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This is a Bill, not an Act. For current law, see the Acts databases.


PAY-ROLL TAX ASSESSMENT AMENDMENT BILL 2010

                       Western Australia


Pay-roll Tax Assessment Amendment Bill 2010

                          CONTENTS


        Part 1 -- Preliminary
  1.    Short title                                                   2
  2.    Commencement                                                  2
        Part 2 -- Pay-roll Tax Assessment
             Act 2002 amended
        Division 1 -- Act amended
  3.    Act amended                                                   3
        Division 2 -- Amendments relating to taxable
              wages
  4.    Section 5A inserted                                           3
        5A.       Notes in the text                              3
  5.    Section 5 amended                                             3
  6.    Sections 6A to 6D inserted                                    4
        6A.       Wages that are taxable in this jurisdiction    4
        6B.       Jurisdiction in which person who performs
                  services is based                              7
        6C.       Jurisdiction in which employer is based        7
        6D.       Place and date of payment of wages             8
  7.    Part 2 Division 2A inserted                                  10
        Division 2A -- Wages
        Subdivision 1 -- General concept of wages
        9AA.     Term used: wages                               10
        Subdivision 2 -- Fringe benefits and specified
              taxable benefits
        9BA.     Wages include fringe benefits and
                 specified taxable benefits                     11
        9BB.     Actual value of a fringe benefit               11
        9BC.     Basis for including the value of fringe
                 benefits in returns                            12
        9BD.     Eligibility to use estimated value method      12


                             107--1                                   page i
Pay-roll Tax Assessment Amendment Bill 2010



Contents



             9BE.     Returns (other than annual returns) using
                      the estimated value method                   13
             9BF.     Annual returns using the estimated value
                      method                                       13
             9BG.     Final returns using the estimated value
                      method                                       14
             9BH.     Changing method of valuing fringe
                      benefits                                     14
             9BI.     Value of a specified taxable benefit         16
             Subdivision 3 -- Superannuation contributions
             9CA.     Terms used                                   17
             9CB.     Wages include superannuation
                      contributions and other similar amounts      17
             9CC.     Superannuation contributions                 19
             9CD.     Notional contributions                       20
             Subdivision 4 -- Shares and options
             9DA.     Wages include shares and options
                      granted to employees                         20
             9DB.     Relevant day -- choice of                     22
             9DC.     Relevant day -- special cases                 22
             9DD.     Value of shares and options                  23
             9DE.     Effect of rescission, cancellation etc. of
                      share or option                              24
             9DF.     Grant of share under exercise of option      25
             9DG.     Wages include certain shares and options
                      granted to directors                         25
             9DH.     Place where wages (as shares or options)
                      are payable                                  26
             Subdivision 5 -- Termination payments
             9EA.     Wages include termination payments           26
             Subdivision 6 -- Allowances
             9FA.     Motor vehicle allowances                     28
             9FB.     Accommodation allowances                     29
             Subdivision 7 -- Employment agents
             9GA.     Wages include amounts paid by
                      employment agents                            29
             Subdivision 8 -- Miscellaneous provisions
             9HA.     Value of wages paid in kind                  30
             9HB.     GST excluded from wages                      30
             9HC.     Wages paid by or to third parties            31
      8.     Section 21 amended                                         32
      9.     Section 26 amended                                         32
      10.    Section 27 amended                                         33
      11.    Section 31 amended                                         33
      12.    Part 5 heading replaced                                    33



page ii
                    Pay-roll Tax Assessment Amendment Bill 2010



                                                                  Contents



      Part 5 -- Exempt wages
13.   Section 40 amended                                            33
14.   Sections 41A and 41B inserted                                 34
      41A.     Exempt wages -- parental and adoption
               leave                                         34
      41B.     Exempt wages -- wages paid or payable
               for or in relation to services performed in
               other countries                               35
15.   Part 6 heading inserted                                       36
      Part 6 -- Miscellaneous
16.   Section 45 amended                                            36
17.   Section 46 and Schedule 1 inserted                            36
      46.      Transitional provisions                       36
      Schedule 1 -- Transitional provisions
      Division 1 -- Provisions for the Pay-roll Tax
             Assessment Amendment Act 2010 in relation
             to taxable wages
      1.         Liability to tax for the assessment year
                 commencing on 1 July 2009                   36
      2.         Shares and options granted on or after
                 1 July 2009 and before the Pay-roll Tax
                 Assessment Amendment Act 2010
                 received the Royal Assent                   37
      3.         Notices under the Pay-roll Tax
                 Assessment Regulations 2003
                 regulation 26(1) or (2)                     38
18.   Glossary amended                                              38
19.   Various penalties amended                                     42
      Division 3 -- Amendments relating to grouping
            of employers
20.   Section 31 amended                                            43
21.   Section 32 amended                                            43
22.   Section 33 amended                                            43
23.   Section 35 replaced                                           43
      35A.     Groups arising from tracing of interests in
               corporations                                  43
      35B.     Direct interests                              45
      35C.     Indirect interests                            46
      35D.     Aggregate interests                           47
24.   Section 36 amended                                            48
25.   Section 38 amended                                            48
26.   Schedule 1 amended                                            49



                                                                   page iii
Pay-roll Tax Assessment Amendment Bill 2010



Contents



             Division 2 -- Provisions for the Pay-roll Tax
                    Assessment Amendment Act 2010 in relation
                    to grouping of employers
             4.         Exclusion, from a group, in force before
                        1 July 2012                                49
             5.         Exclusion, from a group, granted on or
                        after 1 July 2012                          49
             6.         Exclusion, from a group, having effect
                        before 1 July 2012                         49
      27.    Glossary amended                                           49
             Part 3 -- Pay-roll Tax Assessment
                  Regulations 2003 amended
      28.    Regulations amended                                        50
      29.    Regulation 5 amended                                       50
      30.    Regulation 12 amended                                      50
      31.    Regulation 14 amended                                      50
      32.    Regulations 16 to 18 deleted                               50
      33.    Regulations 19 to 26 deleted                               50
      34.    Part 3 heading replaced                                    51
             Part 3 -- Allowances
      35.    Regulations 28 and 29 deleted                              51
      36.    Regulation 30 amended                                      51
      37.    Regulation 31 deleted                                      51
      38.    Part 3 Division 2 deleted                                  51
      39.    Regulation 41 amended                                      51
      40.    Regulation 42 amended                                      52
      41.    Regulation 43 deleted                                      52
      42.    Regulation 44 amended                                      52
      43.    Regulation 46 amended                                      54
      44.    Glossary amended                                           56
      45.    Power to amend or repeal regulations unaffected            57




page iv
                           Western Australia


                     LEGISLATIVE ASSEMBLY



 Pay-roll Tax Assessment Amendment Bill 2010


                               A Bill for


An Act to amend the Pay-roll Tax Assessment Act 2002 and the
Pay-roll Tax Assessment Regulations 2003.



The Parliament of Western Australia enacts as follows:




                                                               page 1
    Pay-roll Tax Assessment Amendment Bill 2010
    Part 1          Preliminary

    s. 1



1                          Part 1 -- Preliminary
2   1.       Short title
3            This is the Pay-roll Tax Assessment Amendment Act 2010.

4   2.       Commencement
5            This Act comes into operation as follows --
6             (a) Part 1, Part 2 Divisions 1 and 2 and Part 3 -- on the day
7                   on which this Act receives the Royal Assent;
8             (b) Part 2 Division 3 -- 1 July 2012.




    page 2
                                      Pay-roll Tax Assessment Amendment Bill 2010
                          Pay-roll Tax Assessment Act 2002 amended         Part 2
                                                        Act amended   Division 1
                                                                              s. 3



 1        Part 2 -- Pay-roll Tax Assessment Act 2002 amended
 2                             Division 1 -- Act amended
 3   3.          Act amended
 4               This Part amends the Pay-roll Tax Assessment Act 2002.

 5              Division 2 -- Amendments relating to taxable wages
 6   4.          Section 5A inserted
 7               After section 4 insert:
 8


 9          5A.         Notes in the text
10                      A note included in this Act is explanatory and is not
11                      part of this Act.
12


13   5.          Section 5 amended
14        (1)    In section 5(1) delete "taxable in Western Australia under
15               subsection (2) except wages that are exempt under section 40."
16               and insert:
17

18               WA taxable wages.
19

20        (2)    Delete section 5(2) and insert:
21

22               (2)    WA taxable wages are wages, other than exempt
23                      wages, that are taxable in this jurisdiction.
24

25               Note: The heading to amended section 5 is to read:

26                     Pay-roll tax on WA taxable wages




                                                                                page 3
     Pay-roll Tax Assessment Amendment Bill 2010
     Part 2          Pay-roll Tax Assessment Act 2002 amended
     Division 2      Amendments relating to taxable wages
     s. 6



 1   6.       Sections 6A to 6D inserted
 2            After section 5 insert:
 3


 4        6A.       Wages that are taxable in this jurisdiction
 5            (1)   Wages are taxable in this jurisdiction if --
 6                   (a) the wages are paid or payable by an employer
 7                        for or in relation to services performed by a
 8                        person wholly in this jurisdiction; or
 9                   (b) the wages are paid or payable by an employer
10                        for or in relation to services performed by a
11                        person in 2 or more Australian jurisdictions, or
12                        partly in one or more Australian jurisdictions
13                        and partly outside all Australian jurisdictions,
14                        and --
15                           (i) the person is based in this jurisdiction;
16                                or
17                          (ii) the employer is based in this
18                                jurisdiction -- in a case where the
19                                person is not based in an Australian
20                                jurisdiction; or
21                         (iii) the wages are paid or payable in this
22                                jurisdiction -- in a case where both the
23                                person and the employer are not based
24                                in an Australian jurisdiction; or
25                         (iv) the wages are paid or payable for
26                                services performed mainly in this
27                                jurisdiction -- in a case where both the
28                                person and employer are not based in an
29                                Australian jurisdiction and the wages
30                                are not paid or payable in an Australian
31                                jurisdiction;
32                        or



     page 4
                          Pay-roll Tax Assessment Amendment Bill 2010
              Pay-roll Tax Assessment Act 2002 amended         Part 2
                   Amendments relating to taxable wages   Division 2
                                                                  s. 6



 1            (c)    the wages are paid or payable by an employer
 2                   for or in relation to services performed by a
 3                   person wholly outside all Australian
 4                   jurisdictions and are paid or payable in this
 5                   jurisdiction.
 6   Note: Section 41B provides an exemption for wages paid or payable for
 7         services performed wholly in one or more other countries for a
 8         continuous period of more than 6 months.

