Federal Register of Legislation - Australian Government

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Withholding Tax Instruments as made
This instrument enables a variation to the amount of withholding required by a payer under the pay as you go withholding system for personal services income payments received by an entity for a certain class of cases.
Administered by: Treasury
Registered 21 Mar 2013
Tabling HistoryDate
Tabled HR14-May-2013
Tabled Senate14-May-2013

 

Taxation Administration Act 1953

 

Pay As You Go (PAYG) Withholding

 

Variation of withholding for personal services income

 

 

I, Erin Kathleen Holland, Deputy Commissioner of Taxation, vary to nil the amount required to be withheld from withholding payments that are:

 

  • covered by section 13-5 of Schedule 1 to the Taxation Administration Act 1953
  • 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.

 

 

Commencement

 

This instrument commences on the day after registration on the Federal Register of Legislative Instruments.

 

Class of cases

Any alienated personal services payment that is:

  • received by a personal services entity, relates to one or more individuals' personal services income
  • salary or wages paid to the individual, or individuals, within 14 days after the end of the relevant PAYG payment period, and
  • the payment is equal to, or greater than either:

 

  1. 70% of the gross personal services income (exclusive of GST) received by the personal services entity during the current PAYG payment period; or

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  1. A net personal services income percentage applied to the gross personal services income (exclusive of GST) received by the personal services entity during the current PAYG payment period  -The net personal services income percentage is calculated by dividing the personal services entity's gross personal services income (exclusive of GST) less allowable deductions (excluding salary or wages paid in accordance with subsection 86-15(4) of the Income Tax Assessment Act 1997) for the previous income year by the personal services entity's gross personal services income (exclusive of GST) for the previous income year and multiplying this amount by 100.

 

 

Signed on 15 March 2013

 

 

 

 

Erin Holland

Deputy Commissioner of Taxation