The purpose of the notice is to remove the requirement for payers of withholding payments to provide payees with a duplicate copy of a payment summary where the payments are covered under Subdivisions 12-B (except ss 12-55 and 12-60), 12-C (except s 12-85) and 12-D of Schedule 1 to the Taxation Administration Act 1953. The effect of the instrument is that payers will only be required to provide one original copy of the PAYG payment summary – individual non-business (NAT 0046) for the majority of their payees.
The requirement to provide both an original and a duplicate copy of the payment summary was put in place so that the payees were able to attach the original version to their annual income tax return and retain the duplicate copy for their personal records.
The majority of taxpayers now lodge their tax returns electronically and they are not required to provide a payment summary copy to the ATO. The ATO is able to use information reported directly from the employer or payer to check the amounts included in the tax return. There is no longer any justification for requiring those taxpayers who lodge paper tax return forms to attach a copy of their payment summary and this requirement will be removed from 2007. In the circumstances, it is no longer necessary to compel employers and other payers to provide a duplicate copy to their payees.
For a copy of the Notice, go here
For a copy of the Explanatory Statements, click on ES/Supp Material