On Wed 16.8.2017, the ATO released Draft PAYG Withholding Variation: Certain superannuation beneficiaries who have not quoted a tax file number (Draft OPS 2017/D5) and on Wed 27.9.2017, the Commissioner registered the final determination on the Federal Legislation Register as F2017L01280.

It provides that the amount to withhold is varied to nil for that portion of the payment which is non-assessable non-exempt (NANE) income of the payee. This variation ensures that amounts of NANE income paid to a superannuation beneficiary are not subject to withholding when the payee has not quoted their TFN. Without this variation, withholding would be required from these amounts when paid in conjunction with other assessable income.

This variation is made under s15-15 of the Taxation Administration Act 1953, Schedule 1, which allows the Commissioner to vary withholding amounts that would otherwise be payable (for instance, default amounts when the recipient hasn’t quoted their TFN).

This legislative instrument repeals and replaces legislative instrument Variation to the rate of withholding for certain superannuation beneficiaries who have not quoted a tax file number (F2007L02031), registered on 28 June 2007. That instrument was due for repeal on 1 October 2017 under the sunsetting provisions contained in s50 of the Legislation Act 2003. Upon commencement, the new Variation will continue to provide the same treatment for the affected class of cases.

[Federal Register of Legislation: Determination; ATO website: OPS 2017/D5; EM; LTN 155, 16/8/17; TM August 2017; TM September 2017]

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