{"id":"F2016L01123","name":"PAYG Withholding variation for foreign resident capital gains withholding payments – acquisitions from multiple entities","slug":"payg-withholding-variation-for-foreign-resident-capital-gains-withholding-payments-acquisitions-from","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":129377,"registerId":"commonwealth-F2016L01123-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"PAYG Withholding variation for foreign resident capital gains withholding payments – acquisitions from multiple entities","content":"Legislative Instrument\n\nPAYG Withholding variation for foreign resident capital gains withholding payments – acquisitions from multiple entities\n\nI, Steve Vesperman, Deputy Commissioner of Taxation, make this variation under subsection 14-235(5) of Schedule 1 to the Taxation Administration Act 1953.\n\nDeputy Commissioner of Taxation\n\nDated: 29 June 2016\n\n1.  Name of instrument\n\nThis determination is the PAYG Withholding variation for foreign resident capital gains withholding payments – acquisitions from multiple entities.\n\n2. Commencement\n\nThis instrument commences 1 July 2016.\n\n3. Application\n\nThis instrument applies to payments covered by sections 14-200 and 14-205 of Schedule 1 to the Taxation Administration Act 1953, where the relevant CGT asset is acquired from more than one entity and at least one, but not all, of those entities have provided:\n\n    (i) a clearance certificate issued by the Commissioner of Taxation under section 14-220 of Schedule 1 to the Taxation Administration Act 1953,\n    (ii) a declaration under section 14-225 of Schedule 1 to the Taxation Administration Act 1953, or\n    (iii) a notice of variation granted by the Commissioner under subsection 14-235(2) of Schedule 1 to the Taxation Administration Act 1953.\n\n4. Determination\n\nThe amount to be paid to the Commissioner in relation to transactions covered by this instrument is varied as follows:\n\nFor each entity that has not provided a clearance certificate, declaration or notice of variation, withhold an amount equal to the amount which would be required to be paid to the Commissioner under subsection 14-200(3) or subsection 14-205(4) of Schedule 1 to the Taxation Administration Act 1953, multiplied by the entity’s percentage interest in the relevant CGT asset.\n\nFor each entity that has provided a notice of variation, the varied amount stated on the notice of variation.\n\nFor each entity that has provided a valid clearance certificate or declaration, no withholding is required.\n\n5. Definitions\n\nWhere individuals own the relevant asset as joint tenants, their percentage interests are as defined in section 108-7 of the Income Tax Assessment Act 1997.\n\nOther terms used in this legislative instrument have the same meaning as defined in the:\n\n Income Tax Assessment Act 1997, or\n\n Taxation Administration Act 1953","sortOrder":0}],"analysis":{"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"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument maintains its original narrow scope. It was created specifically to address the practical problem of calculating withholding obligations when acquiring assets from multiple entities with mixed residency statuses. The content remains focused entirely on that single operational scenario without expansion into broader withholding matters."},"complexity_factors":["Short document (5 sections, approximately 400 words)","Only 1 defined term ('percentage interests' referencing external legislation)","Relies on external statutory references to Taxation Administration Act 1953 and Income Tax Assessment Act 1997 for core concepts","Simple conditional logic (three categories of sellers with distinct withholding treatments)","No nested exceptions or complex computational rules","Straightforward mathematical formula: base rate × percentage interest","Single purpose instrument addressing one specific scenario (multiple vendors)"],"plain_english_summary":"This rule clarifies withholding when a property or asset is bought from multiple sellers and at least one is a foreign resident. Buyers must assess each seller separately: withhold nothing if they provide a clearance certificate or declaration, withhold the ATO‑varied amount if there’s a variation notice, or withhold 12.5% of that seller’s share if they provide nothing. It affects buyers, foreign sellers, conveyancers and ensures clearer, fairer tax compliance."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"This instrument modifies how withholding is applied in multi-entity acquisitions by apportioning the withholding obligation among sellers according to their percentage interests and by exempting sellers who provide a clearance certificate or declaration, or whose amount is varied by the Commissioner (Application; Determination; Definitions). It therefore changes who bears withholding liability in those transactions."},"complexity_factors":["Apportionment of withholding by each entity’s percentage interest (Determination, Definitions; relies on s.108-7 ITAA 1997 for joint tenants).","Interaction with multiple Schedule 1 provisions: ss.14-200, 14-205 (withholding amounts), 14-220 (clearance certificate), 14-225 (declaration), and 14-235 (variation powers).","Operational requirement for purchasers to identify which sellers have provided certificates/declarations/variations before withholding.","Commissioner discretion to grant variations under subsection 14-235(2) affects amounts withheld for specific entities (Determination).","Recordkeeping and verification burden on purchasers and sellers to support exemption or varied amounts."],"plain_english_summary":"Sets how much PAYG withholding a purchaser must pay when a taxable Australian CGT asset is acquired from multiple sellers. The purchaser withholds a proportionate amount for each seller who has not provided a clearance certificate, declaration, or Commissioner variation; sellers with a valid certificate or declaration incur no withholding, and any granted variation applies as stated (see Determination). It affects purchasers, multiple sellers, and the Commissioner by allocating payment obligations using percentage interests."}},"importantCases":[],"_links":{"self":"/api/acts/payg-withholding-variation-for-foreign-resident-capital-gains-withholding-payments-acquisitions-from","history":"/api/acts/payg-withholding-variation-for-foreign-resident-capital-gains-withholding-payments-acquisitions-from/history","analysis":"/api/acts/payg-withholding-variation-for-foreign-resident-capital-gains-withholding-payments-acquisitions-from/analysis","conflicts":"/api/acts/payg-withholding-variation-for-foreign-resident-capital-gains-withholding-payments-acquisitions-from/conflicts","importantCases":"/api/acts/payg-withholding-variation-for-foreign-resident-capital-gains-withholding-payments-acquisitions-from/important-cases","documents":"/api/acts/payg-withholding-variation-for-foreign-resident-capital-gains-withholding-payments-acquisitions-from/documents"}}