I, Louise Clarke, Deputy Commissioner of Taxation, make this instrument under subsection 389-10(1) of Schedule 1 to the Taxation Administration Act 1953.

Louise Clarke

Deputy Commissioner of Taxation

Policy, Analysis and Legislation

Law Design and Practice

7 July 2021

1.                  Name of instrument

This is the Taxation Administration – Single Touch Payroll – 2019‑20 and 2020‑21 Income Years Closely Held Payees Exemption 2021 instrument.

2.                  Commencement

This instrument is taken to have commenced on 1 July 2019.

3.                  Application

This instrument applies for the 2019-20 and 2020-21 income years to an entity which:

(a)               was not at any time before 1 April 2019 a substantial employer within the meaning of former subsection 389-5(6) of Schedule 1 to the Taxation Administration Act 1953 (TAA 1953);

(b)               pays an amount described in the table in subsection 389-5(1) of Schedule 1 to the TAA 1953 to a closely held payee;

(c)                is registered for the purposes of Subdivision 16-BA of Schedule 1 to the TAA 1953; and

(d)               is not a large withholder as defined in section 16-95 of Schedule 1 to the TAA 1953.

4.                  Determination

An entity to which this instrument applies is not required to report information to the Commissioner of Taxation under Division 389 of Schedule 1 to the TAA 1953 in respect of an amount paid to a closely held payee.

5.                  Definition

For the purposes of this instrument, a closely held payee is an employee of the entity who is also an associate of the entity under section 318 of the Income Tax Assessment Act 1936.