Australian Taxation Office
Taxation Administration Act 1953
Variation of amount required to be withheld
I, Megan Elizabeth Yong, Assistant Commissioner of Taxation, have varied to nil, the amount required to be withheld from a withholding payment that is made to a religious practitioner and is:
- covered by section 12-47 of Schedule 1 to the Taxation Administration Act 1953; and
- within the class of cases listed 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 2002.
This variation applies to payments made on or after 1 July 2002.
Class of Cases
This variation applies to payments made by a religious institution to a religious practitioner for locum services performed for a period of not greater than two (2) days in a quarter. Previous services performed in the quarter count in determining whether the religious practitioner has performed locum services for a period of not greater than two (2) days in a quarter.
Interpretation
- For the purpose of this variation, ‘locum services’ include activities performed by a religious practitioner in relieving another religious practitioner of his or her duties.
- ‘Religious practitioner’ takes its meaning from section 995-1 of the Income Tax Assessment Act 1997.
- ‘Religious institution’ is not a defined term and therefore takes on its ordinary meaning. For guidance, reference may be made to Taxation Ruling TR 92/17.
- A quarter is defined in section 995-1 of the Income Tax Assessment Act 1997 as a period of three months ending 31 March, 30 June, 30 September or 31 December.
Signed at Sydney, this 25th day of June 2002
Signed by Megan Yong
Assistant Commissioner of Taxation
Overview
The Taxation Administration Act 1953 was enacted to provide a framework for the administration of taxation laws in Australia, ensuring compliance and efficiency in the collection of taxes. One aspect of this is the regulation of withholding payments, which are payments subject to withholding tax by the payer before making the payment to the recipient. The legislative instrument F2006B00298, issued under the authority of the Taxation Administration Act, addresses a specific issue related to the withholding of payments made to religious practitioners for locum services. This instrument, signed by Megan Elizabeth Yong, the Assistant Commissioner of Taxation, reduces the amount required to be withheld to nil for payments made by religious institutions to religious practitioners for locum services performed for up to two days in a quarter, to alleviate administrative burdens and special circumstances faced by these institutions. This legislative instrument aims to provide flexibility and fairness in the application of withholding tax, addressing the unique nature of services provided by religious practitioners within their institutions.
Scope and Application
The Taxation Administration Act 1953, as varied by Megan Elizabeth Yong, the Assistant Commissioner of Taxation, pertains specifically to the withholding tax obligations of religious institutions when making payments to religious practitioners for locum services. This legislative instrument applies to religious institutions and religious practitioners as defined under relevant sections of the Income Tax Assessment Act 1997, with a particular focus on locum services performed for periods not exceeding two days in a quarter. The variation, which came into effect from 1 July 2002, mandates that no withholding tax be applied to such payments, aligning with the special circumstances outlined in section 15-15 of the Taxation Administration Act 1953. The geographic scope of this legislation is federal, encompassing all religious institutions and practitioners operating within Australia, irrespective of state or territory boundaries. Notably, this variation does not extend to locum services performed for periods exceeding two days in a quarter, nor does it alter any other withholding obligations outside the specified parameters.
Key Provisions
The primary provision of this legislative instrument, as referenced in section 15-15 of the Taxation Administration Act 1953, allows the Assistant Commissioner of Taxation to vary the amount required to be withheld from certain payments. Specifically, this variation has been set to nil for payments made by religious institutions to religious practitioners who perform locum services for periods not exceeding two days within any quarter. This adjustment applies to payments made on or after 1 July 2002, and it is intended to address special circumstances of the class of cases outlined in the instrument. A "quarter" is defined in section 995-1 of the Income Tax Assessment Act 1997 as a three-month period ending on 31 March, 30 June, 30 September, or 31 December.
The Act imposes several obligations on the parties involved. Religious institutions are required to ensure that payments made to religious practitioners for locum services do not have any withholding tax applied if the services are performed within the specified parameters of no more than two days in a quarter. Religious practitioners must also be aware of this variation and ensure that they comply with the conditions set out in the legislation to benefit from the nil withholding requirement. Additionally, both parties should maintain records that substantiate the services performed and the periods in which they were performed to demonstrate compliance with the Act.
Failure to comply with the requirements set forth in this legislation may result in various consequences. While the instrument does not explicitly detail specific penalties or offences, general provisions within the Taxation Administration Act 1953 and related statutes may apply. These could include civil or criminal penalties for non-compliance, including fines or imprisonment in cases of significant breaches. The exact penalties would depend on the nature and extent of the non-compliance and could be determined through the application of relevant sections within the broader legislative framework.