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