Common use of S T Clause in Contracts

S T. If typing, you can type over the boxes. Please note that this form has not been designed for typewriter use. ▇▇ ▇▇▇▇▇ ▇▇ X Where applicable placea cross like this in theappropriate boxes. This agreement is not valid unless the payee has an ABN For this agreement to be valid the payee must be an individual. The payee must indicate at Part C on the form which rate of withholding is to apply to payments made under this agreement. The rate of withholding is notified at Part C of the form and it will be either the payee’s instalment rate or a flat rate of 20%. The payer then withholds at that rate from the gross amount payable after deducting any goods and services tax (GST) charged. The payee’s instalment rate is a percentage figure normally used to calculate PAYG instalments. TheATOwill generally notify payees of their instalment rates early in the financial year beginning 1 July 2000. For the purpose of voluntary agreements, the instalment rate used must be the rate notified by the ATO – this is called the Commissioner’s Instalment Rate (CIR). The payee must disclose to the payer their CIR or state that they do not have one. If the payee’s CIR is greater than 20%, the payer must withhold at the payee’s CIR. If the payee’s CIR is less than or equal to 20%, the rate the payer must withhold will be 20%, unless the payee and payer agree that the payee’s CIR will apply. If the payee’s CIR is not known at the time of the agreement, then the flat rate of 20%applies. When the payee is first advised of their CIR, or advised of a new CIR, they may need to enter into a new agreement after considering the rules. They must terminate the current agreement before entering into a new one. For this agreement to be valid both parties to the agreement must identify the nature of the work to which the payments relate and must sign and date the agreement.