1999 .
Insert:
adjusted assessed tax has the meaning given by section 45‑375 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
adjusted assessed taxable income has the meaning given by section 45‑370 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
adjusted taxable income has the meaning given by section 45‑330 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
adjusted withholding income has the meaning given by section 45‑335 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
amount required to be withheld by an entity from a *withholding payment means:
(a) the amount that the entity must withhold from the payment under Division 12 in Schedule 1 to the
Taxation Administration Act 1953 ; or(b) the amount that Division 14 in that Schedule requires the entity to pay to the Commissioner in respect of the *non‑cash benefit of which the withholding payment consists;
or that amount as varied by the Commissioner under section 16‑15 in the Schedule.
Insert:
amount withheld by an entity from a *withholding payment means:
(a) an amount that the entity withheld from the payment under Division 12 in Schedule 1 to the
Taxation Administration Act 1953 ; or(b) an amount that the entity paid to the Commissioner under Division 14 in that Schedule in respect of the *non‑cash benefit of which the withholding payment consists.
Insert:
annual payer means an entity that has become an annual payer under section 45‑140 in Schedule 1 to theTaxation Administration Act 1953 , and has not since ceased to be an annual payer under section 45‑150, 45‑155 or 45‑180 in that Schedule.
Insert:
approved form : a notice, application or other document is in theapproved form if, and only if:
(a) it is in the form approved in writing by the Commissioner in relation to that kind of notice, application or other document; and
(b) it is signed by a person or persons as the form requires; and
(c) it contains the information that the form requires, and any further information or statement as the Commissioner requires; and
(d) for a notice, application or document that is required to be lodged with the Commissioner—it is lodged at the place and in the manner that the Commissioner requires.
The Commissioner may combine in the same approved form more than one notice, application or other document.
Insert:
Australian Business Register means the Australian Business Register established and maintained under theA New Tax System (Australian Business Number) Act 1999 .
Insert:
Australian Business Registrar means the Registrar of the *Australian Business Register.
Insert:
Australian legislature means:
(a) the Parliament of the Commonwealth of Australia; or
(b) the Parliament of a State; or
(c) the Legislative Assembly for the Australian Capital Territory; or
(d) the Legislative Assembly of the Northern Territory of Australia.
Insert:
base assessment has the meaning given by section 45‑320 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
base year has the meaning given by section 45‑320 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
benchmark instalment rate has the meaning given by section 45‑360 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
benchmark tax has the meaning given by section 45‑365 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
carried on in Australia , in relation to an *enterprise, has the meaning given by subsection 9‑25(6) of the *GST Act.
Insert:
carrying on an *enterprise includes doing anything in the course of the commencement or termination of the enterprise.
Insert:
electronic payment means a payment by way of electronic transmission, in an electronic format approved by the Commissioner.
Insert:
electronic signature of a person means a unique identification of the person in electronic form that is approved by the Commissioner for the purposes of the definition ofelectronic signature in section 6 of theIncome Tax Assessment Act 1936 .
Insert:
enterprise has the meaning given by section 9‑20 of the *GST Act.
Insert:
failure to notify penalty means the penalty worked out under Division 2 of Part IIA of theTaxation Administration Act 1953 .
Insert:
farm management deposit has the same meaning as in Schedule 2G to theIncome Tax Assessment Act 1936 .
Insert:
foreign resident means a person who is not a resident of Australia for the purposes of theIncome Tax Assessment Act 1936 .Note:
Foreign resident is not asterisked in this Act.
Insert:
FTB amount for an income year means an amount of family tax benefit (within the meaning of theA New Tax System (Family Assistance) (Administration) Act 1999 ) to which an individual is entitled in respect of the income year.
Insert:
GDP‑adjusted notional tax has the meaning given by section 45‑405 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
GDP amount for a *quarter has the meaning given by section 45‑405 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
GST Act means theA New Tax System (Goods and Services Tax) Act 1999.
