Document ID: chunk:federal_register_of_legislation:C2010C00715:clause:1_1:p2
Version: federal_register_of_legislation:C2010C00715
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 2/21)
Character Range: 11617–15244

first entity is required to apply or deal with it in any way on the other's behalf or as the other directs.

Division 12—Payments from which amounts must be withheld

Table of Subdivisions

12‑A General rules
12‑B Payments for work and services
12‑C Retirement payments, eligible termination payments and annuities
12‑D Benefit and compensation payments
12‑E Payments where TFN or ABN not quoted
12‑F Dividend, interest and royalty payments
12‑G Payments in respect of mining on Aboriginal land, and natural resources

Subdivision 12‑A—General rules

Table of sections

12‑1 General exceptions
12‑5 What to do if more than one provision requires a withholding
12‑10 Division does not apply to non‑cash benefits
12‑15 Amounts to be expressed in Australian currency

12‑1  General exceptions

Exempt income of recipient

 (1) An entity need not withhold an amount under section 12‑35, 12‑40, 12‑45, 12‑50, 12‑55, 12‑60, 12‑80, 12‑90, 12‑120 or 12‑190 from a payment if the whole of the payment is *exempt income of the entity receiving the payment.

Living‑away‑from‑home allowance benefit

 (2) In working out how much to withhold under section 12‑35, 12‑40, 12‑45, 12‑115 or 12‑120 from a payment, disregard so much of the payment as is a living‑away‑from‑home allowance benefit as defined by section 136 of the Fringe Benefits Tax Assessment Act 1986.

Expense payment benefit

 (3) In working out how much to withhold under section 12‑35, 12‑40, 12‑45, 12‑115 or 12‑120 from a payment, disregard so much of the payment as:
 (a) is an expense payment benefit as defined by section 136 of the Fringe Benefits Tax Assessment Act 1986; and
 (b) is not an exempt benefit under section 22 of that Act (about reimbursement of car expenses on the basis of distance travelled).

12‑5  What to do if more than one provision requires a withholding

 (1) If more than one provision in this Division covers a payment, only one amount is to be withheld from the payment.

 (2) The provision to apply is the one that is most specific to the circumstances of the payment. However, this general rule is subject to the specific rules in the table.

Specific rules for determining priority among withholding provisions
Item                                                                  Apply:                                 Which is about:                                                                       In priority to:
    1                                                                 section 12‑35, 12‑40, 12‑45 or 12‑50   a payment for work or services                                                        section 12‑60 (payment under a labour hire arrangement or specified by regulations); or
                                                                                                                                                                                                   section 12‑190 (payment for a supply where recipient does not quote its ABN)
    2                                                                 section 12‑80, 12‑85 or 12‑90          a retirement payment, an eligible termination payment or an annuity                   section 12‑60 (payment under a labour hire arrangement or specified by regulations); or
                                                                                                                                                                                                   section 12‑190 (payment for a supply where recipient does not quote its ABN)
    3                                                                 section 12‑110, 12‑115 or