 9   (2)    The question of whether wages are taxable in this
10          jurisdiction is, subject to this section, to be determined
11          by reference only to the services performed by the
12          person in respect of the employer during the month in
13          which the wages are paid or payable.
14   (3)    For that purpose, any wages paid or payable by an
15          employer in respect of a person in a particular month
16          are taken to be paid or payable for or in relation to the
17          services performed by the person in respect of the
18          employer during that month.
19   Note: For example, if wages paid in a month are paid to a person for services
20         performed over several months, the question of whether the wages are
21         taxable in this jurisdiction is to be determined by reference only to
22         services performed by the person in the month in which the wages are
23         paid. The services performed in previous months are disregarded for
24         this purpose.

25   (4)    If no services are performed by a person in respect of
26          an employer during a month in which wages are paid
27          or payable to or in relation to the person by the
28          employer --
29            (a) the question of whether the wages are taxable
30                  in this jurisdiction is to be determined by
31                  reference only to the services performed by the
32                  person in respect of the employer during the
33                  most recent prior month in which the person
34                  performed services in respect of the employer;
35                  and



                                                                          page 5
     Pay-roll Tax Assessment Amendment Bill 2010
     Part 2          Pay-roll Tax Assessment Act 2002 amended
     Division 2      Amendments relating to taxable wages
     s. 6



 1                     (b)     the wages are taken to be paid or payable for or
 2                             in relation to the services performed by the
 3                             person in respect of the employer during that
 4                             most recent prior month.
 5            (5)    If no services are performed by a person in respect of
 6                   an employer during a month in which wages are paid
 7                   or payable to or in relation to the person by the
 8                   employer and no services were performed by the
 9                   person in respect of the employer during any prior
10                   month --
11                     (a) the wages are taken to be paid or payable for or
12                           in relation to services performed by the person
13                           during the month in which the wages are paid
14                           or payable; and
15                     (b) the services are taken to have been performed
16                           at a place or places where it may be reasonably
17                           expected that the services of the person in
18                           respect of the employer will be performed.
19            (6)    All amounts of wages paid or payable in the same
20                   month by the same employer in respect of the same
21                   person are to be aggregated for the purposes of
22                   determining whether they are taxable in this
23                   jurisdiction.
24            Note: For example, if one amount of wages is paid by an employer in a
25                  particular month for services performed in this jurisdiction, and another
26                  amount of wages is paid by the same employer in the same month for
27                  services performed by the same person in another Australian
28                  jurisdiction, the wages paid are to be aggregated as if they were paid
29                  for all the services performed by the person in that month.

30            (7)    If wages are paid in a different month from the month
31                   in which they are payable, the question of whether the
32                   wages are taxable in this jurisdiction is to be
33                   determined by reference to the earlier of the relevant
34                   months.



     page 6
                          Pay-roll Tax Assessment Amendment Bill 2010
              Pay-roll Tax Assessment Act 2002 amended         Part 2
                   Amendments relating to taxable wages   Division 2
                                                                  s. 6



 1     (8)   If an amount that is paid or payable to a company is,
 2           under section 9GA or 21, taken to be wages paid or
 3           payable to another person, subsection (1)(b) has effect
 4           as if references to the jurisdiction in which the person
 5           who performs the services is based were references to
 6           the jurisdiction in which the company is based and, for
 7           that purpose, the jurisdiction in which the company is
 8           based is to be worked out under section 6C as if the
 9           company were an employer.

10   6B.     Jurisdiction in which person who performs services
11           is based
12     (1)   The jurisdiction in which a person who performs
13           services is based is the jurisdiction in which the
14           person's principal place of residence is located.
15     (2)   The jurisdiction in which the person is based is to be
16           determined by reference to the state of affairs existing
17           during the month in which the relevant wages are paid
18           or payable.
19     (3)   If more than one jurisdiction would qualify as the
20           jurisdiction in which the person is based during a
21           month, the jurisdiction in which the person is based is
22           to be determined by reference to the state of affairs
23           existing on the last day of that month.
24     (4)   If the person does not have a principal place of
25           residence, the person is taken to be a person who is not
26           based in an Australian jurisdiction.

27   6C.     Jurisdiction in which employer is based
28     (1)   The jurisdiction in which an employer is based is --
29            (a) the jurisdiction in which the employer's
30                   registered business address is located -- if the
31                   employer has an ABN; or



                                                                  page 7
     Pay-roll Tax Assessment Amendment Bill 2010
     Part 2          Pay-roll Tax Assessment Act 2002 amended
     Division 2      Amendments relating to taxable wages
     s. 6



 1                   (b)   the jurisdiction in which the employer's
 2                         principal place of business is located -- in any
 3                         other case.
 4            (2)   If wages are paid or payable in connection with a
 5                  business carried on by an employer under a trust, the
 6                  employer's registered business address is the registered
 7                  business address of the trust or, if the trust does not
 8                  have an ABN, the registered business address of the
 9                  trustee of the trust.
10            (3)   If an employer has registered business addresses
11                  located in different jurisdictions at the same point in
12                  time, the jurisdiction in which the employer is based at
13                  that point in time is the jurisdiction in which the
14                  employer's principal place of business is located.
15            (4)   The jurisdiction in which an employer is based is to be
16                  determined by reference to the state of affairs existing
17                  during the month in which the relevant wages are paid
18                  or payable.
19            (5)   If more than one jurisdiction would qualify as the
20                  jurisdiction in which an employer is based during a
21                  month, the jurisdiction in which the employer is based
22                  is to be determined by reference to the state of affairs
23                  existing on the last day of that month.
24            (6)   An employer who has neither a registered business
25                  address nor a principal place of business is taken to be
26                  an employer who is not based in an Australian
27                  jurisdiction.

28        6D.       Place and date of payment of wages
29            (1)   In this section --
30                  instrument includes a cheque, bill of exchange,
31                  promissory note, money order or a postal order issued
32                  by a post office.


     page 8
                        Pay-roll Tax Assessment Amendment Bill 2010
            Pay-roll Tax Assessment Act 2002 amended         Part 2
                 Amendments relating to taxable wages   Division 2
                                                                s. 6



 1   (2)   Wages are taken to have been paid at a place if, for the
 2         purpose of the payment of those wages --
 3           (a) an instrument is sent or given or an amount is
 4                transferred by an employer to a person or a
 5                person's agent at that place; or
 6          (b) an instruction is given by an employer for the
 7                crediting of an amount to the account of a
 8                person or a person's agent at that place.
 9   (3)   The wages are taken to have been paid on the date that
10         the instrument was sent or given, the amount was
11         transferred or the account credited in accordance with
12         the instruction (whichever is relevant).
13   (4)   Subject to this section, wages are taken to be payable at
14         the place at which they are paid.
15   (5)   Wages that are not paid by the end of the month in
16         which they are payable are taken to be payable at --
17          (a) the place where wages were last paid by the
18                employer for or in relation to services
19                performed by the person; or
20          (b) if wages have not previously been paid by the
21                employer for or in relation to services
22                performed by the person -- the place where the
23                person last performed services in respect of the
24                employer before the wages became payable.
25   (6)   If wages paid or payable in the same month by the
26         same employer in respect of the same person are paid
27         or payable in more than one Australian jurisdiction, the
28         wages paid or payable in that month are taken to be
29         paid or payable in the Australian jurisdiction in which
30         the highest proportion of the wages are paid or payable.
31




                                                                page 9
     Pay-roll Tax Assessment Amendment Bill 2010
     Part 2          Pay-roll Tax Assessment Act 2002 amended
     Division 2      Amendments relating to taxable wages
     s. 7



 1   7.        Part 2 Division 2A inserted
 2             After Part 2 Division 1 insert:
 3
 4                              Division 2A -- Wages
 5                   Subdivision 1 -- General concept of wages

 6        9AA.       Term used: wages
 7             (1)   In this Act --
 8                   wages means --
 9                     (a) wages, remuneration, salary, commission,
10                           bonuses or allowances paid or payable to or in
11                           relation to an employee; and
12                     (b) an amount paid or payable by way of
13                           remuneration to a person holding an office
14                           under, or in the service of, the Crown in right of
15                           the State of Western Australia; and
16                     (c) an amount paid or payable under a contract in a
17                           class of contract prescribed under
18                           section 45(2)(g), to the extent to which that
19                           payment is attributable to labour; and
20                     (d) an amount paid or payable by a company by
21                           way of remuneration to or in relation to a
22                           director of that company; and
23                     (e) an amount paid or payable by way of
24                           commission to an insurance or time-payment
25                           canvasser or collector; and
26                      (f) an amount that is taken to be wages paid or
27                           payable by an employer to a person by another
28                           provision of this Division; and
29                     (g) a motor vehicle allowance paid or payable to an
30                           employee for a financial year, to the extent to
31                           which it exceeds the exempt component
32                           determined under section 9FA; and

     page 10
                           Pay-roll Tax Assessment Amendment Bill 2010
               Pay-roll Tax Assessment Act 2002 amended         Part 2
                    Amendments relating to taxable wages   Division 2
                                                                   s. 7



 1             (h)   an accommodation allowance paid or payable
 2                   to an employee in a financial year in respect of
 3                   a night's absence from the person's usual place
 4                   of residence, to the extent to which it exceeds
 5                   the exempt rate determined under section 9FB.
 6     (2)   Wages, remuneration, salary, commission, bonuses,
 7           allowances or other amounts referred to in
 8           subsection (1) are wages --
 9             (a) whether paid or payable at piece work rates or
10                  otherwise; and
11             (b) whether paid or payable in cash or in kind.