Insert:
GST joint venture has the meaning given by section 51‑5 of the *GST Act.
Insert:
instalment group has the meaning given by section 45‑145 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
instalment income has the meaning given by sections 45‑120, 45‑260 and 45‑280 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
instalment quarter has the meaning given by section 45‑60 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
investment body for a *Part VA investment has the meaning given by section 202D of theIncome Tax Assessment Act 1936 .
Insert:
investor for a *Part VA investment has the meaning given by section 202D of theIncome Tax Assessment Act 1936 .
Insert:
invoice means a document notifying an obligation to make a payment.
Insert:
labour hire notional withheld amount has the meaning given by section 16‑125 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
large withholder has the meaning given by sections 16‑95 and 16‑125 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
market value of a *non‑cash benefit: in working out the market value of a *non‑cash benefit, disregard anything that would prevent or restrict conversion of the benefit to money.
Insert:
medium withholder has the meaning given by section 16‑100 and 16‑135 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
mining withholding tax means income tax payable under section 128V of theIncome Tax Assessment Act 1936 .
Insert:
natural resource has the meaning given by section 6 of theIncome Tax Assessment Act 1936.
Insert:
non‑cash benefit is property or services in any form except money. If a non‑cash benefit is dealt with on behalf of an entity, or is provided or dealt with as an entity directs, the benefit is taken to be provided to the entity.
Insert:
non‑quotation withholding payment means a *withholding payment covered by Subdivision 12‑E in Schedule 1 to theTaxation Administration Act 1953 .Note: Subdivision 12‑E and Division 14 in that Schedule deal with collecting amounts on account of income tax payable by recipients of certain payments or non‑cash benefits who have not quoted their tax file number or ABN, as appropriate.
Insert:
notional tax has the meaning given by section 45‑325 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
Part VA investment means an investment of a kind mentioned in section 202D of theIncome Tax Assessment Act 1936 .
Insert:
participant , in relation to a *GST joint venture, has the meaning given by section 51‑5 or paragraph 51‑70(1)(a) of the *GST Act.
Insert:
PAYG instalment means an instalment payable under Division 45 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
payment summary has the meaning given by section 16‑170 in Schedule 1 to theTaxation Administration Act 1953 .
Insert:
quarter means a period of 3 months ending on 31 March, 30 June, 30 September or 31 December.
Insert:
quarterly payer means an entity that is liable to pay *PAYG instalments and is not an *annual payer.
Insert:
quarterly payer who pays on the basis of GDP‑adjusted notional tax means an individual who has become such a payer under section 45‑125 in Schedule 1 to theTaxation Administration Act 1953 , and has not since ceased to be one under section 45‑130 or 45‑135 in that Schedule.
Insert:
quote an entity’s *ABN means quote in a form and manner approved by the Commissioner.
Insert:
quoted : an entity hasquoted its *tax file number in connection with a *Part VA investment if the entity is taken, for the purposes of Part VA of theIncome Tax Assessment Act 1936 , to have quoted its tax file number in connection with the investment.
Insert:
reportable fringe benefits amount for an income year in respect of an employee’s employment by an employer has the same meaning as in theFringe Benefits Tax Assessment Act 1986 (as it applies of its own force or because of theFringe Benefits Tax (Application to the Commonwealth) Act 1986 ).
Insert:
required to be registered has the meaning given by the *GST Act.
Insert:
small withholder has the meaning given by section 16‑105.
Insert:
supply has the meaning given by section 9‑10 of the *GST Act.
Insert:
tax file number means a tax file number as defined in section 202A of theIncome Tax Assessment Act 1936.
Insert:
withholder means a *large withholder, a *medium withholder or a *small withholder.
Insert:
withholding payment means:
(a) a payment from which an amount must be withheld under Division 12 in Schedule 1 to the
Taxation Administration Act 1953 (even if the amount is not withheld); or(b) a *non‑cash benefit in respect of which Division 14 in that Schedule requires an amount to be paid to the Commissioner.
