Australia Tax Agency Seeks Comments on Draft Instrument on Withholding Variations for Certain Allowance Payments

The Australian Taxation Office June 25 opened a consultation on Draft Legislative Instrument No. LI 2025/D15, on withholding variations for payments of certain allowances. The draft instrument includes measures to: 1) reduce to nil, under certain circumstances, the amount payers must withhold from payments of specified allowances, including in cases where payers make payments relating to specified allowances, reasonably expect that a payee will incur deductible work expenses related to the allowance that are no less than the allowance amount in total, and record the amount and nature of payments separately in their accounting records; and 2) specify the allowances ...