Taxation Administration (Withholding Variation for Personal Services Income) Legislative Instrument 2023 (Cth)

Taxation Administration (Withholding Variation for Personal Services Income) Legislative Instrument 2023

I, Ben Kelly, Deputy Commissioner of Taxation, make the following legislative instrument.

Dated 15 March 2023

Ben Kelly Deputy Commissioner of Taxation

Contents 1 Name 2 Commencement 3 Authority 4 Definitions 5 Schedules 6 Variation of withholding for alienated personal services income Schedule 1—Repeals Variation of withholding for personal services income (15/03/2013)

1 Name This instrument is the Taxation Administration (Withholding Variation for Personal Services Income) Legislative Instrument 2023.

2 Commencement (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information Column 1 Column 2 Column 3 Provisions Commencement Date/Details 1. The whole of this instrument 1 April 2023. 1 April 2023.

Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument. (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3 Authority This instrument is made under section 15-15 of Schedule 1 to the Act.

4 Definitions Note 1: A number of expressions used in this instrument have the same meaning as in the Act, including the following: (a) alienated personal services payment; (b) amount required to be withheld; (c) PAYG payment period; (d) personal services entity; (e) personal services income; (f) withholding payment. Note 2: Expressions in Schedule 1 to the Act have the same meaning as in the Income Tax Assessment Act 1997 (see section 3AA of the Act). In this instrument: Act means the Taxation Administration Act 1953. net personal services income percentage means the percentage worked out using the following method statement: Step 1 – subtract any allowable deductions (excluding salary or wages paid in accordance with subsection 86-15(4) of the Income Tax Assessment Act 1997) for the previous income year from the personal services entity's gross personal services income (exclusive of GST) for the previous income year; Step 2 – divide the result by the personal services entity's gross personal services income (exclusive of GST) for the previous income year; and Step 3 – multiply the result by 100 to give a percentage.