Document ID: chunk:federal_register_of_legislation:F2023L00352:clause:1_6
Version: federal_register_of_legislation:F2023L00352
Segment Type: clause
Provision Reference: sch 1 cl 6
Character Range: 3085–4721

6  Variation of withholding for alienated personal services income
  An amount that a personal services entity must pay to the Commissioner under section 13-5 of Schedule 1 to the Act is varied to nil in cases where:
            (a) the personal services entity receives an alienated personal services payment that relates to one or more individuals' personal services income;
            (b) the personal services entity pays salary or wages to the individual or individuals within 14 days after the end of the PAYG payment period in which it receives the alienated personal services payment; and
            (c) the salary or wages paid by the personal services entity is equal to or greater than either:
 (i) 70 per cent of the gross personal services income (exclusive of GST) received by the personal services entity during the PAYG payment period; or
 (ii) the net personal services income percentage applied to the gross personal services income (exclusive of GST) received by the personal services entity during the PAYG payment period.
           Note: Under Division 13 of Schedule 1 to the Act, an entity that receives an alienated personal services payment may be obliged to pay an amount to the Commissioner. When an entity is required to pay an amount to the Commissioner under Division 13 (including under section 13-5), the alienated personal services payment can be treated as a 'withholding payment'. Further, the amount the entity must pay to the Commissioner is an 'amount required to be withheld' from a withholding payment (see relevant definitions in subsection 995-1(1) of the Income Tax Assessment Act 1997).