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This is a Bill, not an Act. For current law, see the Acts databases.
Western Australia
Pay-roll Tax Assessment Bill 2001
CONTENTS
Part 1 -- Preliminary
1. Short title 2
2. Commencement 2
3. Relationship with other Acts 2
4. Meaning of terms used in this Act 2
Part 2 -- Liability and assessment
Division 1 -- Liability to pay-roll tax
5. Pay-roll tax on wages 3
6. Time for payment of pay-roll tax 3
7. Liability to pay-roll tax 3
8. The tax threshold 4
9. Determinations of reduced monthly rates 4
Division 2 -- Non-group employers' liability
10. Annual tax liability -- local non-group employers 5
11. Tax payable with returns -- local non-group
employers 6
12. Allowable deductions -- local non-group employers 6
13. Annual tax liability -- interstate non-group employers 7
14. Allowable deductions -- interstate non-group
employers 8
15. Tax payable with monthly returns -- interstate
non-group employers 9
16. Annual reconciliation -- non-group employers 10
Division 3 -- Group employers' liability
17. Annual tax liability -- groups 11
18. Allowable deductions -- groups 12
page i
80--1
Pay-roll Tax Assessment Bill 2001
Contents
19. Tax payable with monthly returns -- groups 13
20. Annual reconciliation -- groups 15
Division 4 -- Assessment generally
21. Tax-reducing arrangements 15
22. Adjustments for changes in annual threshold amount 16
23. Taxable wages not paid throughout assessment year 16
Part 3 -- Registration and returns
24. Applications for registration as an employer 18
25. Registration and cancellation of registration 18
26. Monthly returns 19
27. Additional returns for reconciliation purposes 19
28. Further returns 20
29. Exemptions from lodging monthly returns 20
Part 4 -- Constitution of business
groups
30. Grouping corporations 22
31. Grouping where employees used in another business 22
32. Grouping commonly controlled businesses 23
33. Controlling interest in business 24
34. Value of beneficial interest in discretionary trusts 25
35. Grouping head and branch businesses 26
36. Smaller groups subsumed into larger groups 26
37. Grouping provisions operate independently 27
38. Exclusion from groups 27
39. Designated group employer 28
Part 5 -- Miscellaneous
40. Exempt wages 30
41. Exempting charitable bodies or organisations 33
42. Tax payable when employer leaves Australia 33
43. Agents and trustees 34
44. Keeping books and accounts 35
45. Regulations 36
Glossary
1. Definitions 38
2. Wages -- meaning 45
page ii
Pay-roll Tax Assessment Bill 2001
Contents
3. GST excluded from wages 46
4. Place of payment of wages 46
5. Provider of fringe benefits or specified taxable
benefits 47
6. Value of wages paid in kind and other benefits 47
7. The value of fringe benefits 48
8. Superannuation benefits 49
9. Superannuation fund contributions 49
10. Contributions to defined superannuation benefit
schemes 50
11. Unfunded credit to certain unregulated schemes 50
12. Superannuation guarantee charge 51
page iii
Western Australia
LEGISLATIVE ASSEMBLY
Pay-roll Tax Assessment Bill 2001
A Bill for
An Act relating to the assessment and collection of tax on wages paid
by employers.
The Parliament of Western Australia enacts as follows:
page 1
Pay-roll Tax Assessment Bill 2001
Part 1 Preliminary
s. 1
Part 1 -- Preliminary
1. Short title
This Act may be cited as the Pay-roll Tax Assessment Act 2001.
2. Commencement
5 This Act comes into operation on the day on which the Taxation
Administration Act 2001 comes into operation.
3. Relationship with other Acts
The Taxation Administration Act 2001 and the Pay-roll Tax
Act 2001 are to be read with this Act as if they formed a single
10 Act.
4. Meaning of terms used in this Act
The Glossaries at the end of this Act and the Taxation
Administration Act 2001 respectively define or affect the
meaning of some of the words and expressions used in this Act,
15 and also affect the operation of other provisions.
page 2
Pay-roll Tax Assessment Bill 2001
Liability and assessment Part 2
Liability to pay-roll tax Division 1
s. 5
Part 2 -- Liability and assessment
Division 1 -- Liability to pay-roll tax
5. Pay-roll tax on wages
(1) Pay-roll tax is payable, in accordance with the pay-roll tax Acts,
5 on wages that are taxable in Western Australia under
subsection (2) except wages that are exempt under section 40.
