TAXATION ADMINISTRATION ACT 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 12 - Payments from which amounts must be withheld  

Subdivision 12-A - General rules  

SECTION 12-5   WHAT TO DO IF MORE THAN ONE PROVISION REQUIRES A WITHHOLDING  

12-5(1)  
If more than one provision in this Division covers a payment, only one amount is to be withheld from the payment.

12-5(2)  


The provision to apply is the one that is most specific to the circumstances of the payment. However, this general rule is subject to the specific rules in the table, and the specific rule in subsection (3).


Specific rules for determining priority among withholding provisions
Item Apply: Which is about: In priority to:
1AA section 12-385 or 12-390 distributions to foreign residents from *withholding MITs each other withholding provision
1 section 12-35, 12-40, 12-45, 12-47 or 12-50 a payment for work or services section 12-60 (payment under a labour hire arrangement or specified by regulations); or
section 12-190 (payment for a supply where recipient does not quote its ABN)
1A section 12-35 or 12-45 a payment for work or services section 12-47 (a payment to a *religious practitioner)
2 section 12-80, 12-85 or 12-90 a *superannuation benefit, an annuity, a payment for termination of employment or an unused leave payment section 12-60 (payment under a labour hire arrangement or specified by regulations); or section 12-190 (payment for a supply where recipient does not quote its ABN)
3 section 12-110, 12-115 or 12-120 a payment of benefit or compensation section 12-60 (payment under a labour hire arrangement or specified by regulations); or section 12-190 (payment for a supply where recipient does not quote its ABN)
4 section 12-60 a payment under a labour hire arrangement or specified by regulations section 12-190 (payment for a supply where recipient does not quote its ABN)
5 section 12-140 or 12-145 a payment arising from investment where the recipient does not quote tax file number section 12-175 or 12-180 (Payment of income of closely held trust where TFN not quoted) or section 12-210, 12-215, 12-245, 12-250 or 12-255 (payment of a dividend or interest)
6 section 12-280 or 12-285 a payment of royalty section 12-325 (natural resource payment)

12-5(3)  


Apply a provision in this Division (apart from a provision in Subdivision 12-FB ) that covers a payment in priority to a provision in Subdivision 12-FB that also covers the payment.
Note:

Some provisions of this Division clearly do not cover a payment covered by some other provisions. For example:

  • · Section 12-55 (about voluntary agreements) covers a payment only if no other provision requires the payer to withhold an amount from the payment.



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