Taxation Administration Act 1953

s 12A-215 — AMIT payment to the Commissioner in respect of deemed payments to offshore entities etc.

(1) A trustee of a trust that is an * AMIT for an income year must pay an amount to the Commissioner if: (b) the trustee makes a payment (the deemed payment ) that arises because of the operation of section 12A ‑ 205; and (c) the payment is made to an entity (the recipient ) that is: (i) if the payment is a * fund payment and the trust is a * withholding MIT in relation to the income year—an entity covered by section 12 ‑ 410; or (ii) if the payment is an * AMIT DIR payment made in relation to the income year—an entity that is not an Australian resident. Note 1: An entity may be covered by section 12 ‑ 410 if the entity has an address outside Australia or payment is authorised to be made to a place outside Australia. Note 2: If the payment is made to a recipient not covered by subparagraph (c)(i) or (ii), the trustee is required to give a notice to the recipient or publish information on a website setting out certain details about the payment: see sections 12 ‑ 395 and 12A ‑ 15. (2) The amount that the trustee must pay is equal to the amount that the trustee would, if the assumptions in subsection (3) were made, have had to withhold under: (a) if the deemed payment is a * fund payment—section 12 ‑ 385; or (b) if the deemed payment is an * AMIT DIR payment—section 12 ‑ 210, 12 ‑ 245 or 12 ‑ 280. (3) The assumptions are that: (a) the deemed payment had not arisen because of the operation of section 12A ‑ 205; and (b) the deemed payment had instead been an actual payment; and (c) if the deemed payment is an * AMIT DIR payment: (i) where it corresponds to the character of a dividend (as defined in Division 11A of Part III of the Income Tax Assessment Act 1936 ) that is subject to a requirement to withhold under Subdivision 12 ‑ F—the trust had been a company, and it had paid it as a dividend; or (ii) where it corresponds to the character of interest (as defined in Division 11A of Part III of the Income Tax Assessment Act 1936 ) that is subject to a requirement to withhold under Subdivision 12 ‑ F—it were the payment of interest; or (iii) where it corresponds to the character of a * royalty that is subject to a requirement to withhold under Subdivision 12 ‑ F—it were the payment of a royalty; and (d) if the deemed payment is an AMIT DIR payment—the condition in either or both of paragraphs 12 ‑ 210(a) or (b), of paragraphs 12 ‑ 245(a) or (b) or of paragraphs 12 ‑ 280(a) or (b) (as the case requires) were satisfied. (4) The trustee may recover from the recipient as a debt an amount that the trustee has paid to the Commissioner under subsection (1). (5) The trustee is entitled to set off an amount that the trustee can recover from the recipient under subsection (4) against debts due by the trustee to the recipient.

Amendment history: Inserted by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3) | Amended by No 15 of 2019, effective sch 1 (items 19 ‑ 33, 46): 1 Apr 2019 (s 2(1) item 2)

s 12A-220 — Custodian payment to the Commissioner in respect of deemed payments to offshore entities etc.

(1) A * custodian must pay an amount to the Commissioner if: (a) the trustee of a trust that was an * AMIT for an income year and was a * withholding MIT in relation to the income year made a payment (the first deemed payment ) that: (i) arose because of the operation of section 12A ‑ 205; and (ii) was a * fund payment or an * AMIT DIR payment; and (b) the custodian makes a payment (the subsequent deemed payment ) that arises because of the operation of section 12A ‑ 205; and (c) the first deemed payment gave rise to the subsequent deemed payment, because of one or more operations of section 12A ‑ 205; and (d) the subsequent deemed payment or part of it (the covered part ) was covered by a notice or information under: (i) if the first deemed payment was a fund payment—section 12 ‑ 395; or (ii) if the first deemed payment was an AMIT DIR payment—section 12A ‑ 15; and (e) the subsequent deemed payment is made to an entity (the recipient ) that is: (i) if the first deemed payment was a fund payment—covered by section 12 ‑ 410; or (ii) if the first deemed payment was an AMIT DIR payment— not an Australian resident. Note 1: An entity may be covered by section 12 ‑ 410 if the entity has an address outside Australia or payment is authorised to be made to a place outside Australia. Note 2: If the payment is made to a recipient not covered by subparagraph (e)(i) or (ii), the trustee is required to give a notice to the recipient or publish information on a website setting out certain details about the payment: see sections 12 ‑ 395 and 12A ‑ 15. (2) The amount that the * custodian must pay is the amount that the custodian would, if the assumptions in subsection (3) were made, have had to withhold under: (a) if the first deemed payment was a * fund payment—subsection 12 ‑ 390(1); or (b) if the first deemed payment was an * AMIT DIR payment—section 12 ‑ 210, 12 ‑ 245 or 12 ‑ 280. (3) The assumptions are that: (a) the subsequent deemed payment had not arisen because of the operation of section 12A ‑ 205; and (b) the subsequent deemed payment had instead been an actual payment; and (c) if the first deemed payment was an * AMIT DIR payment: (i) where the first deemed payment corresponded to the character of a dividend (as defined in Division 11A of Part III of the Income Tax Assessment Act 1936 ) that is subject to a requirement to withhold under Subdivision 12 ‑ F—the * custodian had been a company, and it had paid the subsequent deemed payment as a dividend; or (ii) where the first deemed payment corresponded to the character of interest (as defined in Division 11A of Part III of the Income Tax Assessment Act 1936 ) that is subject to a requirement to withhold under Subdivision 12 ‑ F—the subsequent deemed payment were the payment of interest; or (iii) where the first deemed payment corresponded to the character of a * royalty that is subject to a requirement to withhold under Subdivision 12 ‑ F—the subsequent deemed payment were the payment of a royalty; and (d) if the first deemed payment was an AMIT DIR payment—the condition in either or both of paragraphs 12 ‑ 210(a) or (b), of paragraphs 12 ‑ 245(a) or (b) or of paragraphs 12 ‑ 280(a) or (b) (as the case requires) were satisfied. (4) The * custodian may recover from the recipient as a debt an amount that the custodian has paid to the Commissioner under subsection (1). (5) The * custodian is entitled to set off an amount that the custodian can recover from the recipient under subsection (4) against debts due by the custodian to the recipient.

Amendment history: Inserted by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3)

s 13-1 — Object of this Division

The object of this Division is to ensure the efficient collection of income tax (and other liabilities) on any * personal services income included in an individual’s assessable income under Division 86 of the Income Tax Assessment Act 1997 by: (a) putting * personal services entities receiving * alienated personal services payments in a position similar to their position if amounts were withheld from the payments under Division 12; but (b) doing so in a way that enables them to comply with their obligations without having to withhold amounts separately from each payment. Note: Under Division 86 of the Income Tax Assessment Act 1997 (about alienation of personal services income), an individual’s personal services income that is gained or produced by another entity is in some cases included in the individual’s assessable income. Payments of this income by the entity might not be caught by Division 12.

Amendment history: Inserted by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1))

s 13-5 — Payment to the Commissioner in respect of alienated personal services payments

Obligation to pay amounts (1) A * personal services entity must pay an amount of tax to the Commissioner if: (a) it receives an * alienated personal services payment that relates to an individual’s personal services income; and (b) it receives the payment during a * PAYG payment period for which it is a * personal services payment remitter. Working out the amounts (2) Use this method statement to work out the amount: Method statement Step 1. Identify the payments that the * personal services entity makes to the individual during the period mentioned in paragraph (1)(b) that are * withholding payments covered by section 12 ‑ 35. Step 2. Identify the amounts that: (a) are included in the individual’s assessable income under section 86 ‑ 15 of the Income Tax Assessment Act 1997 ; and (b) relate to * alienated personal services payments the entity receives during that period. Step 3. Work out the sum of all the amounts that Division 12 would require the entity to withhold in respect of that period if both of these were taken into account: (a) the payments identified in step 1; and (b) the amounts identified in step 2, as if they were payments of salary covered by section 12 ‑ 35. Step 4. Work out the sum of all the amounts withheld under section 12 ‑ 35 from the payments identified in step 1. Step 5. Subtract the sum under step 4 from the sum under step 3. Example: For the PAYG payment period of 1 April 2001 to 30 June 2001, NewIT Pty. Ltd. received amounts totalling $18,000 that were Ron’s personal services income. NewIT does not conduct a personal services business. During the period, NewIT paid Ron $3,000 in salary. This is a withholding payment covered by section 12 ‑ 35 (step 1). $15,000 of the amount NewIT received is included in Ron’s assessable income under section 86 ‑ 15 of the Income Tax Assessment Act 1997 (step 2). If NewIT had paid the $15,000 in salary to Ron within 14 days after the end of the PAYG payment period, the amount that NewIT would have had to withhold under Division 12 on the total amount of $18,000 would have been $4,000 (step 3). NewIT withheld $500 from the salary payment of $3,000, as required by section 12 ‑ 35 (step 4). On the basis of these facts, the amount NewIT must pay to the Commissioner (step 5) is: (3) Subject to subsections (4) and (5), the * personal services entity must pay the amount to the Commissioner by the end of the 21st day after the end of the * PAYG payment period. Note: A different rule applies for alienated personal services payments that large withholders and medium withholders make during the 2000 ‑ 01 income year. See section 13 ‑ 20. (4) If: (a) the * personal services entity is a * deferred BAS payer on the 21st day after the end of the * PAYG payment period; and (b) the personal services entity’s PAYG payment period is a * quarter; the entity must pay that amount to the Commissioner as shown in the table: Payments by * deferred BAS payers Item If paragraph (4)(a) applies to the * quarter ending on: the amount for this quarter must be paid by the end of: 1 30 September the following 28 October 2 31 December the following 28 February 3 31 March the following 28 April 4 30 June the following 28 July (5) If: (a) the * personal services entity is a * deferred BAS payer on the 21st day after the end of the * PAYG payment period; and (b) the personal services entity’s PAYG payment period is a month; the entity must pay that amount to the Commissioner: (c) by the end of the 28th day of the month following that period unless the PAYG payment period is a December; or (d) by the end of the 28th day of the next February if the PAYG payment period is a December.

Amendment history: Inserted by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 73 of 2001, effective sch 1 (items 21, 22, 58 ‑ 62(1)), sch 2 (items 1 ‑ 40, 53, 86 ‑ 95(1)), sch 3 (items 20 ‑ 33), sch 4 (items 1, 10), sch 5: 30 June 2001 (s 2(1)) sch 2 (items 48 ‑ 52): 1 Jan 2001 (s 2(2)) sch 3 (items 35, 36): 1 Apr 2001 (s 2(3))

s 13-10 — Alienated personal services payments

An alienated personal services payment is a payment (including a payment in the form of a * non ‑ cash benefit) that a * personal services entity receives and that relates to an amount that: (a) is included in an individual’s assessable income under Division 86 of the Income Tax Assessment Act 1997 ; or (b) would be so included but for the fact that the entity received the income in the course of conducting a * personal services business. For valuation of non ‑ cash benefits, see sections 21 and 21A of the Income Tax Assessment Act 1936 .

Amendment history: Inserted by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1))

s 13-15 — Personal services payment remitters

General (1) A * personal services entity is a personal services payment remitter for a * PAYG payment period if, in the income year preceding that period: (a) the entity’s * ordinary income or * statutory income included a person’s * personal services income; and (b) the entity was not conducting a * personal services business. Businesses not previously receiving personal services income (2) A * personal services entity is a personal services payment remitter for a * PAYG payment period if: (a) the entity’s * ordinary income or * statutory income did not include an individual’s * personal services income in any income year preceding that period; and (b) it is reasonable to expect that, in the income year during which the period occurs, the entity’s income will include a person’s * personal services income that the entity will not have received in the course of conducting a * personal services business. (3) It is not reasonable to expect that the * personal services entity will receive a person’s * personal services income in the course of conducting a * personal services business if it is reasonable to expect that: (a) the entity will receive at least 80% of that income from the same entity (or one entity and its * associates); and (b) the entity will not meet the results test under section 87 ‑ 18 of the Income Tax Assessment Act 1997 . Personal services business determinations taking effect (4) However, a * personal services entity is not a personal services payment remitter for a * PAYG payment period if, during that period or an earlier PAYG payment period in the same income year, a * personal services business determination relating to the entity takes effect.

Amendment history: Inserted by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 169 of 2001, effective sch 6 (items 18, 18A, 19(3), (4)): 1 Oct 2001 (s 2(1))

s 13-20 — Time for payments to Commissioner for alienated personal services payments made during 2000 ‑ 01

(1) Subject to subsection (2), if: (a) a * personal services entity must, under section 13 ‑ 5, pay an amount for * alienated personal services payments it received during a particular * PAYG payment period; and (b) the period ends in a * quarter in the * financial year starting on 1 July 2000; the payment must be paid to the Commissioner by the end of the 21st day after the end of the quarter. (2) If: (a) the * personal services entity is a * deferred BAS payer on the 21st day after the end of the * quarter; and (b) the quarter ends on 31st March or 30th June of 2001; the payment must be paid to the Commissioner by the end of the 28th day after the end of that quarter.

Amendment history: Inserted by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 73 of 2001, effective sch 1 (items 21, 22, 58 ‑ 62(1)), sch 2 (items 1 ‑ 40, 53, 86 ‑ 95(1)), sch 3 (items 20 ‑ 33), sch 4 (items 1, 10), sch 5: 30 June 2001 (s 2(1)) sch 2 (items 48 ‑ 52): 1 Jan 2001 (s 2(2)) sch 3 (items 35, 36): 1 Apr 2001 (s 2(3))

s 14-1 — Object of this Subdivision

The object of this Subdivision is: (a) to put entities that provide * non ‑ cash benefits, and entities that receive them, in a position similar to their position under Division 12 if payments of money had been made instead of the non ‑ cash benefits being provided; and (b) in that way, to prevent entities from avoiding their obligations under Division 12 by providing non ‑ cash benefits.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 101 of 2006, effective sch 3, 4: 1 Jan 2008 Remainder: Royal Assent

s 14-5 — Provider of non ‑ cash benefit must pay amount to the Commissioner if payment would be subject to withholding

(1) An entity (the payer ) must pay an amount to the Commissioner before providing a * non ‑ cash benefit to another entity (the recipient ) if Division 12 would require the payer to withhold an amount (the notionally withheld amount ) if, instead of providing the benefit to the recipient, the payer made a payment to the recipient in money equal to the * market value of the benefit when the benefit is provided. (2) The amount to be paid to the Commissioner is equal to the notionally withheld amount. Example: Nick is a building contractor who has entered into a voluntary agreement with Mike for the purposes of section 12 ‑ 55. Nick proposes to give Mike his old utility van (whose market value is $1,000) as payment for work Mike has done for him over a fortnight. If Nick were instead to pay Mike $1,000, Nick would have had to withhold $203 under Division 12 (in accordance with withholding rates current at the time). This section requires Nick to pay $203 to the Commissioner before giving the van to Mike. (3) This section does not apply to providing: (a) a * fringe benefit; or (b) a benefit that is an exempt benefit under the Fringe Benefits Tax Assessment Act 1986 ; or (c) a benefit that would be an exempt benefit under that Act if paragraphs (d) and (e) of the definition of employer in subsection 136(1) of that Act were omitted; or (d) a benefit constituted by the acquisition of an * ESS interest * under an employee share scheme to which Subdivision 83A ‑ B or 83A ‑ C of the Income Tax Assessment Act 1997 applies.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 56 of 2007, effective 12 Apr 2007 | Amended by No 133 of 2009, effective sch 1 (items 2 ‑ 5, 78 ‑ 82, 86, 87): 14 Dec 2009 sch 3 (items 41 ‑ 45): Royal Assent

s 14-10 — Dividend, interest or royalty received, for a foreign resident, in the form of a non ‑ cash benefit

If: (a) an entity (the payer ) receives in the form of a * non ‑ cash benefit: (i) a * dividend of a company; or (ii) interest (within the meaning of Division 11A of Part III of the Income Tax Assessment Act 1936 ); or (iii) a * royalty; and (b) section 12 ‑ 215, 12 ‑ 250 or 12 ‑ 285 would have required the payer to withhold an amount if the dividend, interest or royalty had been a payment in money; the payer must pay that amount to the Commissioner before providing the benefit (or part of it) to another entity.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1))

s 14-15 — Payer can recover amount paid to the Commissioner

(1) The payer may recover from the recipient as a debt an amount that the payer has paid to the Commissioner under section 14 ‑ 5. (2) If the payer has paid an amount to the Commissioner under section 14 ‑ 10, the payer may: (a) if the payer has provided all of the benefit to another entity—recover the amount from that other entity as a debt; or (b) if the payer has provided a part of the benefit to another entity—recover from that other entity as a debt the corresponding proportion of the amount paid to the Commissioner. (3) If the payer can recover an amount from another entity under this section, the payer is entitled to set the amount off against debts due by the payer to the other entity.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1))

s 14-50 — Object of this Subdivision

The object of this Subdivision is to put the parties to a * Part VA investment with an accruing gain in a position similar to what would have been their position under Subdivision 12 ‑ E (Payments where TFN or ABN not quoted) if the * investment body had paid the gain in money to the * investor at the end of the income year.

Amendment history: Inserted by No 101 of 2006, effective sch 3, 4: 1 Jan 2008 Remainder: Royal Assent

s 14-55 — Liability for TFN withholding tax

(1) * TFN withholding tax is payable if: (a) in relation to a * Part VA investment, an amount (the accrued gain ) is included in the * investor’s assessable income for an income year under section 159GQ of the Income Tax Assessment Act 1936 (about gains accruing on securities); and (b) the investment: (i) is of a kind mentioned in item 1 or 2 of the table in subsection 202D(1) of that Act; or (ii) is of a kind mentioned in item 3 of that table and is non ‑ transferable; and (c) the term of the investment does not end during the income year; and (d) section 12 ‑ 140 would have required the * investment body to withhold an amount (the TFN withholding amount ) from a payment of the accrued gain to the investor, if the investment body had made the payment at the end of the income year and section 12 ‑ 150 had not been enacted. Note: Section 202D of the Income Tax Assessment Act 1936 lists the investments in connection with which tax file numbers are to be quoted. (2) The amount of * TFN withholding tax is equal to the TFN withholding amount. (3) The * TFN withholding tax is payable jointly and severally by the * investor and the * investment body. (4) However, if the * investment body is the Commonwealth or an * untaxable Commonwealth entity: (a) the * TFN withholding tax is payable by the * investor; and (b) the investor is taken to have authorised the investment body to pay the TFN withholding tax on the investor’s behalf. (5) The * TFN withholding tax is due and payable at the end of 21 days after the end of the income year referred to in paragraph (1)(a). Note 1: When it is due and payable, the TFN withholding tax is payable to the Commissioner: see paragraph 255 ‑ 5(1)(b). Note 2: An entity by whom it is payable must pay it to the Commissioner in accordance with Subdivision 16 ‑ B: see subsection 16 ‑ 70(3). If any of it remains unpaid, the entity is liable to pay general interest charge: see section 16 ‑ 80. Note 3: The Commissioner may defer the time at which TFN withholding tax becomes due and payable: see section 255 ‑ 10. (6) The adoption (under section 18 of the Income Tax Assessment Act 1936 ) of an accounting period ending on a day other than 30 June is disregarded for the purposes of: (a) this section; and (b) the application of Division 16E of Part III of that Act for the purposes of this section.

Amendment history: Inserted by No 101 of 2006, effective sch 3, 4: 1 Jan 2008 Remainder: Royal Assent

s 14-60 — Investment body may recover TFN withholding tax from investor

(1) The * investment body may recover from the * investor as a debt any of the * TFN withholding tax that it pays. (2) The * investment body is entitled to set off an amount that it can recover from the * investor under this section against: (a) a debt due by it to the investor; or (b) an amount that is accruing to the investor, or stands to the investor’s credit, in respect of the * Part VA investment, even if the amount is not yet due.

Amendment history: Inserted by No 101 of 2006, effective sch 3, 4: 1 Jan 2008 Remainder: Royal Assent

s 14-65 — Application of rules in Division 18

These provisions: (a) subsection 18 ‑ 15(1) and sections 18 ‑ 20 and 18 ‑ 25 (about credits for amounts withheld from withholding payments); and (b) section 18 ‑ 80 (about refunds when exemption declaration not given); apply as if any of the * TFN withholding tax that has been paid were an amount withheld under subsection 12 ‑ 140(1) from a * withholding payment covered by that subsection and made to the * investor during: (c) unless the * investor has adopted (under section 18 of the Income Tax Assessment Act 1936 ) an accounting period ending on a day other than 30 June—the income year referred to in paragraph 14 ‑ 55(1)(a); or (d) if the investor has adopted such an accounting period—the income year in which the TFN withholding tax is paid. Note: Unless the investor has adopted such an accounting period, the credit under section 18 ‑ 15, 18 ‑ 20 or 18 ‑ 25 will be in respect of the income year before the one in which the TFN withholding tax is paid.

