Income Tax Assessment Act 1997
(a) before the end of 14 July in a particular income year, you receive, as salary or wages, *personal services income of yours from the *personal services entity; and
(b) failure to make the payment before the end of 14 July would have resulted in an amount of income being included in your assessable income under section 86-15 for the preceding income year;
you are taken to have received the payment on 30 June of that preceding income year.
Continuing example 2 in section 86-20 : Assume that NewIT is a small withholder for PAYG withholding purposes, and its PAYG payment period covering April 2001 to June 2001 is the quarter ending on 30 June 2001. NewIT ' s income for that period (after taking into account any reductions under sections 86-20 and 86-25 ) includes $20,000 that is Ron ' s personal services income, and NewIT pays this to Ron on 12 July 2001.
The $20,000 that Ron receives is assessable income for the income year ended on 30 June 2001.
However, this section does not affect the time at which the *personal services entity is treated as having paid the salary or wages.
Therefore neither the timing of the entity ' s deduction for the payment, nor the timing of the obligation to withhold amounts under section 12-35 in Schedule 1 to the Taxation Administration Act 1953 , is affected.
However, these payments are treated as relating to the preceding income year for the purposes of the rules relating to payment summaries, PAYG credits and PAYG withholding non-compliance tax (see Subdivisions 16-C , 18-A and 18-D in Schedule 1 to the Taxation Administration Act 1953 ).