A New Tax System (Pay As You Go) Act 1999 (178 of 1999)

Schedule 1   Pay as you go (PAYG) system of collecting income tax and other liabilities

Part 2   Consequential amendment of Acts

Income Tax Assessment Act 1997

6   Section 28-185

Repeal the section, substitute:

28-185 Application of Subdivision 28-J to recipients and payers of certain withholding payments

Application to recipients

(1) If an individual receives, or is entitled to receive, *withholding payments covered by subsection (3), this Subdivision applies to him or her:

(a) in the same way as it applies to an employee; and

(b) as if an entity (a notional employer ) that makes (or is liable to make) such payments to him or her were his or her employer; and

(c) as if any other individual who receives, or is entitled to receive, such payments from a notional employer were also an employee of the notional employer.

Application to payers

(2) This Division applies to an entity that makes, or is liable to make, *withholding payments covered by subsection (3):

(a) in the same way as it applies to an employer; and

(b) as if an individual to whom the entity makes (or is liable to make) such payments were the entity's employee.

Withholding payments covered

(3) This subsection covers a *withholding payment covered by any of the provisions in Schedule 1 to the Taxation Administration Act 1953 listed in the table.