12           Subdivision 2 -- Fringe benefits and specified
13                         taxable benefits

14   9BA.    Wages include fringe benefits and specified taxable
15           benefits
16     (1)   The value of a fringe benefit or a specified taxable
17           benefit that is provided by an employer to or in relation
18           to an employee is taken to be wages paid by the
19           employer to the employee unless the benefit is a fringe
20           benefit constituted by the grant of a share or an option
21           the value of which is taken to be wages under
22           Subdivision 4.
23     (2)   Subsection (1) does not apply to benefits that are
24           exempt benefits for the purposes of the FBTA Act.

25   9BB.     Actual value of a fringe benefit
26     (1)   The value of a fringe benefit (V) is to be calculated in
27           accordance with the formula --
                             1
28           V = TV ×
                      1 − FBT rate




                                                                  page 11
     Pay-roll Tax Assessment Amendment Bill 2010
     Part 2          Pay-roll Tax Assessment Act 2002 amended
     Division 2      Amendments relating to taxable wages
     s. 7



 1                   where --
 2                   FBT rate is the rate of fringe benefits tax, imposed for
 3                   the purposes of the FBTA Act, that applies when the
 4                   liability to pay-roll tax under this Act arises;
 5                   TV is the taxable value of the benefit as a fringe benefit
 6                   for the purposes of the FBTA Act.
 7             (2)   The value of a fringe benefit calculated in accordance
 8                   with subsection (1) is the actual value of the fringe
 9                   benefit.

10        9BC.       Basis for including the value of fringe benefits in
11                   returns
12             (1)   If an employer is required to specify in a return WA
13                   taxable wages that include the value of fringe benefits
14                   provided by the employer, the employer may, instead
15                   of including the actual value of the fringe benefits,
16                   include a value of the fringe benefits calculated using
17                   the estimated value method, if the employer is eligible
18                   to do so.
19             (2)   An employer must use the same basis upon which to
20                   include the value of fringe benefits in returns for all
21                   returns for an assessment year unless the
22                   Commissioner allows a change during that year under
23                   section 9BH(4).

24        9BD.       Eligibility to use estimated value method
25                   An employer is eligible to use the estimated value
26                   method to calculate the value of fringe benefits
27                   provided by the employer in an assessment year if the
28                   employer --
29                     (a) has provided WA fringe benefits for at least the
30                          15 months ending immediately before the
31                          beginning of the assessment year; and
32                     (b) lodges monthly returns for the assessment year.

     page 12
                          Pay-roll Tax Assessment Amendment Bill 2010
              Pay-roll Tax Assessment Act 2002 amended         Part 2
                   Amendments relating to taxable wages   Division 2
                                                                  s. 7



 1   9BE.    Returns (other than annual returns) using the
 2           estimated value method
 3     (1)   If an employer, other than one who lodges an annual
 4           return, uses the estimated value method for an
 5           assessment year, the value of the fringe benefits (V) to
 6           be included in each return for the year except the last
 7           return is to be calculated in accordance with the
 8           formula --
                         1
 9           V = AV ×
                         N
10           where --
11           AV is the actual value of the fringe benefits provided
12           by the employer in relation to the FBT year ending on
13           31 March in the financial year immediately before the
14           assessment year;
15           N is the number of returns in the assessment year.
16     (2)   The value of the fringe benefits to be included in the
17           employer's last return for the assessment year is the
18           amount equal to the difference between --
19            (a) the actual value of the WA fringe benefits
20                  provided by the employer during the FBT year
21                  that ended on 31 March in the assessment year;
22                  and
23            (b) the sum of the amounts included in each of the
24                  previous returns for the assessment year under
25                  subsection (1).

26   9BF.    Annual returns using the estimated value method
27           If an employer who lodges an annual return for an
28           assessment year uses the estimated value method for
29           the assessment year, the value of the fringe benefits to
30           be included in the return is the amount equal to the
31           actual value of the WA fringe benefits provided by the


                                                                 page 13
     Pay-roll Tax Assessment Amendment Bill 2010
     Part 2          Pay-roll Tax Assessment Act 2002 amended
     Division 2      Amendments relating to taxable wages
     s. 7



 1                   employer for the FBT year that ended on 31 March in
 2                   the assessment year.

 3        9BG.       Final returns using the estimated value method
 4                   If an employer who uses the estimated value method
 5                   lodges a final return for an assessment year, the value
 6                   of the fringe benefits to be included in the return is the
 7                   amount equal to the difference between --
 8                     (a) the sum of --
 9                              (i) the WA fringe benefits provided by the
10                                   employer for the FBT year that ended
11                                   on 31 March in the assessment year; and
12                             (ii) the WA fringe benefits provided by the
13                                   employer for April, May and June in the
14                                   assessment year (if any);
15                            and
16                     (b) the sum of --
17                              (i) one quarter of the WA fringe benefits
18                                   provided by the employer for the FBT
19                                   year that ended in the first financial year
20                                   for which the employer last chose to
21                                   make returns using the estimated value
22                                   method; and
23                             (ii) the total of the amounts of WA fringe
24                                   benefits included in the returns for the
25                                   assessment year.

26        9BH.       Changing method of valuing fringe benefits
27             (1)   An employer may commence using the estimated value
28                   method for an assessment year if the employer --
29                    (a) is eligible to use the estimated value method;
30                         and
31                    (b) gives the Commissioner notice of the intention
32                         to do so before the day on which the first or

     page 14
                        Pay-roll Tax Assessment Amendment Bill 2010
            Pay-roll Tax Assessment Act 2002 amended         Part 2
                 Amendments relating to taxable wages   Division 2
                                                                s. 7



 1                only return for the assessment year is required
 2                to be lodged by the employer.
 3   (2)   An employer may cease using the estimated value
 4         method for an assessment year if the employer gives
 5         the Commissioner notice of the intention to do so
 6         before the day on which the first or only return for the
 7         assessment year is required to be lodged by the
 8         employer.
 9   (3)   A notice under subsection (1) or (2) must be in a form
10         approved by the Commissioner.
11   (4)   On the written application of an employer, the
12         Commissioner may allow the employer to change the
13         basis upon which to include the value of fringe benefits
14         in returns during an assessment year if the
15         Commissioner is satisfied that --
16           (a) there is a compelling reason for making the
17                 change; and
18           (b) where relevant -- if the change were not made,
19                 the amount of pay-roll tax paid by the employer
20                 during the assessment year would be
21                 substantially greater than the amount payable
22                 for the assessment year on the actual value of
23                 the fringe benefits provided by the employer for
24                 the assessment year.
25   (5)   If an employer ceases using the estimated value
26         method during an assessment year, the value of the
27         fringe benefits to be included in the last return lodged
28         by the employer for the assessment year is the amount
29         equal to the difference between --
30           (a) the sum of --
31                   (i) the actual value of the WA fringe
32                         benefits provided by the employer for
33                         the FBT year ending on 31 March in the
34                         assessment year; and

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 1                            (ii)   the actual value of the WA fringe
 2                                   benefits provided by the employer in
 3                                   April, May and June of the assessment
 4                                   year (if any);
 5                          and
 6                    (b)   the sum of --
 7                             (i) one quarter of the actual value of the
 8                                 WA fringe benefits provided by the
 9                                 employer for the FBT year that ended in
10                                 the first financial year in which the
11                                 employer last chose to make returns
12                                 using the estimated value method; and
13                            (ii) the total of the amounts of the WA
14                                 fringe benefits included in the
15                                 employer's returns for the assessment
16                                 year.
17             (6)   If an employer commences using the estimated value
18                   method during an assessment year, the value of the
19                   fringe benefits to be included in the last return lodged
20                   by the employer for the assessment year is the amount
21                   equal to the difference between --
22                     (a) the actual value of the WA fringe benefits
23                           provided by the employer for the FBT year
24                           ending on 31 March in the assessment year; and
25                     (b) the total of the amounts of the WA fringe
26                           benefits included in the employer's returns for
27                           the assessment year.

28        9BI.       Value of a specified taxable benefit
29                   The value of a specified taxable benefit is the
30                   prescribed value, or the value calculated in the
31                   prescribed manner (whichever is relevant).




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 1           Subdivision 3 -- Superannuation contributions

 2   9CA.     Terms used
 3            For the purposes of this Subdivision --
 4            employee includes --
 5              (a) any person to whom, because of paragraph (a),
 6                    (b), (c), (d) or (e) of the definition of wages in
 7                    section 9AA(1), an amount paid or payable in
 8                    the circumstances referred to in that paragraph
 9                    constitutes wages; and
10              (b) a director of a company to whom paragraph (a)
11                    does not apply;
12            employer, of a director referred to in the definition of
13            employee paragraph (b), means the company;
14            notional contribution has the meaning given in
15            section 9CD;
16            superannuation contribution has the meaning given in
17            section 9CC.

18   9CB.     Wages include superannuation contributions and
19            other similar amounts
20     (1)    The amount of each of the following is taken to be
21            wages paid by the employer to the employee in the
22            return period --
23              (a) a superannuation contribution made by an
24                    employer in respect of an employee in a return
25                    period of the employer;
26              (b) a notional contribution taken to have been made
27                    by an employer in respect of an employee in a
28                    return period of the employer;
29              (c) an individual superannuation guarantee
30                    shortfall that an employer has for an employee
31                    for a return period of the employer.


