Taxation Administration Act Withholding Schedules No.2 2020
Sch 29Tax table for payments made under voluntary agreements
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Schedule 29: Tax table for payments made under voluntary agreements
For payments made on or after 1 July 2013
This document is a withholding schedule made by the Commissioner of Taxation in accordance with sections 15-25 and 15-30 of schedule 1 to the Taxation Administration Act 1953. It applies to withholding payments covered by section 12-55 of schedule 1.
Who should use this table?
You should use this tax table if you make payments to an individual under a voluntary agreement to withhold.
■ For a full list of tax tables, refer to Tax tables
■ Alternatively, our calculator can help you work out the correct amount of tax to withhold from payments to most payees. To access the calculator, refer to Tax withheld calculator
How to work out the withholding amount
To work out the withholding amount, you need to assess whether the payee has informed you of their Commissioner’s instalment rate (CIR) and whether the amount includes GST.
■ For more information, refer to PAYG withholding – voluntary agreements (NAT 3063)
If the payee has informed you of their C If the payee has informed you of their CIR
If the payee has informed you of their CIR
If the payee has informed you of their CIR, use the following to work out how much to withhold:
■ If the payee’s CIR is greater than or equal to 20% – withhold the amount worked out by multiplying the amount of the payment by the CIR
■ If the payee’s CIR is less than 20% – withhold the amount worked out by multiplying the amount of the payment by 20%. However, if your voluntary agreement with the payee states that their CIR will apply, you must withhold the amount worked out by multiplying the amount of the payment by the CIR
If the payee has informed you that they If the payee has informed you that they don't have a CIR
If the payee has informed you that they don't have a CIR
You must withhold 20% of the amount of the payment.
If the payment includes an amount for GS If the payment includes an amount for GST
If the payment includes an amount for GST
If the payment includes an amount for GST, you exclude this GST amount when calculating the appropriate rate to withhold.
| ExampleFrancesca is a marketing consultant who receives income from many sources. She has a voluntary agreement to withhold with Ashfield Accounting (her largest payer) and they have agreed to use her CIR of 16.44%.Ashfield Accounting calculates the amount to be withheld by multiplying the amount of each payment (excluding any GST component) by 16.44%.If Francesca and Ashfield Accounting did not have an agreement to use her CIR, the rate of withholding would be 20%. |
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