{"id":"F2024L00130","name":"Taxation Administration (Withholding Variation for Occasional Payroll Donations to Deductible Gift Recipients) Legislative Instrument 2024","slug":"taxation-administration-withholding-variation-for-occasional-payroll-donations-to-deductible-gift-re","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":442262,"registerId":"F2024L00130-fast-fetch-1775957312857","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Taxation Administration (Withholding Variation for Occasional Payroll Donations to Deductible Gift Recipients) Legislative Instrument 2024","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)\n\n \n\nTaxation Administration (Withholding Variation for Occasional Payroll Donations to Deductible Gift Recipients) Legislative Instrument 2024\n\nI, Ben Kelly, Deputy Commissioner of Taxation, make the following legislative instrument.\n\nDated  22 December 2023\n\nBen Kelly\n\nDeputy Commissioner of Taxation\n\n \n\n \n\n \n\nContents\n\n1  Name\n\n2  Commencement\n\n3  Authority\n\n4  Definitions\n\n5  Schedules\n\n6  Variation of withholding for certain donations to deductible gift recipients\n\nSchedule 1—Repeals\n\nTaxation Administration Act 1953 – Pay as you go withholding – Occasional payroll donations to deductible gift recipients No. 4\n\n \n\n1  Name\n\n  This instrument is the Taxation Administration (Withholding Variation for Occasional Payroll Donations to Deductible Gift Recipients) Legislative Instrument 2024.\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 instrument The day after this instrument is registered.\n\n\nNote: This table relates only to the provisions of this instrument as originally made.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\nNote: A number of expressions used in this instrument have the same meaning as in Schedule 1 to the Act. Expressions in Schedule 1 to the Act have the same meaning as in the Income Tax Assessment Act 1997 (see section 3AA of the Act). The following expressions are relevantly defined in section 995-1 of the Income Tax Assessment Act 1997:\n\n(a) deductible gift recipient;\n\n(b) withholding payment.\n\n  In this instrument:\n\nAct means the Taxation Administration Act 1953.\n\nrelevant withholding schedule means a withholding schedule made by legislative instrument under section 15-25 in Schedule 1 to the Act, which specifies the amounts, formulas and procedures to be used for working out the amount required to be withheld from a withholding payment under Subdivision 12‑B (payments for work and services) in Schedule 1 to the Act.\n\noccasional giving arrangement means an arrangement for a payer to pay at least one occasional or irregular donation to a deductible gift recipient at the direction of a payee.\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  Variation of withholding for certain donations to deductible gift recipients\n\n (1) The amount that a payer must withhold from a withholding payment to a payee under Subdivision 12‑B (payments for work and services) in Schedule 1 to the Act is varied in accordance with subsections (2) and (3), where:\n\n (a) all or part of the withholding payment has been made, or will be made, as a donation under an occasional giving arrangement; and\n\n (b) the payee has not advised the payer that they do not want a variation to the amount withheld.\n\n (2) The varied amount that a payer must withhold from a withholding payment covered by subsection (1) is to be worked out using the following method:\n\n (a) step 1 – calculate the amount required to be withheld from the withholding payment by using the relevant withholding schedule;\n\n (b) step 2 – multiply the amount of the donation to the deductible gift recipient under the occasional giving arrangement by 0.32; and\n\n (b) step 3 – subtract the result of step 2 from the result of step 1.\n\n (3) If the amount calculated under subsection (2) is zero or negative, the amount that a payer must withhold from the payment is varied to nil.\n\n\n\n\nSchedule 1—Repeals\n\nTaxation Administration Act 1953 – Pay as you go withholding – Occasional payroll donations to deductible gift recipients No. 4\n\n1  The whole of the instrument\n\nRepeal the instrument\n","sortOrder":0}],"analysis":{"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":true,"description":"This instrument repeals the prior legislative instrument listed in Schedule 1 and replaces it with a specific variation method for PAYG withholding when payments are made as occasional payroll donations (see s6 and Schedule 1). Practically, it alters payer withholding obligations under Subdivision 12‑B by specifying a 0.32×donation reduction and an opt-out mechanism for payees (s6(1)–(3))."},"complexity_factors":["Cross-references to Subdivision 12‑B withholding rules and the relevant withholding schedule (s6(1) and definitions).","Defined terms (occasional giving arrangement, deductible gift recipient, withholding payment) drawn from Schedule 1 to the Act and the Income Tax Assessment Act (Definitions section).","A straightforward three-step arithmetic variation to existing withholding calculations (s6(2)), requiring payroll systems to implement an additional subtraction of 0.32 × donation.","A conditional trigger based on payee choice (opt-out) which payers must check before applying the variation (s6(1)(b)).","Interaction and potential operational complexity for payers and payroll providers in identifying eligible donations and maintaining records of payee opt-outs.","Repeal of a prior instrument on the same topic, which may require transition or communication to affected parties (Schedule 1)."],"plain_english_summary":"This instrument tells payers to reduce the PAYG withholding taken from a payment when all or part of that payment is given as an occasional payroll donation to a deductible gift recipient, unless the payee has said they don’t want the variation (s6(1)). The reduced amount is the normal withholding less 0.32 times the donation; if that calculation is zero or negative the withholding is nil (s6(2)–(3)). The instrument also repeals the earlier related legislative instrument (Schedule 1)."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The legislation maintains its original narrow scope. It addresses a specific technical matter—adjusting PAYG withholding calculations for occasional payroll donations—and does not expand beyond this purpose. The repeal and replacement of the previous instrument (No. 4) suggests this is a routine renewal or minor update rather than scope creep."},"complexity_factors":["Short length (6 substantive sections plus 1 schedule)","Only 2 defined terms in section 4 ('Act' and 'relevant withholding schedule', plus the incorporated 'occasional giving arrangement')","Simple mathematical formula in section 6(2) with 3 clear steps","Single cross-reference to the Taxation Administration Act 1953 (section 15-15 authority and Schedule 1 definitions)","Straightforward conditional logic: only applies when (a) donation under occasional giving arrangement AND (b) employee hasn't opted out","One repeal item in Schedule 1 (straightforward sunset of previous instrument)"],"plain_english_summary":"This instrument lets employers reduce PAYG withholding when an employee makes a one‑off or irregular payroll donation to a registered deductible gift recipient. The employer can reduce withholding by 32% of the donation (donation × 0.32); if that yields zero or less, no tax is withheld. It gives donors an immediate tax benefit, affects payees, payers and DGR charities, applies only to occasional donations, and replaces the prior No. 4 instrument under the Taxation Administration Act."}},"importantCases":[],"_links":{"self":"/api/acts/taxation-administration-withholding-variation-for-occasional-payroll-donations-to-deductible-gift-re","history":"/api/acts/taxation-administration-withholding-variation-for-occasional-payroll-donations-to-deductible-gift-re/history","analysis":"/api/acts/taxation-administration-withholding-variation-for-occasional-payroll-donations-to-deductible-gift-re/analysis","conflicts":"/api/acts/taxation-administration-withholding-variation-for-occasional-payroll-donations-to-deductible-gift-re/conflicts","importantCases":"/api/acts/taxation-administration-withholding-variation-for-occasional-payroll-donations-to-deductible-gift-re/important-cases","documents":"/api/acts/taxation-administration-withholding-variation-for-occasional-payroll-donations-to-deductible-gift-re/documents"}}