Taxation Administration Act 1953

A *custodian must withhold an amount from a payment (the later payment) it makes if:

all or some of the later payment (the covered part) is reasonably attributable to the part of an earlier payment received by the custodian that was covered by a notice or information under section 12‑395; and

the later payment is made to an entity covered by section 12‑410.

The covered part referred to in paragraph (1)(a) is attributable to a fund payment made by a withholding MIT, or 2 or more fund payments made by one or more withholding MITs. One or more of those withholding MITs may be AMITs.

An entity may be covered by section 12‑410 if the entity has an address outside Australia or payment is authorised to be made to a place outside Australia.

If the payment is made to a recipient not covered by section 12‑410, the custodian is required to give a notice to the recipient or publish information on a website setting out certain details about the payment: see section 12‑395.

The amount the *custodian must withhold is:

The rate is:

if the address or place for payment of the recipient is in an *information exchange country:

15% for *fund payments (except to the extent mentioned in subparagraph (ii) or (iii)); or

10% for fund payments, to the extent that they are, or are attributable to, fund payments from a *clean building managed investment trust (except to the extent mentioned in subparagraph (iii)); or

30% for fund payments, to the extent that they are attributable to *non‑concessional MIT income (see section 12‑435); or

otherwise—30%.

An entity that is not a *withholding MIT or a *custodian must withhold an amount from a payment it receives if:

the payment or part of it (the covered part) was covered by a notice or information under section 12‑395; and

a foreign resident (the recipient) is or becomes entitled:

to receive from the entity; or

to have the entity credit to the recipient, or otherwise deal with on the recipient’s behalf or as the recipient directs;

The covered part referred to in paragraph (4)(a) is attributable to a fund payment made by a withholding MIT, or 2 or more fund payments made by one or more withholding MITs. One or more of those withholding MITs may be AMITs.

If the recipient is not a foreign resident, the entity is required to give a notice to the recipient or publish information on a website setting out certain details about the payment: see section 12‑395.

The amount the entity must withhold is:

The rate is:

if the recipient is a resident of an *information exchange country:

15% for *fund payments (except to the extent mentioned in subparagraph (ii) or (iii)); or

10% for fund payments, to the extent that they are, or are attributable to, fund payments from a *clean building managed investment trust (except to the extent mentioned in subparagraph (iii)); or

30% for fund payments, to the extent that they are attributable to *non‑concessional MIT income (see section 12‑435); or

otherwise—30%.

An entity is a resident of an *information exchange country if:

the entity is a resident of that country for the purposes of the taxation laws of that country; or

if there are no taxation laws of that country applicable to the entity or the entity’s residency status cannot be determined under those laws:

for an individual—the individual is ordinarily resident in that country; or

for another entity—the entity is incorporated or formed in that country and is carrying on a business in that country.

An amount required to be withheld under subsection (4) must be withheld:

if the recipient is so entitled when the entity receives the payment—immediately after receipt; or

if the recipient becomes so entitled at a later time—immediately after the later time.

An entity is a custodian if:

the entity is *carrying on a *business that consists predominantly of providing a custodial or depository service (within the meaning of the Corporations Act 2001) pursuant to an *Australian financial services licence; or

the entity is acting on behalf of an entity that is carrying on such a business pursuant to such a licence.

This section does not apply:

to a company unless the company would, apart from section 12‑420, be acting in the capacity as *agent for the recipient; or

to an amount paid or received by an entity to the extent that no *managed investment trust withholding tax is payable in respect of the amount or an amount reasonably attributable to the amount.