Amendment history: Inserted by No 101 of 2006, effective sch 3, 4: 1 Jan 2008 Remainder: Royal Assent

s 14-75 — Overpayment of TFN withholding tax

If * TFN withholding tax has been overpaid: (a) the Commissioner must refund the amount overpaid; and (b) the * investor is not entitled to a credit under section 18 ‑ 15, 18 ‑ 20 or 18 ‑ 25 in respect of the amount overpaid.

Amendment history: Inserted by No 101 of 2006, effective sch 3, 4: 1 Jan 2008 Remainder: Royal Assent

s 14-85 — Other laws do not exempt from TFN withholding tax

(1) A provision of a law passed before the commencement of this section that purports to exempt an entity from liability to pay * TFN withholding tax, or to pay taxes that include TFN withholding tax, does not exempt that entity from liability to pay TFN withholding tax. (2) A provision of a law passed at or after the commencement of this section that purports to exempt an entity from liability to pay taxes under the laws of the Commonwealth, or to pay certain taxes under those laws that include * TFN withholding tax, is not to be interpreted as exempting the entity from liability to pay TFN withholding tax, unless it specifically mentions TFN withholding tax.

Amendment history: Inserted by No 101 of 2006, effective sch 3, 4: 1 Jan 2008 Remainder: Royal Assent

s 14-155 — Liability for TFN withholding tax (ESS)

(1) Tax ( TFN withholding tax (ESS) ) imposed by the Income Tax (TFN Withholding Tax (ESS)) Act 2009 is payable if: (a) a company (the provider ) provides one or more * ESS interests to an individual under an * employee share scheme; and (b) as a result, an amount is included in the individual’s assessable income under Division 83A of the Income Tax Assessment Act 1997 for an income year (taking into account subsection (2) of this section); and (c) the individual has quoted neither of the following to the provider before the end of the income year: (i) if the individual acquired the interests in relation to any services provided to the provider, or to a * subsidiary of the provider, in the course or furtherance of an * enterprise * carried on by the individual—the individual’s * ABN; (ii) in any case—the individual’s * tax file number. (2) For the purposes of paragraph (1)(b), disregard sections 83A ‑ 33 and 83A ‑ 35 of the Income Tax Assessment Act 1997 (about reducing the amount included in the individual’s assessable income). Note: Disregard the 30 day rule in subsections 83A ‑ 115(3) and 83A ‑ 120(3) of the Income Tax Assessment Act 1997 for the purposes of this Subdivision: see subsection 392 ‑ 5(6) in this Schedule. (3) The * TFN withholding tax (ESS) is payable by the provider. (4) The * TFN withholding tax (ESS) is due and payable at the end of 21 days after the end of the income year referred to in paragraph (1)(b). Note 1: When it is due and payable, the TFN withholding tax (ESS) is payable to the Commissioner: see paragraph 255 ‑ 5(1)(b). Note 2: The provider must pay the TFN withholding tax (ESS) to the Commissioner in accordance with Subdivision 16 ‑ B: see subsection 16 ‑ 70(4). If any of it remains unpaid, the provider is liable to pay general interest charge: see section 16 ‑ 80. Note 3: The Commissioner may defer the time at which TFN withholding tax (ESS) becomes due and payable: see section 255 ‑ 10.

Amendment history: Inserted by No 133 of 2009, effective sch 1 (items 2 ‑ 5, 78 ‑ 82, 86, 87): 14 Dec 2009 sch 3 (items 41 ‑ 45): Royal Assent | Amended by No 105 of 2015, effective sch 1 (items 43, 44): 1 July 2015 (s 2)

s 14-160 — Employer may give individual tax file numbers to provider

(1) The individual is taken to have authorised a * subsidiary (the employer ) of the provider to inform the provider of the individual’s * tax file number if: (a) the individual has made a * TFN declaration in relation to the employer; and (b) some or all of the * ESS interests mentioned in paragraph 14 ‑ 155(1)(a) were provided to the individual in relation to the individual’s employment by the employer. (2) If the employer does so, the individual is taken, for the purposes of this Subdivision and Division 392 (Employee share scheme reporting), to have quoted his or her * tax file number to the provider.

Amendment history: Inserted by No 133 of 2009, effective sch 1 (items 2 ‑ 5, 78 ‑ 82, 86, 87): 14 Dec 2009 sch 3 (items 41 ‑ 45): Royal Assent

s 14-165 — Provider may recover TFN withholding tax (ESS) from individual

(1) The provider may recover from the individual as a debt any of the * TFN withholding tax (ESS) the provider pays. (2) The provider is entitled to set off an amount that the provider can recover from the individual under this section against a debt due by the provider to the individual.

Amendment history: Inserted by No 133 of 2009, effective sch 1 (items 2 ‑ 5, 78 ‑ 82, 86, 87): 14 Dec 2009 sch 3 (items 41 ‑ 45): Royal Assent

s 14-170 — Application of rules in Division 18

These provisions: (a) subsection 18 ‑ 15(1) (about credits for amounts withheld from withholding payments); and (b) sections 18 ‑ 65 and 18 ‑ 70 (about refunds of amounts withheld in error); apply as if any of the * TFN withholding tax (ESS) that has been paid were an amount withheld under section 12 ‑ 35 from a * withholding payment made to the individual and covered by that section.

Amendment history: Inserted by No 133 of 2009, effective sch 1 (items 2 ‑ 5, 78 ‑ 82, 86, 87): 14 Dec 2009 sch 3 (items 41 ‑ 45): Royal Assent

s 14-175 — Overpayment of TFN withholding tax (ESS)

If * TFN withholding tax (ESS) has been overpaid: (a) the Commissioner must refund the amount overpaid; and (b) the individual is not entitled to a credit under section 18 ‑ 15 in respect of the amount overpaid.

Amendment history: Inserted by No 133 of 2009, effective sch 1 (items 2 ‑ 5, 78 ‑ 82, 86, 87): 14 Dec 2009 sch 3 (items 41 ‑ 45): Royal Assent

s 14-180 — Application of certain provisions of Division 83A of the Income Tax Assessment Act 1997

The following provisions of the Income Tax Assessment Act 1997 have effect for the purposes of this Subdivision in the same way as they have for the purposes of Division 83A of that Act: (a) section 83A ‑ 130 (about takeovers and restructures); (b) section 83A ‑ 305 (about associates); (c) section 83A ‑ 320 (about trusts); (d) section 83A ‑ 325 (about relationships similar to employment); (e) section 83A ‑ 335 (about stapled securities); (f) section 83A ‑ 340 (about indeterminate rights).

Amendment history: Inserted by No 133 of 2009, effective sch 1 (items 2 ‑ 5, 78 ‑ 82, 86, 87): 14 Dec 2009 sch 3 (items 41 ‑ 45): Royal Assent

s 14-200 — Certain acquisitions of taxable Australian property from foreign residents

(1) You must pay to the Commissioner an amount if: (a) you become the owner of a * CGT asset as a result of * acquiring it from one or more entities under one or more transactions; and (b) subsection 14 ‑ 210(1) (about foreign residents) applies to at least one of those entities at the time one of those transactions is entered into; and (c) at that time, the CGT asset is: (i) * taxable Australian real property; or (ii) an * indirect Australian real property interest; or (iii) an option or right to acquire such property or such an interest; unless a transaction referred to in paragraph (a) is excluded under section 14 ‑ 215. Note: You must pay the amount on account of income tax possibly payable by the entities on their capital proceeds resulting from your acquisition of the CGT asset. (2) You must pay the amount to the Commissioner on or before the day you became the * CGT asset’s owner. Note: There are penalties for failing to pay the amount (see Division 16). (3) The amount to be paid to the Commissioner is: (a) unless paragraph (b) applies—an amount equal to 15% of: (i) the first element of the * CGT asset’s * cost base just after the * acquisition, ignoring paragraphs 112 ‑ 36(1)(b) and (c) of the Income Tax Assessment Act 1997 (about the effect of look ‑ through earnout rights); less (ii) if the acquisition is the result of you exercising an option—any payment you made, and the * market value of any property you gave, for the option (or to renew or extend it); or (b) the varied amount applying under section 14 ‑ 235. (4) This section does not apply if the amount that would otherwise be payable is nil.

Amendment history: Inserted by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5) | Amended by No 57 of 2017, effective 1 July 2017 (s 2(1) item 1) | Amended by No 135 of 2024, effective sch 1, sch 3 (items 4 ‑ 6), sch 4: 1 Jan 2025 (s 2(1) items 2, 4) sch 2: 11 Dec 2024 (s 2(1) item 3)

s 14-205 — Effect of look ‑ through earnout rights

Acquisitions of taxable Australian property from foreign residents (1) You must pay to the Commissioner an amount if: (a) you are required under section 14 ‑ 200 to pay an amount to the Commissioner in relation to your * acquisition of a * CGT asset; and (b) under a * look ‑ through earnout right relating to the CGT asset and the acquisition, you provide a * financial benefit to one or more entities; and (c) subsection 14 ‑ 210(1) (about foreign residents) would apply to at least one of those entities at the time you provide the financial benefit if section 14 ‑ 210 were modified as described in subsection (2) of this section; and (d) an amount is not already required to be withheld from a * withholding payment relating to the financial benefit. Note 1: To work out the amount payable, see subsection (4). Note 2: You must pay the amount on account of income tax possibly payable by the entities on their increased capital proceeds from receiving the financial benefit. Modifications of the relevant foreign residents test (2) The modifications of section 14 ‑ 210 are as follows: Modifications to section 14 ‑ 210 for the purposes of this section Column 1 Column 2 Item For a reference in that section to: substitute a reference to: 1 transaction is entered into * financial benefit is provided 2 transaction (other than a reference covered by item 1) * financial benefit 3 14 ‑ 200 14 ‑ 205 When you must pay the amount (3) You must pay the amount to the Commissioner on or before the day you provide the * financial benefit. Note: There are penalties for failing to pay the amount (see Division 16). (4) The amount to be paid to the Commissioner is: (a) unless paragraph (b) applies—an amount equal to 15% of the * market value of the * financial benefit; or (b) the varied amount applying under section 14 ‑ 235.

Amendment history: Inserted by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5) | Amended by No 57 of 2017, effective 1 July 2017 (s 2(1) item 1) | Amended by No 135 of 2024, effective sch 1, sch 3 (items 4 ‑ 6), sch 4: 1 Jan 2025 (s 2(1) items 2, 4) sch 2: 11 Dec 2024 (s 2(1) item 3)

s 14-210 — Whether an entity is a relevant foreign resident

Is the entity a foreign resident at the time of the transaction? (1) This subsection applies to an entity at the time a transaction is entered into if, at that time: (a) you know that the entity is a foreign resident; or (b) you reasonably believe that the entity is a foreign resident; or (c) you do not reasonably believe that the entity is an Australian resident, and either: (i) the entity has an address outside Australia (according to any record that is in your possession, or is kept or maintained on your behalf, about the transaction); or (ii) you are authorised to provide a related financial benefit to a place outside Australia (whether to the entity or to anyone else); or (d) the entity has a connection outside Australia of a kind specified in the regulations; or (e) the * CGT asset to which the transaction relates is: (i) * taxable Australian real property; or (ii) an * indirect Australian real property interest, the holding of which causes a company title interest (within the meaning of Part X of the Income Tax Assessment Act 1936 ) to arise. Note: This subsection is relevant to whether you must pay an amount to the Commissioner under section 14 ‑ 200. Exception—the entity gives you a clearance certificate (2) Despite subsection (1), that subsection does not apply to the entity in relation to the transaction if: (a) before you pay the Commissioner under section 14 ‑ 200 in relation to the * CGT asset to which the transaction relates, the entity gives you a certificate about the entity that: (i) was issued under subsection 14 ‑ 220(1); and (ii) is for a period covering the time the transaction is entered into; and (b) the CGT asset is of a kind described in paragraph (1)(e) of this section. Exception—the entity gives you a residency or interests declaration (3) Despite subsection (1), that subsection does not apply to the entity in relation to the transaction if: (a) before you pay the Commissioner under section 14 ‑ 200 in relation to the * CGT asset to which the transaction relates, the entity gives you a declaration that: (i) is about the entity or the CGT asset; and (ii) was given under subsection 14 ‑ 225(1) or (2); and (iii) is for a period covering the time the transaction is entered into; and (b) when you are given the declaration, you do not know the declaration to be false; and (c) for a declaration given under subsection 14 ‑ 225(1)—the CGT asset is not of a kind described in paragraph (1)(e) of this section.

Amendment history: Inserted by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5)

s 14-215 — Excluded transactions

A transaction that results in the * acquisition of a * CGT asset is excluded under this section if: (b) the transaction is on an * approved stock exchange; or (c) the transaction is conducted using a crossing system (within the meaning of the * market integrity rules); or (d) an amount is already required to be withheld (other than under Subdivision 14 ‑ E) from a * withholding payment relating to the transaction; or (e) subsection 26BC(3) of the Income Tax Assessment Act 1936 (about securities lending arrangements) applies in relation to the transaction as a result of the transaction being covered by subparagraph (a)(ii) of that subsection; or (f) any of the entities to which subsection 14 ‑ 210(1) (about foreign residents) applies at the time of the transaction: (i) is a company for which any of the conditions in paragraph 161A(1)(a) of the Corporations Act 2001 (about insolvency and external administration) is satisfied; or (ii) is, under a * foreign law, in the same or a similar position to a company covered by subparagraph (i); or (g) the transaction arises from any of the following: (i) the administration of the estate of a bankrupt; (ii) a composition or scheme of arrangement accepted under Division 6 of Part IV of the Bankruptcy Act 1966 ; (iii) a debt agreement under Part IX of that Act; (iv) a personal insolvency agreement under Part X of that Act; (v) circumstances that are, under a foreign law, the same or similar to those in any of the above subparagraphs. Note: This section is relevant to whether you must pay an amount to the Commissioner under section 14 ‑ 200.

Amendment history: Inserted by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5) | Amended by No 57 of 2017, effective 1 July 2017 (s 2(1) item 1) | Amended by No 23 of 2018, effective sch 1 (items 72, 73), sch 5 (items 1 ‑ 4, 12 ‑ 28): 1 Apr 2018 (s 2(1) items 8, 12) sch 1 (items 75 ‑ 79): 30 Mar 2018 (s 2(1) item 9) | Amended by No 135 of 2024, effective sch 1, sch 3 (items 4 ‑ 6), sch 4: 1 Jan 2025 (s 2(1) items 2, 4) sch 2: 11 Dec 2024 (s 2(1) item 3)

s 14-220 — Commissioner clearance certificates

(1) The Commissioner may certify that, based on information before the Commissioner, there is nothing to suggest that an entity is or will be a foreign resident during a specified period. Note: Such a certificate could result in you not being required to pay an amount under this Subdivision (see subsection 14 ‑ 210(2)). (2) A certificate under subsection (1): (a) may be issued on application to the Commissioner in the * approved form; and (b) is to be in writing; and (c) applies only for the purposes of this Subdivision. (3) For the purposes of (but without limiting) paragraph 388 ‑ 50(1)(c), the Commissioner may require an application for a certificate under subsection (1) to state: (a) whether the applicant holds or will hold specified * CGT assets on behalf of another entity during any part of the period for which the certificate is sought; and (b) whether the applicant knows or reasonably believes that the other entity is or will be a foreign resident during that period. Note: Section 388 ‑ 50 sets out when an application is in the approved form. (4) A certificate issued under subsection (1) is not a legislative instrument.

Amendment history: Inserted by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5)

s 14-225 — Entity declarations

Declaration that an entity is an Australian resident (1) An entity may, in writing, declare that, for a specified period, the entity is and will be an Australian resident. Note: Such a declaration could result in you not being required to pay an amount under this Subdivision (see subsection 14 ‑ 210(3)). Declaration that asset not an indirect Australian real property interest (2) An entity may, in writing, declare that, for a specified period, specified * CGT assets are * membership interests but not * indirect Australian real property interests. Note: Such a declaration could result in you not being required to pay an amount under this Subdivision (see subsection 14 ‑ 210(3)). Limit on the periods for which declarations have effect (3) A period specified in a declaration under this section is of no effect to the extent that it includes days later than 6 months after the day the declaration is made. Declarations are not legislative instruments (4) A declaration under this section is not a legislative instrument.

Amendment history: Inserted by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5)

s 14-230 — Administrative penalties for false or misleading declarations

Knowingly making false or misleading declarations (1) You are liable to pay the Commissioner a penalty of 120 penalty units if: (a) you make a statement; and (b) the statement is, or purports to be, a declaration under section 14 ‑ 225; and (c) the statement is false or misleading in a material particular, whether because of things in it or omitted from it; and (d) you know, at the time of making the statement, that it is so false or misleading. Note: Division 298 contains machinery provisions for administrative penalties. Recklessly making false or misleading declarations (2) You are liable to pay the Commissioner a penalty of 80 penalty units if: (a) you make a statement; and (b) the statement is, or purports to be, a declaration under section 14 ‑ 225; and (c) the statement is false or misleading in a material particular, whether because of things in it or omitted from it; and (d) you were reckless in connection with the making of the statement. Note: Division 298 contains machinery provisions for administrative penalties. Not taking reasonable care in making declarations (3) You are liable to pay the Commissioner a penalty of 40 penalty units if: (a) you make a statement; and (b) the statement is, or purports to be, a declaration under section 14 ‑ 225; and (c) the statement is false or misleading in a material particular, whether because of things in it or omitted from it; and (d) you did not take reasonable care in connection with the making of the statement. Note: Division 298 contains machinery provisions for administrative penalties.

Amendment history: Inserted by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5)

s 14-235 — Varying amounts to be paid to the Commissioner

Policies relevant to varying amounts (1) In exercising a power under this section to vary an amount, the Commissioner must have regard to the need to protect a creditor’s right to recover a debt. Varying particular amounts (2) The Commissioner may, in writing, vary a particular amount payable by you to the Commissioner under this Subdivision. The variation takes effect when you become aware of it. Note: Decisions to vary, or not to vary, are reviewable (see section 20 ‑ 80). (3) Any of the following entities may apply to the Commissioner in the * approved form for a variation under subsection (2): (a) you; (b) an entity from which you * acquire, or could acquire, the * CGT asset; (c) an entity that is owed a debt by an entity covered by paragraph (b). (4) A variation made under subsection (2) is not a legislative instrument. Varying classes of amounts (5) The Commissioner may, by legislative instrument, vary classes of amounts payable to the Commissioner under this Subdivision. Amounts may be reduced to nil (6) The Commissioner’s power under subsection (2) or (5) to vary an amount includes the power to reduce the amount to nil.

Amendment history: Inserted by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5)

s 14-250 — Recipients of certain taxable supplies of real property must pay amounts to Commissioner

Liability to pay an amount (1) You must pay to the Commissioner an amount if: (a) you are the recipient (within the meaning of the * GST Act) of a * taxable supply that is, or includes, a * supply to which subsection (2) applies; and (b) in a case where the supply is a supply of * potential residential land—either: (i) you are not registered (within the meaning of that Act); or (ii) you do not acquire the thing supplied for a * creditable purpose. (2) This subsection applies to a * supply, by way of sale or long ‑ term lease (within the meaning of the * GST Act), of: (a) * new residential premises that: (i) have not been created through * substantial renovations of a building; and (ii) are not * commercial residential premises; or (b) * potential residential land that: (i) is included in a * property subdivision plan; and (ii) does not contain any building that is in use for a commercial purpose; other than a supply that is of a kind determined by the Commissioner under subsection (3). (3) The Commissioner may, by legislative instrument, determine that subsection (2) does not apply to a kind of * supply specified in the determination. When the amount must be paid (4) You must pay the amount on or before: (a) the day on which: (i) any of the * consideration for the * supply (other than consideration provided as a deposit) is first provided; or (ii) if the supplier is your * associate, and the supply is without consideration—the supply is made; or (b) if a determination under subsection (5) applies—the day provided under that determination. (5) The Commissioner may determine, by legislative instrument, circumstances in which amounts under this section are to be paid on or before the day provided under the determination. The determination may provide for amounts to be paid in instalments. The amount to be paid (6) The amount to be paid to the Commissioner is an amount equal to: (a) if the * margin scheme applies to the * supply: (i) the percentage, of the amount provided under subsection (7), determined by the Minister under subsection (8); or (ii) if there is no such determination—7% of the amount provided under subsection (7); or (b) otherwise— 1 / 11 of the amount provided under subsection (7). (7) For the purposes of paragraphs (6)(a) and (b), the amount is: (a) if the contract for the * supply specifies an amount (the contract price ) that is the * price for the supply, subject to normal adjustments that apply on completion of transactions of that kind—that contract price; or (b) otherwise—the * price for the supply. (8) The Minister may, by legislative instrument, determine a percentage exceeding 7%, but not exceeding 9%, for the purposes of subparagraph (6)(a)(i). (9) Despite subsection (6), if: (a) the supplier is your * associate; and (b) the * supply is without * consideration or is for consideration that is less than the * GST inclusive market value; the amount to be paid to the Commissioner is an amount equal to 10% of the * GST exclusive market value (within the meaning of the * GST Act) of the supply. (10) Despite subsections (6) and (9), if: (a) the * supply does not consist solely of one or more supplies to which subsection (2) applies; and (b) it is practicable to ascertain, at the time any of the * consideration for the supply (other than consideration provided as a deposit) is first provided, the amount (the reduced amount ) of the amount provided under subsection (6) or (9) that relates to supplies to which subsection (2) applies; the amount provided under subsection (6) or (9) is taken (other than for the purposes of this subsection) to be the reduced amount. Multiple recipients (11) If there is more than one recipient (within the meaning of the * GST Act) of the * supply (the original supply ): (a) treat each recipient as being the recipient of a separate supply; and (b) treat the amount under subsection (6), (9) or (10) (as the case requires) for such a separate supply as being the same proportion of that amount for the original supply, as the proportion of the original supply that is constituted by that separate supply. Treat recipients who are joint tenants as a single recipient for the purposes of this subsection.

