Document ID: chunk:federal_register_of_legislation:C2004A00662:clause:1_28:p2
Version: federal_register_of_legislation:C2004A00662
Segment Type: clause
Provision Reference: sch 1 cl 28 (pt 2/3)
Character Range: 62472–65225

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:

When to pay

 (3) The *personal services entity must pay the amount 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 2000‑01. See section 13‑20.

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.

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