Private ruling: NRAS - withholding variation
Published: September 2013
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Can the national rental affordability scheme (NRAS) tax offset be claimed on a withholding variation form? | A1: No

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: Summary: 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.