(2) The following kinds of wages are taxable in Western
Australia --
(a) wages that are paid or payable for services carried out
10 wholly in Western Australia, irrespective of where the
wages are paid or payable;
(b) wages that are paid or payable in Western Australia,
except where they are for services carried out wholly in
one other State.
15 6. Time for payment of pay-roll tax
Pay-roll tax is due for payment on the last day for lodging the
return of the wages on which the pay-roll tax is payable.
7. Liability to pay-roll tax
(1) An employer who pays or is liable to pay WA taxable wages is
20 liable to pay any pay-roll tax payable on the wages.
(2) Pay-roll tax payable on wages by a member or members of a
group is a debt due jointly and severally by each person who is a
member of the group during the period in which the wages
become payable.
25 (3) A liability arising under subsection (2) does not affect the
liability of an employer under subsection (1).
page 3
Pay-roll Tax Assessment Bill 2001
Part 2 Liability and assessment
Division 1 Liability to pay-roll tax
s. 8
(4) A person who is liable to pay pay-roll tax is also liable to pay
any penalties, interest or other amounts payable under a pay-roll
tax Act in connection with the pay-roll tax.
8. The tax threshold
5 (1) The annual threshold amount for a financial year beginning on
or after 1 July 2002 is $675 000.
(2) The monthly threshold amount for a financial year beginning on
or after 1 July 2002 is $56 250.
9. Determinations of reduced monthly rates
10 (1) An interstate non-group employer or the DGE of a group may
apply to the Commissioner to determine that the monthly rate of
pay-roll tax payable by the employer or the members of the
group for an assessment year is the rate determined under
section 9(b) or 11(b) of the Pay-roll Tax Act 2001.
15 (2) An application must --
(a) be in the approved form;
(b) include estimates of the total interstate taxable wages
and WA taxable wages that the employer or the
members of the group expects or expect to pay
20 throughout Australia during the assessment year; and
(c) be accompanied by any other relevant information
required by the Commissioner.
(3) The Commissioner may make the determination if satisfied, on
the basis of the estimates and other information, that it is
25 appropriate to do so.
(4) The Commissioner may at any time revoke or vary a
determination.
page 4
Pay-roll Tax Assessment Bill 2001
Liability and assessment Part 2
Non-group employers' liability Division 2
s. 10
(5) If the Commissioner makes, revokes or varies a determination,
the Commissioner is to inform the employer or the DGE of the
group accordingly, giving particulars of the determination,
revocation or variation, and the date on which it takes effect.
5 Division 2 -- Non-group employers' liability
10. Annual tax liability -- local non-group employers
(1) If an employer is a local non-group employer for the whole of
an assessment year, the amount of pay-roll tax payable by the
employer for the assessment year is the amount calculated by
10 applying the appropriate rate of pay-roll tax to the amount equal
to the difference between --
(a) the total amount of WA taxable wages paid or payable
by the employer during the assessment year; and
(b) the allowable deduction for the employer for the
15 assessment year calculated in accordance with
section 12(1).
(2) If an employer is a local non-group employer for only part of an
assessment year, the amount of pay-roll tax payable by the
employer for that part of the assessment year is the amount
20 calculated by applying the appropriate rate of pay-roll tax to the
amount equal to the difference between --
(a) the total amount of WA taxable wages paid or payable
by the employer during that part of the assessment year;
and
25 (b) the allowable deduction for the employer for that part of
the assessment year calculated in accordance with
section 12(2).
page 5
Pay-roll Tax Assessment Bill 2001
Part 2 Liability and assessment
Division 2 Non-group employers' liability
s. 11
11. Tax payable with returns -- local non-group employers
The amount of pay-roll tax payable by a local non-group
employer for a monthly return period or for part of a month is
the amount calculated by applying the appropriate rate of
5 pay-roll tax to the amount equal to the difference between --
(a) the total amount of WA taxable wages paid or payable
by the employer during the month or part of the month;
and
(b) the allowable deduction for the employer for the month,
10 or part of the month, worked out in accordance with
section 12(3).
