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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your private ruling

Authorisation Number: 1012522872688

Ruling

Subject: NRAS - withholding variation

Question 1

Can the national rental affordability scheme (NRAS) tax offset be claimed on a withholding variation form?

Answer

No

This ruling applies for the following period:

Year ended 30 June 2014

The scheme commences on:

1 July 2013

Relevant facts and circumstances

You recently purchased an NRAS approved property, and will therefore be entitled to receive an NRAS tax offset.

You wish to claim the tax offset by way of a withholding variation.

Relevant legislative provisions

Section 15-50 of Schedule 1 to the Taxation Administration Act 1953

Section 15-30 of Schedule 1 to the Taxation Administration Act 1953

Regulation 24 of the Taxation Administration Regulations Act 1976

Reasons for decision

Section 15-50 of Schedule 1 to the Taxation Administration Act 1953 (TAA) allows a taxpayer who is in receipt of a withholding payment to vary the amount of PAYG withholding tax withheld from that payment. This variation request should be notified in the approved form, being a Withholding Variation Form.

Section 15-30 of Schedule 1 to the TAA states the matters which need to be considered when calculating the amount of PAYGW to withhold. These matters include the rate of income tax, the Medicare levy, HELP and SFSS repayments, and prescribed tax offsets.

Prescribed tax offsets are defined by Regulation 24 of the Taxation Administration Regulations Act 1976 (TARA). These offsets are:

    · the zone rebate

    · dependent and housekeeper tax offsets

    · the ETP offset

    · superannuation offsets

    · the seniors and pensioners tax offset; and

    · the low income tax offset.

As the NRAS offset is not included as a prescribed tax offset, it is not taken into account in calculating the amount of withholding tax to be withheld. As such, the NRAS tax offset cannot be claimed on a withholding variation form.


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