Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Income Tax Assessment Act 1936
1 Subsection 170(10AA) (after table item 5)
Insert:
15 | Subsection 26 - 25A(2) | Deduction for salary, wages etc. if Seasonal Labour Mobility Program withholding tax paid |
Income Tax Assessment Act 1997
2 Section 11 - 55 (table item headed "foreign aspects of income taxation")
After:
managed investment trust withholding tax, amount subject to |
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insert:
Seasonal Labour Mobility Program withholding tax, amount subject to |
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3 Section 12 - 5 (table item headed "employees")
After:
pensions, gratuities or retiring allowances for ex - employees |
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insert:
Seasonal Labour Mobility Program, delayed deduction for salary, wages etc. paid to employees under program until Sea sonal Labour Mobility Program withholding tax payable has been paid |
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4 After section 26 - 25
Insert:
26 - 25A Seasonal Labour Mobility Program
No deduction to extent amount not withheld
(1) You cannot deduct under this Act salary, wages, commission, bonuses or allowances from which Subdivision 12 - FC in Schedule 1 to the Taxation Administration Act 1953 (about the Seasonal Labour Mobility Program) requires you to withhold an amount, to the extent that:
(a) you fail to withhold the amount; or
(b) after withholding the amount, you fail to comply with section 16 - 70 in that Schedule in relation to that amount.
Note: Section 16 - 70 in that Schedule requires you to pay the amount to the Commissioner.
Deduction to extent amount not withheld but withholding tax paid
(2) You can deduct, for an income year, salary, wages, commission, bonuses or allowances to the extent that:
(a) you cannot deduct the salary, wages, commission, bonuses or allowances for that income year only because of subsection ( 1) of this section; and
(b) the * Seasonal Labour Mobility Program withholding tax payable for the salary, wages, commission, bonuses or allowance is paid.
5 At the end of Division 840
Add:
Subdivision 840 - S -- Seasonal Labour Mobility Program withholding tax
840 - 900 What this Subdivision is about
If you are a foreign resident who is employed under the Seasonal Labour Mobility Program, you may be liable to pay income tax on the salary, wages etc. paid to you under that program.
Amounts on which there is a liability to pay the tax are non - assessable non - exempt income.
Table of sections
Operative provisions
840 - 905 Liability for Seasonal Labour Mobility Program withholding tax
840 - 910 When Seasonal Labour Mobility Program withholding tax is payable
840 - 915 Certain income is non - assessable non - exempt income
840 - 920 Overpayment of Seasonal Labour Mobility Program withholding tax
840 - 905 Liability for Seasonal Labour Mobility Program withholding tax
You are liable to pay income tax at the rate declared by the Parliament on income:
(a) that is salary, wages, commission, bonuses or allowances paid to you as an employee of an Approved Employer under the Seasonal Labour Mobility Program; and
(b) that you * derive at a time when:
(i) you are a foreign resident; and
(ii) you hold a Special Program Visa (subclass 416).
Note 1: The tax, which is called Seasonal Labour Mobility Program withholding tax, is imposed by the Income Tax (Seasonal Labour Mobility Program Withholding Tax) Act 2012 and the rate of the tax is set out in that Act.
Note 2: See Subdivision 12 - FC in Schedule 1 to the Taxation Administration Act 1953 for provisions dealing with withholding from the salary, wages etc. You are entitled to a credit under section 18 - 33 in that Schedule for amounts withheld from your salary, wages etc. under that Subdivision.
840 - 910 When Seasonal Labour Mobility Program withholding tax is payable
(1) * Seasonal Labour Mobility Program withholding tax is due and payable by you at the end of 21 days after the end of the income year in which you * derived the income to which the tax relates.
(2) If any of the * Seasonal Labour Mobility Program withholding tax that you are liable to pay remains unpaid after the time by which it is due to be paid, you are liable to pay the * general interest charge on the unpaid amount for each day in the period that:
(a) starts at the beginning of the day by which the withholding tax was due to be paid; and
(b) ends at the end of the last day on which, at the end of the day, any of the following remains unpaid:
(i) the withholding tax;
(ii) general interest charge on any of the withholding tax.
Note: The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953 .
(3) The Commissioner may give you a notice specifying:
(a) the amount of any * Seasonal Labour Mobility Program withholding tax that the Commissioner has ascertained is payable by you; and
(b) the day on which that tax became due and payable.
(4) The ascertainment of an amount of * Seasonal Labour Mobility Program withholding tax is not an assessment for the purposes of this Act.
(5) The production of a notice given under subsection ( 3), or of a copy of it certified by or on behalf of the Commissioner, is, except in proceedings under Part IVC of this Act on a review or appeal relating to the notice, conclusive evidence that the notice was given and of the particulars in it.
(6) You may object, in the manner set out in Part IVC of the Taxation Administration Act 1953, against a notice given to you under subsection ( 3) of this section, if you are dissatisfied with the notice.
840 - 915 Certain income is non - assessable non - exempt income
An amount on which * Seasonal Labour Mobility Program withholding tax is payable is not assessable income and is not * exempt income.
840 - 920 Overpayment of Seasonal Labour Mobility Program withholding tax
If * Seasonal Labour Mobility Program withholding tax has been overpaid:
(a) the Commissioner must refund the amount overpaid; and
(b) the employee is not entitled to a credit under section 18 - 33 in Schedule 1 to the Taxation Administration Act 1953 in respect of the amount overpaid.
