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PAYG Withholding Variation: Insurance and Compensation

Authoritative Version
Withholding Tax Instruments as made
This instrument reduces compliance costs for insurers and their insured clients when settling a claim or paying compensation to another entity by not requiring an ABN to be supplied. It provides a NIL withholding amount for payments made by an insurer in settlement of a claim under an insurance policy, an entity operating a compensation scheme settling a compensation claim under that scheme and a compulsory third party scheme to another entity in settlement of a claim.
Administered by: Treasury
Registered 30 Mar 2016
Tabling HistoryDate
Tabled HR18-Apr-2016
Tabled Senate18-Apr-2016

Legislative Instrument

 

PAYG WITHHOLDING VARIATION: Insurance and Compensation

 

I, Steve Vesperman, Deputy Commissioner of Taxation, make this determination under:

·         section 15-15 of Schedule 1 to the Taxation Administration Act 1953, and

·         section 16-180 of Schedule 1 to the Taxation Administration Act 1953.

 

 

Steve Vesperman

Deputy Commissioner of Taxation

23 March 2016

 

 

1.            Name of instrument

This determination is the PAYG Withholding Variation: Insurance and Compensation.

 

2.            Commencement

This instrument commences on 1 April 2016.

 

3.            Repealing of existing instrument

This legislative instrument repeals legislative instrument

·         PAYG Withholding Variation: Insurance and Compensation – F2006B00211, registered on 23 January 2006

 

4.            Application

This instrument applies to payments covered by Section 12-190 in Schedule 1 to the Taxation Administration Act 1953 and within the class of cases described below: :

  • an insurer to another entity in settlement of a claim under an insurance policy, or
  • an entity operating a statutory compensation scheme to another entity in settlement of a claim for compensation under that scheme, or
  • an entity operating a compulsory third party scheme to another entity in settlement of a claim for compensation under that scheme.

 

 

5.            Amount to be withheld

The amount to be withheld from payments covered by this instrument has been varied to nil.

 

6.            Payment summaries

An entity is exempted under section 16-180 of Schedule 1 to the Taxation Administration Act 1953 from the requirement to issue payment summaries under section 16-167 of Schedule 1 for payments that are covered by this instrument.