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TASMANIA
__________
TAXATION LEGISLATION (MISCELLANEOUS
AMENDMENTS) BILL 2009
__________
CONTENTS
PART 1 - PRELIMINARY
1. Short title
2. Commencement
3. Repeal of Act
PART 2 - DUTIES ACT 2001 AMENDED
4. Principal Act
5. Section 3 amended (Interpretation)
PART 3 - LAND TAX ACT 2000 AMENDED
6. Principal Act
7. Section 3 amended (Interpretation)
8. Section 3A inserted
3A. Owner of land
PART 4 - PAYROLL TAX ACT 2008 AMENDED
9. Principal Act
10. Section 3 amended (Definitions)
11. Sections 10 and 11 substituted
10. What are taxable wages?
11. Wages that are taxable in this jurisdiction
11A. Jurisdiction in which employee is based
11B. Jurisdiction in which employer is based
[Bill 96]-III
11C. Place and date of payment of wages
12. Section 13 amended (What are wages?)
13. Section 24 amended (Inclusion of shares and options granted to
directors as wages)
14. Section 25 repealed
15. Part 4, Division 9 inserted
Division 9 - Services outside Australia
66A. Wages paid or payable for or in relation to services
performed in other countries
16. Schedule 3 amended (Savings, transitional and other provisions)
2
TAXATION LEGISLATION (MISCELLANEOUS
AMENDMENTS) BILL 2009
(Brought in by the Premier, the Honourable David John
Bartlett)
A BILL FOR
An Act to amend the Duties Act 2001, the Land Tax Act
2000 and the Payroll Tax Act 2008
Be it enacted by His Excellency the Governor of Tasmania, by
and with the advice and consent of the Legislative Council and
House of Assembly, in Parliament assembled, as follows:
PART 1 - PRELIMINARY
1. Short title
This Act may be cited as the Taxation
Legislation (Miscellaneous Amendments) Act
2009.
2. Commencement
(1) Except as provided by this section, this Act
commences on the day on which this Act
receives the Royal Assent.
(2) Part 4 is taken to have commenced on
1 July 2009.
[Bill 96] 3
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
s. 3 Part 1 - Preliminary
3. Repeal of Act
This Act is repealed on the ninetieth day from
the day on which it receives the Royal Assent.
4
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
Part 2 - Duties Act 2001 Amended s. 4
PART 2 - DUTIES ACT 2001 AMENDED
4. Principal Act
In this Part, the Duties Act 2001* is referred to
as the Principal Act.
5. Section 3 amended (Interpretation)
Section 3 of the Principal Act is amended as
follows:
(a) by omitting the definitions of
"franchise", "franchise arrangement",
"franchisee" and "franchisor";
(b) by omitting the definition of "liability
date";
(c) by omitting the definition of "mortgage
duty";
(d) by omitting the definition of "mortgage
package".
*No. 15 of 2001
5
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
s. 6 Part 3 - Land Tax Act 2000 Amended
PART 3 - LAND TAX ACT 2000 AMENDED
6. Principal Act
In this Part, the Land Tax Act 2000* is referred
to as the Principal Act.
7. Section 3 amended (Interpretation)
Section 3 of the Principal Act is amended by
omitting the definition of "owner" and
substituting the following definition:
"owner" has the meaning given by
section 3A;
8. Section 3A inserted
After section 3 of the Principal Act, the
following section is inserted in Part 1:
3A. Owner of land
(1) In respect of land -
"owner" means -
(a) a person appearing by a folio of
the Register kept under section 33
of the Land Titles Act 1980 to be
entitled to the estate in fee simple
in the land; or
*No. 74 of 2000
6
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
Part 3 - Land Tax Act 2000 Amended s. 8
(b) a person, or a person of a class,
prescribed by the regulations for
the purposes of this definition.
(2) If a person appears by a folio of the
Register kept under section 33 of the
Land Titles Act 1980 to be entitled, in
respect of any land, to an estate of
freehold for his or her life, that person is
taken to be the owner of the land instead
of the person entitled to the estate in fee
simple in remainder.