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 1             (2)   If a notional contribution is taken to have been made
 2                   by an employer, in respect of an employee, to a
 3                   superannuation fund in a return period, no contribution
 4                   made to the fund by the employer, in respect of the
 5                   employee, in the return period to make provision for
 6                   the cost referred to in section 9CD(3) is taken to be
 7                   wages under subsection (1).
 8             (3)   If --
 9                     (a)   a superannuation contribution that was payable,
10                           but not paid, or was required to be credited as a
11                           contribution, but was not, by an employer in
12                           respect of an employee is taken to be wages
13                           paid by the employer to the employee in a
14                           return period under subsection (1); and
15                    (b)    an individual superannuation guarantee
16                           shortfall results wholly or in part from the
17                           employer's failure to pay or credit the
18                           contribution,
19                   the amount of the individual superannuation guarantee
20                   shortfall is reduced (but not to below zero) by the
21                   amount of the superannuation contribution referred to
22                   in paragraph (a).
23             (4)   Section 6D(5) applies to --
24                    (a) a superannuation contribution that is payable
25                          but not paid or is or is required to be credited as
26                          a contribution; and
27                    (b) a notional contribution; and
28                    (c) an individual superannuation guarantee
29                          shortfall,
30                   as if --
31                     (d) it referred to contributions rather than wages;
32                           and



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 1             (e)   an amount that is or is required to be credited as
 2                   a contribution, a notional contribution and an
 3                   individual superannuation guarantee shortfall
 4                   were contributions payable.
 5     (5)   For the purposes of subsection (1)(c) --
 6            (a) the individual superannuation guarantee
 7                   shortfall referred to is reduced by any amount
 8                   of the shortfall arising under the
 9                   Superannuation Guarantee Act section 19
10                   because of contributions not made in
11                   compliance with the choice of fund
12                   requirements; and
13            (b) if an employer has an individual
14                   superannuation guarantee shortfall for an
15                   employee for a quarter (within the meaning
16                   given in the Superannuation Guarantee Act
17                   section 6), the shortfall is taken to be for the
18                   last month of the quarter.

19   9CC.    Superannuation contributions
20     (1)   A superannuation contribution is made by an employer
21           in respect of an employee if --
22             (a) a contribution is paid or payable by an
23                   employer to or as a superannuation fund in
24                   respect of the employee; or
25             (b) an amount, although not paid or payable, is or
26                   is required to be credited under a
27                   superannuation fund as an employer's
28                   contribution in respect of an employee.
29     (2)   Subsection (1)(b) applies only in respect of an
30           Australian superannuation fund that does not provide
31           for any defined superannuation benefits in respect of
32           any person.



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 1             (3)   Setting aside any money or anything that is worth
 2                   money as, or as part of, a superannuation fund is taken
 3                   to be paying a contribution.
 4             (4)   Making a contribution of anything that is worth money
 5                   is taken to be paying a contribution of the amount
 6                   equal to its value, and its value is to be worked out in
 7                   accordance with section 9HA as if that section referred
 8                   to the contribution instead of to wages.

 9        9CD.       Notional contributions
10             (1)   Notional contributions are taken to have been made by
11                   an employer in respect of an employee if --
12                     (a) the employee is a member of an Australian
13                          superannuation fund; and
14                     (b) the fund is a defined benefit fund.
15             (2)   For each return period of the employer in which the
16                   employee accrues an entitlement to a defined
17                   superannuation benefit from the fund, a notional
18                   contribution is taken to have been made to the fund in
19                   the return period by the employer in respect of the
20                   employee.
21             (3)   The amount of the notional contribution is the amount
22                   that an actuary determines would be sufficient to meet
23                   the expected long-term cost to the employer of that
24                   benefit.
25             (4)   The regulations may include provisions about how an
26                   actuary is to determine an amount under subsection (3).

27                       Subdivision 4 -- Shares and options

28        9DA.       Wages include shares and options granted to
29                   employees
30             (1)   The value of a share or an option granted by an
31                   employer to an employee in respect of the appointment

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 1         of or services performed by the employee is taken to be
 2         wages paid by the employer to the employee unless the
 3         share or option is wages under a paragraph of
 4         section 9AA(1) other than paragraph (f).
 5   (2)   A share or an option is granted to a person in the
 6         following circumstances --
 7           (a) in the case of a share -- if the person acquires
 8                the share --
 9                   (i) in accordance with section 139G of the
10                        Income Tax Assessment Act 1936
11                        (Commonwealth); or
12                  (ii) in circumstances prescribed for the
13                        purposes of this paragraph by the
14                        regulations;
15           (b) in the case of an option -- if the person
16                acquires a right to the share to which the option
17                relates and the right is acquired --
18                   (i) in accordance with section 139G of the
19                        Income Tax Assessment Act 1936
20                        (Commonwealth); or
21                  (ii) in circumstances prescribed for the
22                        purposes of this paragraph by the
23                        regulations.
24   (3)   Wages constituted by the value of a share or an option
25         are taken to be paid on the relevant day.
26   (4)   The relevant day is the day that the employer elects, in
27         accordance with this Subdivision, to treat as the day on
28         which the wages are paid.
29   (5)   To avoid doubt, a share or an option is valuable
30         consideration for the purposes of section 9HC.




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 1        9DB.       Relevant day -- choice of
 2             (1)   The employer may elect to treat as the relevant day
 3                   either the day on which the share or option is granted to
 4                   the employee or the vesting day.
 5             (2)   The vesting day in respect of a share is the day on
 6                   which the share vests in the employee, that is, when
 7                   any conditions applying to the grant of the share have
 8                   been met and the employee's legal or beneficial
 9                   interest in the share cannot be rescinded.
10             (3)   The vesting day in respect of an option is the earlier of
11                   the following days --
12                     (a) the day on which the share to which the option
13                           relates is granted to the employee;
14                     (b) the day on which the employee exercises a right
15                           under the option to have the share the subject of
16                           the option transferred to, allotted to or vest in
17                           him or her.

18        9DC.       Relevant day -- special cases
19             (1)   If --
20                     (a)   an employer grants a share or an option to an
21                           employee the value of which is taken to be
22                           wages under this Subdivision; and
23                    (b)    the value of the share or option is not specified
24                           as WA taxable wages in a return in the financial
25                           year in which the share or option was granted,
26                   the employer is taken to have elected to treat the wages
27                   constituted by the value of that share or option as being
28                   paid on the vesting day.




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 1     (2)   If --
 2             (a)   an employer grants a share or an option to an
 3                   employee the value of which is taken to be
 4                   wages under this Subdivision; and
 5            (b)    either --
 6                     (i) the value of the share or option is nil; or
 7                    (ii) if the employer were to elect to treat the
 8                          day on which the share or option was
 9                          granted as the relevant day -- the wages
10                          constituted by the value of the share or
11                          option would not be liable to pay-roll
12                          tax,
13           the employer is taken to have elected to treat the wages
14           constituted by the value of the share or option as being
15           paid or payable on the day on which the share or option
16           was granted.

17   9DD.    Value of shares and options
18     (1)   In this section --
19           Commonwealth income tax provisions means the
20           provisions of Subdivision F of Division 13A of Part III
21           of the Income Tax Assessment Act 1936
22           (Commonwealth).
23     (2)   The value of a share or an option taken to be wages
24           under this Subdivision is the market value of the share
25           or option (expressed in Australian currency) on the
26           relevant day, less the consideration (if any) paid or
27           given by the employee in respect of the share or option
28           (other than consideration in the form of services
29           performed).
30     (3)   The market value of a share or an option on the
31           relevant day is to be determined in accordance with the
32           Commonwealth income tax provisions.


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 1             (4)   For that purpose, the Commonwealth income tax
 2                   provisions apply with the following modifications, and
 3                   any other necessary modifications --
 4                     (a) the market value of an option is to be
 5                           determined as if it were a right to acquire a
 6                           share;
 7                     (b) a reference to a taxpayer is to be read as a
 8                           reference to the employee;
 9                     (c) a reference to the Commissioner of Taxation is
10                           to be read as a reference to either that
11                           Commissioner or the Commissioner of State
12                           Revenue.

13        9DE.       Effect of rescission, cancellation etc. of share or
14                   option
15             (1)   If an employer grants a share or an option to an
16                   employee the value of which is taken to be wages
17                   under this Subdivision and the grant of the share or
18                   option is withdrawn, cancelled or exchanged before the
19                   vesting day for any valuable consideration (other than
20                   the grant of other shares or options) --
21                     (a) the day of withdrawal, cancellation or exchange
22                           is taken to be the relevant day in relation to the
23                           share or option; and
24                     (b) the market value of the share or option, on the
25                           relevant day, is taken to be the amount of the
26                           valuable consideration.
27             (2)   If --
28                     (a)   an employer grants a share or an option to an
29                           employee the value of which is taken to be
30                           wages under this Subdivision; and
31                    (b)    the value of the share or option is specified as
32                           WA taxable wages in a return; and



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 1             (c)   the grant is rescinded because the conditions
 2                   attaching to the grant were not met,
 3           the WA taxable wages of the employer, in the return
 4           period in which the grant is rescinded, are to be
 5           reduced by the value of the share or option as specified
 6           in the earlier return.
 7     (3)   Subsection (2) does not apply just because an
 8           employee fails to exercise an option or to otherwise
 9           exercise his or her rights in respect of a share or an
10           option.

11   9DF.    Grant of share under exercise of option
12           The value of a share granted by an employer to an
13           employee is not to be taken to be wages under this
14           Subdivision if --
15            (a) the employer is required to grant the share as a
16                  consequence of the exercise of an option by a
17                  person; and
18            (b) the value of the option granted to the person
19                  was taken to be wages under this Subdivision.

20   9DG.    Wages include certain shares and options granted to
21           directors
22     (1)   If the value of a share or an option granted by a
23           company to a director of the company by way of
24           remuneration for the appointment or services of the
25           director would be taken to be wages under this
26           Subdivision if the director were an employee of the
27           company, the value of the share or option is taken to be
28           wages paid by the company (as an employer) to the
29           director.
30     (2)   For the purposes of subsection (1), the other provisions
31           of this Subdivision apply in respect of any such grant
32           as if a reference to the employer were a reference to the

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 1                   company and a reference to the employee were a
 2                   reference to the director of the company.
 3             (3)   In this section, a reference to a director of the company
 4                   includes a reference to the following --
 5                     (a) a person who, under a contract or other
 6                            arrangement, is to be appointed as a director of
 7                            the company;
 8                     (b) a former director of the company.

