Show download pdf controls
  • Understanding your additional obligations

    Any additional PAYG withholding obligations will depend on the circumstance of your business.

    Companies and trusts

    • Normal PAYG withholding obligations for salary or wages promptly paid to each individual who produced the PSI
    • Additional PAYG withholding obligations for amounts attributed to each individual who produced PSI which has not been promptly paid as salary or wages.

    Partnerships

    • Normal PAYG withholding on salary or wages doesn't apply because partnerships can't pay salary or wages to partners.
    • You have additional PAYG withholding obligations for amounts attributed to the partner who produced the PSI.

    Your business can't enter into a PAYG withholding voluntary agreement if there are additional obligations.

    Note: these additional PAYG withholding obligations will continue until your circumstances change and the PSI rules no longer apply.

    For example, if you worked out last income year that the PSI rules applied, then your business would have additional PAYG withholding obligations in the current financial year unless:

    • all PSI is promptly paid out as salary or wages and appropriate PAYG amounts are withheld from the payments
    • you worked out the PSI rules didn't apply
    • you received a PSB determination from us stating the PSI rules didn't apply.

    For a new business, or one that hasn't received PSI previously, the additional obligation occurs when your business attributes the PSI in the current income year.

    Next steps:

    See also:

      Last modified: 30 Mar 2017QC 17515