(A withholding payment that consists of a non‑cash benefit is made when the benefit is provided. The amount of the withholding payment is taken to be the *market value of the benefit at that time.)
Note: Divisions 12 and 14 in Schedule 1 to the
Taxation Administration Act 1953 deal with collecting amounts on account of income tax payable by the recipient of the payment or non‑cash benefit.
Insert:
withholding payment covered by a particular provision in Schedule 1 to theTaxation Administration Act 1953 means a *withholding payment consisting of:
(a) a payment from which an amount must be withheld under that provision (even if the amount is not withheld); or
(b) a *non‑cash benefit provided by an entity if that provision would have required the entity to withhold an amount if, instead of providing the benefit, the entity had paid the *market value of the benefit; or
(c) a non‑cash benefit provided to an entity if that provision would have required the entity to withhold an amount if the benefit had been a payment of an amount equal to the market value of the benefit.
Insert:
withholding tax means income tax payable under section 128B of theIncome Tax Assessment Act 1936 .
63
Subsection 995‑1(1) (after paragraph (b) of the definition of this Act ) Insert:
and (c) Schedule 1 to the
Taxation Administration Act 1953 ;
The
Act | Number and year | Date of Assent | Date of commencement | Application, saving or transitional provisions |
178, 1999 | 22 Dec 1999 | |||
179, 1999 | 22 Dec 1999 | Schedule 10 (items 19–21): | — | |
44, 2000 | 3 May 2000 | Schedule 4 (items 2, 3): | — | |
57, 2002 | 3 July 2002 | Schedule 12 (item 40): | — | |
101, 2003 | 14 Oct 2003 | Schedule 6 (item 3): | — | |
41, 2005 | 1 Apr 2005 | Schedule 10 (item 244): | — | |
75, 2010 | 28 June 2010 | Schedule 6 (item 1): 29 June 2010 | — |
(a) Subsection 2(1) of theA New Tax System (Tax Administration) Act 1999 provides as follows:
(1) Subject to this section, this Act commences, or is taken to have commenced, immediately after the commencement of section 1 of the
A New Tax System (Pay As You Go) Act 1999 .Section 1 of the
A New Tax System (Pay As You Go) Act 1999 commenced on 22 December 1999.
(b) Subsection 2(1) of theA New Tax System (Tax Administration) Act (No. 1) 2000 provides as follows:
(1) Subject to this section, this Act commences, or is taken to have commenced, immediately after the commencement of section 1 of the
A New Tax System (Tax Administration) Act 1999 .Section 1 of the
A New Tax System (Tax Administration) Act 1999 commenced on 22 December 1999.
(c) Subsection 2(1) (item 44) of theTaxation Laws Amendment Act (No. 2) 2002 provides as follows:
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, on the day or at the time specified in column 2 of the table.
Schedule 12, item 40 | Immediately after the time specified in the | 22 December 1999 |
(d) Subsection 2(1) (item 10) of theTaxation Laws Amendment Act (No. 3) 2003 provides as follows:
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, on the day or at the time specified in column 2 of the table.
Schedule 6, item 3 | Immediately after the time specified in the | 22 December 1999 |
(e) Subsection 2(1) (item 6) of theTax Laws Amendment (2004 Measures No. 7) Act 2005 provides as follows:
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Schedule 10, item 244 | Immediately after the commencement of Schedule 2 to the | 22 December 1999 |
am. = amended rep. = repealed rs. = repealed and substituted | |
Provision affected | How affected |
S. 2......................................... | am. No. 179, 1999 |
S. 4......................................... | rep. No. 75, 2010 |
Item 3..................................... | am. No. 179, 1999; No. 44, 2000 |
Item 49A................................. | ad. No. 179, 1999 |
Items 44, 45........................... | rep. No. 101, 2003 |
Item 62................................... | am. No. 57, 2002 |
Item 85................................... | rs. No. 41, 2005 |
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