Amendment history: Inserted by No 23 of 2018, effective sch 1 (items 72, 73), sch 5 (items 1 ‑ 4, 12 ‑ 28): 1 Apr 2018 (s 2(1) items 8, 12) sch 1 (items 75 ‑ 79): 30 Mar 2018 (s 2(1) item 9)

s 14-255 — Notification by suppliers of residential premises etc.

(1) You must not make a * supply, by way of sale or long ‑ term lease (within the meaning of the * GST Act), of * residential premises or of * potential residential land to another entity unless, before making the supply, you have given to the other entity a written notice stating: (a) whether the other entity will be required to make a payment under section 14 ‑ 250 in relation to the supply; and (b) if the other entity will be required to make such a payment in relation to the supply: (i) the name and * ABN of the entity that is liable to pay the * GST on the supply; and (ii) the amount that the other entity will be required to pay to the Commissioner under section 14 ‑ 250 in relation to the supply; and (iii) when the other entity will be required to pay that amount; and (iv) if some or all of the * consideration for the supply will not be expressed as an amount of * money—the * GST inclusive market value of so much of the consideration as will not be expressed as an amount of money; and (v) such other matters as are specified in the regulations. (2) However, subsection (1): (a) does not apply to a supply of * commercial residential premises; and (b) does not apply to a supply of * potential residential land to another entity if the other entity: (i) is registered (within the meaning of the * GST Act); and (ii) acquires the land for a * creditable purpose. (3) To avoid doubt, a failure to comply with subsection (1) does not affect the other entity’s obligation to make a payment under section 14 ‑ 250. Strict liability offence (4) You must not fail to give a notice required under this section. Penalty: 100 penalty units. (5) An offence against subsection (4) is a strict liability offence. Note: For strict liability, see section 6.1 of the Criminal Code. Administrative penalty (6) You are liable to pay the Commissioner a penalty of 100 penalty units if you fail to give a notice required under this section. Note: Division 298 contains machinery provisions for administrative penalties. (7) However, you are not liable to a penalty for failing to meet the requirements of paragraph (1)(b) in relation to a supply if, at the time you gave the notice, you reasonably believed that you were not required to meet those requirements in relation to that supply.

Amendment history: Inserted by No 23 of 2018, effective sch 1 (items 72, 73), sch 5 (items 1 ‑ 4, 12 ‑ 28): 1 Apr 2018 (s 2(1) items 8, 12) sch 1 (items 75 ‑ 79): 30 Mar 2018 (s 2(1) item 9) | Amended by No 49 of 2019, effective sch 4 (items 105 ‑ 111): 1 July 2019 (s 2(1) item 12)

s 15-1 — What this Division is about

This Division is mainly about how to work out how much an entity must withhold under Division 12. In most cases, the entity will need to use either the Commissioner’s withholding schedules or the regulations. The entity will also need to take into account a TFN declaration or declaration under section 15 ‑ 50 it has been given because, under the schedules and regulations, the declaration may affect how to calculate the amount to withhold. This Division also deals with when an individual can make such a declaration (other than a TFN declaration) so as to change the amount that must be withheld from payments to the individual.

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12))

s 15-10 — How much to withhold

(1) The amount that Subdivision 12 ‑ B, 12 ‑ C or 12 ‑ D requires to be withheld from a payment is to be worked out under the withholding schedules made under section 15 ‑ 25. However, if the regulations prescribe how the amount is to be worked out, then it is to be worked out under the regulations. Note 1: A TFN declaration, declaration under section 15 ‑ 50 or voluntary agreement may affect how much is required to be withheld under the withholding schedules or regulations. Note 2: The Commissioner may vary an amount required to be withheld. See section 15 ‑ 15. (2) The amount that Subdivision 12 ‑ E, 12 ‑ F, 12 ‑ FA, 12 ‑ FAA, 12 ‑ FB, 12 ‑ FC, 12 ‑ G (except one covered by section 12 ‑ 325) or 12 ‑ J requires to be withheld from a payment is to be worked out under the regulations. Note 1: The amount that section 12 ‑ 325 requires to be withheld is worked out under that section. Note 2: The Commissioner may vary an amount required to be withheld. See section 15 ‑ 15. (3) The amount that Subdivision 12 ‑ H requires to be withheld from a payment or receipt is worked out under subsection 12 ‑ 385(2), 12 ‑ 390(2) or 12 ‑ 390(5).

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12)) | Amended by No 15 of 2002, effective 4 Apr 2002 | Amended by No 66 of 2003, effective sch 3 (items 134 ‑ 139, 140(1)), sch 5, sch 6 (items 2, 3): Royal Assent | Amended by No 32 of 2008, effective sch 1 (items 1, 24 ‑ 58): Royal Assent | Amended by No 27 of 2009, effective sch 1 (items 1 ‑ 3, 5): Royal Assent sch 1 (item 4): 1 July 2013 sch 2 (items 64 ‑ 66), sch 3 (items 11 ‑ 18, 102(1)): 27 Mar 2009 | Amended by No 58 of 2012, effective sch 1 (items 8 ‑ 28): 21 June 2012 ( see s 2(1)) | Amended by No 110 of 2014, effective sch 4 (items 2, 3), sch 5 (items 68 ‑ 75, 123 ‑ 140): 16 Oct 2014 (s 2(1) items 3, 4, 7) | Amended by No 132 of 2017, effective sch 1 (items 1 ‑ 5, 13 ‑ 20): 1 July 2018 (s 2(1) item 2) sch 2 (items 6, 7): 1 Jan 2018 (s 2(1) item 3)

s 15-15 — Variation of amounts required to be withheld

(1) The Commissioner may, for the purposes of meeting the special circumstances of a particular case or class of cases, vary the * amount required to be withheld by an entity from a * withholding payment (except a withholding payment covered by section 12 ‑ 140, 12 ‑ 145, 12 ‑ 175 or 12 ‑ 180 or Subdivision 12 ‑ FC or 12 ‑ H). If the Commissioner does so, the amount is varied accordingly. Note 1: Section 12 ‑ 140 is about a payment arising from an investment where the recipient does not quote its tax file number (or, in some cases, its ABN). Note 2: Sections 12 ‑ 175 and 12 ‑ 180 are about a payment of the income of a closely held trust to a beneficiary, where the beneficiary does not quote the beneficiary’s tax file number. Note 3: Section 12 ‑ 145 is about an investor becoming presently entitled to income of a unit trust. Note 3A: Subdivision 12 ‑ FC is about certain labour mobility programs. Note 4: Subdivision 12 ‑ H is about distributions of withholding MIT income. (2) The Commissioner’s power to vary an amount includes the power to reduce the amount to nil. (3) A variation must be made: (a) if it applies to a particular entity—by a written notice given to that entity; or (b) if it applies to a class of entities—by legislative instrument.

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12)) | Amended by No 79 of 2007, effective sch 8 (items 3, 26(1), (2)): 1 July 2007 sch 10 (items 1, 2, 14 ‑ 32): Royal Assent | Amended by No 32 of 2008, effective sch 1 (items 1, 24 ‑ 58): Royal Assent | Amended by No 75 of 2010, effective sch 2 (items 3 ‑ 24): 1 July 2010 | Amended by No 58 of 2012, effective sch 1 (items 8 ‑ 28): 21 June 2012 ( see s 2(1)) | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3) | Amended by No 64 of 2020, effective sch 3 (items 124 ‑ 145): 1 July 2020 (s 2(1) item 5) sch 3 (items 302 ‑ 321, 325, 326): 1 Oct 2020 (s 2(1) item 6) | Amended by No 75 of 2022, effective sch 2 (items 2 ‑ 4): 6 Dec 2022 (s 2(1) item 3) sch 4 (items 23 ‑ 38): 1 July 2022 (s 2(1) item 4)

s 15-25 — Commissioner’s power to make withholding schedules

(1) For the purposes of collecting income tax and the other liabilities referred to in paragraphs 11 ‑ 1(b), (ca), (caa), (cb), (cc), (cd), (da) and (db), the Commissioner may, by legislative instrument, make one or more withholding schedules specifying the amounts, formulas and procedures to be used for working out the * amount required to be withheld by an entity: (a) from a * withholding payment covered by Subdivision 12 ‑ B, 12 ‑ C or 12 ‑ D; or (b) an * alienated personal services payment to which Division 13 applies. (2) A withholding schedule may deal differently with: (a) different payments; and (b) different circumstances of the recipients of those payments; and (c) different periods in respect of which those payments are made. This subsection does not limit subsection 33(3A) of the Acts Interpretation Act 1901 .

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4)) | Amended by No 83 of 2005, effective sch 3: Royal Assent | Amended by No 56 of 2010, effective s 4(2), sch 3 (items 9, 10(1), (5)), sch 5 (items 191 ‑ 193), sch 6 (items 12 ‑ 14, 27 ‑ 36, 44 ‑ 53, 110, 111, 116, 159, 160): 3 June 2010 (s 2(1) items 1, 7, 11, 15, 20, 23) sch 1 (item 8): 17 Dec 2010 (s 2(1) item 4) sch 2 (items 3, 4), sch 6 (items 58 ‑ 97, 101 ‑ 105): 4 June 2010 (s 2(1) items 6, 16, 17) | Amended by No 82 of 2014, effective sch 1 (items 8 ‑ 24): 18 July 2014 (s 2(1) item 2) | Amended by No 169 of 2015, effective sch 1 (items 82 ‑ 99, 111): 1 Jan 2016 (s 2(1) item 2) | Amended by No 116 of 2018, effective sch 1 (items 47 ‑ 60): 1 July 2019 (s 2(1) items 10 ‑ 12) | Amended by No 64 of 2020, effective sch 3 (items 124 ‑ 145): 1 July 2020 (s 2(1) item 5) sch 3 (items 302 ‑ 321, 325, 326): 1 Oct 2020 (s 2(1) item 6)

s 15-30 — Matters to be considered when making withholding schedules

The Commissioner must have regard to the following matters when making a withholding schedule: (a) the rates of income tax as specified in the Income Tax Rates Act 1986 ; (b) the rates of * Medicare levy as specified in the Medicare Levy Act 1986 ; (c) the methods for working out, for any financial year starting on or after 1 July 2025, the following: (i) the amounts referred to in paragraphs (a) and (b) of the definition of applicable repayable amount for the purposes of subsection 46(1) (about repayments of accumulated AASL debt) of the Australian Apprenticeship Support Loans Act 2014 ; (ii) the amounts referred to in paragraphs 154 ‑ 20(1)(a) and (b) (about repayments of accumulated HELP debt) of the Higher Education Support Act 2003 ; (iii) the amounts referred to in paragraphs (a) and (b) of the definition of applicable repayable amount for the purposes of subsection 1061ZVHA(1) (about repayments of accumulated SSL debt) of the Social Security Act 1991 ; (iv) the amounts referred to in paragraphs (a) and (b) of the definition of applicable repayable amount for the purposes of subsection 1061ZZFD(1) (about repayments of accumulated FS debts) of the Social Security Act 1991 ; (v) the amounts referred to in paragraphs (a) and (b) of the definition of applicable repayable amount for the purposes of subsection 10F(1) (about repayments of accumulated ABSTUDY SSL debt) of the Student Assistance Act 1973 ; (vi) the amounts referred to in paragraphs (a) and (b) of the definition of applicable repayable amount for the purposes of subsection 12ZLC(1) (about repayments of accumulated FS debts) of the Student Assistance Act 1973 ; (vii) the amounts referred to in paragraphs (a) and (b) of the definition of applicable repayable amount for the purposes of subsection 23EA(1) (about repayments of accumulated VETSL debts) of the VET Student Loans Act 2016 ; (d) any * tax offsets; (e) the family tax benefit (within the meaning of the A New Tax System (Family Assistance) Act 1999 ); (f) the periods in respect of which * withholding payments are made; (fa) in relation to withholding payments that are * working holiday taxable income—whether an entity is registered under section 16 ‑ 147; (g) any other prescribed matter.

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12)) | Amended by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8)) | Amended by No 150 of 2003, effective sch 2 (items 152 ‑ 160): 1 Jan 2004 (s 2(1) item 16) | Amended by No 47 of 2006, effective sch 1 (items 24, 25), sch 2 (items 26, 27): 1 July 2006 | Amended by No 56 of 2010, effective s 4(2), sch 3 (items 9, 10(1), (5)), sch 5 (items 191 ‑ 193), sch 6 (items 12 ‑ 14, 27 ‑ 36, 44 ‑ 53, 110, 111, 116, 159, 160): 3 June 2010 (s 2(1) items 1, 7, 11, 15, 20, 23) sch 1 (item 8): 17 Dec 2010 (s 2(1) item 4) sch 2 (items 3, 4), sch 6 (items 58 ‑ 97, 101 ‑ 105): 4 June 2010 (s 2(1) items 6, 16, 17) | Amended by No 12 of 2012, effective sch 6 (items 27 ‑ 29): 22 Dec 1999 (s 2(1) item 11) sch 6 (items 84 ‑ 93, 186, 187, 191, 192, 212, 213, 218, 241 ‑ 246, 248 ‑ 251): 21 Mar 2012 (s 2(1) items 14, 31) sch 6 (item 182): 3 Oct 2008 (s 2(1) item 30) | Amended by No 82 of 2014, effective sch 1 (items 8 ‑ 24): 18 July 2014 (s 2(1) item 2) | Amended by No 110 of 2014, effective sch 4 (items 2, 3), sch 5 (items 68 ‑ 75, 123 ‑ 140): 16 Oct 2014 (s 2(1) items 3, 4, 7) | Amended by No 169 of 2015, effective sch 1 (items 82 ‑ 99, 111): 1 Jan 2016 (s 2(1) item 2) | Amended by No 89 of 2016, effective sch 2 (items 3 ‑ 6), sch 3, 4: 2 Dec 2016 (s 2(1) item 3) | Amended by No 116 of 2018, effective sch 1 (items 47 ‑ 60): 1 July 2019 (s 2(1) items 10 ‑ 12) | Amended by No 61 of 2023, effective sch 1 (items 137 ‑ 148, 156 ‑ ‑ 165): 1 Jan 2024 (s 2(1) item 1) | Amended by No 30 of 2025, effective sch 2 (items 28, 35): 3 Aug 2025 (s 2(1) item 1)

s 15-35 — Regulations about withholding

(1) For the purposes of collecting income tax and the other liabilities referred to in section 11 ‑ 1, the regulations may specify the amounts, formulas and procedures to be used for working out the * amount required to be withheld by an entity from a * withholding payment covered by Division 12 (except one covered by section 12 ‑ 325). (2) The regulations may deal differently with: (a) different payments; and (b) different circumstances of the recipients of those payments; and (c) different periods in respect of which those payments are made. This subsection does not limit subsection 33(3A) of the Acts Interpretation Act 1901 .

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12)) | Amended by No 79 of 2007, effective sch 8 (items 3, 26(1), (2)): 1 July 2007 sch 10 (items 1, 2, 14 ‑ 32): Royal Assent | Amended by No 32 of 2008, effective sch 1 (items 1, 24 ‑ 58): Royal Assent

s 15-50 — Declarations

Declarations about matters (1) An individual who: (a) expects to receive a * withholding payment covered by Subdivision 12 ‑ B, 12 ‑ C or 12 ‑ D, or an * alienated personal services payment to which Division 13 applies, from an entity; and (b) wishes to have a matter relating to the individual’s income tax or other liability referred to in paragraph 11 ‑ 1(b), (ca), (caa), (cb), (cc), (cd), (da) or (db) taken into account by the entity in working out the * amount required to be withheld from the payment; may give the entity a declaration about the matter in the * approved form. When declarations under subsection (1) can’t be given (2) The individual cannot give a declaration under subsection (1) unless: (a) a * TFN declaration is in effect between the individual and the entity, or a * voluntary agreement covers the payment; and (b) if the individual has given another entity a declaration on any matter—that declaration is not in effect. Declarations changing information given in TFN declaration (3) If: (a) an individual has given a * TFN declaration to an entity; and (b) the individual made a statement about a matter in the TFN declaration; and (c) the individual’s circumstances change in relation to the matter; the individual may give the entity a declaration about the matter in the * approved form. Regulations (4) The regulations may prescribe: (b) when a declaration under subsection (1) or (3) starts or ceases to be in effect; and (c) when a declaration under subsection (1) or (3) is taken to have been given. (5) If: (a) an individual gives an entity a declaration under subsection (1) or (3) about a matter; and (b) the individual’s circumstances change in relation to the matter; the regulations may also prescribe when the individual must give the entity a new declaration about the matter.

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12)) | Amended by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 83 of 2005, effective sch 3: Royal Assent | Amended by No 56 of 2010, effective s 4(2), sch 3 (items 9, 10(1), (5)), sch 5 (items 191 ‑ 193), sch 6 (items 12 ‑ 14, 27 ‑ 36, 44 ‑ 53, 110, 111, 116, 159, 160): 3 June 2010 (s 2(1) items 1, 7, 11, 15, 20, 23) sch 1 (item 8): 17 Dec 2010 (s 2(1) item 4) sch 2 (items 3, 4), sch 6 (items 58 ‑ 97, 101 ‑ 105): 4 June 2010 (s 2(1) items 6, 16, 17) | Amended by No 82 of 2014, effective sch 1 (items 8 ‑ 24): 18 July 2014 (s 2(1) item 2) | Amended by No 110 of 2014, effective sch 4 (items 2, 3), sch 5 (items 68 ‑ 75, 123 ‑ 140): 16 Oct 2014 (s 2(1) items 3, 4, 7) | Amended by No 169 of 2015, effective sch 1 (items 82 ‑ 99, 111): 1 Jan 2016 (s 2(1) item 2) | Amended by No 116 of 2018, effective sch 1 (items 47 ‑ 60): 1 July 2019 (s 2(1) items 10 ‑ 12)

s 16-1 — What this Division is about

This Division sets out the obligations and rights of an entity required to withhold an amount under Division 12, or to pay an amount to the Commissioner under Division 12A, 13 or 14. Note: The entity may also have obligations under other legislation. See, for example, the obligation to keep records under section 262A of the Income Tax Assessment Act 1936 .

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3)

s 16-5 — When to withhold an amount

If Division 12 requires an entity to withhold an amount from a payment, the entity must do so when making the payment. Note 1: An entity is required to withhold an amount under section 12 ‑ 145 when an investor becomes presently entitled to income of a unit trust. Note 1A: A trustee of a closely held trust is required to withhold an amount under section 12 ‑ 180 when a beneficiary is presently entitled to unpaid income of the trust. Note 2: If section 12 ‑ 215, 12 ‑ 250 or 12 ‑ 285, or subsection 12 ‑ 390(4), requires an entity to withhold an amount from a payment received by the entity, the entity must do so at the time required by that provision.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8)) | Amended by No 32 of 2008, effective sch 1 (items 1, 24 ‑ 58): Royal Assent | Amended by No 14 of 2009, effective sch 2, sch 4 (items 37 ‑ 44): Royal Assent | Amended by No 75 of 2010, effective sch 2 (items 3 ‑ 24): 1 July 2010

s 16-7 — Treat entity obliged to pay under Subdivision 12A ‑ C as having withheld amount under Division 12

For the purposes of this Division: (a) if an entity must pay an amount to the Commissioner under Subdivision 12A ‑ C, treat the entity as being obliged to withhold the amount under Division 12; and (b) if an entity has paid an amount to the Commissioner under Subdivision 12A ‑ C, treat the entity as having withheld the amount under Division 12.

