{"id":"F2019L00407","name":"PAYG Withholding - Variation to the rate of withholding for certain foreign resident staff who provide support to those engaged in entertainment or sports activities","slug":"payg-withholding-variation-to-the-rate-of-withholding-for-certain-foreign-resident-staff-who-provide","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":98996,"registerId":"commonwealth-F2019L00407-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"PAYG Withholding - Variation to the rate of withholding for certain foreign resident staff who provide support to those engaged in entertainment or sports activities","content":"Legislative Instrument\n\nPAYG Withholding \\- Variation to the rate of withholding for certain foreign resident staff who provide support to those engaged in entertainment or sports activities\n\nI, Deborah Anne Jenkins, Deputy Commissioner of Taxation, make this variation under section 15-15 of Schedule 1 to the Taxation Administration Act 1953 (TAA 1953).\n\nSigned by Deborah Jenkins\n\nDeputy Commissioner of Taxation\n\nDated: 5 March 2019\n\n1.  Name of instrument\n\nThis determination is the PAYG Withholding \\- Variation to the rate of withholding for certain foreign resident staff who provide support to those engaged in entertainment or sports activities legislative instrument.\n\n    2. Commencement\n\nThis instrument commences on the day after its registration on the Federal Register of Legislation.\n\n    3. Repeal of existing instrument\n\nThis instrument repeals and replaces instrument PAYG Withholding Variation to the rate of withholding for certain foreign resident staff that provide support to those engaged in entertainment or sports activities (F2017L01228), registered on 21 September 2017.\n\n4. Application\n\nThis variation ensures that withholding is not required from payments made to foreign resident support staff from certain countries who provide support to those engaged in entertainment or sports activities. As a result of the relevant international tax agreements these amounts will not be subject to income tax in Australia, in the circumstances described below.\n\n5. Determination\n\nThis instrument varies to nil the amount required to be withheld from withholding payments which:\n\n    a) are covered by section 12-190 or 12-315 of Schedule 1 to the TAA 1953,\n\n    b) relate to entertainment or sports activities carried on in Australia, and\n\n    c) are made to support staff (within the meaning of paragraph 32(3)(b) of the Taxation Administration Regulations 2017) who are:\n\n    (i) residents of a country with which Australia has an\n\ninternational tax agreement, and\n\n    (ii) present in Australia for a period not exceeding 183 days in\n\nthe financial year.\n\n6. Definitions\n\nTerms used in this legislative instrument have the same meaning as defined in the:\n\n    Taxation Administration Act 1953, or\n    International Tax Agreements Act 1953.","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"The instrument explicitly repeals and replaces the earlier instrument registered on 21 September 2017 (section 3). The text supplied does not state whether any substantive elements of coverage or qualifying criteria were expanded, narrowed or otherwise altered compared with the 2017 instrument; it only records that the earlier instrument is repealed and replaced. Users must compare the two instruments to determine any substantive scope differences."},"complexity_factors":["Multiple cumulative eligibility conditions (payment type, activity, recipient status, days present) that all must be met (Determination, section 5).","Cross‑references to other statutory provisions and Regulations for core terms and coverage (sections 5 and 6; paragraph 32(3)(b) of the Taxation Administration Regulations 2017).","Dependence on the existence and terms of international tax agreements for the underlying tax treatment claim (Application, section 4).","Administrative discretion and execution by the Deputy Commissioner under statutory power (introductory text), with no documentary standards set out in this instrument.","Repeal and replacement of an earlier instrument, requiring users to compare instruments to confirm substantive changes (section 3).","A specific temporal threshold (present in Australia for not exceeding 183 days) that requires tracking across a financial year (Determination, section 5(c)(ii))."],"plain_english_summary":"What this instrument does (mechanics)\n\n- The Deputy Commissioner of Taxation sets the withholding rate to nil for certain payments that would otherwise require PAYG withholding (the instrument varies the amount required to be withheld to zero) (see Determination, section 5).\n- The nil‑withholding applies only where all of these conditions are met: the payments are covered by section 12-190 or 12-315 of Schedule 1 to the Taxation Administration Act 1953; the payments relate to entertainment or sports activities carried on in Australia; and the payments are made to \"support staff\" (as defined in paragraph 32(3)(b) of the Taxation Administration Regulations 2017) who are residents of a country that has an international tax agreement with Australia and who are present in Australia for no more than 183 days in the financial year (see Determination, section 5(a)–(c)).\n- The instrument takes effect the day after it is registered on the Federal Register of Legislation (Commencement, section 2) and it repeals and replaces a previous instrument registered in 2017 (section 3).\n- Terms used but not defined in the instrument have the meanings given in the Taxation Administration Act 1953 or the International Tax Agreements Act 1953 (section 6).\n\nOfficial rationale stated in the instrument\n\n- The instrument’s stated purpose is to ensure withholding is not required from payments to certain foreign resident support staff from countries with which Australia has international tax agreements, because those amounts will not be subject to Australian income tax in the described circumstances (Application, section 4).\n\nWho pays, who decides, and what changes in behaviour\n\n- Who decides: the Deputy Commissioner of Taxation made the variation under the authority of the Taxation Administration Act (introductory text and signature).\n- Who pays or withholds: entities that would otherwise be required to withhold under the specified PAYG provisions (sections 12-190 or 12-315) are the parties affected because they no longer must withhold the amount for qualifying payments (Determination, section 5(a)).\n- Behavioural change required: withholding agents must identify whether a payment meets the instrument’s cumulative conditions (type of payment, activity in Australia, recipient’s residency, length of presence, and existence of an international tax agreement). If all conditions are satisfied, the withholding amount is nil; if not, normal withholding obligations continue (Determination, section 5).