12. Allowable deductions -- local non-group employers
(1) For the purposes of section 10(1)(b), the allowable deduction
for the employer for the assessment year is A in the formula --
W-T
15 A = T - 
ï£- 3 
where --
T is the annual threshold amount for the assessment year;
W is the total amount of WA taxable wages paid or payable
by the employer during the assessment year.
20 (2) For the purposes of section 10(2)(b), the allowable deduction
for the employer for that part of the assessment year is A in the
formula --
  T× P 
 W− 
 T× P  ï£- Y  
A=  −
ï£- Y   3 
 
 
page 6
Pay-roll Tax Assessment Bill 2001
Liability and assessment Part 2
Non-group employers' liability Division 2
s. 13
where --
P is the number of days in that part of the assessment year;
T is the annual threshold amount for the assessment year;
W is the total amount of WA taxable wages paid or payable
5 by the employer during that part of the assessment year;
Y is the number of days in the assessment year.
(3) For the purposes of section 11(b), the allowable deduction for the
employer for the month, or part of the month, is A in the
formula --
  S× D 
 W - 
 S× D   ï£- M  
10 A= −
ï£- M   3 
 
 
where --
D is the number of days in the month, or part of the month,
during which WA taxable wages were paid or payable
by the employer;
15 M is the number of days in the month;
S is the monthly threshold amount for the assessment year;
W is the total amount of WA taxable wages paid or payable
by the employer during the month or part of the month.
13. Annual tax liability -- interstate non-group employers
20 (1) If an employer is an interstate non-group employer for the
whole of an assessment year, the amount of pay-roll tax payable
by the employer for the assessment year is the amount
calculated by applying the appropriate rate of pay-roll tax to the
amount equal to the difference between --
25 (a) the total amount of WA taxable wages paid or payable
by the employer during the assessment year; and
page 7
Pay-roll Tax Assessment Bill 2001
Part 2 Liability and assessment
Division 2 Non-group employers' liability
s. 14
(b) the allowable deduction for the employer for the
assessment year calculated in accordance with
section 14(1).
(2) If an employer is an interstate non-group employer for only part
5 of an assessment year, the amount of pay-roll tax payable by the
employer for that part of the assessment year is the amount
calculated by applying the appropriate rate of pay-roll tax to the
amount equal to the difference between --
(a) the total amount of WA taxable wages paid or payable
10 by the employer during that part of the assessment year;
and
(b) the allowable deduction for the employer for that part of
the assessment year calculated in accordance with
section 14(2).
15 14. Allowable deductions -- interstate non-group employers
(1) For the purposes of section 13(1)(b), the allowable deduction
for the employer for the assessment year is A in the formula --
 W    W + I - T 
A =   × T -  
ï£-W+I   ï£- 3 
where --
20 I is the total amount of interstate taxable wages paid or
payable by the employer during the assessment year;
T is the annual threshold amount for the assessment year;
W is the total amount of WA taxable wages paid or payable
by the employer during the assessment year.
page 8
Pay-roll Tax Assessment Bill 2001
Liability and assessment Part 2
Non-group employers' liability Division 2
s. 15
(2) For the purposes of section 13(2)(b), the allowable deduction
for the employer for that part of the assessment year is A in the
formula --
  
  (W + I) −  T × P   
 W   T × P   ï£- Y  
A=  ×  − 
ï£- W + I  ï£- Y   3 
  
 
5 where --
I is the total amount of interstate taxable wages paid or
payable by the employer during that part of the
assessment year;
P is the number of days in that part of the assessment year;
10 T is the annual threshold amount for the assessment year;
W is the total amount of WA taxable wages paid or payable
by the employer during that part of the assessment year;
Y is the number of days in the assessment year.
15. Tax payable with monthly returns -- interstate non-group
15 employers
(1) The amount of pay-roll tax payable by an interstate non-group
employer for a month is the amount calculated by applying the
appropriate rate of pay-roll tax to the amount equal to the
difference between --
20 (a) the total amount of WA taxable wages paid or payable
by the employer during the month; and
(b) the amount of the employer's nominated deduction
under subsection (2) or (4).
page 9
Pay-roll Tax Assessment Bill 2001
Part 2 Liability and assessment
Division 2 Non-group employers' liability
s. 16
(2) The employer may nominate an amount, or ask the
Commissioner to nominate an amount, as the employer's
nominated deduction for a return period.
