Pay As You Go (PAYG) Withholding
Variation of amount required to be withheld
I, Michael Joseph Carmody, Commissioner of Taxation, vary to nil the amount required to be withheld from withholding payments that are:
- covered by section 12-190 in Schedule 1 to the Taxation Administration Act 1953; and
- within the class of cases described below.
I make this variation of the amount required to be withheld under the power contained in section 15-15 of Schedule 1 to the Taxation Administration Act 1953 to meet the special circumstances of that class of cases.
Effective for payments made on or after 1 July 2000
This variation applies to payments made on or after 1 July 2000.
Class of cases
Any payment to a body corporate of residential or commercial property made by a member of that body corporate in respect of
- body corporate levies;
- access fees to inspect books of account, insurance policies, rolls, minutes etc; or
- fees payable to the body corporate for the collection of rents from the common property.
Signed at Canberra, this 28th day of June 2000.
Signed by Michael Carmody
Commissioner of Taxation
Overview
The Pay As You Go (PAYG) Withholding Variation of Amount Required to be Withheld legislative instrument, issued in 2000 by Michael Joseph Carmody, the Commissioner of Taxation, provides a nil withholding requirement for specific payments related to body corporate levies, access fees, and rent collection fees. Enacted under the authority of section 15-15 of Schedule 1 to the Taxation Administration Act 1953, this legislative instrument addresses the need to alleviate the administrative burden on members of body corporates by exempting them from PAYG withholding on particular payments made to their corporate body. The policy objective is to simplify tax obligations for certain payments, facilitating smoother financial transactions within the context of residential and commercial property management. This legislative measure was effective for payments made on or after 1 July 2000.
Scope and Application
The legislative instrument F2006B00402 pertains to the variation of the amount required to be withheld under the Pay As You Go (PAYG) withholding provisions, as specified in the Taxation Administration Act 1953. This variation, issued by Michael Joseph Carmody, the Commissioner of Taxation, effectively sets the withholding amount to nil for certain payments made by members of a body corporate to that corporate entity. The scope of this legislation applies to payments made on or after 1 July 2000 and specifically covers those payments that fall within the definition of withholding payments under section 12-190 in Schedule 1 to the Taxation Administration Act 1953. These payments include body corporate levies, access fees to inspect various corporate documents, and fees for the collection of rents from common property. The geographic reach of this legislative instrument is national, given the Commonwealth nature of the taxation laws in Australia. This legislative instrument does not explicitly state exclusions, exemptions, or thresholds but operates under the broader framework of the Taxation Administration Act 1953, which may include other conditions or provisions through subordinate instruments.
Key Provisions
The main operative sections of this legislative instrument (1) specify the variation of the amount required to be withheld from certain withholding payments under section 12-190 in Schedule 1 to the Taxation Administration Act 1953, and (2) detail the specific class of cases to which this variation applies. This legislative instrument (3) varies the PAYG withholding amount to nil for payments made by a member of a body corporate to that body corporate in respect of body corporate levies, access fees, and fees for rent collection from common property. These variations are effective for payments made on or after 1 July 2000.
Under this Act, the obligations and requirements imposed on the parties or entities governed by it primarily revolve around the withholding of PAYG payments. Specifically, the Commissioner of Taxation has the authority to vary the withholding amount to nil for certain specified payments made by members of a body corporate to the corporate body itself. This applies to payments made for body corporate levies, access fees to inspect books of account, insurance policies, rolls, minutes, and fees for the collection of rents from common property. These variations aim to address the special circumstances of these particular payment types.
Breaches of the provisions within this Act may incur specific consequences. While the legislative instrument does not explicitly outline offences or penalties for non-compliance, it is reasonable to infer that failure to adhere to the specified variations could result in the need for corrective measures, potentially including retrospective adjustments to ensure compliance with the specified withholding rates. It is important for the parties involved to ensure they are following the correct withholding procedures as per the legislation to avoid any potential discrepancies or liabilities.
The maximum penalties for breaches related to PAYG withholding are generally outlined in the Taxation Administration Act 1953 and associated regulations. These penalties can include fines, interest on the unpaid tax, and in severe cases, criminal charges for wilful default. The specific penalties depend on the nature and severity of the breach, and it is advisable for any party affected by this legislative instrument to consult the relevant sections of the Taxation Administration Act 1953 and other applicable laws to fully understand the potential consequences of non-compliance.