Taxation Administration Act 1953

An entity that receives a payment of a *royalty must withhold an amount from the payment if:

the entity is a person in Australia or an *Australian government agency; and

a foreign resident is or becomes entitled:

to receive the royalty or part of it from the entity, or to receive the amount of the royalty or of part of it from the entity; or

to have the entity credit to the foreign resident, or otherwise deal with on the foreign resident’s behalf or as the foreign resident directs, the royalty or part of it, or the amount of the royalty or of part of it.

The entity must withhold the amount:

if the foreign resident is so entitled when the entity receives the payment—immediately after the entity receives the payment; or

if the foreign resident becomes so entitled after the entity receives the payment—immediately after the foreign resident becomes so entitled.