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Income Types and Country Codes serve not just one but three crucial purposes!
Firstly, they help the Australian Taxation Office (ATO) identify the tax implications and map to a specific section of the Individual Income Tax Return (IITR).
Secondly, they help to identify whether a payer can claim an STP reporting concession, which can help avoid unnecessary contact by the ATO with the payer - for example, claiming a reporting concession for Closely Held Payees.
Lastly, they clarify the payer's reporting obligations regarding the Income Type and Country Code, for instance, if a tax treaty is in place with the foreign country.
- Salary and Wages (SAW)
- Closely Held Payees (CHP)
- Working Holiday Makers (WHM)
- Seasonal Worker Programme (SWP)
- Foreign Employment Income (FEI)
- Inbound Assignees to Australia (IAA)
- Voluntary Agreement (VOL)
- Labour Hire (LAB)
- Other Specified Payments (OSP)
Salary and Wages (SAW)
Assessable income paid to payees for work performed in Australia, other than that included as other Income Types.
Available to the following Tax Treatments,
- Regular
- Actors
- Horticulturists and Shearers
- Seniors and Pensioners
- Foreign Residents
- No TFN
- ATO-Defined
Closely Held Payees (CHP)
a payee who is directly related to the small employer entity from which they receive payments, such as family members of a family business, directors or shareholders of a company, or beneficiaries of a trust. The concept of closely held payees flows from existing Payment Summary Annual Report (PSAR) concessions.
Available to the following Tax Treatments,
- Regular
- Actors
- Horticulturists and Shearers
- Seniors and Pensioners
- Foreign Residents
- No TFN
- ATO-Defined
Inbound Assignees to Australia (IAA)
Some multinational payers exchange or transfer employees between affiliated entities in different tax jurisdictions for business and commercial purposes.
Available to the following Tax Treatments,
Working Holiday Makers (WHM)
income only for limited visa subclasses for foreign residents. In Australia on Visa subclass 417 (Working Holiday) and 462 (Work and Holiday) only.
Available to Tax Treatment Working Holiday Maker.
Seasonal Worker Programme (SWP)
Regional programmes for government-approved employers: Seasonal Worker Programme (SWP) – administered by the Department of Employment, Skills, Small and Family Business.
Available to Tax Treatment Seasonal Worker Programme.
Foreign Employment Income (FEI)
Assessable income paid to payees, who are Australian tax residents, which is subject to tax in another country, for work performed in that country, if the qualification period is met. The payer must pay (or be liable to pay) the foreign government for the tax to qualify as foreign employment income. On finalisation, the Income Type must include an amount for foreign tax paid.
Available to the following Tax Treatments,
Voluntary Agreement (VOL)
A written agreement between a payer and a contractor payee to bring work payments into the PAYGW system. The payer does not have to withhold amounts for payments they make to contractors. However, the payer and a contract worker (payee) can enter into a voluntary agreement to withhold an amount of tax from each payment they make to the contractor.
Available to Tax Treatment Voluntary Agreement,
Labour Hire (LAB)
Payments by a business that arranges for persons to perform work or services, or performances, directly for clients of the entity.
Available to the following Tax Treatments,
- Regular
- Actors
- Horticulturists and Shearers
- Seniors and Pensioners
- Foreign Residents
- No TFN
- ATO-Defined
Other Specified Payments (OSP)
For the purposes of subsection 12-60(2) in Schedule 1 to the Act, payments of the following kinds are prescribed:
- Payments for tutorial services that are provided to improve the education of Indigenous people and are financially supported (directly or indirectly) by the Commonwealth;
- Payments for translation and interpretation services provided for the Translating and Interpreting Service (also known as TIS) conducted by the Department administered by the Minister administering the Migration Act 1958;
- Payments under a contract to an individual engaged as a performing artist to perform in an activity in which the individual endorses or promotes goods or services; or appears or participates in an advertisement; unless the individual is engaged primarily because he or she is a sportsperson.
- Payments of green army allowance (within the meaning of the Social Security Act 1991).
Available to the following Tax Treatments,
