Taxation Administration Act 1953 - PAYG Withholding - Payment summary deferral - Employment termination and departing Australia superannuation payments (02/03/2012)

Overview

The Taxation Administration Act 1953, enacted by the Parliament of Australia, addresses administrative processes related to taxation. This Act is instrumental in ensuring that tax obligations are met efficiently and effectively. A particular legislative instrument, F2012L00584, was introduced to refine and update the administrative requirements for certain payments. This instrument, made by the Commissioner of Taxation, alters the due date for providing the Commissioner with copies of payment summaries concerning employment termination payments or departing Australia superannuation payments. Initially, these payments were subject to an exemption from timely reporting, but the new instrument replaces this exemption with a deferral to 14 August following the end of the financial year in which the payments are made. This change aims to reduce the administrative burden on employers by aligning the reporting timeline with other obligations, thus ensuring a more streamlined and efficient compliance process.

Scope and Application

The legislative instrument F2012L00584, issued under the Taxation Administration Act 1953, modifies the requirements for providing payment summaries to the Commissioner of Taxation for specific employment termination payments and departing Australia superannuation payments. This instrument applies to all entities and individuals who make such payments, including employers and superannuation funds. The instrument defers the due date for providing these payment summaries, changing the requirement from 14 days after the payment to 14 August following the end of the financial year in which the payments were made. This adjustment aims to reduce the administrative burden on payers by aligning the reporting timeline with their other obligations. The instrument has a national reach, as it operates within the Commonwealth of Australia and affects all entities subject to the Taxation Administration Act 1953. There are no exclusions or exemptions specified in this instrument, and its application is not extended or restricted through subordinate instruments. The instrument is designed to streamline compliance while ensuring that the Commissioner of Taxation receives necessary information in a timely manner.

Key Provisions

This legislative instrument, made under section 388-55 of the Taxation Administration Act 1953, updates the previous Legislative Instrument No. F2006B11584 to reflect current terminology and to replace the exemption from providing payment summaries with a deferral until 14 August following the end of the financial year in which the payments are made. Section 16-165 (1) (b) and section 16-166 (b) of Schedule 1 to the Taxation Administration Act 1953 previously required a copy of the payment summary relating to employment termination payments and departing Australia superannuation payments to be provided to the Commissioner within 14 days of making the payments. However, this short timeframe was not necessary for efficient administration and placed an undue burden on employers and other payers. By deferring the due date for providing payment summaries until 14 August, the new instrument aligns with the payer’s other reporting obligations, easing compliance. The obligations imposed by this legislative instrument require payers to provide copies of payment summaries to the Commissioner within the deferred timeframe, but no longer within the previous 14-day period. Payers must ensure that the payment summaries are provided to the Commissioner by 14 August following the end of the financial year in which the payments are made, provided they have withheld amounts from payments in accordance with Subdivision 12-C, section 12-85 or Subdivision 12-FA, section 12-305 of the Taxation Administration Act 1953. This change ensures that the payers’ compliance requirements are aligned with their other reporting obligations, reducing the administrative burden. There are no specific offences, penalties, or civil/criminal consequences outlined in this legislative instrument for breach of the provisions. However, failure to comply with the requirements to provide payment summaries to the Commissioner by the specified due date could potentially result in administrative or compliance issues. The instrument aims to simplify and align reporting requirements, thereby reducing the potential for breaches and associated penalties. The overall effect is to make the reporting process more manageable for payers while ensuring the Commissioner receives the necessary information within a reasonable timeframe.