{"id":"F2026L00197","name":"Taxation Administration (PAYG Withholding Variation for Certain Insurance and Compensation Payments when an ABN is not Quoted) Legislative Instrument 2026","slug":"taxation-administration-payg-withholding-variation-for-certain-insurance-and-compensation-payments-w","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":443171,"registerId":"F2026L00197-fast-fetch-1775958076628","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Taxation Administration (PAYG Withholding Variation for Certain Insurance and Compensation Payments when an ABN is not Quoted) Legislative Instrument 2026","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)\n\n \n\nTaxation Administration (PAYG Withholding Variation for Certain Insurance and Compensation Payments when an ABN is not Quoted) Legislative Instrument 2026\n\nI, Will Day, Deputy Commissioner of Taxation, make the following legislative instrument.\n\nDated   25 February 2026\n\nWill Day\n\nDeputy Commissioner of Taxation\n\n \n\nContents\n\n1  Name\n\n2  Commencement\n\n3  Authority\n\n4  Definitions\n\n5  Schedules\n\n6  Withholding amount varied to nil\n\nSchedule 1—Repeals\n\nPAYG Withholding Variation: Insurance and Compensation\n\n \n\n1  Name\n\nThis instrument is the Taxation Administration (PAYG Withholding Variation for Certain Insurance and Compensation Payments when an ABN is not Quoted) Legislative Instrument 2026.\n\n2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this document The day after this instrument is registered.\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3  Authority\n\n  This instrument is made under section 15-15 in Schedule 1 to the Act.\n\n4  Definitions\n\n  In this instrument:\n\nAct means the Taxation Administration Act 1953.\n\ncompulsory third party scheme has the meaning given by section 195-1 of the A New Tax System (Goods and Services Tax) Act 1999.\n\nstatutory compensation scheme has the meaning given by section 195-1 of the A New Tax System (Goods and Services Tax) Act 1999.\n\n5  Schedules\n\n  Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.\n\n6  Withholding amount varied to nil\n\n  The amount that an entity must withhold under subsection 12-190(1) in Schedule 1 to the Act from a payment it makes to another entity is varied to nil where the payment is made by:\n\n (a) an insurer in settlement of a claim under an insurance policy; or\n\n (b) an entity operating a statutory compensation scheme in settlement of a claim for compensation under that scheme; or\n\n (c) an entity operating a compulsory third party scheme in settlement of a claim for compensation under that scheme.\n\n\n\n\nSchedule 1—Repeals\n\nPAYG Withholding Variation: Insurance and Compensation\n\n1  The whole of the instrument\n\nRepeal the instrument\n","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":2,"scope_assessment":{"changed":false,"description":"The legislation maintains its original narrow scope. It addresses a specific technical issue regarding PAYG withholding on insurance and compensation payments, which has been its purpose since the original instrument. The 2026 version appears to be a straightforward re-enactment or consolidation of the existing rule, with no expansion into new areas."},"complexity_factors":["Very short document (approximately 1 page of substantive content)","Only 2 defined terms, both referencing external legislation rather than creating new definitions","Simple, single-condition variation rule in section 6 with three straightforward scenarios","No nested exceptions or conditional logic","Minimal cross-referencing (only references to the Taxation Administration Act 1953 and GST Act for definitions)","Clear structure with standard legislative instrument template (name, commencement, authority, definitions, schedules)"],"plain_english_summary":"This instrument sets PAYG withholding to nil for settlement payments made by insurers, statutory compensation schemes, and compulsory third‑party schemes, even where the recipient hasn’t quoted an ABN. It stops the default 47% withholding on such compensation or insurance payouts, avoiding severe cash‑flow impacts for recipients and reflecting that these payments compensate loss rather than payment for services. It also repeals and replaces the prior “PAYG Withholding Variation: Insurance and Compensation” instrument."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":true,"description":"This instrument both prescribes that the withholding amount is nil for settlements by insurers and scheme operators (s6) and expressly repeals the earlier PAYG withholding variation instrument (Schedule 1). From the text alone, it replaces the prior instrument; whether substantive coverage differs from the earlier instrument cannot be determined without comparing the repealed instrument's text."},"complexity_factors":["Single, focused operative change (sets withholding amount to nil for specified settlement payments) — low structural complexity (s6).","Relies on cross-reference to subsection 12-190(1) in Schedule 1 to the Taxation Administration Act 1953 for the withholding trigger (s6) — requires consulting the Act for full conditions.","Key terms are defined by reference to another Act (A New Tax System (GST) Act 1999) — external definition linkage (s4).","Instrument repeals a prior instrument in full (Schedule 1) — administrative/transition implications if the prior text differed.","Commencement is immediate (day after registration) which has practical timing consequences for payers (s2).","Made under delegated power (section 15-15 in Schedule 1 to the Act) — administrative discretion in issuance is narrow but present (s3)."],"plain_english_summary":"This instrument removes the PAYG withholding obligation for certain settlement payments: insurers settling insurance claims, and operators of statutory compensation or compulsory third party schemes settling compensation claims. Practically, those payers will withhold nil under the PAYG rule that applies where an ABN is not quoted. It takes effect the day after registration and also repeals the earlier instrument dealing with the same category of payments."}},"importantCases":[],"_links":{"self":"/api/acts/taxation-administration-payg-withholding-variation-for-certain-insurance-and-compensation-payments-w","history":"/api/acts/taxation-administration-payg-withholding-variation-for-certain-insurance-and-compensation-payments-w/history","analysis":"/api/acts/taxation-administration-payg-withholding-variation-for-certain-insurance-and-compensation-payments-w/analysis","conflicts":"/api/acts/taxation-administration-payg-withholding-variation-for-certain-insurance-and-compensation-payments-w/conflicts","importantCases":"/api/acts/taxation-administration-payg-withholding-variation-for-certain-insurance-and-compensation-payments-w/important-cases","documents":"/api/acts/taxation-administration-payg-withholding-variation-for-certain-insurance-and-compensation-payments-w/documents"}}