{"id":"F2019L01282","name":"Taxation Administration: Individuals Engaged in Foreign Service Variation Notice 2019","slug":"taxation-administration-individuals-engaged-in-foreign-service-variation-notice-2019","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":99864,"registerId":"commonwealth-F2019L01282-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1. Name of instrument","sectionType":"part","heading":"1. Name of instrument","content":"## 1. Name of instrument\n\nThis determination is the Taxation Administration: Individuals Engaged in Foreign Service Variation Notice 2019.","sortOrder":0},{"sectionNumber":"2. Commencement","sectionType":"part","heading":"2. Commencement","content":"## 2. Commencement\n\nThis instrument commences on the day after it is registered on the Federal Register of Legislation. When it is registered this instrument repeals and replaces Taxation Administration Act 1953 – PAYG withholding – Individuals engaged in foreign service (F2009L02794) registered on 14 July 2009.","sortOrder":1},{"sectionNumber":"3. Application","sectionType":"part","heading":"3. Application","content":"## 3. Application\n\nThis instrument applies to payments covered by subdivision 12-B of Schedule 1 to the Taxation Administration Act 1953 that are made to individuals engaged in foreign service whose foreign earnings from that service are not exempt under subsection 23AG of the Income Tax Assessment Act 1936.","sortOrder":2},{"sectionNumber":"4. Variation","sectionType":"part","heading":"4. Variation","content":"## 4. Variation\n\nThe Australian tax amount to be withheld is calculated using the following steps:-\n\nStep 1\n\nCalculate the Australian dollar equivalent of the foreign earnings.\n\nStep 2\n\nUse the relevant pay as you go withholding tax table to calculate the amount of tax that would normally be withheld on those earnings. The amount is based on the information the payee supplied on a Tax file number declaration and, if applicable, a Withholding declaration.\n\nStep 3\n\nSubtract the Australian dollar equivalent of the amount of tax withheld and paid to the foreign country from the answer to Step 2.\n\nStep 4\n\nThe result of Step 3 is the amount to withhold. If the result from Step 3 is zero or negative, there is no amount to withhold.","sortOrder":3}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument maintains the same scope as its 2009 predecessor. It continues to address the specific narrow circumstance of PAYG withholding for individuals in foreign service whose earnings are not exempt under section 23AG. The variation does not expand the coverage to new taxpayer categories or payment types."},"complexity_factors":["Short instrument (4 sections, ~250 words)","Only 2 defined statutory references (subdivision 12-B of Schedule 1 to the Taxation Administration Act 1953; subsection 23AG of the Income Tax Assessment Act 1936)","Simple sequential 4-step calculation with clear arithmetic logic","No nested exceptions or conditional branching beyond the single threshold test (zero or negative result = no withholding)","Single variation replacing a previous legislative instrument, maintaining the same policy approach"],"plain_english_summary":"This rule tells employers how much Australian tax to withhold from pay of Australians working abroad whose foreign income isn’t exempt under the specific overseas service exemption. It uses a special calculation—convert foreign pay to AUD, determine Australian tax, credit foreign tax paid, and withhold the difference—so workers aren’t double-taxed while Australia still collects tax when foreign rates are lower. It updates an earlier 2009 rule."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument repeals and replaces the 2009 instrument when registered (section 2) but the stated application remains limited to payments covered by Subdivision 12-B of Schedule 1 to the Taxation Administration Act 1953 and to individuals whose foreign earnings are not exempt under subsection 23AG ITAA 1936 (section 3). The text does not itself expand or narrow that application; it principally prescribes the calculation steps (Steps 1–4)."},"complexity_factors":["Cross-reference to other laws: applies only to payments covered by Subdivision 12-B of Schedule 1 to the Taxation Administration Act 1953 and to earnings not exempt under subsection 23AG ITAA 1936 (section 3), requiring users to interpret multiple statutes.","Currency conversion requirement: the instrument requires calculating an \"Australian dollar equivalent\" (Step 1) but does not specify the exchange rate source or timing, creating implementation choice and potential disputes.","Reliance on external PAYG tables: withholding amount depends on using the relevant PAYG table and on information supplied in a TFN or withholding declaration (Step 2), so correct table selection and declaration handling affect outcomes.","Verification of foreign tax paid: Step 3 subtracts foreign tax \"withheld and paid to the foreign country,\" which imposes evidentiary and record-keeping obligations on payers and payees.","Binary withholding outcome rule: Step 4 makes the withholding zero where the net is zero/negative, which requires precise arithmetic and documentation to support nil withholding positions.","Administrative burden on payers: converting currencies, selecting tables, and tracking foreign tax introduces operational and compliance tasks for employers/payors."],"plain_english_summary":"This instrument sets the method Australian payers must use to calculate PAYG withholding on payments to individuals engaged in foreign service whose foreign earnings are not exempt under subsection 23AG of the Income Tax Assessment Act 1936. It requires converting foreign earnings into Australian dollars, applying the PAYG withholding table based on the payee’s Tax File Number/withholding declaration, then subtracting any foreign tax paid; if that result is zero or negative, no Australian tax is withheld (see Steps 1–4)."}},"importantCases":[],"_links":{"self":"/api/acts/taxation-administration-individuals-engaged-in-foreign-service-variation-notice-2019","history":"/api/acts/taxation-administration-individuals-engaged-in-foreign-service-variation-notice-2019/history","analysis":"/api/acts/taxation-administration-individuals-engaged-in-foreign-service-variation-notice-2019/analysis","conflicts":"/api/acts/taxation-administration-individuals-engaged-in-foreign-service-variation-notice-2019/conflicts","importantCases":"/api/acts/taxation-administration-individuals-engaged-in-foreign-service-variation-notice-2019/important-cases","documents":"/api/acts/taxation-administration-individuals-engaged-in-foreign-service-variation-notice-2019/documents"}}