 9        9DH.       Place where wages (as shares or options) are
10                   payable
11             (1)   In this section --
12                   local company means --
13                     (a) a company incorporated or taken to be
14                            incorporated under the Corporations Act that is
15                            taken to be registered in Western Australia for
16                            the purposes of that Act; or
17                     (b) any other body corporate that is incorporated
18                            under a written law.
19             (2)   Wages constituted by the value of a share or an option
20                   are taken to be paid in Western Australia if the share is
21                   a share in a local company or, in the case of an option,
22                   an option to acquire shares in a local company.
23             (3)   In any other case, wages constituted by the value of a
24                   share or an option are taken to be paid outside Western
25                   Australia.

26                     Subdivision 5 -- Termination payments

27        9EA.       Wages include termination payments
28             (1)   The amount of a termination payment is taken to be
29                   wages paid or payable by the employer to the



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 1         employee, or by the company (as an employer) to the
 2         director.
 3   (2)   For the purposes of subsection (1) --
 4         employment termination payment means --
 5           (a) an employment termination payment within the
 6                 meaning of section 82-130 of the ITA Act; or
 7           (b) a payment that would be an employment
 8                 termination payment within the meaning of
 9                 section 82-130 of the ITA Act but for the fact
10                 that it was received later than 12 months after
11                 the termination of a person's employment; or
12           (c) a transitional termination payment within the
13                 meaning of section 82-10 of the Income Tax
14                 (Transitional Provisions) Act 1997
15                 (Commonwealth);
16         termination payment means --
17           (a) a payment made in consequence of the
18                 retirement from, or termination of, any office or
19                 employment of an employee, being --
20                    (i) an unused annual leave payment; or
21                   (ii) an unused long service leave payment;
22                          or
23                  (iii) so much of an employment termination
24                          payment paid or payable by an
25                          employer, whether or not paid to the
26                          employee or to any other person or
27                          body, that would be included in the
28                          assessable income of an employee under
29                          Part 2-40 of the ITA Act if the whole of
30                          the employment termination payment
31                          had been paid to the employee;
32                 or



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 1                    (b)    an amount paid or payable by a company as a
 2                           consequence of the termination of the services
 3                           or office of a director of the company, whether
 4                           or not paid to the director or to any other person
 5                           or body, that would be an employment
 6                           termination payment if that amount had been
 7                           paid or payable as a consequence of termination
 8                           of employment;
 9                   unused annual leave payment has the meaning given
10                   in section 83-10 of the ITA Act;
11                   unused long service leave payment has the meaning
12                   given in section 83-75 of the ITA Act.

13                           Subdivision 6 -- Allowances

14        9FA.       Motor vehicle allowances
15             (1)   For the purposes of section 9AA(1)(g), the exempt
16                   component (E) of a motor vehicle allowance paid or
17                   payable in respect of a financial year is calculated in
18                   accordance with the formula --
19                   E = K×R
20                   where --
21                   K is the number of business kilometres travelled during
22                   the financial year under subsection (2);
23                   R is the exempt rate under subsection (3).
24             (2)   The number of business kilometres travelled during the
25                   financial year is to be determined --
26                     (a) if paragraph (b) does not apply to the
27                           employer -- in accordance with the applicable
28                           recording method in the regulations; or
29                     (b) if the Commissioner has, by order in writing,
30                           approved the use, by an employer or class of
31                           employer, of another method (including the use


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 1                   of an estimate) of determining the number of
 2                   business kilometres travelled during the
 3                   financial year -- in accordance with the method
 4                   approved by the Commissioner.
 5     (3)   The exempt rate for the financial year concerned is --
 6            (a) the rate prescribed by the regulations under
 7                  section 28-25 of the ITA Act for calculating a
 8                  deduction for car expenses for a large car using
 9                  the "cents per kilometre method" in the
10                  financial year immediately preceding the
11                  financial year in which the allowance is paid or
12                  payable; or
13            (b) if no rate referred to in paragraph (a) is
14                  prescribed under that Act -- the rate prescribed
15                  in the regulations.

16   9FB.    Accommodation allowances
17           For the purposes of section 9AA(1)(h), the exempt rate
18           for the financial year concerned is --
19             (a) the total reasonable amount for daily travel
20                    allowance expenses using the lowest capital
21                    city for the lowest salary band for the financial
22                    year determined by the Commissioner of
23                    Taxation of the Commonwealth; or
24             (b) if no determination referred to in paragraph (a)
25                    is in force -- the rate prescribed in the
26                    regulations.

27              Subdivision 7 -- Employment agents

28   9GA.    Wages include amounts paid by employment agents
29           An amount in respect of services that is paid or payable
30           by an employment agent (directly or indirectly) to a
31           person who was engaged to perform the services for a
32           client of the employment agent, or to some other

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 1                   person, as a result of which engagement the
 2                   employment agent receives payment (directly or
 3                   indirectly, whether by way of a lump sum or an
 4                   ongoing fee) in relation to the period during which the
 5                   services are performed for the client by the person
 6                   engaged to perform them is taken to be wages paid or
 7                   payable by the agent (as an employer) to the person for
 8                   or in relation to the services performed by the person.

 9                   Subdivision 8 -- Miscellaneous provisions

10        9HA.       Value of wages paid in kind
11                   The value of wages (except fringe benefits or specified
12                   taxable benefits) that are paid or payable in kind is the
13                   greater of --
14                     (a) the value agreed or the value attributed to the
15                           wages in, or the value ascertainable for the
16                           wages from, arrangements between the
17                           employer and the employee, whichever is the
18                           greater of the 3 amounts; and
19                     (b) if the regulations prescribe how the value of
20                           wages of that type is to be determined -- the
21                           value determined in accordance with the
22                           regulations.

23        9HB.       GST excluded from wages
24             (1)   If wages paid or payable to a person relate to a supply
25                   on which the person is liable to pay GST, the amount
26                   or value of the wages is reduced by the amount of GST
27                   payable by the person in respect of the services to
28                   which the wages relate.
29             (2)   Subsection (1) does not apply in respect of the value of
30                   wages comprising a fringe benefit.




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 1   9HC.    Wages paid by or to third parties
 2     (1)   If any of the following amounts of money or other
 3           valuable consideration would, if paid or given directly
 4           by an employer to an employee, be or be taken to be
 5           wages paid or payable by the employer to the employee
 6           for the purposes of this Act, they are taken to be wages
 7           paid or payable by the employer to the employee --
 8             (a) any money or other valuable consideration paid
 9                   or given, or to be paid or given, to an employee,
10                   for the employee's services as an employee of
11                   an employer, by a person other than the
12                   employer;
13             (b) any money or other valuable consideration paid
14                   or given, or to be paid or given, by an
15                   employer, for an employee's services as the
16                   employee of the employer, to a person other
17                   than the employee;
18             (c) any money or other valuable consideration paid
19                   or given, or to be paid or given, by a person
20                   other than an employer, for an employee's
21                   services as an employee of the employer, to a
22                   person other than the employee.
23     (2)   If any of the following amounts of money or other
24           valuable consideration would, if paid or given directly
25           by a company to a director of the company, be or be
26           taken to be wages paid or payable by the company to
27           the director for the purposes of this Act, they are taken
28           to be wages paid or payable by the company to the
29           director --
30             (a) any money or other valuable consideration paid
31                   or given, or to be paid or given, to a director of
32                   a company, by way of remuneration for the
33                   appointment or services of the director to the
34                   company, by a person other than the company;


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 1                    (b)    any money or other valuable consideration paid
 2                           or given, or to be paid or given, by a company,
 3                           by way of remuneration for the appointment or
 4                           services of the director to the company, to a
 5                           person other than the director;
 6                     (c)   any money or other valuable consideration paid
 7                           or given, or to be paid or given, by any person,
 8                           by way of remuneration for the appointment or
 9                           services of a director to the company, to a
10                           person other than the director.
11             (3)   In this section, a reference to a director of a company
12                   includes a reference to --
13                     (a) a person who, under a contract or other
14                            arrangement, is to be appointed as a director of
15                            the company; and
16                     (b) a former director of the company.
17


18   8.        Section 21 amended
19             In section 21(1)(c) after "wages" insert:
20

21                           paid or payable for or in relation to the services
22                           performed by the worker
23


24   9.        Section 26 amended
25             Delete section 26(2) and insert:
26
27             (2)   A monthly return must be in the approved form.
28             (3)   A monthly return must --
29                    (a) for a month other than June -- be lodged within
30                         7 days after the end of the month, or within any
31                         further time allowed by the Commissioner in a
32                         particular case; and

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                                     Pay-roll Tax Assessment Amendment Bill 2010
                         Pay-roll Tax Assessment Act 2002 amended         Part 2
                              Amendments relating to taxable wages   Division 2
                                                                            s. 10



 1                       (b)  for June -- be lodged within 21 days after the
 2                            end of the month, or within any further time
 3                            allowed by the Commissioner in a particular
 4                            case.
 5                     Penalty: a fine of $5 000.
 6


 7   10.         Section 27 amended
 8               In section 27(2)(c) delete "2 months" and insert:
 9

10               21 days
11


12   11.         Section 31 amended
13               In section 31(1) delete "carries out" and insert:
14

15               performs
16


17   12.         Part 5 heading replaced
18               Delete the heading to Part 5 and insert:
19

20                             Part 5 -- Exempt wages
21


22   13.         Section 40 amended
23         (1)   Delete section 40(1)(b).
24         (2)   After section 40(2)(o) insert:
25

26                       (p)   subject to subsection (3), by an employer to or
27                             in relation to a person for a period when the
28                             person is --
29                               (i) performing functions as a volunteer
30                                      member of a FESA Unit, an SES Unit

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     Pay-roll Tax Assessment Amendment Bill 2010
     Part 2          Pay-roll Tax Assessment Act 2002 amended
     Division 2      Amendments relating to taxable wages
     s. 14



 1                                       or a VMRS Group under the Fire and
 2                                       Emergency Services Authority of
 3                                       Western Australia Act 1998; or
 4                              (ii)     performing functions as a member of a
 5                                       volunteer fire brigade under the Fire
 6                                       Brigades Act 1942; or
 7                             (iii)     performing functions as a volunteer
 8                                       member of a bush fire brigade under the
 9                                       Bush Fires Act 1954;
10                             or
11

12         (3)   In section 40(2)(r) delete "carried out" and insert:
13

14               performed
15

16         (4)   Delete section 40(3) and insert:
17

18               (3)   The exemption provided for by subsection (2)(p) does
19                     not apply to wages paid or payable as annual leave,
20                     long service leave, recreation leave or sick leave.
21

22         (5)   Delete section 40(5).