(3) The employer must include with the nomination or request for
5 nomination particulars of the estimates on which the nomination
is or is to be made.
(4) The Commissioner may accept the amount nominated by an
employer, or nominate another amount instead, or nominate an
amount on his or her initiative, as the employer's nominated
10 deduction for the return period.
(5) The nominated amount is to be calculated on the basis of
estimates of the amounts of WA taxable wages and interstate
taxable wages likely to be paid or payable by the employer
during the assessment year or part-year.
15 (6) The Commissioner must notify the employer as soon as
practicable of the nomination of an amount or the cancellation
of a nomination.
(7) If there is no nominated amount for an employer, the nominated
deduction for the employer is taken to be nil.
20 (8) A nomination remains in force for each subsequent return
period in the assessment year unless it is cancelled.
(9) The Commissioner may cancel a nomination at any time.
16. Annual reconciliation -- non-group employers
(1) If the sum of the amounts of pay-roll tax paid or payable by a
25 non-group employer under section 11 or 15 for the return
periods in an assessment year is greater than the amount of
pay-roll tax payable by the employer for the year under
section 10 or 13, the employer is entitled to a refund or rebate of
the difference.
page 10
Pay-roll Tax Assessment Bill 2001
Liability and assessment Part 2
Group employers' liability Division 3
s. 17
(2) If the sum of the amounts of pay-roll tax paid or payable by a
non-group employer under section 11 or 15 for the return
periods in an assessment year is less than the amount of pay-roll
tax payable by the employer for the year under section 10 or 13,
5 the employer must pay the difference.
(3) Subject to section 17(4) of the Taxation Administration
Act 2001, the Commissioner must make any reassessment
necessary to give effect to this section.
Division 3 -- Group employers' liability
10 17. Annual tax liability -- groups
(1) The amount of pay-roll tax payable by a group for an
assessment year is to be worked out in accordance with
subsection (2) if at all times during the assessment year there is
at least one member of the group who pays or is liable to pay
15 WA taxable wages or interstate taxable wages as a group
member, whether or not any member of the group pays or is
liable to pay WA taxable wages or interstate taxable wages as a
group member throughout the whole assessment year.
(2) The amount of pay-roll tax payable by the group for the
20 assessment year is the amount calculated by applying the
appropriate rate of pay-roll tax to the amount equal to the
difference between --
(a) the total amount of WA taxable wages paid or payable
by the group members during the assessment year; and
25 (b) the allowable deduction for the group for the assessment
year calculated in accordance with section 18(1).
(3) The amount of pay-roll tax payable by a group for an assessment
year is to be worked out in accordance with subsection (4) if --
(a) during part only of the assessment year there is at least
30 one member of the group who pays or is liable to pay
page 11
Pay-roll Tax Assessment Bill 2001
Part 2 Liability and assessment
Division 3 Group employers' liability
s. 18
WA taxable wages or interstate taxable wages as a
group member, whether or not that member or any other
member of the group pays or is liable to pay WA taxable
wages or interstate taxable wages as a group member
5 throughout that part of the assessment year; and
(b) during the remainder of the assessment year there is no
member of the group who pays or is liable to pay WA
taxable wages or interstate taxable wages as a group
member.
10 (4) The amount of pay-roll tax payable by the group for the
assessment year is the amount calculated by applying the
appropriate rate of pay-roll tax to the amount equal to the
difference between --
(a) the total amount of WA taxable wages paid or payable
15 by the group members during that part of the assessment
year; and
(b) the allowable deduction for the group for that part of the
assessment year calculated in accordance with
section 18(2).
