{"id":"F2016L01396","name":"PAYG Withholding variation for foreign resident capital gains withholding payments – deceased estates and legal personal representatives","slug":"payg-withholding-variation-for-foreign-resident-capital-gains-withholding-payments-deceased-estates-","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":94987,"registerId":"commonwealth-F2016L01396-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"PAYG Withholding variation for foreign resident capital gains withholding payments – deceased estates and legal personal representatives","content":"Legislative Instrument\n\nPAYG Withholding variation for foreign resident capital gains withholding payments – deceased estates and legal personal representatives\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: 15 August 2016\n\n1.  Name of instrument\n\nThis determination is the PAYG Withholding variation for foreign resident capital gains withholding payments – deceased estates and legal personal representatives.\n\n2. Commencement\n\nThis instrument commences on the day after its registration on the Federal Register of Legislative Instruments.\n\n3. Application\n\nThis instrument applies to payments covered by section 14-200 of Schedule 1 to the Taxation Administration Act 1953, where, as a result of the death of an individual:\n\n(i) the legal personal representative is taken to have acquired the relevant asset following the death of the individual;\n\n(ii) a beneficiary obtains ownership of the relevant asset by way of direct transfer from the deceased or by transfer from the legal personal representative of the deceased; or\n\n(iii) a surviving joint tenant acquires the deceased joint tenant’s interest in the relevant asset.\n\n4. Determination\n\nThe amount to be paid to the Commissioner in relation to transactions covered by this instrument is varied to nil.\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":{"complexity_score":2,"scope_assessment":{"changed":true,"description":"Yes — the instrument alters the withholding obligation under section 14-200 for transfers caused by death by setting the payable amount to nil (Application cl.3; Determination cl.4). Mechanically, it removes the requirement for payers covered by s14-200 to remit withholding in those specified death-related circumstances, shifting collection and assessment responsibilities away from immediate payer withholding and onto subsequent tax processes administered by the Commissioner. Definitions rely on ITAA 1997/TAA 1953 (Definitions cl.5)."},"complexity_factors":["Narrow, single-purpose variation: changes withholding amount to nil (Determination cl.4).","Applies only to transfers arising from death and specific legal statuses (Application cl.3), limiting scope but requiring factual verification of estate status.","Relies on external definitions in the Income Tax Assessment Act 1997 and Taxation Administration Act 1953 (Definitions cl.5), so interpretation depends on other legislation.","Delegated administrative power used: made by Deputy Commissioner under subsection 14-235(5) of Schedule 1 to the TAA 1953 (instrument header), creating an executive variation rather than primary legislation.","Interaction with joint tenancy percentages requires reference to section 108-7 ITAA 1997 (Definitions cl.5), adding a minor technical step for payers to confirm interests."],"plain_english_summary":"This instrument sets the PAYG withholding amount to nil for foreign resident capital gains withholding payments that arise because an individual has died — where a legal personal representative is treated as having acquired the asset, a beneficiary receives the asset, or a surviving joint tenant takes the deceased’s interest. It affects persons required to make payments under section 14-200 by removing the immediate withholding obligation, reducing upfront cashflow and compliance for payers while leaving ultimate tax collection and assessment to the Commissioner."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This instrument performs a narrow, specific function consistent with its title and stated purpose. It creates a targeted exception to withholding obligations for deceased estate transactions. There is no evidence of scope creep; the instrument addresses exactly what it claims to address and no more."},"complexity_factors":["Very short document (5 sections, approximately 250 words)","Only 1 substantive operative provision (section 4: the nil variation)","Minimal defined terms — relies on external definitions from two existing Acts","Simple conditional structure: applies to 3 specific factual scenarios in section 3","No nested exceptions, cross-references to other legislative instruments, or temporal limitations beyond commencement"],"plain_english_summary":"This instrument removes the 12.5% foreign resident capital gains withholding obligation for transfers of Australian property that occur because of a death, varying the withholding amount to nil.  \n\nIt covers transfers to legal personal representatives, beneficiaries, and surviving joint tenants, preventing estates and recipients from having to lodge large upfront withholdings on non-sale transfers and avoiding related cash‑flow hardships."},"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"}},"importantCases":[],"_links":{"self":"/api/acts/payg-withholding-variation-for-foreign-resident-capital-gains-withholding-payments-deceased-estates-","history":"/api/acts/payg-withholding-variation-for-foreign-resident-capital-gains-withholding-payments-deceased-estates-/history","analysis":"/api/acts/payg-withholding-variation-for-foreign-resident-capital-gains-withholding-payments-deceased-estates-/analysis","conflicts":"/api/acts/payg-withholding-variation-for-foreign-resident-capital-gains-withholding-payments-deceased-estates-/conflicts","importantCases":"/api/acts/payg-withholding-variation-for-foreign-resident-capital-gains-withholding-payments-deceased-estates-/important-cases","documents":"/api/acts/payg-withholding-variation-for-foreign-resident-capital-gains-withholding-payments-deceased-estates-/documents"}}