23   14.         Sections 41A and 41B inserted
24               After section 40 insert:
25


26           41A.      Exempt wages -- parental and adoption leave
27               (1)   In this section --
28                     adoption leave means leave given to an employee in
29                     connection with the adoption of a child by the



     page 34
                          Pay-roll Tax Assessment Amendment Bill 2010
              Pay-roll Tax Assessment Act 2002 amended         Part 2
                   Amendments relating to taxable wages   Division 2
                                                                 s. 14



 1           employee, other than annual leave, recreation leave,
 2           sick leave or similar leave;
 3           maternity leave means leave given to a female
 4           employee in connection with her pregnancy or the birth
 5           of her child, other than annual leave, recreation leave,
 6           sick leave or similar leave;
 7           parental leave means leave given to an employee in
 8           connection with the pregnancy of a female carrying the
 9           employee's unborn child or the birth of the employee's
10           child, other than annual leave, recreation leave, sick
11           leave or similar leave.
12     (2)   Wages paid or payable to or in relation to an employee
13           for maternity leave, parental leave or adoption leave
14           are exempt from pay-roll tax.
15     (3)   It is immaterial whether the leave is taken during or
16           after the pregnancy or before or after the adoption.
17     (4)   The exemption in subsection (2) is limited to wages
18           paid or payable for not more than 14 weeks' worth of
19           leave at the employee's normal rate of pay.
20     (5)   The exemption in subsection (2) does not apply to
21           wages comprising a fringe benefit under the FBTA
22           Act.

23   41B.    Exempt wages -- wages paid or payable for or in
24           relation to services performed in other countries
25     (1)   Wages are exempt from pay-roll tax if they are paid or
26           payable for or in relation to services performed by a
27           person wholly in one or more other countries for a
28           continuous period of more than 6 months beginning on
29           the day on which wages were first paid or payable to
30           that person for the services so performed.




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     Part 2          Pay-roll Tax Assessment Act 2002 amended
     Division 2      Amendments relating to taxable wages
     s. 15



 1               (2)   The Commissioner must make any reassessment
 2                     necessary to give effect to this section.
 3


 4   15.         Part 6 heading inserted
 5               Before section 41 insert:
 6

 7                             Part 6 -- Miscellaneous
 8


 9   16.         Section 45 amended
10               In section 45(2)(g) delete "clause 2(1)(e) of the Glossary." and
11               insert:
12

13               section 9AA(1)(c).
14


15   17.         Section 46 and Schedule 1 inserted
16               After section 45 insert:
17
18         46.         Transitional provisions
19                     Schedule 1 contains transitional provisions relating to
20                     amendments made to this Act.

21                     Schedule 1 -- Transitional provisions
22                                                                                   [s. 46]

23              Division 1 -- Provisions for the Pay-roll Tax Assessment
24                 Amendment Act 2010 in relation to taxable wages
25         1.          Liability to tax for the assessment years commencing on
26                     1 July 2009 and 1 July 2010
27                     A person's liability to pay-roll tax under this Act for the
28                     assessment year commencing on 1 July 2009, and for the

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                       Amendments relating to taxable wages   Division 2
                                                                     s. 17



 1              assessment year commencing on 1 July 2010, is to be
 2              determined as if the Pay-roll Tax Assessment Amendment
 3              Act 2010 (other than Part 2 Division 3) had come into
 4              operation on 1 July 2009.

 5   2.         Shares and options granted on or after 1 July 2009 and
 6              before the Pay-roll Tax Assessment Amendment Act 2010
 7              received the Royal Assent
 8        (1)   If --
 9                (a)   an employer granted a share or an option to a
10                      person --
11                         (i)   on or after 1 July 2009; and
12                        (ii)   before the Pay-roll Tax Assessment
13                               Amendment Act 2010 received the Royal
14                               Assent;
15                      and
16                (b)   the amount equal to the value of the share or option
17                      was WA taxable wages; and
18                (c)   the value of the share or option is, under
19                      section 9DA or 9DG and clause 1, taken to be
20                      wages paid by the employer to the employee; and
21                (d)   the wages constituted by the value of that share or
22                      option are WA taxable wages under section 5(2)
23                      and clause 1,
24              the employer may, by notice given to the Commissioner,
25              elect to treat those wages as being paid on the vesting day.
26        (2)   A notice under subclause (1) must be given within the
27              3 months after the day on which the Pay-roll Tax
28              Assessment Amendment Act 2010 received the Royal Assent.
29        (3)   The Commissioner must, on application, make any
30              reassessment necessary to give effect to this clause.




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     Pay-roll Tax Assessment Amendment Bill 2010
     Part 2          Pay-roll Tax Assessment Act 2002 amended
     Division 2      Amendments relating to taxable wages
     s. 18



 1           3.         Notices under the Pay-roll Tax Assessment
 2                      Regulations 2003 regulation 26(1) or (2)
 3                      A notice under the Pay-roll Tax Assessment
 4                      Regulations 2003 regulation 26(1) or (2) in relation to the
 5                      assessment year commencing on 1 July 2009, or the
 6                      assessment year commencing on 1 July 2010, has effect as if
 7                      it were given under section 9BH(1) or (2), whichever is
 8                      relevant.
 9


10   18.          Glossary amended
11         (1)    In the Glossary clause 1 delete the definitions of:
12                assessable income
13                Australian superannuation scheme
14                eligible termination payment
15                'otherwise deductible' rule
16                participant
17                regulated superannuation fund
18                superannuation fund
19                superannuation guarantee charge
20                superannuation scheme
21                unfunded public sector superannuation scheme
22                WA taxable wages
23                work-related benefit
24         (2)    In the Glossary clause 1 insert in alphabetical order:
25

26                      ABN means the ABN (Australian Business Number) for an
27                      entity within the meaning of the A New Tax System
28                      (Australian Business Number) Act 1999 (Commonwealth);
29                      actual value, of a fringe benefit, has the meaning given in
30                      section 9BB(2);
31                      Australian jurisdiction means a State or a Territory;



     page 38
                  Pay-roll Tax Assessment Amendment Bill 2010
      Pay-roll Tax Assessment Act 2002 amended         Part 2
           Amendments relating to taxable wages   Division 2
                                                         s. 18



 1   Australian superannuation fund means a superannuation
 2   fund that --
 3     (a)   was established in Australia, or has any asset
 4           situated in Australia; and
 5     (b)   has its central management and control in Australia;
 6   defined benefit fund has the meaning given to "defined
 7   benefit superannuation scheme" in section 6 of the
 8   Superannuation Guarantee Act;
 9   director of a company includes a member of the governing
10   body of the company;
11   FBT year means a year ending on 31 March;
12   ITA Act means the Income Tax Assessment Act 1997
13   (Commonwealth);
14   motor vehicle allowance means an allowance paid by an
15   employer to a person who provides or maintains a motor
16   vehicle used for business journeys;
17   option means an option or right, whether actual, prospective
18   or contingent, of a person to acquire a share or to have a
19   share transferred or allotted to the person;
20   paid, in relation to wages, includes provided, conferred and
21   assigned and pay and payable have corresponding
22   meanings;
23   registered business address means an address for service of
24   notices under the A New Tax System (Australian Business
25   Number) Act 1999 (Commonwealth) on an entity that has an
26   ABN, as shown in the Australian Business Register kept
27   under that Act;
28   share means a share in a company and includes a stapled
29   security within the meaning of section 139GCD of the
30   Income Tax Assessment Act 1936 (Commonwealth);
31   superannuation fund includes --
32     (a)   a superannuation fund within the meaning of the
33           Superannuation Industry (Supervision) Act 1993
34           (Commonwealth); and




                                                              page 39
     Pay-roll Tax Assessment Amendment Bill 2010
     Part 2          Pay-roll Tax Assessment Act 2002 amended
     Division 2      Amendments relating to taxable wages
     s. 18



 1                      (b)   any other form of superannuation, provident or
 2                            retirement fund or scheme including --
 3                               (i)    the Superannuation Holding Accounts
 4                                      Special Account within the meaning of the
 5                                      Small Superannuation Accounts Act 1995
 6                                      (Commonwealth); and
 7                               (ii)   a retirement savings account within the
 8                                      meaning of the Retirement Savings
 9                                      Accounts Act 1997 (Commonwealth);
10                    Superannuation Guarantee Act means the Superannuation
11                    Guarantee (Administration) Act 1992 (Commonwealth);
12                    WA fringe benefits means fringe benefits that are WA
13                    taxable wages on which fringe benefits tax (imposed under
14                    the Fringe Benefits Tax Act 1986 (Commonwealth)) is paid
15                    or payable;
16                    WA taxable wages has the meaning given in section 5(2).
17

18      (3)    In the Glossary clause 1 in the definition of defined
19             superannuation benefit:
20               (a) delete "scheme" and insert:
21

22                     fund
23

24              (b)    delete "participant's" (each occurrence) and insert:
25

26                     member's
27

28      (4)    In the Glossary clause 1 in the definition of employment agent:
29               (a) in paragraph (a) delete "carry out" and insert:
30

