Foreign resident PAYG withholding – for individuals

A foreign resident is someone who is not an Australian resident for tax purposes.

An entity making a payment to a foreign resident is required to withhold amounts from that payment for any of the following:

  • entertainment or sports activities
  • construction and related activities
  • casino gaming junket activities.

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Activities where tax is withheld

Withholding amounts for tax applies to both individuals and groups in the following industries.

Entertainment and sporting activities

Withholding applies to both individuals and groups in the sporting and entertainment industries. Examples include:

  • theatre companies
  • orchestras
  • rock groups
  • sporting teams (for example, cricket or soccer teams)
  • individual sports people (for example, golf or tennis players)
  • television commentators.

It may also apply to individuals who provide services through a company or other corporate identity.

Foreign residents who provide support in sports and entertainment industries may also be subject to foreign resident PAYG withholding. Examples include:

  • coaches
  • managers
  • hairdressers
  • trainers
  • doctors.

Construction industry

Withholding arrangements apply to payments made to a head contractor and subcontractors in the construction industry. Examples include payments made under contracts for the construction of:

  • natural resource infrastructure
  • shopping centres
  • resort developments
  • residential real estate.

It also applies to activities related to construction. Some examples include:

  • commissioning of infrastructure
  • training and support of personnel to operate it
  • supervision during the initial phase of operation
  • design and engineering
  • fabrication
  • repair and maintenance
  • supply of plant and equipment
  • transport, advisory services
  • auxiliary services such as catering.

Casino gaming junket activities

Withholding applies to payments for activities related to casino gaming junkets. Some examples include:

  • contracting with casinos
  • contracting with players
  • translating or interpreting services.

Payments may include cash and non-cash benefits. Some examples include:

  • monetary payments
  • flights and accommodation
  • food and beverage.

Foreign resident withholding does not apply to you if you are engaged as an employee.

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    Last modified: 24 Aug 2016QC 18618