20 18. Allowable deductions -- groups
(1) For the purposes of section 17(2)(b), the allowable deduction
for the group for the assessment year is A in the formula --
 W    W + I − T 
A=  × T −  
ï£-W+I  ï£- 3 
where --
25 I is the total amount of interstate taxable wages paid or
payable by the group members during the assessment
year;
T is the annual threshold amount for the assessment year;
page 12
Pay-roll Tax Assessment Bill 2001
Liability and assessment Part 2
Group employers' liability Division 3
s. 19
W is the total amount of WA taxable wages paid or payable
by the group members during the assessment year.
(2) For the purposes of section 17(4)(b), the allowable deduction
for the group for that part of the assessment year is A in the
5 formula --
  
  (W + I) −  T × P  
 W   T × P   ï£- Y  
A =  ×  − 
ï£- W + I  ï£- Y   3 
  
 
where --
I is the total amount of interstate taxable wages paid or
payable by the group members during that part of the
10 assessment year;
P is the number of days in that part of the assessment year;
T is the annual threshold amount for the assessment year;
W is the total amount of WA taxable wages paid or payable
by the group members during that part of the assessment
15 year;
Y is the number of days in the assessment year.
19. Tax payable with monthly returns -- groups
(1) The amount of pay-roll tax payable for a monthly return period
by any member of a group except the DGE is the amount
20 calculated by applying the appropriate rate of pay-roll tax to the
amount equal to the total amount of WA taxable wages paid or
payable by the member for the return period.
page 13
Pay-roll Tax Assessment Bill 2001
Part 2 Liability and assessment
Division 3 Group employers' liability
s. 19
(2) The amount of pay-roll tax payable for a monthly return period
by the DGE of a group is the amount calculated by applying the
appropriate rate of pay-roll tax to the difference between --
(a) the amount equal to the total amount of WA taxable
5 wages paid or payable by the DGE for the return period;
and
(b) the amount of the group's nominated deduction under
subsection (3) or (5).
(3) The DGE may nominate an amount, or ask the Commissioner to
10 nominate an amount, as the group's nominated deduction for a
return period.
(4) The DGE must include with the nomination or request for
nomination particulars of the estimates on which the nomination
is or is to be made.
15 (5) The Commissioner may accept the amount nominated by the
DGE, or nominate another amount instead, or nominate an
amount on his or her initiative, as the group's nominated
deduction.
(6) The nominated amount is to be calculated on the basis of
20 estimates of the WA taxable wages and the interstate taxable
wages likely to be paid or payable by the group during the
assessment year.
(7) The Commissioner must notify the DGE as soon as practicable
of the nomination of an amount or the cancellation of a
25 nomination.
(8) If there is no nominated amount, the nominated deduction is
taken to be nil.
(9) The Commissioner may cancel a nomination at any time.
page 14
Pay-roll Tax Assessment Bill 2001
Liability and assessment Part 2
Assessment generally Division 4
s. 20
20. Annual reconciliation -- groups
(1) If the sum of the amounts of pay-roll tax paid or payable by the
members of a group under section 19 for the return periods in an
assessment year is greater than the amount of pay-roll tax
5 payable by the group for the year under section 17, the group is
entitled to a refund or rebate of the difference.
(2) If the sum of the amounts of pay-roll tax paid or payable by the
members of a group under section 19 for the return periods in an
assessment year is less than the amount of pay-roll tax payable
10 by the group for the year under section 17, the group members
must pay the difference.
(3) Subject to section 17(4) of the Taxation Administration
Act 2001, the Commissioner must make any reassessment
necessary to give effect to this section.
15 Division 4 -- Assessment generally
21. Tax-reducing arrangements
(1) If a person is a party to a tax-reducing arrangement, the
Commissioner may --
(a) disregard the arrangement;
20 (b) determine that any party to the arrangement is an
employer for the purposes of this Act; and
(c) determine that any payment made under the
arrangement is wages for the purposes of this Act.
(2) If the Commissioner makes a determination, he or she must --
25 (a) serve a notice to that effect on the person; and
(b) set out in the notice the grounds on which the
Commissioner relies and his or her reasons for making
the determination.
page 15
Pay-roll Tax Assessment Bill 2001
Part 2 Liability and assessment
Division 4 Assessment generally
s. 22
22. Adjustments for changes in annual threshold amount
(1) If the Commissioner is satisfied that the total amount of pay-roll
tax paid or payable by a non-group employer or a group for an
assessment year exceeds by more than $10 the total amount of
5 pay-roll tax that would have been paid or payable for the year if
the annual threshold amount had not been amended with respect
to that year, the employer or group is eligible for a refund or
rebate of the amount by which the first-mentioned total amount
exceeds the second-mentioned total amount.
