Taxation Administration Amendment Regulations 2004 (No. 1)
(112 of 2004)
Dated 27 May 2004
Taxation Administration Act 1953
1 Name of Regulations
These Regulations are the Taxation Administration Amendment Regulations 2004 (No. 1).
2 Commencement
These Regulations commence on 1 July 2004.
3 Amendment of Taxation Administration Regulations 1976
Schedule 1 amends the Taxation Administration Regulations 1976.
4 Application
The amendments made by Schedule 1 apply to payments made or received on or after 1 July 2004.
Schedule 1 Amendments
[1] Part 5, Division 5, heading
substitute
Division 5 Withholding - payment for work or services
[2] Part 5, after Division 5
insert
Division 6 Withholding - payments to foreign residents etc
44A Gaming junkets
(1) For paragraph 12-315 (1) (b) of Schedule 1 to the Act, a payment for operating or promoting a junket is prescribed.
(2) For subsection 15-10 (2) of Schedule 1 to the Act, the amount to be withheld from a payment mentioned in subregulation (1) is 3% of the total payment.
(3) In this regulation:
gaming means playing a game of chance or a game that is partly a game of chance and partly a game of skill.
junket means an arrangement for the promotion or organising of gaming in 1 or more casinos, whether or not any of the casinos is required by an agreement to make a payment, by which:
(a) an individual or a group of people comes to Australia for the purpose of gaming at particular casinos; and
(b) the entity receives payment, from 1 or more of the casinos, that is:
(i) a reward made in relation to arranging for the individual or the people to go to a casino for gaming; or
(ii) a commission based on the gaming or losses of the individual or group of people.
44B Entertainment or sports activities
(1) For paragraph 12-315 (1) (b) of Schedule 1 to the Act, payment to an entity for entertainment or sports activities is prescribed.
Examples of payments
Appearance fees, award for player of the series, bonuses, endorsement fees, expense reimbursements, match payments, non-cash prizes, performance fees, preparation fees, prize money, promotional fees, sponsorship.
(2) For subregulation (1), the activities may include giving a speech or a sports commentary.
(3) For subsection 15-10 (2) of Schedule 1 to the Act, the amount to be withheld from a payment mentioned in subregulation (1) is:
(a) if the entity is a company - the amount worked out by applying to the payment the rates mentioned in section 23 of the Income Tax Rates Act 1986; or
(b) if the entity is an individual - the amount worked out by applying to the payment the rates mentioned in Part II of Schedule 7 of the Income Tax Rates Act 1986.
(4) In this regulation:
entertainment or sports activities means the activities of:
(a) a performing artist or a sportsperson within the meaning given by section 405-25 of the Income Tax Assessment Act 1997; or
(b) support staff relating to the activity, including:
(i) bodyguard;
(ii) choreographer;
(iii) coach;
(iv) costume designer;
(v) director;
(vi) director of photography;
(vii) doctor;
(viii) film editor;
(ix) hairdresser;
(x) musical director;
(xi) personal trainer;
(xii) physiotherapist;
(xiii) producer;
(xiv) production designer;
(xv) set designer;
(xvi) sports psychologist;
(xvii) the provider of any other similar services.
44C Construction and related activities
(1) For paragraph 12-315 (1) (b) of Schedule 1 to the Act, payment under a contract entered into after 30 June 2004 (including payments to subcontractors) for works or related activities is prescribed.
(2) For subsection 15-10 (2) of Schedule 1 to the Act, the amount to be withheld from a payment mentioned in subregulation (1) is 5% of each payment under a contract.
(3) In this regulation:
related activities includes activities associated with the construction, installation and upgrading of buildings, plant and fixtures.
Examples
Administration, assembly, de-commissioning plant, design, commissioning and operation of facilities, costing, engineering, erection, fabrication, hook-up, installation, project management, site management, supervision and provision of personnel, supply of plant and equipment, warranty repairs.
works includes the construction, installation and upgrading of buildings, plant and fixtures.
Examples
Dam, electricity links, mine site development, natural gas field development, natural resource infrastructure, oilfield development, pipeline, power generation infrastructure, railway or road, residential building, resort development, retail or commercial development, upgrading airport, upgrading telecommunications equipment, water treatment plant.
44D Limits on amount withheld under this Division
(1) This regulation applies to an amount that is required by this Division to be withheld from a payment if any amounts are already withheld under Subdivision 12-FB of the Act from the payment.
(2) The amount is reduced by the amounts already withheld from the payment.
Example
A payer is required to withhold an amount under section 12-315 of 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 of that Schedule from that payment. The amount to be withheld under section 12-317 of that Schedule is reduced by the amount already withheld under section 12-315 of that Schedule.