Payroll giving remedials

2010 amendments to the payroll-giving scheme clarify that 'pay' does not include income-tested benefits, and tax credits can be extinguished under ss LD 6 and LD 7.

Sections  LD 4(7), LD 6 and LD 7 of the Income Tax Act 2007

Amendments have been made to ensure that the new payroll-giving scheme, which took effect from 7 January 2010, meets its original policy intent.

Key Features

Section LD 4(7), which contains the definition of "pay" for the purposes of the payroll-giving scheme, has been amended to clarify that income-tested benefits are not specifically included in the definition of "pay".

Sections LD 6 and LD 7 have been amended to ensure that a tax credit for payroll donations can be extinguished under these provisions, as intended.

Application dates

The amendments apply from 7 January 2010.