7
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
s. 9 Part 4 - Payroll Tax Act 2008 Amended
PART 4 - PAYROLL TAX ACT 2008 AMENDED
9. Principal Act
In this Part, the Payroll Tax Act 2008* is
referred to as the Principal Act.
10. Section 3 amended (Definitions)
Section 3(1) of the Principal Act is amended as
follows:
(a) by inserting the following definition
before the definition of "agent":
"ABN" means the ABN (Australian
Business Number) for an entity
within the meaning of the A New
Tax System (Australian Business
Number) Act 1999 of the
Commonwealth;
(b) by inserting the following definition after
the definition of "Australia":
"Australian jurisdiction" means a
State or a Territory;
(c) by inserting the following definition after
the definition of "GST":
"instrument" includes a cheque, bill
of exchange, promissory note,
*No. 16 of 2008
8
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
Part 4 - Payroll Tax Act 2008 Amended s. 11
money order and postal order
issued by a post office;
(d) by inserting the following definition after
the definition of "perform":
"registered business address" means
an address for service of notices,
under the A New Tax System
(Australian Business Number)
Act 1999 of the Commonwealth,
on an entity that has an ABN, as
shown in the Australian Business
Register under that Act;
11. Sections 10 and 11 substituted
Sections 10 and 11 of the Principal Act are
repealed and the following sections are
substituted:
10. What are taxable wages?
(1) For the purposes of this Act, "taxable
wages" are wages that are taxable in this
jurisdiction.
(2) However, exempt wages are not taxable
wages.
11. Wages that are taxable in this jurisdiction
(1) For the purposes of this Act, wages are
taxable in this jurisdiction if -
9
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
s. 11 Part 4 - Payroll Tax Act 2008 Amended
(a) wages are paid or payable by an
employer for or in relation to
services performed by an
employee wholly in this
jurisdiction; or
(b) wages are paid or payable by an
employer for or in relation to
services performed by an
employee in 2 or more Australian
jurisdictions, or partly in one or
more Australian jurisdictions and
partly outside all Australian
jurisdictions, and -
(i) the employee is based in
this jurisdiction; or
(ii) the employer is based in
this jurisdiction (in a case
where the employee is not
based in an Australian
jurisdiction); or
(iii) the wages are paid or
payable in this
jurisdiction (in a case
where both the employee
and the employer are not
based in an Australian
jurisdiction); or
(iv) the wages are paid or
payable for services
performed mainly in this
jurisdiction (in a case
10
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
Part 4 - Payroll Tax Act 2008 Amended s. 11
where both the employee
and the employer are not
based in an Australian
jurisdiction and the wages
are not paid or payable in
an Australian
jurisdiction); or
(c) the wages are paid or payable by
an employer for or in relation to
services performed by an
employee wholly outside all
Australian jurisdictions and are
paid or payable in this
jurisdiction.
Note: Section 66A provides an exemption for wages paid or
payable for services performed wholly in one or more other
countries for a continuous period of more than 6 months.
(2) The question of whether wages are
taxable in this jurisdiction is to be
determined by reference only to the
services performed by the employee in
respect of the employer during the month
in which the wages are paid or payable,
subject to this section.
(3) Any wages paid or payable by an
employer in respect of an employee in a
particular month are taken to be paid or
payable for or in relation to the services
performed by the employee in respect of
the employer during that month.
11
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
s. 11 Part 4 - Payroll Tax Act 2008 Amended
Note: For example, if wages paid in a month are paid to an
employee for services performed over several months, the question
of whether the wages are taxable in this jurisdiction is to be
determined by reference only to services performed by the
employee in the month in which the wages are paid. The services
performed in previous months are disregarded. (The services
performed in previous months will be relevant to the question of
whether wages paid in those previous months are taxable in this
jurisdiction.)
(4) If no services are performed by an
employee in respect of an employer
during the month in which wages are
paid or payable to or in relation to the
employee -
(a) the question of whether the wages
are taxable in this jurisdiction is
to be determined by reference
only to the services performed by
the employee in respect of the
employer during the most recent
prior month in which the
employee performed services in
respect of the employer; and
(b) the wages are taken to be paid or
payable for or in relation to the
services performed by the
employee in respect of the
employer during that most recent
prior month.