Amendment history: Inserted by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3)

s 16-20 — Payer discharged from liability to recipient for amount withheld

(1) An entity that: (a) withholds an amount as required by Division 12; or (b) pays to the Commissioner an amount as required by Division 12A, 13 or 14; is discharged from all liability to pay or account for that amount to any entity except the Commissioner. Note: The entity may be required to refund the amount in some circumstances. See Subdivision 18 ‑ B. (2) An entity is discharged from all liability to pay so much of the total amount payable to * acquire a * CGT asset as is equal to any amount the entity pays to the Commissioner under Subdivision 14 ‑ D in relation to the acquisition.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5) | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3)

s 16-25 — Failure to withhold: offence

(1) An entity must not fail to withhold an amount as required by Division 12. Penalty: 10 penalty units. Note 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit. Note 2: See sections 16 ‑ 30, 16 ‑ 35, 16 ‑ 40 and 16 ‑ 43 for an alternative administrative penalty. (2) An entity must not fail to pay to the Commissioner an amount as required by Division 12A or 13 or Subdivision 14 ‑ A, 14 ‑ B, 14 ‑ C or 14 ‑ D. Penalty: 10 penalty units. Note 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit. Note 2: See sections 16 ‑ 30, 16 ‑ 35, 16 ‑ 40 and 16 ‑ 43 for an alternative administrative penalty. (3) An offence against subsection (1) or (2) is a strict liability offence. Note: For strict liability , see section 6.1 of the Criminal Code . (4) If a person is convicted of an offence in relation to: (a) a failure by that person or someone else to withhold an amount as required by Division 12; or (b) a failure by that person or someone else to pay to the Commissioner an amount as required by Division 12A or 13 or Subdivision 14 ‑ A, 14 ‑ B, 14 ‑ C or 14 ‑ D; the court may order the convicted person to pay to the Commissioner an amount up to the * amount required to be withheld. The court may so order in addition to imposing a penalty on the convicted person.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4)) | Amended by No 146 of 2001, effective s 4, sch 3: 15 Dec 2001 (s 2(1)) | Amended by No 66 of 2003, effective sch 3 (items 134 ‑ 139, 140(1)), sch 5, sch 6 (items 2, 3): Royal Assent | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3) | Amended by No 23 of 2018, effective sch 1 (items 72, 73), sch 5 (items 1 ‑ 4, 12 ‑ 28): 1 Apr 2018 (s 2(1) items 8, 12) sch 1 (items 75 ‑ 79): 30 Mar 2018 (s 2(1) item 9)

s 16-30 — Failure to withhold: administrative penalty for entity other than exempt Australian government agency

(1) An entity (except an * exempt Australian government agency) that: (a) fails to withhold an amount as required by Division 12; or (b) fails to pay an amount to the Commissioner as required by Division 12A, 13 or 14; is liable to pay to the Commissioner a penalty equal to that amount. Note 1: An entity may become liable under this section in respect of a payment it made or received that is taken to have been subject to withholding tax as a result of a Commissioner’s determination under subsection 177F(2A) of the Income Tax Assessment Act 1936 (see also subsection 177F(2F) of that Act). Note 2: Division 298 in this Schedule contains machinery provisions for administrative penalties. (2) Subsection (1) does not apply in relation to a failure to pay an amount to the Commissioner as required by Subdivision 14 ‑ E if: (a) the amount relates to a * taxable supply of * new residential premises (other than * commercial residential premises); and (b) the entity was given a notice under section 14 ‑ 255: (i) stating that the premises are not new residential premises; or (ii) indicating that the entity will not be required to pay an amount to the Commissioner under section 14 ‑ 250 in relation to the supply; and (c) at the time * consideration for the supply (other than consideration provided as a deposit) is first provided, there was nothing in: (i) the contract for the supply; or (ii) any other circumstances relating to the supply; that made it unreasonable for the entity to believe that the statement or indication was correct. (3) Subsection (1) does not apply in relation to a failure to pay an amount to the Commissioner in relation to a * taxable supply as required by Subdivision 14 ‑ E if: (a) the entity required to pay the amount in relation to the supply gives the supplier a bank cheque on or before the day * consideration for the supply (other than consideration provided as a deposit) is first provided; and (b) the bank cheque is for the amount the entity is required to pay to the Commissioner, and is payable to the Commissioner.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 101 of 2004, effective sch 11 (items 3 ‑ 15): 22 Dec 1999 (s 2(1) item 12) sch 11 (item 130): 30 June 2001 (s 2(1) item 15) sch 11 (items 155 ‑ 160, 163, 164): 30 June 2004 (s 2(1) items 17, 18) | Repealed and substituted by No 58 of 2006, effective sch 7 (items 131 ‑ 169, 217 ‑ 219): 22 June 2006 (s 2(1) items 6, 24) | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3) | Amended by No 23 of 2018, effective sch 1 (items 72, 73), sch 5 (items 1 ‑ 4, 12 ‑ 28): 1 Apr 2018 (s 2(1) items 8, 12) sch 1 (items 75 ‑ 79): 30 Mar 2018 (s 2(1) item 9)

s 16-35 — Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment other than dividend, interest or royalty

(1) An * exempt Australian government agency that: (a) fails to withhold an amount as required by Division 12; or (b) fails to pay to the Commissioner an amount as required by Division 14; is liable to pay to the Commissioner a penalty of 20 penalty units. Note 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit. Note 2: Division 298 in this Schedule contains machinery provisions for administrative and civil penalties. Exception (4) This section does not apply in relation to an * amount required to be withheld from a * withholding payment covered by Subdivision 12 ‑ F (about dividend, interest or royalty payment) or by Subdivision 12 ‑ FB (about payments to foreign residents).

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12)) | Amended by No 66 of 2003, effective sch 3 (items 134 ‑ 139, 140(1)), sch 5, sch 6 (items 2, 3): Royal Assent | Amended by No 101 of 2004, effective sch 11 (items 3 ‑ 15): 22 Dec 1999 (s 2(1) item 12) sch 11 (item 130): 30 June 2001 (s 2(1) item 15) sch 11 (items 155 ‑ 160, 163, 164): 30 June 2004 (s 2(1) items 17, 18) | Amended by No 32 of 2006, effective 6 Apr 2006

s 16-40 — Failure to withhold: administrative penalty for exempt Australian government agency in relation to dividend, interest or royalty payment

An * exempt Australian government agency that: (a) fails to withhold an amount as required by Division 12 from a * withholding payment covered by Subdivision 12 ‑ F (about dividend, interest or royalty payment); or (b) fails to pay to the Commissioner an amount as required by Division 14 in respect of a withholding payment covered by that Subdivision; is liable to pay to the Commissioner a penalty equal to that amount. Note 1: An exempt Australian government agency may become liable under this section in respect of a payment it made or received that is taken to have been subject to withholding tax as a result of a Commissioner’s determination under subsection 177F(2A) of the Income Tax Assessment Act 1936 (see also subsection 177F(2F) of that Act). Note 2: Division 298 in this Schedule contains machinery provisions for administrative penalties.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 66 of 2003, effective sch 3 (items 134 ‑ 139, 140(1)), sch 5, sch 6 (items 2, 3): Royal Assent | Amended by No 101 of 2004, effective sch 11 (items 3 ‑ 15): 22 Dec 1999 (s 2(1) item 12) sch 11 (item 130): 30 June 2001 (s 2(1) item 15) sch 11 (items 155 ‑ 160, 163, 164): 30 June 2004 (s 2(1) items 17, 18) | Repealed and substituted by No 58 of 2006, effective sch 7 (items 131 ‑ 169, 217 ‑ 219): 22 June 2006 (s 2(1) items 6, 24)

s 16-43 — Failure to withhold: administrative penalty for exempt Australian government agency in relation to payment to foreign resident etc.

An * exempt Australian government agency that: (a) fails to withhold an amount as required by Division 12 from a * withholding payment covered by Subdivision 12 ‑ FB (about payments to foreign residents); or (b) fails to pay to the Commissioner an amount as required by Division 14 in respect of a withholding payment covered by that Subdivision; is liable to pay to the Commissioner a penalty equal to that amount. Note: Division 298 in this Schedule contains machinery provisions for administrative penalties.

Amendment history: Inserted by No 66 of 2003, effective sch 3 (items 134 ‑ 139, 140(1)), sch 5, sch 6 (items 2, 3): Royal Assent | Amended by No 101 of 2004, effective sch 11 (items 3 ‑ 15): 22 Dec 1999 (s 2(1) item 12) sch 11 (item 130): 30 June 2001 (s 2(1) item 15) sch 11 (items 155 ‑ 160, 163, 164): 30 June 2004 (s 2(1) items 17, 18) | Amended by No 32 of 2006, effective 6 Apr 2006 | Repealed and substituted by No 58 of 2006, effective sch 7 (items 131 ‑ 169, 217 ‑ 219): 22 June 2006 (s 2(1) items 6, 24)

s 16-70 — Entity to pay amounts to Commissioner

(1) An entity that withholds an amount under Division 12 must pay the amount to the Commissioner in accordance with this Subdivision. (2) An entity that must pay an amount to the Commissioner under Division 13 or Subdivision 14 ‑ A must do so in accordance with section 16 ‑ 85. (3) An entity that must pay an amount to the Commissioner under Subdivision 14 ‑ B, 14 ‑ C, 14 ‑ D or 14 ‑ E must do so in accordance with sections 16 ‑ 80 and 16 ‑ 85. Note: For provisions about the collection and recovery of amounts payable to the Commissioner under this Part, see Part 4 ‑ 15.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 101 of 2006, effective sch 3, 4: 1 Jan 2008 Remainder: Royal Assent | Amended by No 133 of 2009, effective sch 1 (items 2 ‑ 5, 78 ‑ 82, 86, 87): 14 Dec 2009 sch 3 (items 41 ‑ 45): Royal Assent | Amended by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5) | Amended by No 23 of 2018, effective sch 1 (items 72, 73), sch 5 (items 1 ‑ 4, 12 ‑ 28): 1 Apr 2018 (s 2(1) items 8, 12) sch 1 (items 75 ‑ 79): 30 Mar 2018 (s 2(1) item 9)

s 16-75 — When amounts must be paid to Commissioner

Large withholder (1) A * large withholder must pay to the Commissioner as shown in the table an amount it withholds under Division 12 (other than section 12 ‑ 175 or 12 ‑ 180) during a month. Payments by large withholders Item If the amount is withheld on this day of week: It must be paid to the Commissioner on or before: 1 Saturday or Sunday The second Monday after that day 2 Monday or Tuesday The first Monday after that day 3 Wednesday The second Thursday after that day 4 Thursday or Friday The first Thursday after that day Medium withholders (2) Subject to subsection (2A), a * medium withholder must pay to the Commissioner an amount that it withholds during a month under Division 12 (other than section 12 ‑ 175 or 12 ‑ 180) by the end of the 21st day of the next month. (2A) If a * medium withholder: (a) withholds an amount during a month under Division 12 (other than section 12 ‑ 175 or 12 ‑ 180); and (b) is a * deferred BAS payer on the 21st day of the month (the next month ) following that month; the medium withholder must pay that amount to the Commissioner by the end of the 28th day of: (c) the next month unless the amount is withheld during December; or (d) the next February if the amount is withheld during December. Small withholders (3) Subject to subsection (4), if a * small withholder withholds an amount under Division 12 (other than section 12 ‑ 175 or 12 ‑ 180) during a month in a * quarter, it must pay the amount to the Commissioner by the end of the 21st day of the month after the end of that quarter. (4) If a * small withholder: (a) withholds an amount under Division 12 (other than section 12 ‑ 175 or 12 ‑ 180) during a month in a * quarter; and (b) is a * deferred BAS payer on the 21st day of the month after the end of that quarter; the small withholder must pay that amount to the Commissioner as shown in the table: Payments by * deferred BAS payers Item If the amount is withheld during the * quarter ending on: the amount must be paid to the Commissioner by the end of: 1 30 September the following 28 October 2 31 December the following 28 February 3 31 March the following 28 April 4 30 June the following 28 July Payment of income of closely held trust (5) A trustee must pay to the Commissioner an amount the trustee withholds under section 12 ‑ 175 or 12 ‑ 180 from a payment made during an income year. The trustee must do so: (a) by the end of the 28th day of the next month following the day by which the trustee was required to give to the Commissioner a report under subsection 16 ‑ 152(1) for the income year; or (b) within a longer period allowed by the Commissioner.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 73 of 2001, effective sch 1 (items 21, 22, 58 ‑ 62(1)), sch 2 (items 1 ‑ 40, 53, 86 ‑ 95(1)), sch 3 (items 20 ‑ 33), sch 4 (items 1, 10), sch 5: 30 June 2001 (s 2(1)) sch 2 (items 48 ‑ 52): 1 Jan 2001 (s 2(2)) sch 3 (items 35, 36): 1 Apr 2001 (s 2(3)) | Amended by No 101 of 2006, effective sch 3, 4: 1 Jan 2008 Remainder: Royal Assent | Amended by No 75 of 2010, effective sch 2 (items 3 ‑ 24): 1 July 2010

s 16-80 — Penalty for failure to pay within time

If an amount that an entity must pay to the Commissioner under subsection 16 ‑ 70(1) or (3) remains unpaid after the time by which it is due to be paid, the entity is liable to pay * general interest charge on the unpaid amount for each day in the period that: (a) started at the beginning of the day by which the unpaid amount was due to be paid; and (b) finishes at the end of the last day, at the end of which, any of the following remains unpaid: (i) the unpaid amount; (ii) general interest charge on any of the unpaid amount.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 101 of 2006, effective sch 3, 4: 1 Jan 2008 Remainder: Royal Assent | Amended by No 133 of 2009, effective sch 1 (items 2 ‑ 5, 78 ‑ 82, 86, 87): 14 Dec 2009 sch 3 (items 41 ‑ 45): Royal Assent | Amended by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5)

s 16-85 — How amounts are to be paid

Large withholder (1) A * large withholder must pay to the Commissioner by a means of * electronic payment: (a) an amount that it withholds under Division 12; and (b) an amount that it pays to the Commissioner under Division 13 or 14. Note 1: A different rule applies for some large withholders for July and August 2000. See section 16 ‑ 130. Note 2: A penalty applies if a large withholder fails to pay electronically as required—see section 288 ‑ 20. Note 3: A large withholder must also pay other tax debts electronically—see section 8AAZMA. Medium or small withholder (2) A * medium withholder or * small withholder must pay to the Commissioner: (a) any amount that it withholds under Division 12; and (b) any amount that it pays to the Commissioner under Division 13 or 14; by a means of * electronic payment, or any other means approved in writing by the Commissioner. Commissioner may vary payment method (3) The Commissioner may, with an entity’s agreement, vary the means by which the withholder pays amounts to the Commissioner under this Subdivision. The variation must be by written notice given to the entity.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4))

s 16-95 — Meaning of large withholder

(1) An entity is a large withholder for a particular month (the current month ) in a * financial year starting on or after 1 July 2001 if: (a) it was a * large withholder for June 2001; or (b) the * amounts withheld by the entity during a financial year ending at least 2 months before the current month exceeded $1 million; or (c) both of the following apply: (i) at the end of a financial year (the threshold year ) ending at least 2 months before the current month, the entity was one of a number of companies that were at that time all members of the same * wholly ‑ owned group; (ii) the amounts withheld by those companies during the threshold year exceeded $1 million; or (d) the Commissioner determines under section 16 ‑ 115 that the entity is a large withholder for the current month. Note: Different rules apply for working out who is a large withholder for a month in 2000 ‑ 01. See section 16 ‑ 125. Exception (2) However, the entity is not a * large withholder if the Commissioner determines under section 16 ‑ 110 that it is a * medium withholder or a * small withholder for the current month.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 101 of 2006, effective sch 3, 4: 1 Jan 2008 Remainder: Royal Assent

s 16-100 — Meaning of medium withholder

(1) An entity is a medium withholder for a particular month (the current month ) in a * financial year starting on or after 1 July 2001 if it is not a * large withholder for that month and: (a) it was a * medium withholder for June 2001; or (b) the * amounts withheld by the entity during a financial year ending before the current month exceeded $25,000; or (c) the Commissioner determines under section 16 ‑ 110 or 16 ‑ 115 that the entity is a medium withholder for the current month. Note: Different rules apply for working out who is a large withholder for a month in 2000 ‑ 01. See section 16 ‑ 125. (2) However, the entity is not a * medium withholder if the Commissioner determines under section 16 ‑ 110 or 16 ‑ 115 that the entity is a * large withholder or a * small withholder for the current month.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 101 of 2006, effective sch 3, 4: 1 Jan 2008 Remainder: Royal Assent

s 16-105 — Meaning of small withholder

An entity is a small withholder for a particular month if: (a) there is at least one * amount withheld by the entity during that month; and (b) the entity is neither a * large withholder nor a * medium withholder for that month.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1))

s 16-110 — Commissioner may vary withholder’s status downwards

(1) The Commissioner may, by giving written notice to a * withholder: (a) make the following determinations: (i) a determination that a * large withholder is a * medium withholder or a * small withholder; (ii) a determination that a medium withholder is a small withholder; or (b) revoke or vary any such determination. (2) The notice must state that the determination applies: (a) for specified months; or (b) for all months from and including a specified month. (3) The determination has no effect for a particular month unless the notice is given before that month. (4) An entity that would otherwise be a * large withholder or a * medium withholder for a particular month may apply in writing to the Commissioner for a determination under this section. Note: A person who is dissatisfied with a decision under this section may object against the decision in the manner set out in Part IVC.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1))

s 16-115 — Commissioner may vary withholder’s status upwards

(1) The Commissioner may, by giving written notice to a * withholder: (a) make the following determinations: (i) a determination that a * small withholder is a * medium withholder or a * large withholder; (ii) a determination that a medium withholder is a large withholder; or (b) revoke or vary any such determination. (2) The notice must state that the determination applies: (a) for specified months; or (b) for all months from and including a specified month. (3) A determination that a * small withholder is a * medium withholder has no effect for a particular month unless the notice is given before that month. (4) Any other determination under this section has no effect for a month that is earlier than the second month after the month in which the notice is given. (5) The Commissioner may, in making a determination under this section, have regard to the following: (a) the sum of the amounts that the Commissioner considers to be likely to be the * amounts required to be withheld by the entity in the following 12 months; (b) the extent (if any) to which the entity makes or receives * withholding payments that were previously made or received by another entity; (c) any failure by the entity to comply with its obligations under this Part; (d) any * arrangement that was entered into or carried out for the purpose of lengthening the intervals at which the entity is required to pay to the Commissioner amounts withheld from withholding payments; (e) such other matters as the Commissioner considers relevant. Note: A person who is dissatisfied with a decision under this section may object against the decision in the manner set out in Part IVC.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1))

s 16-140 — Withholders must be registered

(1) An entity that must pay an amount to the Commissioner under: (a) subsection 16 ‑ 70(1) (about amounts withheld under Division 12); or (aaa) Division 12A (about deemed payments by AMITs); or (aa) Division 13 (about payments in respect of alienated personal services payments); or (b) Subdivision 14 ‑ A, 14 ‑ B, 14 ‑ C or 14 ‑ D (about payments in respect of non ‑ cash benefits or capital proceeds); must apply to register with the Commissioner. (2) The entity must apply in the * approved form by the day on which the entity is first required: (a) to withhold an amount under Division 12; or (b) to pay an amount to the Commissioner under Division 12A or 13 or Subdivision 14 ‑ A, 14 ‑ B, 14 ‑ C or 14 ‑ D. However, the Commissioner may allow a longer period for applying. (3) An entity that contravenes this section is liable to an administrative penalty of 5 penalty units. Note 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit. Note 2: Division 298 contains machinery provisions for administrative and civil penalties.

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4)) | Amended by No 101 of 2004, effective sch 11 (items 3 ‑ 15): 22 Dec 1999 (s 2(1) item 12) sch 11 (item 130): 30 June 2001 (s 2(1) item 15) sch 11 (items 155 ‑ 160, 163, 164): 30 June 2004 (s 2(1) items 17, 18) | Amended by No 32 of 2006, effective 6 Apr 2006 | Amended by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5) | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3) | Amended by No 23 of 2018, effective sch 1 (items 72, 73), sch 5 (items 1 ‑ 4, 12 ‑ 28): 1 Apr 2018 (s 2(1) items 8, 12) sch 1 (items 75 ‑ 79): 30 Mar 2018 (s 2(1) item 9)

s 16-141 — Registration and cancellation

The Commissioner may register an entity or cancel the registration of an entity at any time.

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12))

s 16-142 — Branches may be registered

(1) The Commissioner may register a branch of a registered entity if: (a) the entity applies, in the * approved form, for registration of the branch; and (b) the entity has an * ABN or has applied for one; and (c) the Commissioner is satisfied that the branch maintains an independent system of accounting, and can be separately identified by reference to: (i) the nature of the activities carried on through the branch; or (ii) the location of the branch; and (d) the Commissioner is satisfied that the entity is * carrying on an enterprise through the branch, or intends to carry on an enterprise through the branch, from a particular date specified in the application. A branch that is so registered is a PAYG withholding branch . Note: A branch may be both a PAYG withholding branch under this Subdivision and a GST branch under the GST Act. (2) The Commissioner may register a branch of a * government entity or a * non ‑ profit sub ‑ entity if: (a) the branch or sub ‑ entity applies, in the * approved form, for registration; and (b) the branch or sub ‑ entity has an * ABN or has applied for one. A branch or sub ‑ entity that is so registered is also a PAYG withholding branch .

