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

Schedule 11   PAYG withholding consequential amendments

Income Tax Assessment Act 1997

84   Subsections 26-30(4) and (5)

Repeal the subsections, substitute:

This section also applies to individuals who are not employees

(4) If an individual is not an employee, but receives, or is entitled to receive, *withholding payments covered by subsection (6), this section applies to the individual as if:

(a) he or she were an employee; and

(b) the entity, who pays (or is liable to pay) *withholding payments covered by subsection (6) that result in the individual being in receipt of, or entitled to receive, such payments, were the individual's employer; and

(c) any other individual who receives (or is entitled to receive) *withholding payments covered by subsection (6):

(i) that result in that other individual being in receipt of, or entitled to receive, such payments; and

(ii) that the entity pays (or is liable to pay) to that other individual;

were an employee of the entity.

This section also applies to entities who are not employers

(5) If an entity is not an employer, but pays (or is liable to pay) *withholding payments covered by subsection (6), this section applies to the entity as if:

(a) it were an employer; and

(b) an individual to whom the entity pays (or is liable to pay) such withholding payments were the entity's employee.

Withholding payments covered

(6) 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.