(5) If no services were performed by an
employee in respect of an employer
during the month in which wages are
paid or payable to or in relation to the
employee or in any prior month -
12
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
Part 4 - Payroll Tax Act 2008 Amended s. 11
(a) the wages are taken to be paid or
payable for or in relation to
services performed by the
employee in the month in which
the wages are paid or payable;
and
(b) the services are taken to have
been performed at a place or
places where it may be
reasonably expected that the
services of the employee in
respect of the employer will be
performed.
(6) All amounts of wages paid or payable in
the same month by the same employer in
respect of the same employee are to be
aggregated for the purposes of
determining whether they are taxable in
this jurisdiction (as if they were paid or
payable for all services performed by the
employee in the month in which the
wages are paid or payable, or the most
recent prior month, as the case requires).
Note: For example, if one amount of wages is paid by an employer
in a particular month for services performed in this jurisdiction,
and another amount of wages is paid by the same employer in the
same month for services performed by the same employee in
another Australian jurisdiction, the wages paid are to be aggregated
(as if they were paid for all services performed by the employee in
that month). Accordingly, subsection (1)(b) would be applied for
the purpose of determining whether the wages are taxable in this
jurisdiction.
(7) If wages are paid in a different month
from the month in which they are
13
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
s. 11 Part 4 - Payroll Tax Act 2008 Amended
payable, the question of whether the
wages are taxable in this jurisdiction is to
be determined by reference to the earlier
of the relevant months.
11A. Jurisdiction in which employee is based
(1) For the purposes of this Act, the
jurisdiction in which an employee is
based is the jurisdiction in which the
employee's principal place of residence
is located.
(2) The jurisdiction in which an employee is
based is to be determined by reference to
the state of affairs existing during the
month in which the relevant wages are
paid or payable.
(3) If more than one jurisdiction would
qualify as the jurisdiction in which an
employee is based during a month, the
jurisdiction in which the employee is
based is to be determined by reference to
the state of affairs existing on the last day
of that month.
(4) An employee who does not have a
principal place of residence is taken, for
the purposes of this Act, to be an
employee who is not based in an
Australian jurisdiction.
(5) In the case of wages paid or payable to a
corporate employee, the jurisdiction in
which the employee is based is to be
determined in accordance with
14
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
Part 4 - Payroll Tax Act 2008 Amended s. 11
section 11B instead of this section (as if a
reference in section 11B to an employer
were a reference to an employee).
(6) In this section, a "corporate employee"
is a company that is taken to be an
employee under section 34 or 39 or a
company to whom a payment is made
that is taken to be wages payable to an
employee under section 42 or 47.
11B. Jurisdiction in which employer is based
(1) For the purposes of this Act, the
jurisdiction in which an employer is
based is -
(a) the jurisdiction in which the
employer's registered business
address is located (if the
employer has an ABN); or
(b) the jurisdiction in which the
employer's principal place of
business is located (in any other
case).
(2) If wages are paid or payable in
connection with a business carried on by
an employer under a trust, the employer's
registered business address is the
registered business address of the trust
or, if the trust does not have an ABN, the
registered business address of the trustee
of the trust.
15
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
s. 11 Part 4 - Payroll Tax Act 2008 Amended
(3) If an employer has registered business
addresses located in different
jurisdictions at the same point in time,
the jurisdiction in which the employer is
based at that point in time is the
jurisdiction in which the employer's
principal place of business is located.
(4) The jurisdiction in which an employer is
based is to be determined by reference to
the state of affairs existing during the
month in which the relevant wages are
paid or payable.
(5) If more than one jurisdiction would
qualify as the jurisdiction in which an
employer is based during a month, the
jurisdiction in which the employer is
based is to be determined by reference to
the state of affairs existing on the last day
of that month.
(6) An employer who has neither a
registered business address nor a
principal place of business is taken, for
the purposes of this Act, to be an
employer who is not based in an
Australian jurisdiction.
11C. Place and date of payment of wages
(1) For the purposes of this Act, wages are
taken to have been paid at a place if, for
the purpose of the payment of those
wages -
16
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
Part 4 - Payroll Tax Act 2008 Amended s. 11
(a) an instrument is sent or given or
an amount is transferred by an
employer to a person or a
person's agent at that place; or
(b) an instruction is given by an
employer for the crediting of an
amount to the account of a person
or a person's agent at that place.
