STP 2020/D3


Taxation Administration Act 1953

I, Louise Clarke, Deputy Commissioner of Taxation, make this instrument under subsection 389-10(1) of Schedule 1 to the Taxation Administration Act 1953.

Draft Legislative Instrument

1. Name of instrument

This is the Taxation Administration - Single Touch Payroll - 2019-20 and 2020-21 years Closely Held Payees Exemption 2020 instrument.

2. Effective dates

This instrument commences on 1 July 2019 and applies to the 2019-20 and 2020-21 financial years.

3. Application

This instrument applies to an entity which:

(a)
was not at any time before 1 April 2019 a substantial employer within the meaning of former subsection 389-5(6) of Schedule 1 to the Taxation Administration Act 1953 ('TAA 1953'); and
(b)
pays an amount described in the table in subsection 389-5(1) of Schedule 1 to the TAA 1953 to a closely-held payee, and
(c)
is registered for the purposes of Subdivision 16-BA of Schedule 1 to the TAA 1953, and
(d)
is not a large withholder as defined in section 16-95 of Schedule 1 to the TAA 1953.

4. Determination

An entity to which this instrument applies that would otherwise have an obligation to report information to the Commissioner of Taxation under Division 389 of Schedule 1 to the TAA 1953 in respect of an amount paid to a closely held payee is exempt from that obligation for the 2019-20 and 2020-21 financial years.

For the avoidance of doubt, the exemption provided by this instrument is limited to the extent it exempts an entity from reporting information in respect of an amount paid to a closely held payee.

5. Definition

In this instrument, a closely-held payee is an individual who is a non-arm's length employee. That is, they are directly related to the entity from which they receive payments.

6. Consultation

Subsection 17(1) of the Legislation Act 2003 requires, before the making of a determination, that the Commissioner is satisfied that appropriate and reasonably practicable consultation has been undertaken.

As part of the consultation process, you are invited to comment on the draft determination and its accompanying draft explanatory statement.

Please forward your comments to the contact officer by the due date.

Due date: 9 July 2020
Contact officer: Bethany Dowe
Email address: bethany.dowe@ato.gov.au
Phone: (02) 6216 4474



Louise Clarke
Deputy Commissioner of Taxation
Policy, Analysis and Legislation
Law Design and Practice


Related Explanatory Statements:

STP 2020/D3 - Explanatory statement