6 Subsection 995 - 1(1)
Insert:
"Seasonal Labour Mobility Program withholding tax" means income tax payable under Subdivision 840 - S.
Income Tax (Transitional Provisions) Act 1997
7 At the end of Division 840
Add:
Subdivision 840 - S -- Seasonal Labour Mobility Program withholding tax
Table of sections
840 - 905 Application of Subdivision 840 - S of the Income Tax Assessment Act 1997
840 - 905 Application of Subdivision 840 - S of the Income Tax Assessment Act 1997
Subdivision 840 - S of the Income Tax Assessment Act 1997 applies to income derived on or after 1 July 2012.
Taxation Administration Act 1953
8 Subsection 8AAB(4) (after table item 18)
Insert:
18A | 840 - 910 | payment of Seasonal Labour Mobility Program withholding tax |
9 Subsection 10 - 5(1) in Schedule 1 (after table item 22C)
Insert:
22D | A payment of salary, wages etc. to an employee under the Seasonal Labour Mobility Program | 12 - 319A |
10 After Subdivision 12 - FB in Schedule 1
Insert:
Subdivision 12 - FC -- Seasonal Labour Mobility Program
Table of sections
12 - 319A Payment to employee
An entity must withhold an amount from salary, wages, commission, bonuses or allowances it pays to an individual:
(a) as an employee of an Approved Employer (whether the entity or another entity) under the Seasonal Labour Mobility Program; and
(b) at a time when:
(i) the employee is a foreign resident; and
(ii) the employee holds a Special Program Visa (subclass 416).
11 Application of Subdivision 12 - FC in Schedule 1 to the Taxation Administration Act 1953
Subdivision 12 - FC in Schedule 1 to the Taxation Administration Act 1953 , as inserted by this Schedule, applies to salary, wages, commission, bonuse s or allowances paid on or after 1 July 2012.
12 Subsection 15 - 10(2) in Schedule 1
After "12 - FB", insert ", 12 - FC".
13 Subsection 15 - 15(1) in Schedule 1
After "Subdivision", insert "12 - FC or".
14 Subsection 15 - 15(1) in Schedule 1 (after note 3)
Insert:
Note 3A: Subdivision 12 - FC is about the Seasonal Labour Mobility Program.
15 Paragraph 16 - 153(1)(a) in Schedule 1
After "or Subdivision", insert "12 - FC or".
16 After paragraph 16 - 195(1)(aa) in Schedule 1
Insert:
(ab) Subdivision 12 - FC (Seasonal Labour Mobility Program); or
17 Section 18 - 1 in Schedule 1
After "or 12 - 285," (wherever occurring), insert "Subdivision 12 - FC,".
18 Subsection 18 - 10(1) in Schedule 1
After "Subdivision 12 - FA (about departing Australia superannuation payments),", insert "Subdivision 12 - FC (Seasonal Labour Mobility Program),".
19 Group heading before section 18 - 30 in Schedule 1
Repeal the heading, substitute:
20 After section 18 - 32 in Schedule 1
Insert:
18 - 33 Credit: Seasonal Labour Mobility Program
(1) An individual is entitled to a credit if:
(a) the individual's * ordinary income or * statutory income includes salary, wages, commission, bonuses or allowances; and
(b) an amount is withheld from the salary, wages, commission, bonuses or allowances under Subdivision 12 - FC (about the Seasonal Labour Mobility Program).
(2) The amount of the credit is the * amount withheld.
21 Section 18 - 35 in Schedule 1 (heading)
Repeal the heading, substitute:
22 After subsection 18 - 35(1) in Schedule 1
Insert:
(1AA) If an entity has paid:
(a) an amount of penalty under section 16 - 30 or 16 - 35 to the Commissioner for a * withholding payment covered by Subdivision 12 - FC (Seasonal Labour Mobility Program); or
(b) an amount of * general interest charge under section 298 - 25 for the penalty;
the entity liable to pay the * Seasonal Labour Mobility Program withholding tax for the withholding payment is entitled to a credit equal to the lesser of:
(c) the amount of the penalty, or general interest charge, as appropriate; and
(d) the amount of Seasonal Labour Mobility Program withholding tax (and any general interest charge under section 840 - 910 of the Income Tax Assessment Act 1997 ) in relation to the withholding payment, reduced by:
(i) any credits from an application of section 18 - 33 in relation to the withholding payment; and
(ii) any credits from a previous application of this subsection in relation to the withholding payment.
23 Paragraph 18 - 35(2)(a) in Schedule 1
After " paragraph ( 1)(a)", insert ", (1AA)(a)".
24 Paragraph 18 - 35(2)(c) in Schedule 1
After " subsection ( 1)", insert ", (1AA)".
25 Paragraph 18 - 35(3)(a) in Schedule 1
After " paragraph ( 1)(b)", insert ", (1AA)(b)".
26 Paragraph 18 - 35(3)(c) in Schedule 1
After " subsection ( 1)", insert ", (1AA)".
27 Subsection 250 - 10(2) in Schedule 1 (after table item 39A)
Insert:
39AA | Seasonal Labour Mobility Program withholding tax | 840 - 910 |
28 Subsection 340 - 10(2) in Schedule 1 (after paragraph ( d) of table item 6, column headed "Provision(s)")
Insert:
(da) section 840 - 905 of the Income Tax Assessment Act 1997 ; or