10 (2) The non-group employer or the group's DGE may apply to the
Commissioner for the rebate or refund.
(3) An application may be made in the approved form before the
end of the following financial year.
(4) The Commissioner must reassess the amount of pay-roll tax
15 payable by the employer or the group for the year on receiving
an application, and may do so on his or her initiative.
23. Taxable wages not paid throughout assessment year
(1) This section applies to a non-group employer if --
(a) the employer pays or is liable to pay WA taxable wages
20 or interstate taxable wages for part only of an
assessment year; and
(b) the Commissioner is satisfied that, because of the nature
of the employer's trade or business, the employer's
liability to pay WA taxable wages or interstate taxable
25 wages fluctuates with different periods of the
assessment year.
(2) If the employer has conducted the trade or business in Australia
during the whole of the assessment year --
(a) the appropriate rate of pay-roll tax payable by the
30 employer is the rate that would have been payable if the
page 16
Pay-roll Tax Assessment Bill 2001
Liability and assessment Part 2
Assessment generally Division 4
s. 23
employer had paid or was liable to pay WA taxable
wages or interstate taxable wages throughout the
assessment year; and
(b) the employer's liability to pay pay-roll tax is assessed as
5 if the employer had been an employer throughout the
assessment year.
(3) If the employer has conducted the trade or business in Australia
during part only of the assessment year --
(a) the appropriate rate of pay-roll tax payable by the
10 employer is the rate that would have been payable if the
employer had paid or was liable to pay WA taxable
wages or interstate taxable wages during that part of the
assessment year; and
(b) the employer's liability to pay pay-roll tax is assessed as
15 if the employer had been an employer only during that
part of the assessment year.
page 17
Pay-roll Tax Assessment Bill 2001
Part 3 Registration and returns
s. 24
Part 3 -- Registration and returns
24. Applications for registration as an employer
(1) A non-group employer who is not registered must apply to the
Commissioner for registration if --
5 (a) the employer pays or is liable to pay any WA taxable
wages during a month; and
(b) the total amount of the WA taxable wages and any
interstate taxable wages that the employer pays or is
liable to pay during the month exceeds the monthly
10 threshold amount.
Penalty: $20 000.
(2) A group member who is not registered must apply for
registration if the member pays or is liable to pay any WA
taxable wages during a month.
15 Penalty: $20 000.
(3) A non-group employer whose registration is cancelled in an
assessment year but who in any later month of the year pays or
is liable to pay WA taxable wages may apply for registration
even if the amount of wages paid or payable by the employer
20 during the month is less than the monthly threshold amount.
(4) An application must be made in the approved form.
(5) An application under subsection (1) or (2) must be made to the
Commissioner within 7 days after the end of the month.
25. Registration and cancellation of registration
25 (1) On receiving an application under section 24, the Commissioner
must register the applicant as an employer for the purposes of
this Act if it appears to the Commissioner that the employer is,
or is likely to become, liable to pay pay-roll tax.
page 18
Pay-roll Tax Assessment Bill 2001
Registration and returns Part 3
s. 26
(2) The Commissioner may cancel the registration of a person as an
employer if --
(a) the person has ceased to be an employer paying wages
as mentioned in section 24(1); or
5 (b) the person --
(i) ceases to be a member of a group; and
(ii) does not pay and is not liable to pay wages as
mentioned in section 24(1).
26. Monthly returns
10 (1) An employer who is registered or required to apply for
registration under section 24 must lodge a return for each month
specifying the amount of the WA taxable wages paid or payable
by the employer during the month, unless the employer is
exempted under section 29.
15 (2) A monthly return must --
(a) be in the approved form; and
(b) be lodged within 7 days after the end of the month, or
within any other period that the Commissioner directs in
a particular case.
