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A New Tax System (Tax Administration) Bill (No. 2) 2000
Schedule 3 Pay As You Go (PAYG) withholding system

   

Taxation Administration Act 1953

1  At the end of paragraph 12-60(1)(b) in Schedule 1

Add “, or directly for a client of another entity”.

2  Paragraph 12-190(2)(a) in Schedule 1

Omit “supply”, substitute “ * supply”.

3  After subsection 12-190(2) in Schedule 1

Insert:

          (2A)  The payer need not withhold an amount under this section if the other entity has made the * supply, or proposes to make the supply, through an agent and, when the payment is made:

                     (a)  the agent has given the payer an * invoice that relates to the supply and * quotes the agent’s * ABN; or

                     (b)  the payer has some other document relating to the supply on which the agent’s ABN is * quoted.

4  Subsection 12-190(3) in Schedule 1

Omit “also”.

5  Paragraph 12-190(3)(a) in Schedule 1

Omit “supply”, substitute “ * supply”.

6  After subsection 12-190(3) in Schedule 1

Insert:

          (3A)  The payer need not withhold an amount under this section if the other entity has made the * supply, or proposes to make the supply, through an agent and, when the payment is made:

                     (a)  the agent has given the payer an * invoice that relates to the supply and purports to * quote the agent’s * ABN, or the payer has some other document that relates to the supply and purports to * quote the agent’s ABN; and

                     (b)  the agent does not have an ABN, or the invoice or other document does not in fact quote the agent’s ABN; and

                     (c)  the payer has no reasonable grounds to believe that the agent does not have an ABN, or that the invoice or other document does not quote the agent’s ABN.

7  Paragraph 12-190(4)(a) in Schedule 1

Repeal the paragraph, substitute:

                     (a)  the payment is made otherwise than in the course or furtherance of an * enterprise * carried on in Australia by the payer; or

8  Paragraph 12-190(4)(b) in Schedule 1

After “the payment”, insert “(disregarding so much of it as relates to * GST payable on the * supply) or, if the payer has also made, or proposes to make, one or more other payments to the other entity for the supply, the total of all the payments (disregarding so much of them as relates to * GST payable on the supply)”.

8A  At the end of subsection 12-190(4) in Schedule 1

Add:

               ; or (d)  the supply is wholly * input taxed.

9  Subparagraph 12-190(6)(a)(i) in Schedule 1

Omit “supply”, substitute “ * supply”.

10  Subsection 15-25(1) in Schedule 1

Omit “11-1(b) and (c)”, substitute “11-1(b), (c), (da) and (db)”.

11  Paragraph 16-155(1)(a) in Schedule 1

After “12-85,”, insert “12-190,”.

12  Paragraph 16-160(1)(a) in Schedule 1

After “12-85,”, insert “12-190,”.

13  After section 16-165 in Schedule 1

Insert:

16-167   Payment summary for payment to recipient who does not quote ABN

             (1)  An entity (the payer ) that makes a * withholding payment covered by section 12-190 (about payments to recipients who do not quote their ABN) to another entity (the recipient ) must give the recipient a * payment summary (and a copy of it) that covers that payment, unless the * amount required to be withheld from the payment is nil.

             (2)  The summary must cover only that payment.

             (3)  The payer must give the summary to the recipient when making the payment, or as soon as practicable afterwards.

14  Subsection 16-170(3) in Schedule 1

Omit “or 16-165”, substitute “, 16-165 or 16-167”.

15  Section 16-175 in Schedule 1

Omit “or 16-165”, substitute “, 16-165 or 16-167”.

16  After section 16-175 in Schedule 1

Insert in Subdivision 16-C:

16-180   Commissioner may exempt entity from giving payment summary

             (1)  The Commissioner may, having regard to the circumstances of a particular case or class of cases, exempt an entity from specified requirements of any of sections 16-155 to 16-167. If the Commissioner does so, the exemption has effect accordingly.

             (2)  An exemption must be made by a written notice:

                     (a)  if it applies to a particular entity—that is given to that entity; or

                     (b)  if it applies to a class of entities—that is given to each of the entities, or a copy of which is published in the Gazette .

A New Tax System (Tax Administration) Act 1999

17  Items 26 and 27 of Schedule 18

Repeal the items.

Note:       See instead items 8 and 9 of Schedule 5 to this Act.

18  Application

The items in Schedule 18 to the A New Tax System (Tax Administration) Act 1999 that are repealed by item 17 of this Schedule are taken never to have had any effect.