The tax withheld is a final tax on the non-resident's Australian earnings and will usually match the amount of the taxpayer's subsequent tax liability on the income.
The rate of tax to be withheld from payments to non-resident members will vary according to whether the member is a resident of a country that has a tax treaty or exchange of information agreement with Australia, and whether the amount is either:
- a payment of dividends, interest and royalties (DIR)
- a 'fund payment'.
A member is generally subject to withholding where their residential address or the place of payment is outside of Australia.