{"id":"C2012A00059","name":"Income Tax (Labour Mobility Program Withholding Tax) Act 2012","slug":"income-tax-labour-mobility-program-withholding-tax-act-2012","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"59 of 2012","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":8375,"registerId":"commonwealth-C2012A00059-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n This Act may be cited as the Income Tax (Labour Mobility Program Withholding Tax) Act 2012.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 and 2 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

21 June 2012

2. Sections 3 and 4

At the same time as Schedule 1 to the Tax Laws Amendment (2012 Measures No. 3) Act 2012 commences.

21 June 2012

\n```\n\n> Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.\n\n (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Imposition of tax","content":"#### 3 Imposition of tax\n\n The tax known as income tax, to the extent that that tax is payable in accordance with section 840‑905 of the Income Tax Assessment Act 1997, is imposed on income to which that section applies.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Rate of tax","content":"#### 4 Rate of tax\n\n The rate of income tax imposed by this Act is 15%.","sortOrder":3}],"analysis":{"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"As enacted, the Act narrowly imposes income tax at a 15% rate on income to which ITAA 1997 s.840‑905 applies. The Act does not expand or restrict that cross‑referenced coverage within its own text; any scope changes would require amendment to this Act or to the referenced provisions."},"complexity_factors":["Extremely short; only establishes tax base by cross‑reference and a single flat rate (sections 3–4).","Substantive effect depends entirely on external provisions (Income Tax Assessment Act 1997, s.840‑905), requiring cross‑reference and statutory interpretation.","Commencement mechanics provided by a commencement table that stages parts of the Act (section 2), adding minor procedural complexity.","No administrative, collection or withholding mechanics in this Act itself — implementation detail lies elsewhere, increasing dependence on other instruments.","Low volume of provisions limits internal complexity but raises operational dependence on the definitions and rules in the referenced section."],"plain_english_summary":"This Act imposes a 15% income tax on any income that falls within section 840‑905 of the Income Tax Assessment Act 1997. Mechanically, it does not define the taxed income itself but links liability to the rules and procedures already set out in that referenced section. Recipients of income covered by s.840‑905 are the parties who bear the tax; implementation and compliance follow the administrative framework in the referenced provisions."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This Act has remained tightly focused on its original purpose since 2012. It was always intended as a simple 'imposition and rate' statute that piggybacks on the detailed rules in the Income Tax Assessment Act 1997. There is no evidence of scope creep — it hasn't been amended to cover other visa categories, other tax types, or additional administrative functions. It does exactly what it says on the tin: imposes a 15% tax on Labour Mobility Program income."},"complexity_factors":["Extremely short — only 4 operative sections (2 are administrative: short title and commencement)","Only substantive provisions are sections 3 and 4, totalling 3 sentences","Zero defined terms in this Act itself (relies entirely on external reference to Income Tax Assessment Act 1997)","Single cross-reference to section 840-905 of ITAA 1997 — the complexity lives in the other Act","No conditional logic, exceptions, or nested provisions within this Act","Mathematical simplicity: flat 15% rate with no thresholds, brackets, or calculations required"],"plain_english_summary":"This is a short, technical tax law that sets up a special 15% flat tax rate for certain foreign workers in Australia.\n\n**What it does:**\n- **Imposes a specific tax** on income earned by workers who come to Australia under the \"Labour Mobility Program\" (now known as the Pacific Australia Labour Mobility scheme, or PALM).\n- **Sets the tax rate at 15%** — a flat rate that's lower than Australia's usual progressive income tax rates.\n- **Works with another law:** The actual rules about who pays this tax and when are in the *Income Tax Assessment Act 1997* (specifically section 840-905). This Act just creates the legal authority to charge the tax and fixes the rate.\n\n**Who it affects:**\n- Low and semi-skilled workers from Pacific Island countries and Timor-Leste who come to Australia temporarily to work in sectors like agriculture, meat processing, and aged care.\n- Their employers, who must withhold this 15% tax from wages (similar to PAYG withholding for regular employees).\n\n**Why it matters:**\nThis special tax rate makes it financially attractive for Pacific workers to come to Australia, while ensuring they still contribute to the tax system. It's simpler than the standard tax system (no tax-free threshold calculations, no Medicare levy complications) and was designed to support Australia's labour mobility partnerships with neighbouring countries. The 15% rate is a compromise — workers pay less tax than permanent residents but more than they'd pay in their home countries (which is often zero)."},"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act is a focused, single-purpose instrument that does exactly what its title suggests — imposes and fixes the rate of withholding tax for Labour Mobility Program workers. There is no indication of scope creep or deviation from its original intent. The 15% rate and the specific worker category have remained the defined parameters since enactment."},"complexity_factors":["Very short Act with only 4 operative sections — minimal textual complexity","Requires cross-referencing the Income Tax Assessment Act 1997 (section 840-905) to understand the full legal operation","The constitutional reason for having a separate 'imposition' Act (as distinct from assessment legislation) is not explained and may confuse lay readers","Identification of which workers actually qualify relies entirely on external legislation and program guidelines, not this Act","Commencement provisions are tied to a separate amending Act, adding a minor layer of dependency"],"plain_english_summary":"This short Act imposes a flat 15% tax on income of workers brought to Australia under government Labour Mobility Programs (e.g. PALM). It affects eligible temporary foreign workers and their Australian employers, who must withhold the tax. The measure creates a concessional, simple withholding rate compared with ordinary resident/non‑resident tax rules and functions as the standalone taxing instrument, with mechanics handled under the Income Tax Assessment Act."}},"importantCases":[],"_links":{"self":"/api/acts/income-tax-labour-mobility-program-withholding-tax-act-2012","history":"/api/acts/income-tax-labour-mobility-program-withholding-tax-act-2012/history","analysis":"/api/acts/income-tax-labour-mobility-program-withholding-tax-act-2012/analysis","conflicts":"/api/acts/income-tax-labour-mobility-program-withholding-tax-act-2012/conflicts","importantCases":"/api/acts/income-tax-labour-mobility-program-withholding-tax-act-2012/important-cases","documents":"/api/acts/income-tax-labour-mobility-program-withholding-tax-act-2012/documents"}}