(2) The wages are taken to have been paid
on the date that the instrument was sent
or given, the amount was transferred or
the account credited in accordance with
the instruction (as the case requires).
(3) Wages are taken to be payable at the
place at which they are paid, subject to
this section.
(4) Wages that are not paid by the end of the
month in which they are payable are
taken to be payable at -
(a) the place where wages were last
paid by the employer to the
employee; or
(b) if wages have not previously been
paid by the employer to the
employee - the place where the
employee last performed services
in respect of the employer before
the wages became payable.
(5) If wages paid or payable in the same
month by the same employer in respect
17
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
s. 12 Part 4 - Payroll Tax Act 2008 Amended
of the same employee are paid or payable
in more than one Australian jurisdiction,
the wages paid or payable in that month
are taken to be paid or payable in the
Australian jurisdiction in which the
highest proportion of the wages are paid
or payable.
Note: Section 11 requires all wages paid or payable in the same
month by the same employer in respect of the same employee to be
aggregated for the purpose of determining whether the wages are
taxable in this jurisdiction. The above provision ensures only one
Australian jurisdiction can be considered to be the jurisdiction in
which the wages are paid or payable.
12. Section 13 amended (What are wages?)
Section 13 of the Principal Act is amended by
inserting after subsection (2) the following
subsection:
(3) This Act applies in respect of wages
referred to in subsection (1)(a), (b), (c),
(d) and (e) that are paid or payable to or
in relation to a person who is not an
employee in the same way as it applies to
wages paid or payable to an employee (as
if a reference in this Act to an employer
included a reference to any such person).
13. Section 24 amended (Inclusion of shares and
options granted to directors as wages)
Section 24 of the Principal Act is amended by
omitting subsection (4).
18
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
Part 4 - Payroll Tax Act 2008 Amended s. 14
14. Section 25 repealed
Section 25 of the Principal Act is repealed.
15. Part 4, Division 9 inserted
After section 66 of the Principal Act, the
following Division is inserted in Part 4:
Division 9 - Services outside Australia
66A. Wages paid or payable for or in relation to
services performed in other countries
Wages are exempt wages if they are paid
or payable for or in relation to services
performed by an employee wholly in one
or more other countries for a continuous
period of more than 6 months beginning
on the day on which wages were first
paid or payable to that employee for the
services so performed.
16. Schedule 3 amended (Savings, transitional and
other provisions)
Schedule 3 to the Principal Act is amended as
follows:
(a) by inserting in the table in clause 1(1) of
Part 1 after
this Act
19
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
s. 16 Part 4 - Payroll Tax Act 2008 Amended
the following item:
Taxation Legislation (Miscellaneous
Amendments) Act 2009
(b) by inserting the following Part after
clause 10 in Part 2:
PART 3 - PROVISIONS CONSEQUENT ON ENACTMENT OF
TAXATION LEGISLATION (MISCELLANEOUS
AMENDMENTS) ACT 2009
11. Application of amendments
(1) The amendments made to this
Act by the Taxation Legislation
(Miscellaneous Amendments) Act
2009 apply in respect of taxable
wages that are paid or payable on
or after 1 July 2009.
(2) The amendments made to this
Act by the Taxation Legislation
(Miscellaneous Amendments) Act
2009 are to be applied for the
purpose of determining the
correct amount of payroll tax
(within the meaning of
section 82) payable by an
employer in respect of the
financial year commencing on
1 July 2009 (including in respect
of expired months).
20
Taxation Legislation (Miscellaneous Amendments) Act 2009
Act No. of
Part 4 - Payroll Tax Act 2008 Amended s. 16
(3) However, section 9 continues to
apply in respect of an expired
month as if the amendments
made to this Act by the Taxation
Legislation (Miscellaneous
Amendments) Act 2009 had not
been made.
(4) In this clause, an "expired
month" is a month occurring
after June 2009 that ended before
the day on which the Taxation
Legislation (Miscellaneous
Amendments) Act 2009 received
the Royal Assent.
Government Printer, Tasmania 21