Taxation Administration Regulations 2017

PART 3 - INCOME TAX (CHAPTER 2 IN SCHEDULE 1 TO THE ACT)  

Division 3 - Pay as you go (PAYG) withholding - Working out the amount to withhold  

Subdivision D - Withholding amounts for Subdivision 12-FB  

SECTION 48   LIMITS ON AMOUNTS WITHHELD UNDER THIS SUBDIVISION  

48(1)    
This section applies to an amount that is required by Subdivision 12-FB in Schedule 1 to the Act (including regulations made for the purposes of that Subdivision) to be withheld from a payment if any amounts are already withheld under that Subdivision from the payment.

48(2)    
The amount to be withheld is reduced by the amounts already withheld from the payment.

Example:

A payer is required to withhold an amount under section 12-315 in Schedule 1 to the Act from a payment made to a foreign resident. However, if the foreign resident has an agent who is an intermediary, the intermediary is required to withhold an amount under section 12-317 in that Schedule from that payment. The amount to be withheld under section 12-317 in that Schedule is reduced by the amount already withheld under section 12-315 in that Schedule.