31                     perform
32




     page 40
                                 Pay-roll Tax Assessment Amendment Bill 2010
                     Pay-roll Tax Assessment Act 2002 amended         Part 2
                          Amendments relating to taxable wages   Division 2
                                                                        s. 18



 1           (b)     in paragraph (b) delete "provided" and insert:
 2

 3                   performed
 4

 5   (5)   In the Glossary clause 1 in the definition of exempt delete
 6         "section 40;" and insert:
 7

 8         Part 5;
 9

10   (6)   In the Glossary clause 1 in the definition of individual
11         superannuation guarantee shortfall delete "Superannuation
12         Guarantee (Administration) Act 1992 of the Commonwealth;" and
13         insert:
14

15         Superannuation Guarantee Act;
16

17   (7)   In the Glossary clause 1 in the definition of tax-reducing
18         arrangement paragraph (a) delete "carries out," and insert:
19

20         performs,
21

22   (8)   In the Glossary clause 1 in the definition of value:
23           (a) in paragraph (b) delete "clause 7;" and insert:
24

25                   section 9BB;
26

27           (b)     in paragraph (c) delete "clause 6;" and insert:
28

29                   section 9BI;
30




                                                                         page 41
     Pay-roll Tax Assessment Amendment Bill 2010
     Part 2          Pay-roll Tax Assessment Act 2002 amended
     Division 2      Amendments relating to taxable wages
     s. 19



 1                 (c)   in paragraph (d) delete "clause 3;" and insert:
 2

 3                       section 9HB;
 4

 5                (d)    in paragraph (e) delete "clause 6;" and insert:
 6

 7                       section 9HA;
 8

 9         (9)   In the Glossary clause 1 in the definition of wages delete
10               "definition given in clause 2;" and insert:
11

12               meaning given in section 9AA;
13

14    (10)       Delete the Glossary clauses 2 to 12.

15   19.         Various penalties amended
16               In the provisions listed in the Table after "Penalty:" insert:
17

18               a fine of
19

20                                         Table
       s. 24(1)                                  s. 24(2)

       s. 27(2)                                  s. 28(2)

       s. 29(8)                                  s. 29(9)

       s. 44(1)                                  s. 44(2)




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                                Pay-roll Tax Assessment Amendment Bill 2010
                    Pay-roll Tax Assessment Act 2002 amended         Part 2
                   Amendments relating to grouping of employers Division 3
                                                                       s. 20



 1    Division 3 -- Amendments relating to grouping of employers
 2   20.     Section 31 amended
 3           In section 31(4) delete the passage that begins with "section 38"
 4           and continues to the end of the subsection and insert:
 5

 6           section 38.
 7

 8   21.     Section 32 amended
 9           Delete section 32(3) and (4) and insert:
10
11           (3)   The Commissioner may exclude a person from a group
12                 in accordance with section 38.
13

14   22.     Section 33 amended
15           In section 33(7) delete "related corporation" and insert:
16

17           related body corporate
18

19   23.     Section 35 replaced
20           Delete section 35 and insert:
21


22         35A.    Groups arising from tracing of interests in
23                 corporations
24           (1)   For the purposes of this section --
25                 associated person means a person who is associated
26                 with another person in accordance with any of the
27                 following --
28                   (a) persons are associated persons if they are
29                         related persons;


                                                                         page 43
     Pay-roll Tax Assessment Amendment Bill 2010
     Part 2          Pay-roll Tax Assessment Act 2002 amended
     Division 3      Amendments relating to grouping of employers
     s. 23



 1                    (b)   individuals are associated persons if they are
 2                          partners in a partnership;
 3                    (c) private companies are associated persons if
 4                          common shareholders have a majority interest
 5                          in each private company;
 6                    (d) trustees are associated persons if any person is
 7                          a beneficiary common to the trusts (not
 8                          including a public unit trust scheme) of which
 9                          they are trustees;
10                    (e) a private company and a trustee are associated
11                          persons if a related body corporate of the
12                          company is a beneficiary of the trust (not
13                          including a public unit trust scheme) of which
14                          the trustee is a trustee;
15                  entity means --
16                    (a) a person; or
17                    (b) 2 or more persons who are associated persons;
18                  private company means a company that is not limited
19                  by shares, or whose shares are not quoted on the
20                  Australian Stock Exchange or any exchange of the
21                  World Federation of Exchanges;
22                  related person means a person who is related to
23                  another person in accordance with any of the
24                  following --
25                    (a) individuals are related persons if --
26                             (i) one is the spouse or de facto partner of
27                                  the other; or
28                            (ii) the relationship between them is that of
29                                  parent and child, brothers, sisters, or
30                                  brother and sister;
31                    (b) private companies are related persons if they
32                          are related bodies corporate;



     page 44
                          Pay-roll Tax Assessment Amendment Bill 2010
              Pay-roll Tax Assessment Act 2002 amended         Part 2
             Amendments relating to grouping of employers Division 3
                                                                 s. 23



 1             (c)   an individual and a private company are related
 2                   persons if the individual is a majority
 3                   shareholder or director of the company or of
 4                   another private company that is a related body
 5                   corporate of the company;
 6             (d)   an individual and a trustee are related persons if
 7                   the individual is a beneficiary of the trust (not
 8                   being a public unit trust scheme) of which the
 9                   trustee is a trustee;
10             (e)   a private company and a trustee are related
11                   persons if the company, or a majority
12                   shareholder or director of the company, is a
13                   beneficiary of the trust (not being a public unit
14                   trust scheme) of which the trustee is a trustee.
15     (2)   An entity and a corporation form part of a group if the
16           entity has a controlling interest in the corporation.
17     (3)   An entity has a controlling interest in a corporation if
18           the corporation has share capital and --
19             (a) the entity has a direct interest in the corporation
20                   the value of which exceeds 50%; or
21             (b) the entity has an indirect interest in the
22                   corporation the value of which exceeds 50%; or
23             (c) the entity has an aggregate interest in the
24                   corporation the value of which exceeds 50%.
25     (4)   The Commissioner may exclude an entity from a group
26           in accordance with section 38.

27   35B.    Direct interests
28     (1)   An entity has a direct interest in a corporation if --
29            (a) in the case of an entity that is a person -- the
30                  person can, directly or indirectly, exercise,
31                  control the exercise of, or substantially
32                  influence the exercise of, the voting power


                                                                  page 45
     Pay-roll Tax Assessment Amendment Bill 2010
     Part 2          Pay-roll Tax Assessment Act 2002 amended
     Division 3      Amendments relating to grouping of employers
     s. 23



 1                           attached to any voting shares issued by the
 2                           corporation; or
 3                    (b)    in the case of an entity that is 2 or more persons
 4                           who are associated persons -- each of the
 5                           associated persons can, directly or indirectly,
 6                           exercise, control the exercise of, or
 7                           substantially influence the exercise of, the
 8                           voting power attached to any voting shares
 9                           issued by the corporation.
10             (2)   The value of the direct interest of the entity in the
11                   corporation is the proportion (expressed as a
12                   percentage) of the voting power of all voting shares
13                   issued by the corporation that --
14                     (a) in the case of an entity that is a person -- the
15                           person can directly or indirectly exercise,
16                           control the exercise of, or substantially
17                           influence the exercise of; or
18                     (b) in the case of an entity that is 2 or more persons
19                           who are associated persons -- the associated
20                           persons can, if acting together, directly or
21                           indirectly exercise, control the exercise of, or
22                           substantially influence the exercise of.

23        35C.       Indirect interests
24             (1)   An entity has an indirect interest in a corporation if the
25                   corporation is linked to another corporation (the
26                   directly controlled corporation) in which the entity has
27                   a direct interest.
28             (2)   A corporation is linked to a directly controlled
29                   corporation if the corporation is part of a chain of
30                   corporations --
31                     (a) that starts with the directly controlled
32                          corporation; and



     page 46
                          Pay-roll Tax Assessment Amendment Bill 2010
              Pay-roll Tax Assessment Act 2002 amended         Part 2
             Amendments relating to grouping of employers Division 3
                                                                 s. 23



 1             (b)   in which a link in the chain is formed if a
 2                   corporation has a direct interest in the next
 3                   corporation in the chain.
 4     (3)   The value of the indirect interest of an entity in a
 5           corporation (an indirectly controlled corporation) that
 6           is linked to a directly controlled corporation is
 7           calculated by multiplying together the following --
 8             (a) the value of the direct interest of the entity in
 9                   the directly controlled corporation;
10             (b) the value of each direct interest that forms a
11                   link in the chain of corporations by which the
12                   indirectly controlled corporation is linked to the
13                   directly controlled corporation.
14     (4)   If an entity has more than one indirect interest in a
15           corporation, the value of those interests is worked out
16           under section 35D.

