A New Tax System (Tax Administration) Act 1999 (179 of 1999)

Schedule 11   PAYG withholding consequential amendments

Income Tax Rates Act 1986

106   Subsection 16(1) (definition of salary or wages)

Repeal the definition, substitute:

salary or wages means payments from which an amount must be withheld under a provision of Subdivision 12-B (other than section 12-55), 12-C or 12-D in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not withheld).

Note: The payments covered are: payments to employees and company directors, payments to office holders, return to work payments, payments under labour hire arrangements, payments of pensions and annuities, eligible termination payments, payments for unused leave, benefit payments, compensation payments and payments specified by regulations.