Commonwealth legislation

Notice of Variation - Legislative Instrument - Variation of amount to be withheld from certain payments made by external administrators in accordance with section 15-15 of Schedule 1 to the Taxation Administration Act 1953

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This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Collection

legislative instrument

Plain English Summary

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This notice requires external administrators (liquidators, receivers, voluntary or deed administrators) to withhold a flat 31.5% tax from certain employment-related lump‑sum payments made when an employer is in administration. It covers back pay, unused annual leave, payment in lieu of notice, redundancy and long service leave. The change simplifies withholding on large accrued entitlements and ensures tax is collected upfront when administrators distribute remaining company funds.

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Direct links to the current provisions in Notice of Variation - Legislative Instrument - Variation of amount to be withheld from certain payments made by external administrators in accordance with section 15-15 of Schedule 1 to the Taxation Administration Act 1953.

Notice of Variation - Legislative Instrument - Variation of amount to be withheld from certain payments made by external administrators in accordance with section 15-15 of Schedule 1 to the Taxation Administration Act 1953

Australian Taxation Office

Taxation Administration Act 1953

Notice of Variation – Legislative Instrument

I, Erin Kathleen Holland, Deputy Commissioner of Taxation, notify that I have varied the amount to be withheld from payments made by external administrators that are:

covered by Subdivisions 12-35, 12-85 and 12-90 of Schedule 1 to the Taxation Administration Act 1953; and
within the class of cases described below,

to an amount equal to 31.5% of the total payment.

I make this variation under section 15-15 of Schedule 1 to the Taxation Administration Act 1953 to meet the special circumstances of that class of cases.

Effective for payments made on or after 1 July 2005.

Class of cases

Payments which include amounts paid as:

back payment of wages, including unpaid amounts of leave already taken (and including underpayment of wages over any period) that were accrued prior to the date on which the administrator was appointed
unused annual leave for employees
payment in lieu of notice
redundancy pay for employees and
long service leave for employees.

An external administrator is a liquidator, receiver, receiver and manager, voluntary administrator (appointed under the Corporations Act 2001) or an administrator of a deed of company arrangement.

Signed at …17:00, this the 13th day of May 2005.

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Erin Holland

Deputy Commissioner of Taxation

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

1 Notice of Variation - Legislative Instrument - Variation of amount to be withheld from certain payments made by external administrators in accordance with section 15-15 of Schedule 1 to the Taxation Administration Act 1953