17   35D.    Aggregate interests
18     (1)   An entity has an aggregate interest in a corporation
19           if --
20              (a) the entity has a direct interest and one or more
21                  indirect interests in the corporation; or
22             (b) the entity has more than one indirect interest in
23                  the corporation.
24     (2)   The value of the aggregate interest of an entity in a
25           corporation is the sum of the following --
26             (a) the value of the direct interest (if any) of the
27                  entity in the corporation;
28             (b) the value of each indirect interest of the entity
29                  in the corporation.
30




                                                                     page 47
     Pay-roll Tax Assessment Amendment Bill 2010
     Part 2          Pay-roll Tax Assessment Act 2002 amended
     Division 3      Amendments relating to grouping of employers
     s. 24



 1   24.         Section 36 amended
 2         (1)   In section 36(3) delete the passage that begins with "Act
 3               except" and continues to the end of the subsection and insert:
 4

 5               Act.
 6

 7         (2)   After section 36(3) insert:
 8
 9               (4)    The Commissioner may exclude a person from a group
10                      in accordance with section 38.
11


12   25.         Section 38 amended
13               Delete section 38(1) and insert:
14
15               (1)    The Commissioner may exclude a person from a group
16                      under section 31(4), 32(3), 35A(3) or 36(4) in relation
17                      to a business carried on by the person if satisfied that
18                      the business is carried on independently of, and is not
19                      connected with the carrying on of, a business carried
20                      on by any other member of the group, having regard
21                      to --
22                        (a) the nature and degree of ownership and control
23                              of the businesses; and
24                        (b) the nature of the businesses; and
25                        (c) any other matters the Commissioner considers
26                              relevant.
27




     page 48
                                     Pay-roll Tax Assessment Amendment Bill 2010
                         Pay-roll Tax Assessment Act 2002 amended         Part 2
                        Amendments relating to grouping of employers Division 3
                                                                            s. 26



 1   26.           Schedule 1 amended
 2                 After Schedule 1 clause 3 insert:
 3


 4                 Division 2 -- Provisions for the Pay-roll Tax Assessment
 5                Amendment Act 2010 in relation to grouping of employers
 6           4.          Exclusion, from a group, in force before 1 July 2012
 7                       If the Commissioner has excluded a person from a group
 8                       under section 31(4) or 32(3) (as in force before 1 July 2012)
 9                       and that exclusion was in force immediately before
10                       1 July 2012, that exclusion has effect, according to its terms,
11                       on and after 1 July 2012, as if it had been granted under
12                       Part 4 (as in force on and after 1 July 2012).

13           5.          Exclusion, from a group, granted on or after 1 July 2012
14                       An exclusion of a person from a group under Part 4 (as in
15                       force on and after 1 July 2012) cannot have effect before
16                       1 July 2012 despite section 38(5).

17           6.          Exclusion, from a group, having effect before
18                       1 July 2012
19                       The Commissioner may, on and after 1 July 2012, exclude a
20                       person from a group for a period that is before 1 July 2012
21                       but not on or after 1 July 2012, and may do so as if the
22                       Pay-roll Tax Assessment Amendment Act 2010 Part 2
23                       Division 3 had not come into operation.
24


25   27.           Glossary amended
26         (1)     In the Glossary clause 1 delete the definition of related
27                 corporation.
28         (2)     In the Glossary clause 1 insert in alphabetical order:
29
30                       related body corporate has the meaning given in section 9
31                       of the Corporations Act;
32


                                                                                   page 49
     Pay-roll Tax Assessment Amendment Bill 2010
     Part 3          Pay-roll Tax Assessment Regulations 2003 amended

     s. 28



 1      Part 3 -- Pay-roll Tax Assessment Regulations 2003
 2                          amended
 3   28.       Regulations amended
 4             This Part amends the Pay-roll Tax Assessment
 5             Regulations 2003.

 6   29.       Regulation 5 amended
 7             In regulation 5 delete "clause 2(1)(e) in the Glossary to" and
 8             insert:
 9

10             section 9AA(1)(c) of
11


12   30.       Regulation 12 amended
13             In regulation 12 delete "clause 6 in the Glossary to" and insert:
14

15             section 9BI of
16


17   31.       Regulation 14 amended
18             In regulation 14 delete "clause 6 in the Glossary to" and insert:
19

20             section 9BI of
21


22   32.       Regulations 16 to 18 deleted
23             Delete regulations 16, 17 and 18.

24   33.       Regulations 19 to 26 deleted
25             Delete regulations 19, 20, 21, 22, 23, 24, 25 and 26.



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                              Pay-roll Tax Assessment Amendment Bill 2010
           Pay-roll Tax Assessment Regulations 2003 amended        Part 3

                                                                        s. 34



 1   34.   Part 3 heading replaced
 2         Delete the heading to Part 3 and insert:
 3

 4                        Part 3 -- Allowances
 5


 6   35.   Regulations 28 and 29 deleted
 7         Delete regulations 28 and 29.

 8   36.   Regulation 30 amended
 9         In regulation 30 delete "The number" and insert:
10

11         For the purposes of section 9FA(2) of the Act, the number
12


13   37.   Regulation 31 deleted
14         Delete regulation 31.

15   38.   Part 3 Division 2 deleted
16         Delete Part 3 Division 2.

17   39.   Regulation 41 amended
18         In regulation 41(1) delete "If an amount contributed to a
19         superannuation scheme is taken by clause 8 in the Glossary to
20         the Act to be paid" and insert:
21
22               If a superannuation contribution to a superannuation
23               fund is taken by section 9CB of the Act to be wages
24               paid
25




                                                                   page 51
     Pay-roll Tax Assessment Amendment Bill 2010
     Part 3          Pay-roll Tax Assessment Regulations 2003 amended

     s. 40



 1   40.         Regulation 42 amended
 2         (1)   In regulation 42(1) delete "participant" and insert:
 3

 4               member of a fund
 5

 6         (2)   In regulation 42(2) delete "participants in a scheme" and insert:
 7

 8               members
 9

10         (3)   In regulation 42(3) delete "participant" and insert:
11

12               member
13

14         (4)   In regulation 42(4) delete "participants in a scheme" and insert:
15

16               members
17

18               Note: The heading to amended regulation 42 is to read:

19                     Categories of members

20   41.         Regulation 43 deleted
21               Delete regulation 43.

22   42.         Regulation 44 amended
23         (1)   In regulation 44(1):
24                 (a) delete "participant," and insert:
25

26                        member,
27




     page 52
                              Pay-roll Tax Assessment Amendment Bill 2010
           Pay-roll Tax Assessment Regulations 2003 amended        Part 3

                                                                       s. 42



 1           (b)   delete "participants," and insert:
 2

 3                 member,
 4

 5   (2)   In regulation 44(2):
 6           (a) delete "participant," and insert:
 7

 8                 member,
 9

10           (b)   delete "participants," and insert:
11

12                 member,
13

14   (3)   In regulation 44(3):
15           (a) delete "participant," and insert:
16

17                 member,
18

19           (b)   delete "participants," and insert:
20

21                 member,
22

23   (4)   In regulation 44(4)(b) delete "participant" and insert:
24

25         member
26




                                                                     page 53
     Pay-roll Tax Assessment Amendment Bill 2010
     Part 3          Pay-roll Tax Assessment Regulations 2003 amended

     s. 43



 1   43.         Regulation 46 amended
 2         (1)   In regulation 46(1):
 3                 (a) delete "an employer is required to keep --" and insert:
 4

 5                      the following are prescribed --
 6

 7                (b)   in paragraph (a) delete "subregulation (2); and" and
 8                      insert:
 9

10                      subregulation (2);
11

12                (c)   in paragraph (b) delete "benefits." and insert:
13

14                      benefits;
15

16                (d)   after paragraph (b) insert:
17

18                      (c)   other documents and records that the employer
19                            is required by this regulation to keep.
20

21         (2)   In regulation 46(2):
22                 (a) delete paragraph (c) and insert:
23

24                      (c)   the value of a share or option taken to be wages
25                            under section 9DA or 9DG;
26

27                (b)   delete paragraph (e) and insert:
28

29                      (e)   a motor vehicle allowance;
30




     page 54
                               Pay-roll Tax Assessment Amendment Bill 2010
            Pay-roll Tax Assessment Regulations 2003 amended        Part 3

                                                                          s. 43



 1            (c)    in paragraph (f) delete "allowance, if any part of the
 2                   allowance is exempt under regulation 39;" and insert:
 3

 4                   allowance;
 5

 6            (d)    delete paragraphs (g) and (h) and insert:
 7

 8                   (g)   an amount taken to be wages under
 9                         section 9CB of the Act.
10

11   (3)    After regulation 46(2) insert:
12

13         (3A)     An employer who claims an exemption under
14                  section 41A(2) of the Act must keep --
15                    (a) for wages paid or payable for maternity
16                          leave -- a medical certificate for the employee
17                          stating --
18                             (i) that the employee is or was pregnant; or
19                            (ii) that the employee has given birth and
20                                  the date of the birth;
21                          or
22                    (b) for wages paid or payable for parental leave --
23                          a statutory declaration by the employee
24                          stating --
25                             (i) that a female is or was pregnant with the
26                                  employee's unborn child; or
27                            (ii) that the employee's child has been born
28                                  and the date of the birth;
29                          or




                                                                       page 55
     Pay-roll Tax Assessment Amendment Bill 2010
     Part 3          Pay-roll Tax Assessment Regulations 2003 amended

     s. 44



 1                       (c)    for wages paid or payable for adoption leave --
 2                              a statutory declaration by the employee --
 3                                (i) that a child has been placed in the
 4                                      custody of the employee pending the
 5                                      making of an adoption order; or
 6                               (ii) that an adoption order has been made or
 7                                      recognised in favour of the employee
 8                                      and the date of the order or recognition.
 9

10         (4)   In regulation 46(3) delete "Western Australia" and insert:
11

12               WA
13


14   44.         Glossary amended
15         (1)   In the Glossary clause 1 delete the definitions of:
16               actual value method
17               adjustment period
18               contribution day
19               employee share acquisition scheme
20               estimated value method
21               FBT year
22               fringe benefits tax
23               grossed-up value
24               motor vehicle allowance
25               qualified valuer
26               recognised financial market
27               unlisted public unit trust
28               WA fringe benefits




     page 56
                                    Pay-roll Tax Assessment Amendment Bill 2010
                 Pay-roll Tax Assessment Regulations 2003 amended        Part 3

                                                                                s. 45



 1         (2)   In the Glossary clause 1 in the definition of redundancy benefits
 2               scheme delete "fund as defined in clause 1 in the Glossary to the
 3               Act)" and insert:
 4

 5               fund)
 6

 7         (3)   In the Glossary clause 1 in the definition of vehicle delete
 8               "vehicle;" and insert:
 9

10               vehicle.
11


12   45.         Power to amend or repeal regulations unaffected
13               This Part does not prevent the Pay-roll Tax Assessment
14               Regulations 2003 from being amended or repealed under the
15               Pay-roll Tax Assessment Act 2002.

16




 


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