Commonwealth legislation

Taxation Administration Act 1953 - PAYG Withholding Variation: Insurance and Compensation (17/11/2003)

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This Act has been repealed and is no longer in force. It is retained for historical reference.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 notice sets PAYG withholding to zero for payments that settle insurance claims, statutory compensation and compulsory third‑party schemes (e.g., CTP). Normally payers must withhold up to 47% if a recipient lacks an ABN; this change lets insurers and compensation bodies pay claimants—often individuals without ABNs—their full settlements without upfront tax deductions. The Deputy Commissioner made the variation under the Taxation Administration Act; it takes effect once gazetted.

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Current sections

Direct links to the current provisions in Taxation Administration Act 1953 - PAYG Withholding Variation: Insurance and Compensation (17/11/2003).

Taxation Administration Act 1953 - PAYG Withholding Variation: Insurance and Compensation (17/11/2003)

Pay as you go (PAYG) withholding

Notice of variation of amount required to be withheld

____________________________________________________________________

I, Erin Kathleen Holland, Deputy Commissioner of Taxation, vary to nil, the amount required to be withheld from withholding payments that are:

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

I made this variation of the amount required to be withheld under the power contained in section 15-15 in 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 made by:

an insurer to another entity in settlement of a claim under an insurance policy, or
an entity operating a statutory compensation scheme to another entity in settlement of a claim for compensation under that scheme, or
an entity operating a compulsory third party scheme to another entity in settlement of a claim for compensation under that scheme.

Expressions used in the class of cases have the same meaning as in A New Tax System (Goods and Services Tax) Act 1999.

Signed at Moonee Ponds, this 17th day of November 2003.

Signed by Erin Holland

Deputy 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: Insurance and Compensation (17/11/2003)