Taxation Laws Amendment Act 1993 (17 of 1993)

Part 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 9   Amendments relating to PAYE deductions

38   Variation of deductions

Section 221D of the Principal Act is amended:

(a) by inserting in subsection (2) ", under subsection (1)," after "Where";

(b) by omitting from subsection (2) "$500" and substituting "10 penalty units";

(c) by adding at the end the following subsections:

"(3) If the Commissioner is satisfied that:

(a) a person is likely to be successively employed by 2 or more employers; and

(b) it is reasonable to authorise the variation of the amounts to be deducted from the salary or wages payable to the person for the purpose of meeting the person's special circumstances;

the Commissioner may give the person a written certificate ('PAYE variation certificate') authorising the variation.

"(4) The PAYE variation certificate must:

(a) specify the name of the person; and

(b) specify a method of ascertaining the amounts to be deducted from the salary or wages payable to the person by any employer of the person; and

(c) set out the effect of subsections (5) and (6).

"(5) If a person who holds a PAYE variation certificate is, or is about to become, an employee of an employer, the person may give the certificate to the employer.

"(6) If an employer is given a PAYE variation certificate by a person who is, or is about to become, an employee of the employer, the employer must:

(a) make a copy ('original copy') of the certificate; and

(b) sign and date the original copy; and

(c) make a copy of the signed and dated original copy; and

(d) give the signed and dated original copy to the person; and

(e) return the certificate to the person; and

(f) make deductions from the salary or wages payable to the person in accordance with the certificate.

Penalty: 10 penalty units.

"(7) For the purposes of the application of subsection (6) to an employer being a company, if a competent officer of the company signs and dates a copy of a PAYE variation certificate, the copy is taken to have been signed and dated by the company.".