{"id":"F2016L01641","name":"PAYG Withholding Variation: Donations to deductible gift recipients","slug":"payg-withholding-variation-donations-to-deductible-gift-recipients","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":95307,"registerId":"commonwealth-F2016L01641-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"PAYG Withholding Variation: Donations to deductible gift recipients","content":"Legislative Instrument\n\nPAYG Withholding Variation: Donations to deductible gift recipients\n\nI, Matthew Bambrick, Acting Deputy Commissioner of Taxation, make this variation under section 15\\-15 of Schedule 1 to the Taxation Administration Act 1953.\n\nMatthew Bambrick\n\nActing Deputy Commissioner of Taxation\n\nDated: 5 October 2016\n\n    Name of instrument\n\nThis instrument is the PAYG Withholding Variation: Donations to deductible gift recipients.\n\n    2. Commencement\n    This instrument commences on the day after its registration on the Federal Register of Legislative Instruments.\n\n    3. Repealing of existing instrument\n    This legislative instrument repeals and replaces legislative instrument PAYG Withholding Variation: Donations to deductible gift recipients (F2016L00439), registered on 30 March 2016.\n\n    4. Application\n\nThis instrument applies to payments covered by subdivision 12-B of Schedule 1 to the Taxation Administration Act 1953, where:\n\n    (i) part of the payment is paid, or is to be paid, as a donation to a deductible gift recipient specified or endorsed under Division 30 of Income Tax Assessment Act 1997 by a payer\n    (ii) the donation is paid to the deductible gift recipient by the payer of the withholding payment at the direction of the payee\n    (iii) the donation is made under a regular planned giving arrangement, and\n    (iv) the payee has not advised the payer that they do not want a variation to the amount withheld.\n\nA deductible gift recipient is defined in section 995-1 of the Income Tax Assessment Act 1997 to take its meaning from section 30-227 of the Income Tax Assessment Act 1997.\n\n    5. Amount to be withheld\n    The amount to be withheld from payments covered by this instrument is varied as follows:\n\n    When working out the amount to withhold a payer reduces the gross payment by the amount paid by the payer to a deductible gift recipient on behalf of the payee.","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This is a straightforward replacement of an earlier instrument from March 2016. The scope remains limited to the specific PAYG withholding variation for charitable donations, with no expansion beyond the original purpose."},"complexity_factors":["Short, single-purpose instrument (5 sections)","Only 1 defined term referenced externally (deductible gift recipient)","Simple conditional structure with 4 clear criteria in section 4","Single variation rule in section 5 with straightforward arithmetic operation","Heavy reliance on external legislation (Taxation Administration Act 1953, Income Tax Assessment Act 1997) for context, though this is standard for tax instruments"],"plain_english_summary":"This rule lets employees make regular charitable donations through their employer’s payroll so the donated portion is excluded from taxable pay and tax withholding is reduced. It affects employees who want pre-tax giving, employers who must adjust withholding and remit donations, and registered charities. Gifts must be part of a regular planned giving arrangement, with the employee’s participation and employer payment to the charity."},"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":2,"scope_assessment":{"changed":false,"description":"The instrument repeals and replaces the prior PAYG withholding variation instrument (s3) but, on its face, preserves the same application conditions and the same withholding variation mechanism (reduce gross payment by the donation amount) set out in the Application (s4) and Amount to be withheld (s5). No explicit expansion or narrowing of scope is stated in the text."},"complexity_factors":["Narrow, specific application conditions (must be a DGR, donation paid by payer at payee's direction, regular planned giving arrangement, payee not opted out) (Application, s4).","Single mechanical rule change: reduce the gross payment by the donation amount when calculating withholding (Amount to be withheld, s5).","Requires payers to verify the DGR status and the payee's direction and to record the donation amount, creating modest administrative and compliance tasks (Application, s4; Amount to be withheld, s5).","Cross-references statutory definitions in the Income Tax Assessment Act (definition of deductible gift recipient), requiring payers to consult multiple Acts (Application, definition note).","Instrument replaces an earlier legislative instrument, so affected parties must update processes to the new instrument timing and content (Repealing of existing instrument, s3).","Low discretionary decision-making by the agency; outcome depends on payer action and payee direction rather than administrative discretion (mechanical application under s5)."],"plain_english_summary":"This instrument lets a payer reduce the PAYG withholding amount by the value of a donation the payer makes to an endorsed deductible gift recipient (DGR) on behalf of a payee under a regular planned giving arrangement (Application, s4; Amount to be withheld, s5). It applies only where the donation is paid at the payee's direction and the payee has not opted out, so payers calculate withholding on a smaller gross amount."}},"importantCases":[],"_links":{"self":"/api/acts/payg-withholding-variation-donations-to-deductible-gift-recipients","history":"/api/acts/payg-withholding-variation-donations-to-deductible-gift-recipients/history","analysis":"/api/acts/payg-withholding-variation-donations-to-deductible-gift-recipients/analysis","conflicts":"/api/acts/payg-withholding-variation-donations-to-deductible-gift-recipients/conflicts","importantCases":"/api/acts/payg-withholding-variation-donations-to-deductible-gift-recipients/important-cases","documents":"/api/acts/payg-withholding-variation-donations-to-deductible-gift-recipients/documents"}}