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12)) | Amended by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4))

s 16-143 — Separate amounts for entities and branches

(1) If an entity has a * PAYG withholding branch, this Part applies to the entity as if the amounts that it must pay to the Commissioner under this Part were separated into the following classes: (a) for each such branch of the entity, a class of amounts that relate to the branch; and (b) a class of amounts that do not relate to any of the entity’s branches. Note: This section does not impose any legal obligations on the branches. The entity remains legally responsible under this Part for all amounts that relate to its branches. (2) Those amounts are worked out as if the branch were a separate entity and as if: (a) all payments made through the branch, from which amounts are required to be withheld under Division 12, were made by that separate entity; and (aa) all * alienated personal services payments received through the branch, in respect of which Division 13 requires an amount to be paid to the Commissioner, were received by that separate entity; and (b) all * non ‑ cash benefits or * capital proceeds provided through the branch, in respect of which Division 14 requires an amount to be paid to the Commissioner, were provided by that separate entity.

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5)

s 16-144 — Cancellation of branch registration

The Commissioner must cancel the registration of a * PAYG withholding branch of an entity if the Commissioner is satisfied that the branch does not satisfy paragraph 16 ‑ 142(c) or (d).

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12))

s 16-145 — Effect on branches of cancelling the entity’s registration

If an entity’s registration is cancelled, the registration of any * PAYG withholding branches of the entity ceases to have effect.

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12))

s 16-146 — Employers of working holiday makers must be registered

(1) An entity must apply to the Commissioner to register under section 16 ‑ 147 if: (a) the entity must pay an amount to the Commissioner under subsection 16 ‑ 70(1) from salary, wages, commission, bonuses or allowances it pays to an individual as the individual’s * working holiday taxable income; and (b) in a case where a period has been determined under subsection 16 ‑ 148(5) during which the entity cannot apply under this section—the period has ended. (2) The entity must apply in the * approved form by the day on which the entity is first required to withhold an amount under Division 12 from salary, wages, commission, bonuses or allowances it pays to an individual as the individual’s * working holiday taxable income. (3) However, the Commissioner may allow a longer period for applying. (4) An entity that contravenes this section is liable to an administrative penalty of 20 penalty units. Note 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit. Note 2: Division 298 contains machinery provisions for administrative and civil penalties. (5) This section does not affect an obligation that an entity has under section 16 ‑ 140.

Amendment history: Inserted by No 89 of 2016, effective sch 2 (items 3 ‑ 6), sch 3, 4: 2 Dec 2016 (s 2(1) item 3)

s 16-147 — Registering employers of working holiday makers

(1) The Commissioner must register an entity under this section if, and only if, the entity: (a) has applied under section 16 ‑ 146 for registration; and (b) has made a declaration to the Commissioner, in the * approved form, that states that the entity: (i) has a genuine business requirement to employ one or more * working holiday makers; and (ii) agrees to comply with the Fair Work Act 2009 in relation to its employment of any individual who is a working holiday maker; and (iii) agrees to check that any individual it employs as a working holiday maker holds a visa that causes that person to be a working holiday maker; and (c) has given to the Commissioner, in the approved form, information relating to its employment, or proposed employment, of working holiday makers. (2) Subparagraph (1)(b)(i) does not apply if the entity is not carrying on a * business. (3) The registration takes effect on the day determined by the Commissioner. Notification of the Commissioner’s decision (4) The Commissioner must notify the entity of: (a) the Commissioner’s decision on the application; and (b) if the Commissioner decides to register the entity—the day on which the registration takes effect; within 30 days after the making of the application. Note: The decision on the application is reviewable (see section 20 ‑ 80). (5) If the Commissioner decides to register the entity, the * Australian Business Registrar must enter in the * Australian Business Register a statement that the entity is registered under this section. The statement must specify the day on which the registration takes effect. (7) A failure to comply with subsection (4) or (5) does not affect the validity of the Commissioner’s decision. Basis of registration (8) A registration under this section is granted on the basis that: (a) the registration may be cancelled under section 16 ‑ 148; and (b) the registration may be cancelled, suspended, varied or made subject to conditions by or under later legislation; and (c) no compensation is payable if the registration is cancelled, suspended, varied or made subject to conditions as mentioned in any of the above paragraphs.

Amendment history: Inserted by No 89 of 2016, effective sch 2 (items 3 ‑ 6), sch 3, 4: 2 Dec 2016 (s 2(1) item 3) | Amended by No 125 of 2018, effective sch 1 (items 2 ‑ 4): 1 Jan 2019 (s 2(1) item 1)

s 16-148 — Cancelling the registration of employers of working holiday makers

(1) The Commissioner may cancel an entity’s registration under section 16 ‑ 147 if: (a) the entity advises the Commissioner, in the * approved form, that the entity does not employ, and does not intend to employ, any individual who is a * working holiday maker; or (b) the Commissioner is satisfied that: (i) the entity; or (ii) if the entity is a partnership—any of the partners; or (iii) if the entity is a company—any director, shareholder or employee of the company who participates in the management or control of the company; or (iv) if the entity is a trustee of a trust—any appointer of trustees of the trust, or any person who participates in the control of the trust; is not a fit and proper person. (2) The cancellation takes effect on the day determined by the Commissioner. The day must not be earlier than the day on which notice of the cancellation is given under subsection (6). (3) If the Commissioner is considering whether the entity, or another person mentioned in subparagraph (1)(b)(ii), (iii) or (iv), is a fit and proper person, the Commissioner must give the entity a notice that: (a) informs the entity accordingly; and (b) invites the entity to make submissions to the Commissioner on the matter within 28 days after the Commissioner gives the notice. (4) Without limiting the matters to which the Commissioner may have regard in considering whether the entity, or another person mentioned in subparagraph (1)(b)(ii), (iii) or (iv), is a fit and proper person, the Commissioner must have regard to: (a) whether a court has made a finding, in proceedings commenced by the Fair Work Ombudsman, that the entity has contravened the Fair Work Act 2009 ; and (b) whether the entity has failed to withhold amounts as required by Division 12; and (c) any relevant information the entity has provided in submissions to the Commissioner within the period specified in paragraph (3)(b). (5) The Commissioner must, having regard to the reasons for the cancellation, determine a period, starting when the cancellation takes effect, during which the entity cannot apply under section 16 ‑ 146 for registration. Notification of the cancellation (6) The Commissioner must notify the entity of: (a) the cancellation; and (b) the day on which the cancellation takes effect; and (c) the period determined under subsection (5) for the cancellation. Note: A decision to cancel, including a determination under subsection (5), is reviewable (see section 20 ‑ 80). (7) The * Australian Business Registrar must enter in the * Australian Business Register a statement that the entity’s registration under section 16 ‑ 147 has been cancelled. The statement must specify the day on which the cancellation takes effect. (8) A failure to comply with subsection (6) or (7) does not affect the validity of the Commissioner’s decision.

Amendment history: Inserted by No 89 of 2016, effective sch 2 (items 3 ‑ 6), sch 3, 4: 2 Dec 2016 (s 2(1) item 3)

s 16-150 — Commissioner must be notified of amounts

(1) An entity that must pay an amount (even if it is a nil amount) to the Commissioner, other than an amount to which subsection (4) applies, under: (a) subsection 16 ‑ 70(1) (about amounts withheld under Division 12); or (aa) Division 13 (about payments in respect of alienated personal services payments); or (b) Subdivision 14 ‑ A, 14 ‑ B, 14 ‑ C or 14 ‑ D (about payments in respect of non ‑ cash benefits or capital proceeds); must notify the Commissioner of the amount on or before the day on which the amount is due to be paid (regardless of whether it is paid). The notification must be in the * approved form and lodged with the Commissioner. Note: This section does not apply to amounts that an employer notifies to the Commissioner under Division 389: see section 389 ‑ 20. (2) An entity that must pay an amount (even if it is a nil amount) to the Commissioner under Subdivision 14 ‑ E (about payments in respect of taxable supplies of certain real property) must notify the Commissioner of the amount: (a) on or before the day provided in a determination under subsection (3); or (b) if there is no such determination—on or before the day on which the amount is due to be paid (regardless of whether it is paid). The notification must be in the * approved form and lodged with the Commissioner. (3) The Commissioner may, by legislative instrument, determine when the Commissioner must be notified for the purposes of paragraph (2)(a). (4) If: (a) an entity must pay an amount (even if it is a nil amount) to the Commissioner under subsection 16 ‑ 70(1) (about amounts withheld under Division 12); and (b) subsection 12 ‑ 450(5) (about income from a build to rent development) applies to the amount; the entity must notify the Commissioner of the amount: (c) on or before the day provided in a determination under subsection (5) of this section; or (d) if there is no such determination—on or before the day on which the amount is due to be paid (regardless of whether it is paid). The notification must be in the * approved form and lodged with the Commissioner. (5) The Commissioner may, by legislative instrument, determine when the Commissioner must be notified for the purposes of paragraph (4)(c).

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4)) | Amended by No 56 of 2010, effective s 4(2), sch 3 (items 9, 10(1), (5)), sch 5 (items 191 ‑ 193), sch 6 (items 12 ‑ 14, 27 ‑ 36, 44 ‑ 53, 110, 111, 116, 159, 160): 3 June 2010 (s 2(1) items 1, 7, 11, 15, 20, 23) sch 1 (item 8): 17 Dec 2010 (s 2(1) item 4) sch 2 (items 3, 4), sch 6 (items 58 ‑ 97, 101 ‑ 105): 4 June 2010 (s 2(1) items 6, 16, 17) | Amended by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5) | Amended by No 55 of 2016, effective sch 23 (items 1, 4 ‑ 20, 22 ‑ 24, 35, 36): 1 Oct 2016 (s 2(1) item 25) | Amended by No 23 of 2018, effective sch 1 (items 72, 73), sch 5 (items 1 ‑ 4, 12 ‑ 28): 1 Apr 2018 (s 2(1) items 8, 12) sch 1 (items 75 ‑ 79): 30 Mar 2018 (s 2(1) item 9) | Amended by No 138 of 2024, effective sch 1 (items 13 ‑ 25), sch 4: 1 Jan 2025 (s 2(1) items 2, 5)

s 16-152 — Annual reports—Withholding payments covered by section 12 ‑ 175

Reports about withholding payments (1) A trustee must give a report to the Commissioner in the * approved form if the trustee made any * withholding payments covered by section 12 ‑ 175 or 12 ‑ 180 (about payments from the income of certain closely held trusts) during an income year. (2) The trustee must give the report under subsection (1) to the Commissioner: (a) not later than 3 months after the end of the income year; or (b) within such further period (if any) as the Commissioner allows. Reports about trust distributions (3) A trustee must give a report to the Commissioner in the * approved form if the trustee would be taken to have made any * withholding payments covered by section 12 ‑ 175 or 12 ‑ 180 during an income year if the relevant beneficiary had not * quoted the beneficiary’s * tax file number as mentioned in paragraph 12 ‑ 175(2)(a) or 12 ‑ 180(2)(a). Note: The effect of subsection (3) is that the trustee must report amounts distributed to beneficiaries even if the trustee was not required to withhold from those distributions. (4) The trustee must give the report under subsection (3) to the Commissioner: (a) by the end of the day on which the trustee lodges the trust’s * income tax return for the income year; or (b) within such further period (if any) as the Commissioner allows. Miscellaneous (5) Subsections 16 ‑ 153(5), (6) and (7) apply to this section in the same way as they apply to section 16 ‑ 153.

Amendment history: Inserted by No 75 of 2010, effective sch 2 (items 3 ‑ 24): 1 July 2010

s 16-153 — Annual reports—other payments

(1) An entity must give a report to the Commissioner in the * approved form, not later than 31 October after the end of a * financial year, if during the financial year: (a) the entity made any payment from which an amount was required to be withheld under section 12 ‑ 190, Subdivision 12 ‑ F (other than section 12 ‑ 215, 12 ‑ 250 or 12 ‑ 285), Subdivision 12 ‑ FA, section 12 ‑ 315 or Subdivision 12 ‑ FC or 12 ‑ G; or (b) the entity provided any * non ‑ cash benefit in respect of which an amount was required to be paid to the Commissioner under Division 14 because of the application of that Division in relation to section 12 ‑ 190, Subdivision 12 ‑ F (other than section 12 ‑ 215, 12 ‑ 250 or 12 ‑ 285), Subdivision 12 ‑ FA, section 12 ‑ 315 or Subdivision 12 ‑ G; or (c) the entity received any payment from which an amount was required to be withheld under section 12 ‑ 215, 12 ‑ 250, 12 ‑ 285 or 12 ‑ 317; or (d) the entity received any non ‑ cash benefit in respect of which an amount was required to be paid to the Commissioner under Division 14 because of the application of that Division in relation to section 12 ‑ 215, 12 ‑ 250, 12 ‑ 285 or 12 ‑ 317. Note: A report under this subsection will not cover amounts that an employer notifies to the Commissioner under Division 389: see section 389 ‑ 20. (2) An entity must give a report to the Commissioner in the form required by subsection (3), not later than 14 August after the end of a * financial year, if during the financial year: (a) the entity made any payment from which an amount was required to be withheld under Subdivision 12 ‑ B, 12 ‑ C or 12 ‑ D; or (aa) the entity received any * alienated personal services payment in respect of which an amount was required to be paid to the Commissioner under Division 13; or (b) the entity provided any * non ‑ cash benefit in respect of which an amount was required to be paid to the Commissioner under Division 14 because of the application of that Division in relation to Subdivision 12 ‑ B, 12 ‑ C or 12 ‑ D; or (c) any person has a * reportable fringe benefits amount for the income year ending at the end of the financial year in respect of the person’s employment by the entity; or (d) the entity made * reportable employer superannuation contributions in respect of a person’s employment. Note: A report under this subsection will not cover amounts that an employer notifies to the Commissioner under Division 389: see section 389 ‑ 20. (3) The report under subsection (2) must be either: (a) a report in the * approved form; or (b) a report consisting of: (i) copies of all the summaries that the entity gave in relation to the * financial year under section 16 ‑ 155 in respect of payments, * non ‑ cash benefits, * alienated personal services payments, * reportable fringe ‑ benefit amounts and * reportable employer superannuation contributions covered by subsection (2) of this section; and (ii) an accompanying statement in the approved form. (4) An entity must give a report to the Commissioner in the * approved form if the entity is required to withhold amounts under Subdivision 12 ‑ H in relation to * fund payments made by a particular * withholding MIT (the paying trust ) in relation to an income year of that trust. Note: The entity may be the withholding MIT itself or a custodian or other entity. (4A) The report under subsection (4) must be given: (a) not later than 14 days after the end of 6 months after the end of the income year of the * withholding MIT in relation to which the relevant * fund payments were made; or (b) within a longer period allowed by the Commissioner. (5) In applying this section: (a) a requirement to pay a nil amount to the Commissioner is to be treated as a requirement to pay an amount to the Commissioner; and (b) a requirement to withhold a nil amount is to be treated as a requirement to withhold an amount. (6) The Commissioner may, to meet the special circumstances of a particular case or class of cases, vary the requirements of this section. (7) A variation must be made: (a) if it applies to a particular entity—by a written notice given to that entity; or (b) if it applies to a class of entities—by legislative instrument.

Amendment history: Inserted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4)) | Amended by No 15 of 2002, effective 4 Apr 2002 | Amended by No 66 of 2003, effective sch 3 (items 134 ‑ 139, 140(1)), sch 5, sch 6 (items 2, 3): Royal Assent | Amended by No 79 of 2007, effective sch 8 (items 3, 26(1), (2)): 1 July 2007 sch 10 (items 1, 2, 14 ‑ 32): Royal Assent | Amended by No 32 of 2008, effective sch 1 (items 1, 24 ‑ 58): Royal Assent | Amended by No 27 of 2009, effective sch 1 (items 1 ‑ 3, 5): Royal Assent sch 1 (item 4): 1 July 2013 sch 2 (items 64 ‑ 66), sch 3 (items 11 ‑ 18, 102(1)): 27 Mar 2009 | Amended by No 75 of 2010, effective sch 2 (items 3 ‑ 24): 1 July 2010 | Amended by No 12 of 2012, effective sch 6 (items 27 ‑ 29): 22 Dec 1999 (s 2(1) item 11) sch 6 (items 84 ‑ 93, 186, 187, 191, 192, 212, 213, 218, 241 ‑ 246, 248 ‑ 251): 21 Mar 2012 (s 2(1) items 14, 31) sch 6 (item 182): 3 Oct 2008 (s 2(1) item 30) | Amended by No 58 of 2012, effective sch 1 (items 8 ‑ 28): 21 June 2012 ( see s 2(1)) | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3) | Amended by No 55 of 2016, effective sch 23 (items 1, 4 ‑ 20, 22 ‑ 24, 35, 36): 1 Oct 2016 (s 2(1) item 25) | Amended by No 64 of 2020, effective sch 3 (items 124 ‑ 145): 1 July 2020 (s 2(1) item 5) sch 3 (items 302 ‑ 321, 325, 326): 1 Oct 2020 (s 2(1) item 6)

s 16-155 — Annual payment summary

(1) Within 14 days after the end of a * financial year, an entity (the payer ) must give a * payment summary (and a copy of it) to another entity (the recipient ) if: (a) during the year the payer made one or more * withholding payments (other than withholding payments covered by section 12 ‑ 85, 12 ‑ 175, 12 ‑ 180, 12 ‑ 190, 12 ‑ 215, 12 ‑ 250, 12 ‑ 285, 12 ‑ 317, 12 ‑ 385 or 12 ‑ 390) to the recipient; or (b) during the year the payer received one or more withholding payments covered by section 12 ‑ 215, 12 ‑ 250 or 12 ‑ 285 and, in relation to each of them, the recipient is the foreign resident mentioned in the section; or (baa) during the year the payer received one or more withholding payments covered by section 12 ‑ 317 and, in relation to each of them, the recipient is the likely foreign recipient mentioned in the section; or (ba) during the year the payer received one or more withholding payments covered by Division 13 and, in relation to each of them, an amount is included in the recipient’s assessable income under Division 86 of the Income Tax Assessment Act 1997 ; or (bb) because of section 86 ‑ 40 of the Income Tax Assessment Act 1997 , the payer is taken to have paid salary to the recipient on the last day of the year; or (c) the recipient is an individual and has a * reportable fringe benefits amount, for the income year ending at the end of that financial year, in respect of his or her employment (within the meaning of the Fringe Benefits Tax Assessment Act 1986 ) by the payer; or (d) the recipient is an individual and * reportable employer superannuation contributions have been made by the payer, in respect of the individual’s employment, during the year. (2) The * payment summary must cover: (a) if paragraph (1)(a), (b) or (ba) applies—each of the * withholding payments mentioned in that paragraph, except one covered by a previous payment summary (and a copy of it) given by the payer to the recipient under section 16 ‑ 160; and (aa) if paragraph (1)(bb) applies—each of the withholding payments constituted by the salary mentioned in that paragraph, except one covered by a previous payment summary (and a copy of it) given by the payer to the recipient under section 16 ‑ 160; and (b) if paragraph (1)(c) applies—the * reportable fringe benefits amount, except so much of it as is covered by a previous payment summary (and a copy of it) given by the payer to the recipient under this section; and (c) if paragraph (1)(d) applies—the total of the * reportable employer superannuation contributions, except so much of those contributions as are covered by a previous payment summary given by the payer to the recipient under section 16 ‑ 160. Note: A payment summary under this section will not cover amounts that an employer notifies to the Commissioner under Division 389: see section 389 ‑ 20. Parental leave pay paid in error (3) Despite subsection (2), the * payment summary must not cover a * withholding payment if: (a) the withholding payment is a payment of an amount purported to have been paid by way of * parental leave pay; and (b) the amount was not lawfully so payable. (4) The payer must, within 28 days of becoming aware that the * payment summary covers a * withholding payment to which subsection (3) applies: (a) give the recipient an amended payment summary that does not cover the withholding payment; or (b) give the recipient notice in the * approved form; or (c) give the Secretary (within the meaning of the Paid Parental Leave Act 2010 ) notice in writing that the payer does not intend to give the recipient an amended payment summary or notice under this subsection.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4)) | Amended by No 66 of 2003, effective sch 3 (items 134 ‑ 139, 140(1)), sch 5, sch 6 (items 2, 3): Royal Assent | Amended by No 79 of 2007, effective sch 8 (items 3, 26(1), (2)): 1 July 2007 sch 10 (items 1, 2, 14 ‑ 32): Royal Assent | Amended by No 27 of 2009, effective sch 1 (items 1 ‑ 3, 5): Royal Assent sch 1 (item 4): 1 July 2013 sch 2 (items 64 ‑ 66), sch 3 (items 11 ‑ 18, 102(1)): 27 Mar 2009 | Amended by No 75 of 2010, effective sch 2 (items 3 ‑ 24): 1 July 2010 | Amended by No 105 of 2010, effective sch 1 (items 71 ‑ 82), sch 2 (items 1, 2): 1 Oct 2010 (s 2(1) items 11, 14) sch 1 (item 83): 17 Dec 2010 (s 2(1) item 12) | Amended by No 109 of 2012, effective sch 1 (items 114 ‑ 119): 1 Oct 2012 (s 2(1) item 2) | Amended by No 55 of 2016, effective sch 23 (items 1, 4 ‑ 20, 22 ‑ 24, 35, 36): 1 Oct 2016 (s 2(1) item 25) | Amended by No 4 of 2023, effective sch 2 (items 27 ‑ 31), sch 3 (items 1, 2, 4): 26 Mar 2023 (s 2(1) item 1)

s 16-156 — Annual payment summary for sections 12 ‑ 175 and 12 ‑ 180

(1) A trustee must give a * payment summary to a beneficiary of the trust, if the trustee made any * withholding payments covered by section 12 ‑ 175 or 12 ‑ 180 to the beneficiary during the income year. (2) The * payment summary: (a) must cover each of the * withholding payments mentioned in subsection (1); and (b) may be in electronic form; and (c) must be given: (i) not later than 14 days after the day by which the trustee was required to give the Commissioner a report under subsection 16 ‑ 152(1) for the income year; or (ii) within a longer period allowed by the Commissioner.

