Commonwealth legislation

Taxation Administration Act 1953 - PAYG Withholding Variation: Financial Supplies (19/11/2001)

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This Act has been repealed and is no longer in force. It is retained for historical reference.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

3/10 complexity

This ruling sets the withholding rate to nil for payments that are wholly for financial supplies (like loan interest, bank fees and insurance premiums), so payers don’t have to withhold 47% when a financial services supplier hasn’t quoted an ABN.

It matters because financial supplies are input‑taxed under GST; the exception prevents severe cash‑flow disruption to financial institutions and their customers by allowing full payment to suppliers.

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Current sections

Direct links to the current provisions in Taxation Administration Act 1953 - PAYG Withholding Variation: Financial Supplies (19/11/2001).

Taxation Administration Act 1953 - PAYG Withholding Variation: Financial Supplies (19/11/2001)

Pay As You Go (PAYG) Withholding

Variation of amount required to be withheld

I, Stuart Frederick Forsyth, Assistant Commissioner of Taxation, vary to nil the amount required to be withheld from withholding payments that are:

covered by section 12-190 of Schedule 1 to the Taxation Administration Act 1953; and
within the class of cases described below.

I make this variation of the amount required to be withheld under the power contained in section 15-15 of Schedule 1 to the Taxation Administration Act 1953 to meet the special circumstances of that class of cases.

This variation is effective for payments made on or after the date on which a copy of this notice is published in the Gazette.

Class of cases

Any payment where the supplier has not quoted an ABN and the payment is wholly for a:

financial supply as defined in Part 3-1, Division 40 of A New Tax System (Goods and Services Tax) Regulations 1999 (“GST Regulations”). However, the requirements in subregulation 40-5.09 (1)(a) and (b) Part 3-1, Division 40 of the GST Regulations need not be satisfied.

Signed at Brisbane, this 19th day of November 2001.

Signed by Stuart Forsyth

Assistant Commissioner of Taxation

Source text

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

1 Taxation Administration Act 1953 - PAYG Withholding Variation: Financial Supplies (19/11/2001)