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


PAY-ROLL TAX ASSESSMENT AMENDMENT (EXEMPTION FOR TRAINEES) BILL 2018

                        Western Australia


     Pay-roll Tax Assessment Amendment
      (Exemption for Trainees) Bill 2018

                            Contents

1.      Short title                                                   2
2.      Commencement                                                  2
3.      Act amended                                                   2
4.      Section 40 amended                                            2
5.      Section 41D inserted                                          2
        41D.       Exempt wages: apprentices and trainees
                   under training contracts                      2
6.      Schedule 1 Division 6 inserted                                6
        Division 6 -- Provisions for the Pay-roll Tax
               Assessment Amendment (Exemption for
               Trainees) Act 2018
        15.       Terms used                                     6
        16.       Modification of s. 41D for existing training
                  contracts                                      6
        17.       Reassessment                                   6




                               64--1                                  page i
                           Western Australia


                     LEGISLATIVE ASSEMBLY


        Pay-roll Tax Assessment Amendment
         (Exemption for Trainees) Bill 2018

                               A Bill for


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



The Parliament of Western Australia enacts as follows:




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     Pay-roll Tax Assessment Amendment (Exemption for Trainees) Bill 2018



     s. 1




1    1.       Short title
2             This is the Pay-roll Tax Assessment Amendment (Exemption for
3             Trainees) Act 2018.

4    2.       Commencement
5             This Act comes into operation as follows --
6              (a) sections 1 and 2 come into operation on the day on
7                    which this Act receives the Royal Assent;
8              (b) the rest of the Act is deemed to have come into
9                    operation on 1 December 2017.

10   3.       Act amended
11            This Act amends the Pay-roll Tax Assessment Act 2002.

12   4.       Section 40 amended
13            Delete section 40(2)(m) and (o).

14   5.       Section 41D inserted
15            At the end of Part 5 insert:
16


17          41D.    Exempt wages: apprentices and trainees under
18                  training contracts
19            (1)   In this section --
20                  apprentice has the meaning given in the VET Act
21                  section 60A;
22                  class A or class B qualification means a prescribed
23                  VET qualification (as defined in the VET Act
24                  section 5(1)) that is classified as a class A qualification
25                  or class B qualification under the VET Act
26                  section 60C;



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     Pay-roll Tax Assessment Amendment (Exemption for Trainees) Bill 2018



                                                                           s. 5



1                initial employer, in relation to an employee and a
2                training contract, means the employer who enters into
3                the contract with the employee and does not include
4                another employer to whom the contract is assigned;
5                group member, in relation to an employer, means
6                another employer in a group of which the employer is a
7                member;
8                nominal period, in relation to a training contract,
9                means the nominal period or nominal term (however
10               described) that applies under a requirement for the
11               training contract imposed under the VET Act
12               section 60C(5);
13               registered training contract means a training contract
14               that has been registered under the VET Act
15               section 60F;
16               training contract has the meaning given in the VET
17               Act section 60A;
18               VET Act means the Vocational Education and
19               Training Act 1996.
20         (2)   Wages paid or payable by an employer to or in relation
21               to an employee are exempt from pay-roll tax if the
22               wages are paid or payable for a period during which
23               the employee is an apprentice under a registered
24               training contract that --
25                 (a) is for a class A or class B qualification; and
26                 (b) in accordance with a requirement imposed
27                       under the VET Act section 60C(5), refers to the
28                       apprentice under the training contract as an
29                       "apprentice".




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     Pay-roll Tax Assessment Amendment (Exemption for Trainees) Bill 2018



     s. 5



1             (3)   Wages paid or payable by an employer to or in relation
2                   to an employee are exempt from pay-roll tax if --
3                     (a) the wages are paid or payable for a period
4                           during which the employee is an apprentice
5                           under a registered training contract that --
6                              (i) is for a class A or class B qualification;
7                                  and
8                             (ii) in accordance with a requirement
9                                  imposed under the VET Act
10                                 section 60C(5), refers to the apprentice
11                                 under the training contract as a
12                                 "trainee"; and
13                           (iii) has not been in effect for longer than the
14                                 nominal period for the training contract;
15                          and
16                    (b) the employee is an eligible new employee
17                          under subsection (4); and
18                    (c) on the day on which the training contract was
19                          lodged for registration under the VET Act
20                          section 60F(2) --
21                             (i) there had not been any previous
22                                 registered training contract between the
23                                 employee and the initial employer or a
24                                 group member of the initial employer;
25                                 and
26                            (ii) the employee's pay entitlement did not
27                                 exceed the threshold amount worked out
28                                 under subsection (5).
29            (4)   For the purposes of subsection (3)(b), the employee is
30                  an eligible new employee unless, immediately
31                  preceding the commencement date stated in the
32                  training contract, the employee had been continuously
33                  employed by the initial employer or by the initial


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     Pay-roll Tax Assessment Amendment (Exemption for Trainees) Bill 2018



                                                                           s. 5



1                employer and one or more group members of the initial
2                employer --
3                 (a) in full-time employment for more than
4                      3 months; or
5                 (b) in part-time or casual employment (or a
6                      combination of both) for more than 12 months;
7                      or
8                 (c) in a combination of full-time employment and
9                      part-time or casual employment (or both) for a
10                     period that is more than the equivalent of
11                     3 months of full-time employment, worked out
12                     on the basis that 4 months of part-time or casual
13                     employment are taken to be equivalent to
14                     1 month of full-time employment.
15         (5)   For the purposes of subsection (3)(c)(ii), the
16               employee's pay entitlement exceeds the threshold
17               amount if, under the terms and conditions that apply to
18               the employee's employment, the employee is entitled
19               to a rate of pay for ordinary hours of work that,
20               expressed in annualised terms, would exceed $100 000
21               per annum for a full-time employee or a pro rata
22               amount for a part-time employee.
23         (6)   If a training contract is suspended under the VET
24               Act --
25                 (a) an exemption under subsection (2) or (3) does
26                        not apply to wages paid or payable to or in
27                        relation to the employee for the period of the
28                        suspension; and
29                 (b) the period of the suspension is not to be taken
30                        into account in determining the period for
31                        which the training contract has been in effect
32                        for the purposes of subsection (3)(a)(iii).
33




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     Pay-roll Tax Assessment Amendment (Exemption for Trainees) Bill 2018



     s. 6



1    6.           Schedule 1 Division 6 inserted
2                 At the end of Schedule 1 insert:
3


4             Division 6 -- Provisions for the Pay-roll Tax Assessment
5                  Amendment (Exemption for Trainees) Act 2018

6           15.        Terms used
7                      In this Division --
8                      apprentice has the meaning given in the Vocational
9                      Education and Training Act 1996 section 60A;
10                     commencement day means 1 December 2017, being the day
11                     on which the Pay-roll Tax Assessment Amendment
12                     (Exemption for Trainees) Act 2018 section 6 is deemed,
13                     under section 2(b) of that Act, to have come into operation;
14                     existing training contract means a training contract that was
15                     lodged for registration under the Vocational Education and
16                     Training Act 1996 section 60F(2) before commencement
17                     day.

18          16.        Modification of s. 41D for existing training contracts
19                     Section 41D applies in relation to an employee who is an
20                     apprentice under an existing training contract as if
21                     section 41D(3)(b) and (c)(i) were omitted.

22          17.        Reassessment
23                     Subject to the Taxation Administration Act 2003 section 17,
24                     the Commissioner must make any reassessment necessary as
25                     a result of the amendments made by the Pay-roll Tax
26                     Assessment Amendment (Exemption for Trainees) Act 2018
27                     coming into operation on commencement day.
28


29




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