Amendment history: Inserted by No 75 of 2010, effective sch 2 (items 3 ‑ 24): 1 July 2010

s 16-157 — Payment summary for Subdivision 12 ‑ H

(1) An entity (the payer ) must give a * payment summary to another entity (the recipient ) if the payer made * withholding payments covered by section 12 ‑ 385 or 12 ‑ 390 to the recipient in relation to * fund payments made by a particular * withholding MIT (the paying trust ) in relation to an income year of that trust. Note: The entity may be the withholding MIT itself or a custodian or other entity. (2) The * payment summary: (a) must cover each of the * withholding payments mentioned in subsection (1); and (b) may be in electronic form; and (c) must be given: (i) not later than 14 days after the end of 6 months after the end of the income year of the * withholding MIT in relation to which the relevant * fund payments were made; or (ii) within a longer period allowed by the Commissioner.

Amendment history: Inserted by No 79 of 2007, effective sch 8 (items 3, 26(1), (2)): 1 July 2007 sch 10 (items 1, 2, 14 ‑ 32): Royal Assent | Amended by No 32 of 2008, effective sch 1 (items 1, 24 ‑ 58): Royal Assent | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3)

s 16-160 — Part ‑ year payment summary

(1) An entity (the payer ) must give a * payment summary (and a copy of it) to another entity (the recipient ) if, not later than 21 days before the end of a * financial year, the recipient asks in writing for a payment summary covering: (a) one or more * withholding payments (other than withholding payments covered by section 12 ‑ 85, 12 ‑ 190, 12 ‑ 215, 12 ‑ 250, 12 ‑ 285, 12 ‑ 317, 12 ‑ 385 or 12 ‑ 390) that the payer made to the recipient during the year; or (b) one or more withholding payments covered by section 12 ‑ 215, 12 ‑ 250 or 12 ‑ 285, or a part of each such payment, that the payer received during the year for the recipient, if the recipient is the foreign resident mentioned in the section; or (ba) one or more withholding payments covered by section 12 ‑ 317, or a part of each such payment, that the payer received during the year for the recipient, if the recipient is the likely foreign recipient mentioned in that section; or (c) one or more withholding payments covered by Division 13 that the payer received during the year and that are included in the recipient’s assessable income for the income year under section 86 ‑ 15 of the Income Tax Assessment Act 1997 ; other than a payment covered by a previous payment summary (and a copy of it) given under this section. Note: A payment summary under this section will not cover amounts that an employer notifies to the Commissioner under Division 389: see section 389 ‑ 20. (2) The payer must comply with the request within 14 days after receiving it, unless: (a) the recipient is an individual and has a * reportable fringe benefits amount, for the income year ending at the end of that * financial year, in respect of his or her employment (within the meaning of the Fringe Benefits Tax Assessment Act 1986 ) by the payer; or (b) the payer has made * reportable employer superannuation contributions, in respect of the recipient’s employment, during the financial year. (3) Despite subsection (1), the * payment summary must not cover a * withholding payment if: (a) the withholding payment is a payment of an amount purported to have been paid by way of * parental leave pay; and (b) at the time the recipient asks for the payment summary, the payer is aware that the amount was not lawfully so payable.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4)) | Amended by No 66 of 2003, effective sch 3 (items 134 ‑ 139, 140(1)), sch 5, sch 6 (items 2, 3): Royal Assent | Amended by No 79 of 2007, effective sch 8 (items 3, 26(1), (2)): 1 July 2007 sch 10 (items 1, 2, 14 ‑ 32): Royal Assent | Amended by No 27 of 2009, effective sch 1 (items 1 ‑ 3, 5): Royal Assent sch 1 (item 4): 1 July 2013 sch 2 (items 64 ‑ 66), sch 3 (items 11 ‑ 18, 102(1)): 27 Mar 2009 | Amended by No 105 of 2010, effective sch 1 (items 71 ‑ 82), sch 2 (items 1, 2): 1 Oct 2010 (s 2(1) items 11, 14) sch 1 (item 83): 17 Dec 2010 (s 2(1) item 12) | Amended by No 109 of 2012, effective sch 1 (items 114 ‑ 119): 1 Oct 2012 (s 2(1) item 2) | Amended by No 55 of 2016, effective sch 23 (items 1, 4 ‑ 20, 22 ‑ 24, 35, 36): 1 Oct 2016 (s 2(1) item 25) | Amended by No 4 of 2023, effective sch 2 (items 27 ‑ 31), sch 3 (items 1, 2, 4): 26 Mar 2023 (s 2(1) item 1)

s 16-165 — Payment summaries for superannuation lump sums and payments for termination of employment

(1) Within 14 days after an entity (the payer ) makes a payment covered under subsection (2) to a person (the recipient ), the entity must: (a) give a * payment summary to the recipient that covers the payment (and no other payments); and (b) give a copy of the summary to the Commissioner. (2) The following payments are covered under this subsection if they are * withholding payments: (a) a * superannuation lump sum; (b) a payment that is an * employment termination payment or would be one except that it is received more than 12 months after termination of employment, other than a directed termination payment within the meaning of section 82 ‑ 10F of the Income Tax (Transitional Provisions) Act 1997 . Note: A payment summary under this section will not cover amounts that an employer notifies to the Commissioner under Division 389: see section 389 ‑ 20.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Repealed and substituted by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8)) | Repealed and substituted by No 15 of 2007, effective sch 1 (items 366 ‑ 393, 406(1) ‑ (3)), sch 3 (items 61 ‑ 66), sch 4 (item 12): 15 Mar 2007 (s 2(1) items 2, 8, 12) | Amended by No 143 of 2007, effective sch 1 (items 212, 222, 225, 226), sch 4 (items 47, 48, 51, 52), sch 5 (items 29, 30, 48(1), (4), (5)), sch 7 (items 99 ‑ 102, 104(3)): 24 Sept 2007 (s 2(1) items 2, 4, 5, 7, 11) sch 5 (item 47): 15 Mar 2007 (s 2(1) item 6) | Amended by No 56 of 2010, effective s 4(2), sch 3 (items 9, 10(1), (5)), sch 5 (items 191 ‑ 193), sch 6 (items 12 ‑ 14, 27 ‑ 36, 44 ‑ 53, 110, 111, 116, 159, 160): 3 June 2010 (s 2(1) items 1, 7, 11, 15, 20, 23) sch 1 (item 8): 17 Dec 2010 (s 2(1) item 4) sch 2 (items 3, 4), sch 6 (items 58 ‑ 97, 101 ‑ 105): 4 June 2010 (s 2(1) items 6, 16, 17) | Amended by No 55 of 2016, effective sch 23 (items 1, 4 ‑ 20, 22 ‑ 24, 35, 36): 1 Oct 2016 (s 2(1) item 25)

s 16-166 — Payment summary for a departing Australia superannuation payment

Within 14 days after an entity (the payer ) makes a * departing Australia superannuation payment, the payer must: (a) give a * payment summary that covers the payment to the recipient of the payment; and (b) give a copy of the summary to the Commissioner.

Amendment history: Inserted by No 15 of 2002, effective 4 Apr 2002 | Amended by No 15 of 2007, effective sch 1 (items 366 ‑ 393, 406(1) ‑ (3)), sch 3 (items 61 ‑ 66), sch 4 (item 12): 15 Mar 2007 (s 2(1) items 2, 8, 12)

s 16-167 — Payment summary for payment to recipient who does not quote ABN

(1) An entity (the payer ) that makes a * withholding payment covered by section 12 ‑ 190 (about payments to recipients who do not quote their ABN) to another entity (the recipient ) must give the recipient a * payment summary (and a copy of it) that covers that payment, unless the * amount required to be withheld from the payment is nil. (2) The summary must cover only that payment. (3) The payer must give the summary to the recipient when making the payment, or as soon as practicable afterwards.

Amendment history: Inserted by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4))

s 16-170 — Form and content of payment summary

(1) A payment summary (except one relating to section 12 ‑ 175 or 12 ‑ 180 or Subdivision 12 ‑ H) is a written statement that: (a) names the payer and the recipient; and (b) if the recipient has given the recipient’s * tax file number or * ABN to the payer—states the tax file number or ABN; and (c) states the total of the * withholding payments (if any) that it covers, and the total of the * amounts withheld by the payer from those withholding payments; and (d) specifies the * financial year in which the withholding payments were made; and (e) specifies the * reportable fringe benefits amount (if any) that it covers and the income year to which that amount relates; and (f) specifies the * reportable employer superannuation contributions (if any) that it covers and the income year to which those contributions relate; and (g) is in the * approved form. (1AAA) A payment summary relating to section 12 ‑ 175 or 12 ‑ 180 is a statement that: (a) names the trustee and the beneficiary; and (b) states the total of the * withholding payments (if any) that it covers, and the total of the * amounts withheld by the trustee from those withholding payments; and (c) specifies the income year of the trust to which it relates; and (d) is in the * approved form. (1AA) A payment summary relating to Subdivision 12 ‑ H is a statement that: (a) names the payer and the recipient; and (b) if the recipient has given the recipient’s * tax file number or * ABN to the payer—states the tax file number or ABN; and (c) states the total of the * withholding payments (if any) that it covers, and the total of the * amounts withheld by the payer from those withholding payments; and (d) specifies the income year of the relevant * withholding MIT to which it relates. (1A) For any of the * withholding payments to which paragraph 16 ‑ 155(2)(aa) applies, paragraph (1)(d) is taken to refer to the * financial year preceding the financial year in which the withholding payments were received. (2) The Commissioner may, in writing, require particular information to be included in a * payment summary or a class of payment summaries. (3) A * payment summary may consist of 2 or more statements that each complies with subsection (1) and together cover what section 16 ‑ 155, 16 ‑ 156, 16 ‑ 160, 16 ‑ 165, 16 ‑ 166 or 16 ‑ 167 (as appropriate) requires the payment summary to cover. (4) The Commissioner may vary any requirements under subsection (1), (1AAA), (2) or (3) by written notice given to an entity. The Commissioner may do so in such instances and to such extent as the Commissioner thinks fit.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 44 of 2000, effective sch 1, sch 3 (items 55 ‑ 67), sch 4 (items 17 ‑ 48): 22 Dec 1999 (s 2(1)) sch 2 (item 12): 1 Apr 2000 (s 2(2)) sch 3 (item 68): 1 July 2000 (s 2(8)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4)) | Amended by No 51 of 2002, effective sch 6 (items 10, 11): 1 July 2002 (s 2(1) item 13) sch 6 (items 12 ‑ 14): 27 July 2002 (s 2(1) item 14) | Amended by No 15 of 2007, effective sch 1 (items 366 ‑ 393, 406(1) ‑ (3)), sch 3 (items 61 ‑ 66), sch 4 (item 12): 15 Mar 2007 (s 2(1) items 2, 8, 12) | Amended by No 79 of 2007, effective sch 8 (items 3, 26(1), (2)): 1 July 2007 sch 10 (items 1, 2, 14 ‑ 32): Royal Assent | Amended by No 27 of 2009, effective sch 1 (items 1 ‑ 3, 5): Royal Assent sch 1 (item 4): 1 July 2013 sch 2 (items 64 ‑ 66), sch 3 (items 11 ‑ 18, 102(1)): 27 Mar 2009 | Amended by No 75 of 2010, effective sch 2 (items 3 ‑ 24): 1 July 2010 | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3)

s 16-175 — Penalty for not providing payment summary

(1) An entity must not fail to comply with any requirements under section 16 ‑ 155, 16 ‑ 156, 16 ‑ 157, 16 ‑ 160, 16 ‑ 165, 16 ‑ 166 or 16 ‑ 167, or subsection 16 ‑ 170(1), (1AAA), (1AA), (2) or (3) (including any requirements varied by the Commissioner under subsection 16 ‑ 170(4)). Penalty: 20 penalty units. Note: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit. (2) An offence under subsection (1) is an offence of strict liability. Note: For strict liability , see section 6.1 of the Criminal Code .

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4)) | Amended by No 146 of 2001, effective s 4, sch 3: 15 Dec 2001 (s 2(1)) | Amended by No 51 of 2002, effective sch 6 (items 10, 11): 1 July 2002 (s 2(1) item 13) sch 6 (items 12 ‑ 14): 27 July 2002 (s 2(1) item 14) | Amended by No 79 of 2007, effective sch 8 (items 3, 26(1), (2)): 1 July 2007 sch 10 (items 1, 2, 14 ‑ 32): Royal Assent | Amended by No 75 of 2010, effective sch 2 (items 3 ‑ 24): 1 July 2010

s 16-180 — Commissioner may exempt entity from giving payment summary

(1) The Commissioner may, having regard to the circumstances of a particular case or class of cases, exempt an entity from specified requirements of any of sections 16 ‑ 155 to 16 ‑ 167. If the Commissioner does so, the exemption has effect accordingly. (2) An exemption must be made: (a) if it applies to a particular entity—by a written notice given to that entity; or (b) if it applies to a class of entities—by legislative instrument.

Amendment history: Inserted by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4)) | Amended by No 64 of 2020, effective sch 3 (items 124 ‑ 145): 1 July 2020 (s 2(1) item 5) sch 3 (items 302 ‑ 321, 325, 326): 1 Oct 2020 (s 2(1) item 6)

s 16-182 — Definition of reportable employer superannuation contribution

(1) A reportable employer superannuation contribution , for an individual for an income year, is an amount that has been, is, or will be contributed in respect of the income year: (a) by an employer of the individual, or an * associate of the employer, for the individual’s benefit; and (b) to a * superannuation fund or an * RSA; to the extent that either or both of the following paragraphs apply: (c) the individual has or has had, or might reasonably be expected to have or have had, the capacity to influence the size of the amount; (d) the individual has or has had, or might reasonably be expected to have or have had, the capacity to influence the way the amount was, is or will be contributed so that his or her assessable income is reduced. (2) However, an amount is not a reportable employer superannuation contribution to the extent that it is included in the individual’s assessable income for the income year. (3) For the purposes of this section, employer has the expanded meaning given by section 12 of the Superannuation Guarantee (Administration) Act 1992 (assuming that subsection 12(11) of that Act had not been enacted). (4) For the purposes of this section, disregard whether any * superannuation benefits arising from a contribution are payable to a * SIS dependant of the individual if the individual dies before or after becoming entitled to receive the benefits. (5) For the purposes of paragraph (1)(c), treat the individual as neither having, nor being able reasonably to be expected to have, the capacity to influence the size of the amount if: (a) the employer or * associate is required to contribute the amount by: (i) an * industrial instrument; or (ii) the rules of a * superannuation fund; and (b) the individual does not and did not have, and is not able reasonably to be expected to have or have had, the capacity to influence the content of that instrument or those rules, to the extent that the instrument or rules relate to: (i) the requirement to contribute the amount; or (ii) the size of the amount.

Amendment history: Inserted by No 27 of 2009, effective sch 1 (items 1 ‑ 3, 5): Royal Assent sch 1 (item 4): 1 July 2013 sch 2 (items 64 ‑ 66), sch 3 (items 11 ‑ 18, 102(1)): 27 Mar 2009 | Amended by No 43 of 2011, effective sch 1 (items 1 ‑ 4, 12): 28 June 2011 (s 2(1) items 2, 4) sch 1 (items 9 ‑ 11): 1 July 2016 (s 2(1) item 3) sch 4: 27 June 2011 (s 2(1) item 9)

s 16-195 — Payer’s right to recover amounts of penalty: certain withholding taxes

(1) An entity that has paid an amount of penalty under section 16 ‑ 30, 16 ‑ 35 or 16 ‑ 40 for a * withholding payment covered by: (a) Subdivision 12 ‑ F (about a dividend, interest or royalty payment); or (aa) section 12 ‑ 305 (about a departing Australia superannuation payment); or (ab) Subdivision 12 ‑ FC (about labour mobility programs); or (b) section 12 ‑ 320 (about a mining payment); or (c) Subdivision 12 ‑ H (about distributions of withholding MIT income); may recover an amount equal to the amount of penalty from the person liable to pay the * withholding tax, or * mining withholding tax, for the withholding payment. Note Sections 16 ‑ 30, 16 ‑ 35 and 16 ‑ 40 provide for an administrative penalty for failing to comply with Division 12 or 14. (2) Subsection (3) applies if an entity has paid an amount of penalty under section 12 ‑ 415 to the Commissioner for a failure to give a notice, or to make details available on a website, as required by section 12 ‑ 395 in relation to an amount (the relevant amount ). (3) The entity may recover from another entity that is liable to pay * managed investment trust withholding tax in relation to an amount attributable to the relevant amount the lesser of: (a) an amount equal to the amount of that tax that the other entity is liable to pay; and (b) the amount of the penalty.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4)) | Amended by No 15 of 2002, effective 4 Apr 2002 | Amended by No 101 of 2003, effective sch 6 (item 32): 10 Dec 1999 (s 2(1) item 28) sch 6 (item 33): 1 July 2000 (s 2(1) item 29) sch 6 (items 34, 35): 14 Oct 2003 (s 2(1) items 30, 31) | Amended by No 32 of 2008, effective sch 1 (items 1, 24 ‑ 58): Royal Assent | Amended by No 58 of 2012, effective sch 1 (items 8 ‑ 28): 21 June 2012 ( see s 2(1)) | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3) | Amended by No 75 of 2022, effective sch 2 (items 2 ‑ 4): 6 Dec 2022 (s 2(1) item 3) sch 4 (items 23 ‑ 38): 1 July 2022 (s 2(1) item 4)

s 18-1 — What this Subdivision is about

In general, an entity: • that receives a withholding payment (except one covered by section 12 ‑ 215, 12 ‑ 250 or 12 ‑ 285, Subdivision 12 ‑ FC, or subsection 12 ‑ 390(4)); or • that is the foreign resident for which a withholding payment covered by section 12 ‑ 215, 12 ‑ 250 or 12 ‑ 285, Subdivision 12 ‑ FC, or subsection 12 ‑ 390(4), (or a part of it) is received; is entitled to a credit for the amount withheld from the withholding payment. However, if that entity is a partnership or trust, a partner, beneficiary or trustee may be entitled to the credit. This Subdivision tells you: • who is entitled to a credit; and • how to work out the amount of the credit. How a credit is applied is set out in Division 3 of Part IIB. Table of sections General exception 18 ‑ 5 No credit for refunded amount Entitlement to credits: income tax liability 18 ‑ 10 Application of sections 18 ‑ 15, 18 ‑ 20 and 18 ‑ 25 18 ‑ 15 Tax credit for recipient of withholding payments 18 ‑ 20 Tax credit where recipient is a partnership 18 ‑ 25 Tax credit where recipient is a trust 18 ‑ 27 Tax credit for alienated personal services payments Entitlement to credits: dividend, interest or royalty, amount attributable to fund payment or labour mobility program 18 ‑ 30 Credit: dividend, interest or royalty 18 ‑ 32 Credit: amount attributable to fund payment 18 ‑ 33 Credit: labour mobility programs 18 ‑ 35 Credit: penalty under section 12 ‑ 415, 16 ‑ 30, 16 ‑ 35 or 16 ‑ 40 or related general interest charge 18 ‑ 40 Credit: liability under Part 4 ‑ 25 Entitlement to credit: departing Australia superannuation payment 18 ‑ 42 Credit—departing Australia superannuation payment Entitlement to credit: mining payment 18 ‑ 45 Credit—mining payment Entitlement to credit: Petroleum resource rent tax 18 ‑ 55 Credit—Natural resource payments Entitlement to credit: taxable supply of real property 18 ‑ 60 Credit—payment relating to taxable supply of real property

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 32 of 2008, effective sch 1 (items 1, 24 ‑ 58): Royal Assent | Amended by No 58 of 2012, effective sch 1 (items 8 ‑ 28): 21 June 2012 ( see s 2(1))

s 18-5 — No credit for refunded amount

An entity is not entitled to a credit under this Subdivision for an * amount withheld from a * withholding payment to the extent that the amount must be refunded under Subdivision 18 ‑ B. Note: See also Subdivision 18 ‑ D (PAYG withholding non ‑ compliance tax, which can reverse the economic benefit of a credit of a director, or an associate of a director, of a company that does not comply with its obligations under subsection 16 ‑ 70(1)).

