INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 2 - Collection by instalments of tax on persons other than companies  

SECTION 221A   INTERPRETATION  

221A(1)   [Definitions]  

In this Division, unless the contrary intention appears:

"annuity"
has the same meaning as in section 10 of the Superannuation Industry (Supervision) Act 1993 ;

"Australian Parliament"
means:

(a) the Parliament of the Commonwealth of Australia; or

(b) the Parliament of a State; or

(c) the Legislative Assembly for the Australian Capital Territory; or

(d) the Legislative Assembly of the Northern Territory of Australia;

"deduction"
means a deduction under section 221C or section 221D from the salary or wages of an employee;

"director"
, in relation to an unincorporated company, includes an officeholder of the company;

"early remitter"
has the meaning given by section 221EC ;

"eligible employer group"
has the meaning given by section 221ED ;

"eligible local governing body"
means a local governing body established by or under a law of a State or Territory where:

(a) the body has unanimously resolved that it be treated as an eligible local governing body for the purposes of this Division; and

(b) that resolution has not been cancelled by a unanimous resolution of the body;

(section 221B sets out rules about such resolutions);

"eligible person"
means:

(a) a person who is an employee within the ordinary meaning of that expression; or

(b) a person who holds or performs the duties of an appointment, office or position under the Constitution or under a law of the Commonwealth, a State or a Territory; or

(c) a person who is otherwise in the service of the Commonwealth, a State or a Territory (including service as a member of the Defence Force or as a member of a police force); or

(d) a member of an Australian Parliament; or

(e) a member of an eligible local governing body;

"eligible termination payment"
means a payment that is an eligible termination payment within the meaning of Subdivision AA of Division 2 of Part III in relation to the person who receives, or is entitled to receive, the payment;

"employee"
means a person who receives, or is entitled to receive, work and income support related withholding payments and benefits;

"employer"
means a person who pays or is liable to pay work and income support related withholding payments and benefits, and includes:

(a) in the case of an unincorporate body of persons other than a partnership - the manager or other principal officer of that body; and

(b) in the case of a partnership - each partner; and

(c) a government body;

"employment declaration"
means an employment declaration made by an employee under section 202C ;

"government body"
means the Commonwealth, a State, a Territory or an authority of the Commonwealth or a State or Territory;

group certificate
means a group certificate form that has been completed in accordance with this Division.

group certificate form
means a document in a form authorised by the Commissioner for the purposes of this definition.

"group employer"
means a person who is registered as a group employer under section 221F ;

"interim stamps receipt"

PAYE deduction obligation
means an obligation on an employer under this Division to make a deduction.

PAYE obligation
means any obligation on an employer under this Division.

pension
means:

(a) a pension, within the meaning of the Superannuation Industry (Supervision) Act 1993 ; or

(b) a pension, within the meaning of the Retirement Savings Accounts Act 1997 .

"prescribed non-resident"
, in relation to any period occurring within a year of income, means a person who, at all times during that period, is a non-resident, not being a person to whom, at any time during that year of income, compensation or a pension, allowance or benefit in respect of which the person is liable to be assessed and to pay income tax is, or was, payable under:

(a) the Veterans' Entitlements Act 1986 ;

(b) subsection 4(6) of the Veterans' Entitlements (Transitional Provisions and Consequential Amendments) Act 1986 ; or

(ba) the Military Rehabilitation and Compensation Act 2004 ; or

(c) a provision of the Social Security Act 1991 other than Part 2.11, 2.11A, 2.12, 2.14 or 2.15 of that Act;

(d) (Omitted by No 100 of 1991)

quarter
means any quarter of a financial year, where the quarter begins on 1 July, 1 October, 1 January or 1 April.

salary or wages
means salary, wages, commission, bonuses or allowances paid (whether at piece-work rates or otherwise) to an eligible person as such, and, without limiting the generality of the foregoing, includes any payments that are covered by Division 52 , 53 or 55 of the Income Tax Assessments Act 1997 , any payments of amounts to which section 26AC of this Act or section 15-3 of the Income Tax Assessment Act 1997 applies, any payments of amounts that are assessable retirement amounts for the purposes of this definition, eligible termination payments and any payments made:

