INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 1AA - Reportable payments system (RPS)  

Subdivision F - Making of pensioner exemption declaration to be alternative to quotation of tax file number  

SECTION 220AP   MAKING OF PENSIONER EXEMPTION DECLARATION TO BE ALTERNATIVE TO QUOTATION OF TAX FILE NUMBER  

220AP(1)   Pensions and benefits to which this section applies.  

This section applies to the following pensions and benefits:

(a) an age pension under Part 2.2 of the Social Security Act 1991 ;

(b) a disability support pension under Part 2.3 of that Act;

(c) a wife pension under Part 2.4 of that Act;

(d) a carer pension under Part 2.5 of that Act;

(e) (Repealed by No 197 of 1997);

(f) a widow B pension under Part 2.8 of that Act;

(fa) a parenting payment that is a pension PP (single) under Part 2.10 of that Act;

(g) a special benefit under Part 2.15 of that Act;

(h) a special needs pension under Part 2.16 of that Act;

(i) a pension under Part III of the Veterans' Entitlements Act 1986 .

220AP(2)   Making of pensioner exemption declaration.  

For the purposes of this Division, a payee is taken to have quoted his or her tax file number to a payer in connection with a reportable payment if a pensioner exemption declaration made to the payer by the payee is in force when the payment is made. However, this rule does not apply for the purposes of section 220AJ (which deals with annual reports by payers).

Note:

See subsection (4) for the definition of ``making a pensioner exemption declaration'' .

220AP(3)   Pensioner exemption declaration form.  

A ``pensioner exemption declaration form'' is a document, in a form approved by the Commissioner for the purposes of this section, that (in addition to anything else that it requires or permits) enables the person completing the form to state that he or she is being paid a pension or benefit.

220AP(4)   Making a pensioner exemption declaration.  

If a person (the ``first person'' ) completes the form and gives it to another person, the first person is said to make a ``pensioner exemption declaration'' to the other person at the time when the form is given.

Note:

The first person would normally be a payee and the other person would normally be a payer.

220AP(5)   When declaration in force.  

A pensioner exemption declaration made by a person (the ``first person'' ) to another person (the ``second person'' ) is in force at all times after it is made until any of the following happens:

(a) 29 days pass after the declaration is made without an obligation being imposed on the second person under section 220AQ in relation to the pensioner exemption declaration form concerned;

(b) one year passes after the second person makes a reportable payment to the first person (being a payment made when the declaration is in force) without the first person again becoming entitled to receive a reportable payment from the second person;

(c) the first person makes another pensioner exemption declaration to the second person;

(d) the Commissioner, by notice in the Gazette , determines that:

(i) all pensioner exemption declarations cease to be in force; or

(ii) a specified class of pensioner exemption declarations that includes the particular pensioner exemption declaration ceases to be in force;

(e) the first person makes a tax file number declaration to the second person;

(f) the first person ceases to be paid a pension or benefit.

Note:

The first person would normally be a payee and the second person would normally be a payer.

220AP(6)   Commissioner may tell payers and payees about cessation of pension/benefit.  

If a pensioner exemption declaration made by a person (the ``first person'' ) to another person (the ``second person'' ) ceases to be in force because of paragraph (5)(f), the Commissioner may tell the first person and the second person that the declaration has so ceased to be in force. The Commissioner may also explain the reasons for the cessation and the effect of the cessation.

Note:

The first person would normally be a payee and the second person would normally be a payer.

220AP(7)   Payees to tell payers about cessation of entitlement to pension/benefit.  

If a pensioner exemption declaration made by a person (the ``first person'' ) to another person (the ``second person'' ) ceases to be in force because of paragraph (5)(f), the first person must tell the second person, in writing, about the cessation as soon as practicable after the cessation occurs.

Penalty for contravention of this subsection: 1 penalty unit.

Note:

The first person would normally be a payee and the second person would normally be a payer.