Taxation Administration Act 1953

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

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Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax

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

Division 10 - Guide to Part 2-5

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SECTION 10-5 SUMMARY OF WITHHOLDING PAYMENTS

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10-5(1)

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The payments and other transactions covered by PAYG withholding are called withholding payments. They are summarised in the table.

Note:

The obligation to pay an amount to the Commissioner is imposed on the entity making the withholding payment (except for items 17, 19, 22 and 27, and 26 (to the extent that it covers subsection 12-390(4) )).

Summary of withholding payments
Item	Withholding payment	Section
1	A payment of salary etc. to an employee	12-35
2	A payment of remuneration to the director of a company	12-40
3	A payment of salary etc. to an office holder (e.g. a member of the Defence Force)	12-45
3A	A payment to a *religious practitioner	12-47
4	A return to work payment to an individual	12-50
5	A payment that is covered by a voluntary agreement	12-55
6	A payment under a labour hire arrangement or a payment specified by regulations	12-60
7	A *superannuation income stream or an annuity	12-80
8	A *superannuation lump sum or a payment for termination of employment	12-85
9	An unused leave payment	12-90
10	A social security or similar payment (e.g. old age pension)	12-110
11	A Commonwealth education or training payment	12-115
12	A compensation, sickness or accident payment	12-120
13	A payment arising from an investment where the recipient does not quote its tax file number, or in some cases, its ABN	12-140
14	Investor becoming presently entitled to income of a unit trust	12-145
14A	A trustee of a closely held trust distributing an amount from the trust income to a beneficiary, where the beneficiary does not quote its tax file number	12-175
14B	A beneficiary of a closely held trust becoming presently entitled to income of the trust, where the beneficiary does not quote its tax file number	12-180
15	A payment for a supply where the recipient of the payment does not quote its ABN	12-190
16	A dividend payment to an overseas person	12-210
17	A dividend payment received for a foreign resident	12-215
18	An interest payment to an overseas person	12-245
19	An interest payment received for a foreign resident	12-250
20	An interest payment derived by a lender in carrying on business through overseas permanent establishment	12-255
21	A royalty payment to an overseas person	12-280
22	A royalty payment received for a foreign resident	12-285
22A	A departing Australia superannuation payment	12-305
22AA	An *excess untaxed roll-over amount	12-312
22B	A payment (of a kind set out in the regulations) to a foreign resident	12-315
22C	A payment (of a kind set out in the regulations) received for a foreign resident	12-317
22D	A payment of salary, wages etc. to an employee under a labour mobility program	12-319A
23	A mining payment	12-320
24	A natural resource payment	12-325
25	A payment by a withholding MIT	12-385
26	A payment by a *custodian or other entity	12-390
27	A payment under the *first home super saver scheme	12-460

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History

S 10-5(1) amended by No 75 of 2022, s 3 and Sch 4 item 24, by substituting " a labour mobility program " for " the Seasonal Labour Mobility Program " in table item 22D, applicable in relation to salary, wages, commission, bonuses and allowances paid on or after 1 July 2022.

S 10-5(1) amended by No 132 of 2017, s 3 and Sch 1 items 13 and 14, by substituting " , 22 and 27 " for " and 22 " in the note and inserting table item 27, effective 1 July 2018.

S 10-5(1) amended by No 53 of 2016, s 3 and Sch 6 item 35, by substituting " withholding MIT " for " managed investment trust " in table item 25, column headed " Withholding payment " , effective 5 May 2016. For application provision, see note under Division 12A heading.

S 10-5(1) amended by No 58 of 2012, s 3 and Sch 1 item 9, by inserting table item 22D, effective 21 June 2012.

S 10-5(1) amended by No 75 of 2010 , s 3 and Sch 2 item 3, by inserting table items 14A and 14B, applicable to income of a trust of an income year starting on or after 1 July 2010.

S 10-5(1) amended by No 56 of 2010, s 3 and Sch 6 item 44, by substituting " a payment for termination of employment " for " an *employment termination payment " in table item 8, applicable in relation to payments made on or after 1 July 2010.

S 10-5(1) amended by No 32 of 2008 , s 3 and Sch 1 items 25 and 26, by substituting the note, and by substituting " a *custodian or other entity " for " an intermediary " in table item 26, applicable to fund payments made in relation to the first income year starting on or after the first 1 July after 23 June 2008 and later income years. The note formerly read:

Note:

The obligation to pay an amount to the Commissioner is imposed on the entity making the withholding payment (except for items 17, 19 and 22).

S 10-5(1) amended by No 79 of 2007 , s 3 and Sch 10 item 14, by inserting table items 25 and 26, applicable to the first income year starting on or after the first 1 July after the day on which No 79 of 2007 receives the Royal Assent (ie 21 June 2007) and later income years.

S 10-5(1) amended by No 15 of 2007, s 3 and Sch 1 item 367, by substituting table items 7, 8 and 9, applicable to the 2007-2008 income year and later years. The items formerly read:

7 ... A payment of pension or annuity ... 12-80

8 ... An eligible termination payment ... 12-85

9 ... A payment for unused leave on an individual ' s retirement or termination of employment ... 12-90

S 10-5(1) amended by No 9 of 2007 , s 3 and Sch 1 item 19, by inserting table item 22AA, applicable on and after 1 July 2007.

S 10-5(1) amended by No 66 of 2003, No 15 of 2002 and No 168 of 2001.

10-5(2)

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These can also be treated as withholding payments:

(aa)

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a payment that arises because of the operation of section 12A-205 (see Division 12A );

(a) alienated personal services payments (see Division 13 );

(b)

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non-cash benefits, and capital proceeds involving foreign residents and certain kinds of taxable Australian property (see Division 14 ).

Note:

The obligation to pay an amount to the Commissioner is imposed on the entity receiving the alienated personal services payment or providing the non-cash benefit or capital proceeds.

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