\n\nCompliance burden, verification and administrative points\n\n- Verification requirement: payers must be able to establish that the recipient is a resident of a country that has an international tax agreement with Australia and that the recipient’s presence in Australia does not exceed 183 days in the financial year (Determination, section 5(c)(i)–(ii); Application, section 4). The instrument does not itself set out documentary standards for that verification.\n- Reference to external definitions: the meaning of key terms (for example, \"support staff\") is supplied by external provisions (Taxation Administration Regulations 2017, paragraph 32(3)(b)) and by the Taxation Administration Act 1953 / International Tax Agreements Act 1953 (section 6). Relying on those external sources requires users to consult multiple instruments to determine applicability.\n- Administrative timing: the variation operates from the day after registration (Commencement, section 2), so withholding agents need to apply the nil rate from that date for qualifying payments.\n\nCosts, incentives, trade-offs and implementation risks (source‑grounded analysis)\n\n- Cashflow and tax withholding: mechanically, the immediate effect is to stop withholding on qualifying payments, which leaves the gross payment with the payee rather than being retained by the payer for remittance to the tax authority (Determination, section 5). The instrument frames this as consistent with international tax agreements that, in the described circumstances, mean those amounts will not be subject to Australian income tax (Application, section 4).\n- Incentives for payers and payees: payers gain a reduced administrative step (no withholding when all conditions are met) but must invest time to check the conditions; payees receive payments without withholding where they qualify. The instrument does not specify the method or documentary evidence required for those checks (Determination, section 5; Definitions, section 6).\n- Compliance risk and discretion: the instrument is an administrative variation made by the Deputy Commissioner under the Taxation Administration Act (introductory text). The text does not describe appeal, review or documentation requirements for disputes over application; therefore, practical enforcement and dispute-handling will rely on the broader statutory and administrative framework referenced but not reproduced here (introductory text; section 6).\n- Interaction and scope dependence: applicability depends on multiple cross-references to other statutory provisions and international tax agreements (sections 5 and 6). That creates a coordination requirement for payers and advisers to consult the referenced sections and agreements to confirm eligibility.\n\nNet effect in practical terms\n\n- For payments that meet every stated condition, withholding agents will not deduct PAYG amounts at source (Determination, section 5). For all other payments to foreign residents or support staff, existing withholding rules continue to apply. The instrument replaces a prior instrument, so users who previously relied on the 2017 instrument should note the replacement and confirm whether their circumstances continue to be covered (section 3)."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument maintains its original narrow scope. It is a replacement of a 2017 instrument with the same purpose: varying PAYG withholding to nil for specific foreign resident support staff in entertainment/sports. The scope remains tightly focused on this specific administrative adjustment and has not expanded beyond the original intent."},"complexity_factors":["Short document (6 numbered sections, approximately 400 words)","Only 2 defined terms referenced externally (terms defined in other Acts)","Simple conditional structure: three cumulative conditions (a, b, c) with two sub-conditions under (c)","No nested exceptions or complex cross-referencing beyond basic references to external legislation","Single operative provision (section 5) with clear 'varies to nil' directive","Relies on external definitions rather than creating new ones"],"plain_english_summary":"**What this does:**\nThis is a tax rule that changes how much tax must be taken out (withheld) from payments made to certain foreign workers who come to Australia to support entertainers or sportspeople.\n\nNormally, when someone pays a foreign resident for work in Australia, the payer must withhold a percentage of the payment and send it to the Australian Taxation Office (ATO) as a prepayment of income tax. This instrument **sets that withholding rate to zero (nil)** for specific support staff.\n\n**Who it affects:**\n- **Foreign resident support staff** — people like roadies, trainers, coaches, or crew members who assist entertainers or athletes\n- **Payers** — the Australian businesses, promoters, or organisations that hire these support staff\n- **Specific countries** — only applies to support staff from countries that have a **tax treaty** (an international agreement) with Australia\n\n**The conditions:**\nTo get the zero withholding rate, the support staff must:\n- Be from a country with a tax treaty with Australia\n- Not stay in Australia for more than **183 days** in the financial year (roughly 6 months)\n- Be supporting entertainment or sports activities happening in Australia\n\n**Why it matters:**\nWithout this rule, Australian payers would have to withhold tax from these workers' pay, even though Australia's tax treaties say these workers don't actually owe Australian income tax. This creates unnecessary paperwork and refunds. By setting withholding to nil, the ATO saves everyone time and hassle while respecting Australia's international tax agreements."}},"importantCases":[],"_links":{"self":"/api/acts/payg-withholding-variation-to-the-rate-of-withholding-for-certain-foreign-resident-staff-who-provide","history":"/api/acts/payg-withholding-variation-to-the-rate-of-withholding-for-certain-foreign-resident-staff-who-provide/history","analysis":"/api/acts/payg-withholding-variation-to-the-rate-of-withholding-for-certain-foreign-resident-staff-who-provide/analysis","conflicts":"/api/acts/payg-withholding-variation-to-the-rate-of-withholding-for-certain-foreign-resident-staff-who-provide/conflicts","importantCases":"/api/acts/payg-withholding-variation-to-the-rate-of-withholding-for-certain-foreign-resident-staff-who-provide/important-cases","documents":"/api/acts/payg-withholding-variation-to-the-rate-of-withholding-for-certain-foreign-resident-staff-who-provide/documents"}}