Australian Taxation Office
Taxation Administration Act 1953
Notice exempting a class of entities from giving payment summary
I, Megan Elizabeth Yong, Assistant Commissioner of Taxation, have exempted certain payers from the requirements under sections 16-155 or 16-160 of Schedule 1 to the Taxation Administration Act 1953 to give the recipient a payment summary. This exemption only applies to withholding payments:
- covered by section 12-47 of Schedule 1 to the Taxation Administration Act 1953; and
- within the class of cases outlined below.
I vary this requirement to give a payment summary under the power contained in section 16-180 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 exemption applies in respect of payments made on or after 1 July 2002.
Class of Cases
This exemption from the requirement to issue a payment summary to the recipient of a withholding payment under section 12-47 of Schedule 1 to the Taxation Administration Act 1953, applies to payments made by an entity that is not a religious institution:
- for work or services performed by the religious practitioner except for the performance of chaplaincy and/or counselling services; and
- for the performance of chaplaincy and/or counselling services where the payment does not exceed the following amounts:
- where the entity pays the religious practitioner weekly: $100; or
- where the entity pays the religious practitioner fortnightly: $200; or
- where the entity pays the religious practitioner monthly: $433.
Interpretation
- ‘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.
Signed at Sydney, this 25th day of June 2002
Signed by Megan Yong
Assistant Commissioner of Taxation
Overview
The Taxation Administration Act 1953, enacted by the Commonwealth Parliament of Australia, serves as a foundational piece of legislation governing the administration of taxation laws within the country. To address specific administrative burdens and to cater to particular economic sectors, the Act includes provisions that allow for exemptions and variations in tax obligations. In this context, a legislative instrument issued under the authority of the Assistant Commissioner of Taxation, Megan Elizabeth Yong, exempts certain payers from the obligation to provide a payment summary to recipients of withholding payments, as stipulated in sections 16-155 and 16-160 of Schedule 1 to the Taxation Administration Act 1953. This exemption applies to payments made by entities that are not religious institutions for services provided by religious practitioners, subject to certain conditions and thresholds. The policy objective behind this exemption is to alleviate administrative burdens on both payers and religious practitioners, ensuring that the tax system remains efficient and equitable. This legislative instrument is effective for payments made on or after 1 July 2002, and it aligns with the overarching goal of simplifying tax compliance for specific classes of entities.
Scope and Application
The Taxation Administration Act 1953, as amended by this legislative instrument, outlines an exemption for a specific class of entities from the requirement to issue a payment summary to the recipients of withholding payments. This exemption applies to payments made by entities that are not religious institutions for work or services performed by a religious practitioner, except for payments made for chaplaincy and/or counselling services. Furthermore, this exemption extends to payments for chaplaincy and/or counselling services provided the amount paid does not exceed specified thresholds: $100 for weekly payments, $200 for fortnightly payments, and $433 for monthly payments. The exemption applies to payments made on or after 1 July 2002 and is applicable under the authority granted by section 16-180 of Schedule 1 to the Taxation Administration Act 1953. The exemption is intended to address the special circumstances of the outlined class of cases. It is important to note that 'religious practitioner' is defined in section 995-1 of the Income Tax Assessment Act 1997, while 'religious institution' retains its ordinary meaning, with additional guidance available in Taxation Ruling TR 92/17.
Key Provisions
The main operative sections of this legislation (sections 16-180, 12-47, 16-155, and 16-160) pertain to the exemption of certain payers from the obligation to provide a payment summary to recipients for specific withholding payments. Specifically, section 16-180 provides the authority to exempt classes of entities from these requirements, which is exercised here to exempt certain payments made to religious practitioners from the need to issue a payment summary. Section 12-47 identifies the withholding payments covered by this exemption, while sections 16-155 and 16-160 outline the general requirement to issue payment summaries. The exemption applies to payments made on or after 1 July 2002, and it specifically excludes payments made by religious institutions and payments for chaplaincy or counselling services exceeding certain thresholds.
The Act imposes obligations on entities to comply with this exemption by ensuring that they do not issue payment summaries for the specified payments to religious practitioners, provided that the payments do not exceed the stipulated amounts based on the frequency of payment. The entities must determine whether they fall under the exemption and verify the conditions of the exemption are met before making the payments. They must also ensure that they do not issue payment summaries for the exempted payments, as failing to do so could result in non-compliance with the Act.
There are no explicit offences, penalties, or civil/criminal consequences stated in the legislation for breach of this exemption. However, non-compliance with the Taxation Administration Act 1953 generally could result in penalties under other sections of the Act. For example, failure to comply with other requirements to issue payment summaries might attract penalties under sections 285-10 and 285-15 of the Act, which can include fines up to $2,100 for individuals and up to $10,500 for corporations. Although the specific penalties for this exemption are not detailed, entities are still subject to the overarching provisions of the Act which may apply in cases of non-compliance.