Commonwealth legislation

PAYG Withholding Variation: Variation of amount to be withheld from certain payments made by external administrators and trustees of bankrupt estates

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.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

2/10 complexity

This determination requires insolvency practitioners (liquidators, receivers, administrators and trustees) to withhold a flat 34.5% tax rate on lump-sum back-pay and termination payments owed to employees for amounts that accrued before insolvency. It covers unpaid wages, unused leave, payment in lieu of notice, redundancy and long service leave, excluding the tax‑free portion of genuine redundancy payments. It simplifies withholding where payments span multiple tax years.

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Current sections

Direct links to the current provisions in PAYG Withholding Variation: Variation of amount to be withheld from certain payments made by external administrators and trustees of bankrupt estates.

PAYG Withholding Variation: Variation of amount to be withheld from certain payments made by external administrators and trustees of bankrupt estates

Legislative Instrument

PAYG Withholding Variation: Variation of amount to be withheld from certain payments made by external administrators and trustees of bankrupt estates

I, Sally Jane Druhan, Deputy Commissioner of Taxation, make this determination under section 15-15 of Schedule 1 to the Taxation Administration Act 1953.

Sally Druhan

Deputy Commissioner of Taxation

Dated: 25 September 2015

Name of instrument

This determination is the PAYG Withholding Variation: Variation of amount to be withheld from certain payments made by external administrators and trustees of bankrupt estates

Commencement

This instrument commences on 1 October 2015.

Application

This instrument applies to a payment made by an external administrator or trustee of a bankrupt estate that is covered by Subdivisions 12-35, 12-85 and 12-90 of Schedule 1 to the Taxation Administration Act 1953, which accrued prior to the date on which the administrator or trustee was appointed, within the following categories:

a. back payments of wages, including unpaid amounts of leave already taken and underpayment of wages over any period

b. unused annual leave

c. payment in lieu of notice

d. redundancy pay, and

e. long service leave

Excluding any amounts to the extent they fall within the tax-free component of a genuine redundancy payment.

Amount to be withheld

The amount to be withheld from payments covered by this instrument is an amount equal to 34.5% of the total payment.

Definitions

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.

Source text

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

1 PAYG Withholding Variation: Variation of amount to be withheld from certain payments made by external administrators and trustees of bankrupt estates

Legislative Instrument

PAYG Withholding Variation: Variation of amount to be withheld from certain payments made by external administrators and trustees of bankrupt estates

I, Sally Jane Druhan, Deputy Commissioner of Taxation, make this determination under section 15-15 of Schedule 1 to the Taxation Administration Act 1953.

Sally Druhan

Deputy Commissioner of Taxation

Dated: 25 September 2015

Name of instrument

This determination is the PAYG Withholding Variation: Variation of amount to be withheld from certain payments made by external administrators and trustees of bankrupt estates

Commencement

This instrument commences on 1 October 2015.

Application

a. back payments of wages, including unpaid amounts of leave already taken and underpayment of wages over any period

b. unused annual leave

c. payment in lieu of notice

d. redundancy pay, and

e. long service leave

Excluding any amounts to the extent they fall within the tax-free component of a genuine redundancy payment.

Amount to be withheld

The amount to be withheld from payments covered by this instrument is an amount equal to 34.5% of the total payment.

Definitions

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.