Taxation Administration Act 1953
Note: See section 3AA .Chapter 2 - Collection, recovery and administration of income tax
Note: A Commissioner ' s Remedial Power modification is relevant to this part of the tax law.
Taxation Administration (Remedial Power - Seasonal Labour Mobility Program) Determination 2020 (F2020L01474) modifies the operation of s 840-905(b)(ii) of the Income Tax Assessment Act 1997 (ITAA 1997) and s 12-319A(b)(ii) of Sch 1 to the Taxation Administration Act 1953 (TAA 1953) to include foreign resident employees of Approved Employers under the Seasonal Labour Mobility Program ( " employees under the Program " ) who previously held a Temporary Work (International Relations) Visa (subclass 403) and have extended their stay in Australia using a different temporary visa (including a bridging visa) granted under the Migration Act 1958 .
The operation of the relevant provisions is modified as follows:
The modification applies to salary, wages, commissions, bonuses or allowances paid on and after 24 March 2020. The modification ensures that employees under the Program continue to be taxed by application of a final withholding tax rate of 15%. It also ensures that this income is otherwise treated as non-assessable non-exempt income. As is currently the case for those holding a Temporary Work (International Relations) Visa (subclass 403), these employees under the Program will not have to lodge an income tax return unless they earn other Australian sourced income.
An entity must treat a modification as not applying to it or any other entity if the modification would produce a less favourable result for it. The Commissioner is empowered by s 370-5 of Sch 1 to TAA 1953 to make modifications, by legislative instrument, to ensure the law is administered to achieve its intended purpose or object.
A withholding MIT may be required to withhold an amount from a payment of its Australian sourced net income (other than dividends, interest and royalties) if the payment is made to an entity whose address, or place for payment, is outside Australia. If the payment is made to another entity, the withholding MIT is required to make information available to the recipient outlining certain details in relation to the payment.
If a custodian receives a payment that is covered by that information, it is required to withhold an amount from any related later payment to an entity whose address, or place for payment, is outside Australia. If the later payment is made to another entity, the custodian is required to make information available in relation to that later payment.
If an entity that is not a custodian receives a payment that is covered by that information, it is required to withhold an amount from that payment if a foreign resident becomes entitled to that payment. If a resident becomes entitled to the payment, the entity must make information available in relation to that payment.
Where there is an obligation to withhold, the applicable withholding rate is determined by the nature of the country or territory in which the recipient ' s address, place for payment or residency is located and whether the trust is a clean building managed investment trust.
A managed investment trust is a clean building managed investment trust if it is a managed investment trust that holds one or more clean buildings and does not derive assessable income from any other taxable Australian property (other than certain assets that are reasonably incidental to a clean building).
|12-383||Meaning of withholding MIT|
|12-385||Withholding by withholding MITs|
|12-390||Withholding by custodians and other entities|
|12-395||Requirement to give notice or make information available|
|12-400||(Repealed by No 53 of 2016)|
|12-401||(Repealed by No 53 of 2016)|
|12-402||(Repealed by No 53 of 2016)|
|12-402A||(Repealed by No 53 of 2016)|
|12-402B||(Repealed by No 53 of 2016)|
|12-403||(Repealed by No 53 of 2016)|
|12-404||(Repealed by No 53 of 2016)|
|12-405||Meaning of fund payment - general case|
|12-410||Entity to whom payment is made|
|12-415||Failure to give notice or make information available: administrative penalty|
|12-425||Meaning of clean building managed investment trust|
|12-430||Meaning of clean building|
|12-435||Meaning of non-concessional MIT income|
|12-436||Meaning of asset entity, operating entity, cross staple arrangement and stapled entity|
|12-437||Meaning of MIT cross staple arrangement income|
|12-438||MIT cross staple arrangement income - de minimis exception|
|12-439||MIT cross staple arrangement income - approved economic infrastructure facility exception|
|12-440||Transitional - MIT cross staple arrangement income|
|12-441||Integrity rule - concessional cross staple rent cap|
|12-442||Meaning of excepted MIT CSA income|
|12-443||Concessional cross staple rent cap - existing lease with specified rent or rent method|
|12-444||Concessional cross staple rent cap - general|
|12-445||Asset entity to allocate deductions first against rental income that is not MIT cross staple arrangement income|
|12-446||Meaning of MIT trading trust income|
|12-447||Transitional - MIT trading trust income|
|12-448||Meaning of MIT agricultural income , Australian agricultural land for rent and Division 6C land|
|12-449||Transitional - MIT agricultural income|
|12-450||Meaning of MIT residential housing income|
|12-451||Transitional - MIT residential housing income|
|12-452||Meaning of residential dwelling asset|
|12-453||MIT agricultural income and MIT residential housing income - capital gains in relation to membership interests|