(a) under a contract that is wholly or principally for the labour of the person to whom the payments are made, where:

(i) the person making the payments under the contract is not a natural person; or

(ii) the payments under the contract are not wholly or principally of a private or domestic nature; or

(b) by a company by way of remuneration to a person who is, or performs the duties of, a director of that company; or

(c) by way of superannuation, pension or retiring allowance or by way of an annuity or a supplement to a pension or annuity; or

(d) by way of commission to an insurance or time-payment canvasser or collector; or

(e) (Repealed by No 118 of 1999)

(f) by way of compensation or of sickness or accident pay in respect of incapacity for work, being payments calculated at a weekly or other periodical rate, but not including payments made under a policy of insurance to the owner of the policy; or

(g) by way of Commonwealth education or training payment (see subsection 6(1) ); or

(h) by way of CDEP Scheme Participant Supplement;

(ha)-(nb) (Omitted by No 122 of 1997)

but does not include:

(p) payments of exempt income;

(pa) payments by way of remuneration or allowances to a member of a local governing body established by or under a law of a State or Territory (other than an eligible local governing body);

(q) prescribed payments within the meaning of Division 3A ; or

(r) living-away-from-home allowance benefits within the meaning of the Fringe Benefits Tax Assessment Act 1986 ;

"State income tax law"

"tax check"

"tax check sheet"

"tax deduction sheet"

"tax file number"
, in relation to an employee, means the number that is the employee's tax file number for the purposes of Part VA ;

"tax payable by the employee"
means income tax that is or may become due and payable by an employee under an assessment made or to be made on a return that he has furnished, or has been or may be required to furnish, or under an assessment made or to be made in default of any such return;

"tax stamp"

"tax stamps certificate"

"tax stamps sheet"

tax voucher
means a document of that name purchased under section 221K .

work and income support related withholding payments and benefits
means:

(a) 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); and

(aa) amounts included in a person's assessable income under section 86-15 of the Income Tax Assessment Act 1997 in respect of which an amount must be paid under Division 13 in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not paid); and

(b) non-cash benefits in relation to which the provider of the benefit must pay an amount to the Commissioner under Division 14 in Schedule 1 to the Taxation Administration Act 1953 (even if the amount is not paid).

Note:

The payments covered by paragraph (a) 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.

221A(2)   [Interpretation of terms used in definition of ``salary or wages'']  

For the purposes of the definition of ``salary or wages'' in subsection (1):

(a) where an amount to which section 26AD applies is paid to a person, an amount equal to the amount, or the sum of the amounts, that will, by the application of that section in relation to the payment, be included in the assessable income of the person to whom the payment is made shall be taken to be an assessable retirement amount;

(b) a payment made to a person under a contract that is wholly or principally for the labour of any person shall be taken to be a payment made under a contract that is wholly or principally for the labour of the person to whom the payment is made if:

(i) in the case of a payment that is made in respect of labour that has been performed, in whole or in part, before the time when the payment is made - the whole or principal part of the labour that was performed before the time when the payment is made was performed by the person to whom the payment is made; and

(ii) in the case of a payment that is made in respect of labour the whole of which is to be performed after the time when the payment is made - the person making the payment can reasonably be expected to believe that the person to whom the payment is made will perform the whole or principal part of the labour in respect of which the payment is made;

(c) a reference to a contract that is wholly or principally for the labour of a person shall be read as including a reference to a contract that is wholly or principally:

(i) for the performance or presentation by a person of, or the participation by a person in, any music, play, dance, entertainment, address, sport, display, promotional activity, exhibition, or any similar activity (being a similar activity that involves the exercise by the person of intellectual, artistic, musical, physical or other personal skills) or for the performance of any services in connection with any such activity; or

(ii) for the performance of services by a person in, or in connection with, the making of any film, tape or disc or of a television or radio broadcast;

(d) a payment made by a natural person shall, without limiting the generality of the definition, be taken not to be of a private or domestic nature if it is made by the person in his capacity as trustee of a trust estate or as a member of a religious, charitable, social, cultural, recreational or other organization or body; and

(e) no part of an eligible termination payment shall be taken to be exempt income.