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 58 of 2006, effective sch 7 (items 131 ‑ 169, 217 ‑ 219): 22 June 2006 (s 2(1) items 6, 24) | Amended by No 99 of 2012, effective sch 1 (items 1 ‑ 9, 12 ‑ 15, 23, 36 ‑ 47, 49 ‑ 57): 30 June 2012 (s 2(1) items 2 ‑ 5)

s 18-10 — Application of sections 18 ‑ 15, 18 ‑ 20 and 18 ‑ 25

(1) The rules set out in sections 18 ‑ 15, 18 ‑ 20 and 18 ‑ 25 do not apply to an * amount withheld from a * withholding payment that is covered by: (a) Subdivision 12 ‑ F (Dividend, interest and royalty payments); or (b) Subdivision 12 ‑ FA (Departing Australia superannuation payments); or (c) Subdivision 12 ‑ FC (Labour Mobility Programs); or (d) section 12 ‑ 320 (Mining payments); or (e) Subdivision 12 ‑ H (Distributions of withholding MIT income); or (f) Division 13 (Alienated personal services payments); or (g) Subdivision 14 ‑ E (GST payable on taxable supplies of certain real property). (2) If an entity withholds an amount from a * withholding payment as required by section 12 ‑ 317, apply sections 18 ‑ 15, 18 ‑ 20 and 18 ‑ 25 in relation to the payment as if the payment had been made to the likely foreign recipient mentioned in section 12 ‑ 317 (instead of to the intermediary mentioned in that section). (3) If an entity withholds an amount from a * withholding payment as required by section 12 ‑ 325 (natural resource payments), apply sections 18 ‑ 15, 18 ‑ 20 and 18 ‑ 25 to the payment as if the entity had withheld only so much of that amount as was withheld in respect of tax. Note: Section 18 ‑ 55 provides a credit for amounts withheld in respect of petroleum resource rent tax.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 15 of 2002, effective 4 Apr 2002 | Amended by No 66 of 2003, effective sch 3 (items 134 ‑ 139, 140(1)), sch 5, sch 6 (items 2, 3): Royal Assent | Amended by No 32 of 2008, effective sch 1 (items 1, 24 ‑ 58): Royal Assent | Amended by No 14 of 2012, effective sch 1, sch 2 (items 1 ‑ 9): 1 July 2012 (s 2(1) items 2, 3) sch 2 (items 17 ‑ 28): never commenced (s 2(1) item 4) | Amended by No 58 of 2012, effective sch 1 (items 8 ‑ 28): 21 June 2012 ( see s 2(1)) | Amended by No 88 of 2013, effective sch 5 (items 22 ‑ 27): 1 July 2013 (s 2(1) item 10) sch 6 (items 44 ‑ 48, 66): 29 June 2013 (s 2(1) item 14) sch 7 (items 167 ‑ 183): 1 July 2012 (s 2(1) item 11) sch 7 (item 225): 28 June 2013 (s 2(1) item 23) | Amended by No 96 of 2014, effective sch 1 (items 54 ‑ 108, 122 ‑ 124), sch 2 (items 41 ‑ 43): 30 Sept 2014 (s 2(1) item 2, F2014L01256) | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3) | Amended by No 23 of 2018, effective sch 1 (items 72, 73), sch 5 (items 1 ‑ 4, 12 ‑ 28): 1 Apr 2018 (s 2(1) items 8, 12) sch 1 (items 75 ‑ 79): 30 Mar 2018 (s 2(1) item 9) | Amended by No 75 of 2022, effective sch 2 (items 2 ‑ 4): 6 Dec 2022 (s 2(1) item 3) sch 4 (items 23 ‑ 38): 1 July 2022 (s 2(1) item 4)

s 18-15 — Tax credit for recipient of withholding payments

(1) An entity is entitled to a credit equal to the total of the * amounts withheld from * withholding payments made to the entity during an income year if an assessment has been made of the income tax payable, or an assessment has been made that no income tax is payable, by the entity for the income year. (2) To the extent that the entitlement to a credit is in respect of an * amount withheld from a * withholding payment to which paragraph 16 ‑ 155(2)(aa) applies, the entitlement is treated as arising for the income year preceding the income year in which the withholding payment is made.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 161 of 2005, effective sch 1 (items 27 ‑ 37, 46 ‑ 56, 59), sch 2 (items 1, 16 ‑ 32): Royal Assent | Amended by No 58 of 2006, effective sch 7 (items 131 ‑ 169, 217 ‑ 219): 22 June 2006 (s 2(1) items 6, 24) | Amended by No 79 of 2007, effective sch 8 (items 3, 26(1), (2)): 1 July 2007 sch 10 (items 1, 2, 14 ‑ 32): Royal Assent | Amended by No 32 of 2008, effective sch 1 (items 1, 24 ‑ 58): Royal Assent

s 18-20 — Tax credit where recipient is a partnership

(1) An entity is entitled to a credit in respect of * amounts withheld from * withholding payments made to a partnership during an income year if: (a) the entity has an individual interest in the net income or partnership loss of the partnership for that income year that is wholly or partly attributable to those withholding payments; and (b) the * income tax return of the partnership for the income year has been lodged with the Commissioner; and (c) an assessment has been made of the income tax payable, or an assessment has been made that no income tax is payable, by the entity for the income year. (2) The amount of the credit is worked out using the formula: where: amounts withheld means the sum of the * amounts withheld from the * withholding payments. individual interest means so much of the individual interest of the partner as is attributable to the * withholding payments. net income/partnership loss means so much of the net income or partnership loss for that income year as is attributable to the * withholding payments.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 161 of 2005, effective sch 1 (items 27 ‑ 37, 46 ‑ 56, 59), sch 2 (items 1, 16 ‑ 32): Royal Assent | Amended by No 58 of 2006, effective sch 7 (items 131 ‑ 169, 217 ‑ 219): 22 June 2006 (s 2(1) items 6, 24)

s 18-25 — Tax credit where recipient is a trust

(1) An entity is entitled under subsection (2), (4), (6) or (8) to a credit in respect of * amounts withheld (the amounts withheld ) from * withholding payments made to the trustee of a trust during an income year. Trust—section 97 (2) A beneficiary of the trust is entitled to a credit if: (a) an amount is included in the assessable income of the beneficiary under section 97 of the Income Tax Assessment Act 1936 in respect of a share of the net income of the trust; and (b) the share is wholly or partly attributable to the * withholding payments; and (c) an assessment has been made of the income tax payable, or an assessment has been made that no income tax is payable, by the beneficiary for the income year. (3) The amount of the credit is worked out using the formula: where: net income means so much of the net income as is attributable to the * withholding payments. share of net income means so much of that share of the net income as is attributable to the * withholding payments. Trust—section 98 (4) The trustee of the trust is entitled to a credit if: (a) under section 98 of the Income Tax Assessment Act 1936 the trustee is liable to be assessed, and to pay income tax, on an amount in respect of a share of the net income of the trust to which a beneficiary is presently entitled; and (b) the share is wholly or partly attributable to the * withholding payments; and (c) an assessment has been made of that income tax or an assessment has been made that no income tax is payable. (5) The amount of the credit is worked out using the formula: where: net income means so much of the net income as is attributable to the * withholding payments. share of net income means so much of that share of the net income as is attributable to the * withholding payments. Trust—section 99 or 99A (6) The trustee of the trust is entitled to a credit under this subsection if: (a) under section 99 or 99A of the Income Tax Assessment Act 1936 , the trustee is liable to be assessed, and to pay income tax, on the net income of the trust, or on part of it; and (b) the net income or that part of it is wholly or partly attributable to the * withholding payments; and (c) an assessment has been made of that income tax or an assessment has been made that no income tax is payable. (7) The amount of the credit is worked out using the formula: where: net income means so much of the net income as is attributable to the * withholding payments. part of net income means so much of the net income, or of that part of it, as is attributable to the * withholding payments. Trust—no net income (8) If there is no net income of the trust for the income year, the trustee is entitled to a credit equal to the sum of the * amounts withheld from the * withholding payments.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 161 of 2005, effective sch 1 (items 27 ‑ 37, 46 ‑ 56, 59), sch 2 (items 1, 16 ‑ 32): Royal Assent | Amended by No 58 of 2006, effective sch 7 (items 131 ‑ 169, 217 ‑ 219): 22 June 2006 (s 2(1) items 6, 24) | Amended by No 79 of 2007, effective sch 8 (items 3, 26(1), (2)): 1 July 2007 sch 10 (items 1, 2, 14 ‑ 32): Royal Assent | Amended by No 32 of 2008, effective sch 1 (items 1, 24 ‑ 58): Royal Assent

s 18-27 — Tax credit for alienated personal services payments

An entity is entitled to a credit equal to the total of the amounts paid under Division 13 in respect of amounts included in the entity’s assessable income for an income year under section 86 ‑ 15 of the Income Tax Assessment Act 1997 if an assessment has been made of the income tax payable, or an assessment has been made that no income tax is payable, by the entity for the income year.

Amendment history: Inserted by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Repealed and substituted by No 161 of 2005, effective sch 1 (items 27 ‑ 37, 46 ‑ 56, 59), sch 2 (items 1, 16 ‑ 32): Royal Assent | Amended by No 58 of 2006, effective sch 7 (items 131 ‑ 169, 217 ‑ 219): 22 June 2006 (s 2(1) items 6, 24)

s 18-30 — Credit: dividend, interest or royalty

(1) An entity is entitled to a credit if: (a) the entity’s * ordinary income, or * statutory income, includes any of the following: (i) a * dividend (or a part of it), interest (within the meaning of Division 11A of Part III of the Income Tax Assessment Act 1936 ) or a * royalty; (ii) an amount that is represented by or reasonably attributable to an * AMIT DIR payment; and (b) if subparagraph (a)(i) applies—if the entity has borne all or part of an * amount withheld from the dividend, interest or royalty; and (c) if subparagraph (a)(ii) applies—if the entity has borne all or part of an amount paid under Division 12A in respect of the AMIT DIR payment. (2) The amount of the credit is that amount or part. Note: A taxpayer may also be entitled to a credit in relation to payment of interest under, or in relation to the transfer of, a qualifying security. See section 128NBA of the Income Tax Assessment Act 1936 .

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 58 of 2006, effective sch 7 (items 131 ‑ 169, 217 ‑ 219): 22 June 2006 (s 2(1) items 6, 24) | Amended by No 101 of 2006, effective sch 3, 4: 1 Jan 2008 Remainder: Royal Assent | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3)

s 18-32 — Credit: amount attributable to fund payment

(1) An entity is entitled to a credit if: (a) the entity’s * ordinary income or * statutory income includes an amount that is represented by or reasonably attributable to a * fund payment; and (b) the entity has borne all or part of: (i) an * amount withheld from the payment under Subdivision 12 ‑ H; or (ii) an amount paid under Division 12A in respect of the fund payment. (2) The amount of the credit is that amount or part. (3) Subsection (4) applies if: (a) all or part of an amount (the fund payment part ) is represented by a payment that is a * fund payment; and (b) under subsection 840 ‑ 805(4A) of the Income Tax Assessment Act 1997 , a * foreign pension fund is taken, in respect of the fund payment part, to be a beneficiary in its own right, and not a beneficiary in the capacity of the trustee of another trust; and (c) there is an * amount withheld from the fund payment under Subdivision 12 ‑ H. (4) For the purposes of paragraph (1)(b): (a) treat the * foreign pension fund as having borne all or part of the amount withheld; and (b) treat a beneficiary of the foreign pension fund as not having borne all or part of the amount withheld.

Amendment history: Inserted by No 32 of 2008, effective sch 1 (items 1, 24 ‑ 58): Royal Assent | Amended by No 133 of 2014, effective sch 1 (items 33 ‑ 36, 39), sch 2 (items 4, 5): 12 Dec 2014 (s 2(1) item 2) | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3)

s 18-33 — Credit: labour mobility programs

(1) An individual is entitled to a credit if: (a) the individual’s * ordinary income or * statutory income includes salary, wages, commission, bonuses or allowances; and (b) an amount is withheld from the salary, wages, commission, bonuses or allowances under Subdivision 12 ‑ FC (about labour mobility programs). (2) The amount of the credit is the * amount withheld.

Amendment history: Inserted by No 58 of 2012, effective sch 1 (items 8 ‑ 28): 21 June 2012 ( see s 2(1)) | Amended by No 75 of 2022, effective sch 2 (items 2 ‑ 4): 6 Dec 2022 (s 2(1) item 3) sch 4 (items 23 ‑ 38): 1 July 2022 (s 2(1) item 4)

s 18-35 — Credit: penalty under section 12 ‑ 415, 16 ‑ 30, 16 ‑ 35 or 16 ‑ 40 or related general interest charge

(1) If an entity has paid: (a) an amount of penalty under section 16 ‑ 30 or 16 ‑ 40 to the Commissioner for a * withholding payment covered by Subdivision 12 ‑ F or 12 ‑ H; or (b) an amount of * general interest charge under section 298 ‑ 25 for the penalty; the entity liable to pay the * withholding tax for the withholding payment is entitled to a credit equal to the amount of penalty, or general interest charge, as appropriate. (1AA) If an entity has paid: (a) an amount of penalty under section 16 ‑ 30 or 16 ‑ 35 to the Commissioner for a * withholding payment covered by Subdivision 12 ‑ FC (labour mobility programs); or (b) an amount of * general interest charge under section 298 ‑ 25 for the penalty; the entity liable to pay the * labour mobility program withholding tax for the withholding payment is entitled to a credit equal to the lesser of: (c) the amount of the penalty, or general interest charge, as appropriate; and (d) the amount of labour mobility program withholding tax (and any general interest charge under section 840 ‑ 910 of the Income Tax Assessment Act 1997 ) in relation to the withholding payment, reduced by: (i) any credits from an application of section 18 ‑ 33 in relation to the withholding payment; and (ii) any credits from a previous application of this subsection in relation to the withholding payment. (1A) If an entity has paid: (a) an amount of penalty under section 12 ‑ 415 to the Commissioner for a failure to give a notice, or to make details available on a website, as required by section 12 ‑ 395; or (b) an amount of * general interest charge under section 298 ‑ 25 for the penalty; the entity liable to pay the * managed investment trust withholding tax in relation to the amount (the relevant amount ) giving rise to the penalty is entitled to a credit equal to the lesser of: (d) the amount of penalty, or general interest charge, as appropriate; and (e) the amount of managed investment trust withholding tax (and any general interest charge under section 840 ‑ 810 of the Income Tax Assessment Act 1997 ) in relation to the relevant amount. Remission (2) If: (a) an entity has paid to the Commissioner an amount of penalty mentioned in paragraph (1)(a), (1AA)(a) or (1A)(a); and (b) the Commissioner remits the whole or a part of the amount of the penalty under section 298 ‑ 20; then: (c) any credit under subsection (1), (1AA) or (1A) relating to the amount paid to the Commissioner is reduced by the amount that is remitted; and (d) the Commissioner must pay to the entity an amount equal to the amount that is remitted. (3) If: (a) an entity has paid to the Commissioner an amount of * general interest charge mentioned in paragraph (1)(b), (1AA)(b) or (1A)(b); and (b) the Commissioner remits the whole or a part of the amount of the charge under section 8AAG; then: (c) any credit under subsection (1), (1AA) or (1A) relating to the amount is reduced by the amount that is remitted; and (d) the Commissioner must pay to the entity an amount equal to the amount that is remitted.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 58 of 2006, effective sch 7 (items 131 ‑ 169, 217 ‑ 219): 22 June 2006 (s 2(1) items 6, 24) | Amended by No 32 of 2008, effective sch 1 (items 1, 24 ‑ 58): Royal Assent | Amended by No 58 of 2012, effective sch 1 (items 8 ‑ 28): 21 June 2012 ( see s 2(1)) | Amended by No 75 of 2022, effective sch 2 (items 2 ‑ 4): 6 Dec 2022 (s 2(1) item 3) sch 4 (items 23 ‑ 38): 1 July 2022 (s 2(1) item 4)

s 18-40 — Credit: liability under Part 4 ‑ 25

(1) If an entity has paid to the Commissioner: (a) an amount of penalty under Subdivision 284 ‑ C in relation to a * scheme to which paragraph 177C(1)(bc) of the Income Tax Assessment Act 1936 applies for a * withholding payment; or (b) an amount of * general interest charge under section 298 ‑ 25 in relation to that amount; the entity liable to pay the * withholding tax for that withholding payment is entitled to a credit equal to the amount paid by the entity. Remission (2) If: (a) an entity has paid an amount under Subdivision 284 ‑ C in relation to a penalty mentioned in paragraph (1)(a); and (b) the Commissioner remits the whole or a part of the amount of the penalty under section 298 ‑ 20; then: (c) any credit under subsection (1) relating to the amount paid by the entity is reduced by the amount that is remitted; and (d) the Commissioner must pay to the entity an amount equal to the amount that is remitted. (3) If: (a) an entity has paid to the Commissioner an amount of * general interest charge mentioned in paragraph (1)(b); and (b) the Commissioner remits the whole or a part of the amount of the charge under section 8AAG; then: (c) any credit under subsection (1) relating to the amount is reduced by the amount that is remitted; and (d) the Commissioner must pay to the entity an amount equal to the amount that is remitted.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4)) | Amended by No 58 of 2006, effective sch 7 (items 131 ‑ 169, 217 ‑ 219): 22 June 2006 (s 2(1) items 6, 24) | Amended by No 101 of 2013, effective sch 1 (items 9, 10), sch 2 (items 3 ‑ 7, 44 ‑ 50): 29 June 2013 (s 2(1) items 2, 3) sch 2 (items 58, 59): 8 Sept 2012 (s 2(1) item 4)

s 18-42 — Credit—departing Australia superannuation payment

Credit—amount withheld (1) If there is an * amount withheld from a * withholding payment that is covered by section 12 ‑ 305 (departing Australia superannuation payment), the entity liable to pay * withholding tax under section 301 ‑ 175 of the Income Tax Assessment Act 1997 on the payment is entitled to a credit of an amount equal to the amount withheld. Credit—penalty amount (2) If an entity has paid to the Commissioner a penalty amount under section 16 ‑ 30 or 16 ‑ 35 in relation to an * amount required to be withheld under section 12 ‑ 305 (departing Australia superannuation payment), the entity mentioned in subsection (1) is entitled to a credit equal to the penalty amount. Remission (3) If the Commissioner remits the whole or a part of the amount of penalty under section 298 ‑ 20 that has been paid to the Commissioner by the entity: (a) any credit that relates to the amount is reduced by the amount that is remitted; and (b) the Commissioner must pay to the entity an amount equal to the amount that is remitted.

Amendment history: Inserted by No 15 of 2002, effective 4 Apr 2002 | Amended by No 58 of 2006, effective sch 7 (items 131 ‑ 169, 217 ‑ 219): 22 June 2006 (s 2(1) items 6, 24) | Amended by No 15 of 2007, effective sch 1 (items 366 ‑ 393, 406(1) ‑ (3)), sch 3 (items 61 ‑ 66), sch 4 (item 12): 15 Mar 2007 (s 2(1) items 2, 8, 12)

s 18-45 — Credit—mining payment

Credit—amount withheld (1) If there is an * amount withheld from a * withholding payment that is covered by section 12 ‑ 320 (mining payment): (a) if paragraph (b) does not apply—the entity liable to pay * mining withholding tax under section 128V of the Income Tax Assessment Act 1936 on the payment is entitled to a credit of an amount equal to the amount withheld; or (b) if, under subsection 128U(4) of that Act, separate mining payments are taken to have been made to, or applied for the benefit of, 2 or more entities because of that payment—each of those entities is entitled to a credit equal to the amount worked out using the formula: Credit—penalty amount (2) If an entity has paid to the Commissioner a penalty amount under section 16 ‑ 30 or 16 ‑ 35 in relation to an * amount required to be withheld under section 12 ‑ 320 (mining payment): (a) if paragraph (1)(a) applies—the entity mentioned in that paragraph is entitled to a credit equal to the penalty amount; or (b) if paragraph (1)(b) applies—each of the entities mentioned in that paragraph is entitled to a credit of an amount worked out using the formula: Remission (3) If the Commissioner remits the whole or a part of the amount of penalty under section 298 ‑ 20 that has been paid to the Commissioner by the entity: (a) any credit that relates to the amount is reduced by the amount that is remitted; and (b) the Commissioner must pay to the entity an amount equal to the amount that is remitted.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 58 of 2006, effective sch 7 (items 131 ‑ 169, 217 ‑ 219): 22 June 2006 (s 2(1) items 6, 24)

s 18-55 — Credit—Natural resource payments

(1) An entity is entitled to a credit in a year of tax (within the meaning of the Petroleum Resource Rent Tax Assessment Act 1987 ) if: (a) one or more * withholding payments covered by section 12 ‑ 325 (natural resource payments) from which there are * amounts withheld in respect of * petroleum resource rent tax are made to the entity during the year of tax; and (b) an assessment has been made of the petroleum resource rent tax payable, or an assessment has been made that no petroleum resource rent tax is payable, by the entity for the year of tax. (2) The amount of the credit is so much of the total of the * amounts withheld as is withheld in respect of * petroleum resource rent tax.

