Taxation Administration Act 1953
Pay as you go withholding
Occasional payroll donations to deductible gift recipients No. 3 – Legislative Instrument
I, Erin Kathleen Holland, Deputy Commissioner of Taxation, vary the amount required to be withheld as described below from withholding payments that are:
· covered by subdivision 12-B (Payments for work and services) 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 legislative instrument revokes Legislative Instrument No. F2010L03246 registered on the 15th December 2010.
This instrument commences on the day after registration on the Federal Register of Legislative Instruments.
Class of cases
Payments covered by subdivision 12-B of Schedule 1 to the Taxation Administration Act 1953, where:
· all or part of the payment is paid, or is to be paid, by a payer at the direction of the payee, as a donation to a deductible gift recipient (as defined in section 30-227 of the Income Tax Assessment Act 1997)
· the donation is made under an occasional giving arrangement, and
· the payee has not advised the payer that they do not want a variation to the amount withheld.
Amount required to be withheld
In working out how much a payer is required to withhold under the withholding schedules, known as the pay as you go (PAYG) withholding tax tables, a payer should:
A. Calculate the amount of withholding required from the payee’s gross earnings for the relevant pay period (prior to deducting the donation) by using the applicable tax table; and
B. Subtract from the withholding figure calculated at (A), the amount of the donation multiplied by the rate applicable to the payee’s earnings for the period as prescribed in the last column of the table below.
Earnings for period
492 – 1,151
1,066 – 2,495
576 - 710
1,152 – 1,421
2,496 – 3,080
711 – 960,
1,422 – 1,921
3,081 – 4,163
961 – 1,537
1,922 – 3,075
4,164 – 6,664
3,076 – 3,845
6,665 – 8,332
1,923 – 3,460
3,846 – 6,921
8,333 – 14,997
3,461 and above
6,922 and above
14.998 and above
The applicable rate is based on the payee providing to this payer a Tax file number declaration and being an Australian resident who has claimed the tax-free threshold.
If the resulting withholding amount is zero or negative, there is no amount to withhold.
Signed on 9 December 2011
Deputy Commissioner of Taxation