PAYE tax codes

Heading: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).

24B PAYE tax codes

(1)

This section applies for the purposes of the PAYE rules to provide an employee with a tax code for a PAYE income payment. Subsection (2) overrides this subsection.

(2)

Subsection (1) does not apply to the following amounts:

(a)

an extra pay:

(b)

a schedular payment:

(c)

a payment of an income-tested benefit.

(3)

Except as provided by section 24BA(1D), an employee must notify their employer that their tax code is 1 of the following:

(a)

M for primary employment earnings when the employee is not entitled to a tax credit under section LC 13 of the Income Tax Act 2007:

(ab)

ME for primary employment earnings when the employee is entitled to a tax credit under section LC 13 of the Income Tax Act 2007:

(b)
[Repealed]

(bb)

SB for secondary employment earnings for an employee whose annual income is not more than $14,000:

(c)

S for secondary employment earnings for an employee whose annual income is not more than $48,000:

(d)

SH for secondary employment earnings for an employee whose annual income is more than $48,000 but is not more than $70,000:

(e)

ST for secondary employment earnings for an employee whose annual income is more than $70,000:

(f)

CAE for salary or wages for employment as a casual agricultural employee:

(g)

EDW for salary or wages for employment as an election day worker:

(gb)

NSW for salary or wages for employment as a non-resident seasonal worker.

(h)
[Repealed]

(3B)

An employee has a no notification tax code if—

(a)

an employee does not notify their employer of their tax code under subsection (3); and

(b)

the Commissioner has not provided the employer with a—

(i)

tax code notification; or

(ii)

tax code certificate; or

(iii)

special tax code notification; or

(iv)

special tax code certificate.

(4)

If another Act requires an employer to withhold the amount of tax for a PAYE income payment to an employee and pay the amount to the Commissioner, the tax code may be combined with another code applying under that Act.

Compare: 2004 No 35 s NC 8(1), (1AA)

Section 24B: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).

Section 24B(3): amended, on 14 May 2016, by section 78 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).

Section 24B(3)(a): amended, on 1 April 2013 (applying for the 2013–14 and later tax years), by section 10(1) of the Taxation (Budget Measures) Act 2012 (2012 No 38).

Section 24B(3)(a): amended, on 1 April 2009, by section 39(a) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section 24B(3)(ab): inserted, on 1 April 2009, by section 39(b) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section 24B(3)(b): repealed, on 1 April 2013 (applying for the 2013–14 and later tax years), by section 10(2) of the Taxation (Budget Measures) Act 2012 (2012 No 38).

Section 24B(3)(bb): inserted, on 1 April 2010 (applying for 2010–11 and later income years), by section 130(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section 24B(3)(c): replaced, on 1 April 2009, by section 16(1) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section 24B(3)(d): replaced, on 1 April 2009, by section 16(1) of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).

Section 24B(3)(e): replaced, on 1 October 2008, by section 18(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Section 24B(3)(gb): inserted (with effect on 1 April 2009), on 6 October 2009 (applying for 2009–10 and later income years), by section 607(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 24B(3)(h): repealed, on 2 June 2016, by section 88(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).

Section 24B(3B): inserted, on 2 June 2016, by section 88(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).