Overview

The "Pay As You Go (PAYG) Withholding Notice of exemption from requirement to give a copy of payment summary to the Commissioner within 14 days under section 16-165 (1) (b) and section 16-166 (b) of Schedule 1 to the Taxation Administration Act 1953" is a legislative instrument introduced to address a specific administrative burden for payers who withhold tax at source. Enacted in 2002, this notice was issued by Megan Elizabeth Yong, acting Assistant Commissioner of Taxation, under the authority of section 16-180 of the Taxation Administration Act 1953. The primary objective of this notice is to alleviate the requirement for payers to submit a copy of the payment summary to the Commissioner within 14 days for certain types of payments, specifically those covered under Subdivision 12-C, section 12-85 (Eligible termination payments) and Subdivision 12-FA, section 12-305 (Departing Australia superannuation payments). This exemption streamlines the compliance process for entities making these specific types of payments, thereby reducing the administrative load on both the payers and the Australian Taxation Office.

Scope and Application

The notice issued by Megan Elizabeth Yong, the Acting Assistant Commissioner of Taxation, exempts certain entities from the obligation to provide a copy of payment summaries to the Commissioner within 14 days as mandated by sections 16-165(1)(b) and 16-166(b) of Schedule 1 to the Taxation Administration Act 1953. This exemption specifically applies to withholding payments governed by Subdivision 12-C, section 12-85 (Eligible termination payments) and Subdivision 12-FA, section 12-305 (Departing Australia superannuation payments). Consequently, entities that withhold amounts from payments in compliance with these sections are relieved from the obligation to submit payment summaries to the Commissioner within 14 days after making such payments. This exemption takes effect for payment summaries issued on or after the date of this notice, providing clarity and relief to entities subject to these specific payment withholding obligations.

Key Provisions

The main operative sections of this legislation, F2006B11584, concern the exemption from the requirement to provide a copy of a payment summary to the Commissioner within 14 days under sections 16-165 (1) (b) and 16-166 (b) of Schedule 1 to the Taxation Administration Act 1953. Specifically, section 16-180 of Schedule 1 to the Taxation Administration Act 1953 grants the Assistant Commissioner of Taxation the authority to exempt entities from this requirement. The exemption applies to withholding payments under Subdivision 12-C, section 12-85 (Eligible termination payments) and Subdivision 12-FA, section 12-305 (Departing Australia superannuation payments). Essentially, payers are exempt from sending the payment summary to the Commissioner within 14 days if they have withheld amounts from payments in accordance with the specified sections. The obligations and requirements imposed by this Act are primarily on the payers who withhold amounts from eligible termination payments or departing Australia superannuation payments. These payers are relieved from the obligation to furnish a copy of the payment summary to the Commissioner within 14 days after making such payments. This exemption is explicitly stated to apply from the date of the notice, which is 29th May 2002, and onwards. The Act ensures that the exemption is clear and applies to all payment summaries issued on or after this date. The legislation does not explicitly mention any offences, penalties, or consequences for non-compliance within the provided text. However, it is important to note that while this notice provides an exemption from the requirement to send the payment summary within 14 days, it does not imply that the payment summary itself needs to be withheld. Payers must still ensure that they issue the payment summary to the recipient within the required timeframe, which is typically at the end of the financial year. The omission of specific penalties in this excerpt suggests that compliance with other obligations of the Taxation Administration Act 1953 remains paramount. Non-compliance with other aspects of the Act could result in penalties as stipulated elsewhere in the Act.