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Taxation

Pay As You Go Withholding (PAYG)

1. In accordance with the Income Tax Assessment Act the University is required to make tax instalment deductions from payments of salary and wages, and

"payments made under a contract which is wholly or substantially for the labour of the person to whom the payment is made" (Section 221A (1)).

2. All honorarium and lecture fees are deemed to come within the definition of salary and wages.

3. All payments from which tax instalment deductions are required will be processed in the Salaries Section and made direct to the person who provided the service.

4. Requests to transfer lecture fees and/or internal consultancy fees by book entry to special purpose accounts cannot be accepted. Members of staff may donate cheques received for services rendered to the University after suitable endorsement and request that the amount be credited to a particular special purpose account. The income remains assessable to the staff member in these circumstances. It should be noted that if the donor wishes to claim the amount paid as a deduction for income tax purposes, conditions as to the use of the donation cannot be imposed by the donor. However, suggestions for use may be accepted by the University.

5. Payments for services rendered will be included in gross earnings on group certificates. Receipts in respect of donations should be retained for taxation purposes.

6. In accordance with the Income Tax Assessment Act and after discussions with officers of the Taxation Office, the following policy will be followed in relation to the payment of External Examiners and Consultant Supervisors:-

(a) Residing in Australia:
* tax instalment deductions will be made from earnings;
* a group certificate will be issued;
* payment of fees will be made through the Salaries Section.

(b) Residing outside Australia:
* tax instalment deductions will not be made from earnings;
* group certificates will not be issued;
* payment of fees will be made through the Accounts Payable Section