Amendment history: Inserted by No 88 of 2013, effective sch 5 (items 22 ‑ 27): 1 July 2013 (s 2(1) item 10) sch 6 (items 44 ‑ 48, 66): 29 June 2013 (s 2(1) item 14) sch 7 (items 167 ‑ 183): 1 July 2012 (s 2(1) item 11) sch 7 (item 225): 28 June 2013 (s 2(1) item 23)

s 18-60 — Credit—payment relating to taxable supply of real property

(1) An entity is entitled to a credit if: (a) the entity is liable for * GST on a * taxable supply to which subsection 14 ‑ 250(2) applies; and (b) another entity made a payment under section 14 ‑ 250 in relation to the supply. (2) The amount of the credit is an amount equal to the amount of the payment. (3) The credit arises when an assessment has been made of the entity’s * net amount for the * tax period of the entity in which the payment was made.

Amendment history: Inserted by No 23 of 2018, effective sch 1 (items 72, 73), sch 5 (items 1 ‑ 4, 12 ‑ 28): 1 Apr 2018 (s 2(1) items 8, 12) sch 1 (items 75 ‑ 79): 30 Mar 2018 (s 2(1) item 9) | Amended by No 76 of 2023, effective sch 2 (items 727–737): 20 Oct 2023 (s 2(1) item 2) sch 6 (items 39, 40): 21 Sept 2023 (s 2(1) item 22) sch 6 (items 43, 44): 1 Oct 2023 (s 2(1) item 23)

s 18-65 — Refund of withheld amounts by the payer to the recipient

(1) An entity (the payer ) must refund to another entity (the recipient ) an amount if: (a) the payer: (i) withheld the amount purportedly under Division 12 from a payment made to, or received for, the recipient (whether the amount has been paid to the Commissioner or not); or (ia) paid the amount to the Commissioner purportedly under Division 13 for an * alienated personal services payment in relation to which an amount is included in the recipient’s assessable income year under section 86 ‑ 15 of the Income Tax Assessment Act 1997 ; or (ii) paid the amount to the Commissioner purportedly under Division 14 (other than Subdivisions 14 ‑ D and 14 ‑ E) for a * non ‑ cash benefit provided to, or received for, the recipient; and (b) either: (i) the amount was so withheld, or paid to the Commissioner, in error; or (ii) in the case of an amount withheld from a payment of an amount purported to have been paid by way of * parental leave pay—the amount paid was not lawfully so payable; and (c) either: (i) the payer becomes aware of the matter mentioned in paragraph (b); or (ii) the recipient applies to the payer for the refund; before the end of the * financial year in which the amount was so withheld or paid to the Commissioner; and (d) any information requested by the payer under subsection (3) has been given to the payer, or the time for making the request (see subsection (4)) has passed without such a request being made. (1A) For the purposes of this section, if an entity has paid an amount to the Commissioner purportedly under Subdivision 12A ‑ C (about deemed payments by AMITs), treat the entity as having withheld the amount purportedly under Division 12. (2) The amount that must be refunded under subsection (1) is a debt recoverable by the recipient from the payer. Request for tax file number (or in some cases, ABN) (3) The payer may request the recipient to give to the payer: (a) in any case—the recipient’s * tax file number; or (b) in any case—evidence of the basis on which the recipient is taken to have quoted its tax file number to the payer; or (c) if the payment or * non ‑ cash benefit was in respect of a * Part VA investment made by the recipient in the course or furtherance of an * enterprise carried on by it—the recipient’s * ABN; if: (d) the payment, * alienated personal services payment or non ‑ cash benefit was in respect of any of the following provisions: (i) Subdivision 12 ‑ B (payments for work or services); (ii) Subdivision 12 ‑ C (Payments for retirement or because of termination of employment); (iii) Subdivision 12 ‑ D (benefits and compensation payments); (iv) section 12 ‑ 140 or 12 ‑ 145 (recipient does not quote tax file number or ABN); (v) section 12 ‑ 175 or 12 ‑ 180 (Payment of income of closely held trust where TFN not quoted); and (e) when the application for the refund is made, or when the payer otherwise becomes aware of the matter mentioned in paragraph (1)(b) of this section, the payer has a record of none of the following: (i) the recipient’s tax file number; (ii) the basis on which the recipient is taken to have quoted the tax file number to the payer; (iii) if paragraph (c) applies—the recipient’s ABN. When must the request be made (4) The request must be made within 7 working days (of the payer) after the payer receives the application for the refund or after the payer otherwise becomes aware of the matter mentioned in paragraph (1)(b) (as appropriate). Recovery of refunded amount (5) If a payer refunds an amount under subsection (1), the payer may recover from the Commissioner as a debt due to the payer so much of the amount: (a) which is withheld as mentioned in subparagraph (1)(a)(i) and paid to the Commissioner, or which is paid to the Commissioner as mentioned in subparagraph (1)(a)(ia) or (ii); and (b) which the payer has not recorded as being offset under subsection (6). Offsetting a refunded amount (6) If: (a) a payer refunds an amount (the refunded amount ) under subsection (1); and (b) the amount withheld as mentioned in subparagraph (1)(a)(i) that the payer has paid to the Commissioner, or the amount paid to the Commissioner as mentioned in subparagraph (1)(a)(ia) or (ii), is equal to all or a part of the refunded amount; and (c) apart from this subsection, the payer would be required to pay to the Commissioner another amount or amounts under Division 13 or 14 (other than Subdivision 14 ‑ D) or subsection 16 ‑ 70(1) (the payment to the Commissioner ); and (d) the payer records in writing that it offsets all or a part of the amount paid to the Commissioner (as mentioned in paragraph (b)) against the payment to the Commissioner; the payment to the Commissioner is reduced by so much of the amount as the payer so recorded as being offset. (7) The payer must not record that it offsets any part of an amount that: (a) the payer has previously recorded under subsection (6); or (b) the payer has sought to recover from the Commissioner under subsection (5).

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 15 of 2007, effective sch 1 (items 366 ‑ 393, 406(1) ‑ (3)), sch 3 (items 61 ‑ 66), sch 4 (item 12): 15 Mar 2007 (s 2(1) items 2, 8, 12) | Amended by No 56 of 2010, effective s 4(2), sch 3 (items 9, 10(1), (5)), sch 5 (items 191 ‑ 193), sch 6 (items 12 ‑ 14, 27 ‑ 36, 44 ‑ 53, 110, 111, 116, 159, 160): 3 June 2010 (s 2(1) items 1, 7, 11, 15, 20, 23) sch 1 (item 8): 17 Dec 2010 (s 2(1) item 4) sch 2 (items 3, 4), sch 6 (items 58 ‑ 97, 101 ‑ 105): 4 June 2010 (s 2(1) items 6, 16, 17) | Amended by No 75 of 2010, effective sch 2 (items 3 ‑ 24): 1 July 2010 | Amended by No 105 of 2010, effective sch 1 (items 71 ‑ 82), sch 2 (items 1, 2): 1 Oct 2010 (s 2(1) items 11, 14) sch 1 (item 83): 17 Dec 2010 (s 2(1) item 12) | Amended by No 109 of 2012, effective sch 1 (items 114 ‑ 119): 1 Oct 2012 (s 2(1) item 2) | Amended by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5) | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3) | Amended by No 23 of 2018, effective sch 1 (items 72, 73), sch 5 (items 1 ‑ 4, 12 ‑ 28): 1 Apr 2018 (s 2(1) items 8, 12) sch 1 (items 75 ‑ 79): 30 Mar 2018 (s 2(1) item 9) | Amended by No 4 of 2023, effective sch 2 (items 27 ‑ 31), sch 3 (items 1, 2, 4): 26 Mar 2023 (s 2(1) item 1)

s 18-70 — Refund of withheld amounts by the Commissioner to the recipient

(1) An entity (the recipient ) may apply in writing to the Commissioner for the refund of an amount if: (a) another entity (the payer ): (i) withheld an amount purportedly under Division 12 from a payment made to, or received for, the recipient; or (ia) paid the amount to the Commissioner purportedly under Division 13 for an * alienated personal services payment in relation to which an amount is included in the recipient’s assessable income year under section 86 ‑ 15 of the Income Tax Assessment Act 1997 ; or (ii) paid to the Commissioner an amount purportedly under Division 14 for a * non ‑ cash benefit provided to, or received for, the recipient; or (iii) paid to the Commissioner an amount purportedly under Subdivision 14 ‑ D for * capital proceeds provided to, or applied on behalf of, the recipient; and (b) either: (i) the amount was so withheld, or paid to the Commissioner, in error; or (ii) in the case of an amount withheld from a payment of an amount purported to have been paid by way of * parental leave pay—the amount paid was not lawfully so payable; and (c) if subparagraph (a)(i), (ia) or (ii) applies—section 18 ‑ 65 does not apply because the payer did not become aware of the matter mentioned in paragraph (b), or the recipient did not apply for a refund, as mentioned in subsection 18 ‑ 65(1); and (d) if subparagraph (a)(i) applies—the payer has already paid the withheld amount to the Commissioner. (1A) For the purposes of this section, if an entity has paid an amount to the Commissioner purportedly under Subdivision 12A ‑ C (about deemed payments by AMITs), treat the entity as having withheld the amount purportedly under Division 12. (2) The Commissioner must refund the amount if the application sets out: (a) if the recipient has a * tax file number—that tax file number; or (b) if the recipient does not have a tax file number but was taken to have quoted a tax file number to the payer before the amount was withheld or paid to the Commissioner—the basis on which the recipient was taken to have quoted the tax file number; or (c) if the payment or * non ‑ cash benefit was in respect of a * Part VA investment made by the recipient in the course or furtherance of an * enterprise carried on by it—the recipient’s * ABN; and the Commissioner is satisfied that it would be fair and reasonable to refund the amount, having regard to: (d) the circumstances that gave rise to the withholding obligation (if any); and (e) the nature of the matter mentioned in paragraph (1)(b); and (f) any other matter the Commissioner considers relevant. Note: A person who is dissatisfied with a decision under this section may object against the decision in the manner set out in Part IVC.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Amended by No 86 of 2000, effective sch 1 (items 26A, 26B, 27 ‑ 58): 30 June 2000 (s 2(1)) | Amended by No 105 of 2010, effective sch 1 (items 71 ‑ 82), sch 2 (items 1, 2): 1 Oct 2010 (s 2(1) items 11, 14) sch 1 (item 83): 17 Dec 2010 (s 2(1) item 12) | Amended by No 109 of 2012, effective sch 1 (items 114 ‑ 119): 1 Oct 2012 (s 2(1) item 2) | Amended by No 10 of 2016, effective sch 2 (item 31): 5 May 2016 (s 2(1) item 5) | Amended by No 53 of 2016, effective sch 1 (items 2 ‑ 4), sch 3 (items 5 ‑ 23), sch 4 (items 6 ‑ 9), sch 5 (items 73 ‑ 75), sch 6 (items 35 ‑ 68), sch 8 (item 1): 5 May 2016 (s 2(1) items 2, 4) sch 7 (items 1, 2): 1 July 2014 (s 2(1) item 3) | Amended by No 4 of 2023, effective sch 2 (items 27 ‑ 31), sch 3 (items 1, 2, 4): 26 Mar 2023 (s 2(1) item 1)

s 18-80 — Refund by Commissioner of amount withheld from payment in respect of investment

The Commissioner must refund to an entity all or part of an * amount withheld from a * withholding payment covered by section 12 ‑ 140 or 12 ‑ 145 that was made to that entity if: (a) the entity applies in writing for the refund; and (b) the Commissioner is satisfied that the entity was entitled to give * the investment body a declaration under Division 5 of Part VA of the Income Tax Assessment Act 1936 in relation to the * Part VA investment in respect of which the withholding payment was made, but did not do so; and (c) the Commissioner is also satisfied it is fair and reasonable to make the refund, having regard to the purposes of this Part and any other matters that the Commissioner considers appropriate. Note: A person who is dissatisfied with a decision under this section may object against the decision in the manner set out in Part IVC.

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1))

s 18-85 — Refund by Commissioner of amount withheld from payment in respect of supply of real property

(1) An entity (the recipient ) may apply, in the * approved form, to the Commissioner for the refund of an amount if: (a) another entity (the payer ) has made a payment under section 14 ‑ 250, or purportedly under that section, in relation to a supply by the recipient; and (b) the payment, or part of the payment, was made in error. (2) The application must be made no later than 14 days before the day on which * GST is payable on the supply. (3) The amount of the refund that the recipient may apply for is an amount equal to the amount of the payment, or the part of the payment that was made in error, as the case requires. (4) The Commissioner must refund the amount under subsection (3) if the Commissioner is satisfied that paragraphs (1)(a) and (b) apply and that it would be fair and reasonable to refund the amount, having regard to: (a) the circumstances that gave rise to the obligation (if any) to make the payment under section 14 ‑ 250; and (b) the nature of the error; and (c) any other matter the Commissioner considers relevant.

Amendment history: Inserted by No 23 of 2018, effective sch 1 (items 72, 73), sch 5 (items 1 ‑ 4, 12 ‑ 28): 1 Apr 2018 (s 2(1) items 8, 12) sch 1 (items 75 ‑ 79): 30 Mar 2018 (s 2(1) item 9) | Amended by No 49 of 2019, effective sch 4 (items 105 ‑ 111): 1 July 2019 (s 2(1) item 12)

s 18-100 — Obligation to keep payment summary

(1) An entity that is given a * payment summary and a copy of it in any financial year under this Part must retain the copy for: (a) 5 years after the end of that financial year; or (b) a shorter period determined by the Commissioner in writing for the entity; or (c) a shorter period determined by the Commissioner by legislative instrument for a class of entities that includes the entity. (1AA) A determination under paragraph (1)(c) may specify different periods for different classes of entities. (1A) An offence under subsection (1) is an offence of strict liability. Note: For strict liability , see section 6.1 of the Criminal Code .

Amendment history: Inserted by No 178 of 1999, effective sch 1 (items 1 ‑ 4, 85 ‑ 88), sch 2 (items 1 ‑ 22, 35, 36, 75 ‑ 82, 92, 93): 22 Dec 1999 (s 2(1)) | Repealed and substituted by No 179 of 1999, effective sch 1 (items 1 ‑ 4, 7, 8), sch 2 (items 1 ‑ 4, 86 ‑ 93, 103 ‑ 107, 130, 131), sch 3 (items 1, 2), sch 4, sch 5 (items 69, 73, 74), sch 6 (items 14 ‑ 24), sch 10 (items 1 ‑ 18), sch 12 (item 21), sch 14: 22 Dec 1999 (s 2(1) ‑ (6), (7)(b), (c)) sch 2 (items 94 ‑ 102), sch 11 (items 111, 112), sch 12 (items 4 ‑ 20), sch 15 (items 9 ‑ 18): 1 July 2000 (s 2(8), (9)(b), (12)) | Amended by No 91 of 2000, effective sch 1, sch 2 (items 68 ‑ 120, 142A, 143, 144): 1 July 2000 (s 3(1)) sch 3 (items 1 ‑ 16): 22 Dec 1999 (s 3(4)) | Amended by No 146 of 2001, effective s 4, sch 3: 15 Dec 2001 (s 2(1)) | Amended by No 161 of 2005, effective sch 1 (items 27 ‑ 37, 46 ‑ 56, 59), sch 2 (items 1, 16 ‑ 32): Royal Assent

s 18-120 — Object of Subdivision

The object of this Subdivision is to reverse the economic benefit of a credit under section 18 ‑ 15 (Tax credit for recipient of withholding payment) of a director, or an * associate of a director, of a company if: (a) the company does not comply with its obligations under subsection 16 ‑ 70(1) (obligation to pay amounts withheld to the Commissioner); and (b) the credit is attributable to * amounts withheld from * withholding payments made by the company to the director or associate; until the company complies with its obligations.

Amendment history: Inserted by No 99 of 2012, effective sch 1 (items 1 ‑ 9, 12 ‑ 15, 23, 36 ‑ 47, 49 ‑ 57): 30 June 2012 (s 2(1) items 2 ‑ 5)

s 18-125 — Directors of non ‑ complying companies

Liability to pay PAYG withholding non ‑ compliance tax (1) An individual must pay * PAYG withholding non ‑ compliance tax in relation to a company for an income year of the individual if: (a) the individual is or has been a director (within the meaning of the Corporations Act 2001 ) of the company; and (b) the company was required to pay to the Commissioner under subsection 16 ‑ 70(1) in this Schedule amounts: (i) the company withheld from * withholding payments the company made to any entities during the income year of the individual; and (ii) to which subsection (2) applies; and (c) the company did not pay the total of those amounts to the Commissioner on or before the last day (the non ‑ compliance day ) on or before which the company was required to pay any of those amounts to the Commissioner in accordance with subsection 16 ‑ 70(1); and (d) a credit to which the individual is entitled under section 18 ‑ 15 is attributable to an extent to * amounts withheld by the company under Division 12 from withholding payments made to the individual during the income year of the individual. Note: For the purposes of paragraph (1)(d), it does not matter whether the company pays the amounts withheld from the withholding payments made to the individual to the Commissioner under subsection 16 ‑ 70(1). (2) This subsection applies to * amounts withheld that the company was required to pay to the Commissioner on or before a particular day (the payment day ) under subsection 16 ‑ 70(1), if: (a) both of the following subparagraphs apply: (i) the individual was a director (within the meaning of the Corporations Act 2001 ) of the company on the payment day; (ii) the company did not pay the total of those amounts to the Commissioner in accordance with subsection 16 ‑ 70(1) on or before the payment day; or (b) all of the following subparagraphs apply: (i) the individual became a director of the company after the payment day; (ii) the individual was still a director of the company 30 days after becoming a director; (iii) the company did not pay the total of those amounts to the Commissioner in accordance with subsection 16 ‑ 70(1) on or before the last of those 30 days. Amount of tax (3) The amount of the * PAYG withholding non ‑ compliance tax the individual must pay is the lesser of: (a) the extent of the credit mentioned in paragraph (1)(d); and (b) the total amount the company did not pay to the Commissioner as mentioned in paragraph (1)(c).

Amendment history: Inserted by No 99 of 2012, effective sch 1 (items 1 ‑ 9, 12 ‑ 15, 23, 36 ‑ 47, 49 ‑ 57): 30 June 2012 (s 2(1) items 2 ‑ 5)

s 18-130 — Directors of non ‑ complying companies—tax reduced in certain circumstances

(1) The amount of the * PAYG withholding non ‑ compliance tax the individual must pay as mentioned in section 18 ‑ 125 is reduced if the Commissioner gives a notice to the individual under this section. Notice (2) The Commissioner must give a written notice to the individual on a day (the reduction notice day ) (whether before, on or after the day (if any) the Commissioner gives the individual the relevant notice under section 18 ‑ 140), if the Commissioner is satisfied that: (a) because of illness or for some other good reason, it would have been unreasonable to expect the individual to take part, and the individual did not take part, in the management of the company at any time during the period: (i) starting on a day on or by which the company was required to pay any of the total mentioned in paragraph 18 ‑ 125(1)(c) to the Commissioner under subsection 16 ‑ 70(1); and (ii) ending on the reduction notice day; or (b) the individual took all reasonable steps to ensure that one of the following happened: (i) the directors (within the meaning of the Corporations Act 2001 ) of the company caused the company to pay the total of the amounts mentioned in paragraph 18 ‑ 125(1)(c) to the Commissioner; (ii) the directors caused an administrator of the company to be appointed under section 436A, 436B or 436C of the Corporations Act 2001 ; (iia) the directors caused a small business restructuring practitioner for the company to be appointed under section 453B of that Act; (iii) the directors caused the company to begin to be wound up (within the meaning of that Act); or there were no reasonable steps the individual could have taken to ensure that any of those things happened. (3) In determining what are reasonable steps for the purposes of paragraph (2)(b), the Commissioner must have regard to: (a) when, and for how long, the individual was a director and took part in the management of the company; and (b) all other relevant circumstances. Amount of reduction (4) The amount of the reduction is the amount stated in the notice. (5) In determining the amount to state in the notice, the Commissioner must have regard to: (a) in a case to which paragraph (2)(a) applies—when, and for how long, the individual could not have been expected to take part, and did not take part, in the management of the company; and (b) in a case to which paragraph (2)(b) applies—when, and for how long, the individual was a director and took part in the management of the company; and (c) in either case—what is fair and reasonable in the circumstances. Effect of reduction (6) The amount of the * PAYG withholding non ‑ compliance tax the individual must pay is treated as always having been that amount as reduced under this section.

Amendment history: Inserted by No 99 of 2012, effective sch 1 (items 1 ‑ 9, 12 ‑ 15, 23, 36 ‑ 47, 49 ‑ 57): 30 June 2012 (s 2(1) items 2 ‑ 5) | Amended by No 130 of 2020, effective sch 1 (items 118 ‑ 127): 1 Jan 2021 (s 2(1) item 2)