20 Penalty: $5 000.
27. Additional returns for reconciliation purposes
(1) If a determination is in force under section 9 for an employer or
the members of a group for an assessment year, then, in addition
to lodging monthly returns for the assessment year, the
25 employer or the DGE of the group must lodge an additional
return for the assessment year specifying the amount of
interstate taxable wages paid or payable by the employer, or by
each member of the group, for the whole assessment year.
page 19
Pay-roll Tax Assessment Bill 2001
Part 3 Registration and returns
s. 28
(2) The additional return must --
(a) be in the approved form;
(b) contain any information required by the Commissioner;
and
5 (c) be lodged within 2 months after the end of the
assessment year or within any further time allowed by
the Commissioner.
Penalty: $5 000.
28. Further returns
10 (1) The Commissioner may, by notice to a person (whether as
principal or as an agent or trustee and whether or not the person
is an employer) require the person to lodge a return or a further
or fuller return.
(2) The person must lodge the return in accordance with any
15 requirements set out in the notice and within the time specified
in the notice.
Penalty: $5 000.
29. Exemptions from lodging monthly returns
(1) An employer may apply to the Commissioner for exemption
20 from the requirement to lodge monthly returns for an
assessment year.
(2) The Commissioner may exempt an employer from the
requirement to lodge monthly returns if --
(a) the Commissioner is satisfied that the requirement is
25 unduly onerous in the circumstances; or
(b) the Commissioner is of the opinion that pay-roll tax will
not be payable by the employer, or, if paid, would be
refunded.
page 20
Pay-roll Tax Assessment Bill 2001
Registration and returns Part 3
s. 29
(3) The Commissioner may give an exemption on receiving an
application or on his or her initiative.
(4) An exemption is subject to the prescribed conditions (if any)
and to the conditions specified in the notice (if any).
5 (5) An exemption continues in force until it is revoked.
(6) The Commissioner may revoke an exemption at any time by
giving the employer notice of the revocation.
(7) Granting an exemption does not exempt the employer from any
liability to pay-roll tax, even if it has the effect of postponing
10 the time for payment of the pay-roll tax.
(8) A person who is exempted from lodging monthly returns for an
assessment year must --
(a) lodge an annual return within 21 days after the end of
the assessment year, unless the notice of exemption
15 otherwise provides; or
(b) if the notice otherwise provides -- lodge returns as
required by the notice.
Penalty: $5 000.
(9) An annual return must --
20 (a) be in the approved form; and
(b) specify the WA taxable wages and the interstate taxable
wages that the employer paid or became liable to pay
during the assessment year.
Penalty: $5 000.
page 21
Pay-roll Tax Assessment Bill 2001
Part 4 Constitution of business groups
s. 30
Part 4 -- Constitution of business groups
30. Grouping corporations
For the purposes of a pay-roll tax Act, 2 corporations constitute
a group if they are related to each other within the meaning of
5 section 50 of the Corporations Act.
31. Grouping where employees used in another business
(1) An employer and another person or other persons constitute a
group if one or more of the employer's employees carries out
duties solely or mainly for or in connection with a business
10 carried on by the employer and the other person or persons, or
carried on by the other person or persons.
(2) An employer and another person or other persons constitute a
group if --
(a) the employer has an agreement, arrangement or
15 undertaking with that person or those persons in relation
to a business carried on by the person or persons,
whether alone or together with another person or other
persons; and
(b) the agreement, arrangement or undertaking relates to the
20 employment of, or the performance of duties by, one or
more of the employer's employees.
(3) Subsection (2) applies in relation to an agreement, arrangement
or undertaking whether it is formal or informal, whether it is
express or implied and whether or not it includes provisions in
25 respect of the supply of goods or services or goods and services.
(4) The Commissioner may exclude a person from a group in
accordance with section 38 if the Commissioner is satisfied,
having regard to the nature and degree of the duties referred to
in subsection (1) or (2) and to any other matters that he or she
page 22
Pay-roll Tax Assessment Bill 2001
Constitution of business groups Part 4
s. 32
considers relevant, that it would not be just and reasonable to
include the person as a member of a group.
32. Grouping commonly controlled businesses
(1) A reference in this section to 2 businesses does not include a
5 reference to 2 businesses that are owned by the same person
(otherwise than as a trustee) or by the trustee or trustees of a
trust.
(2) If the same person has, or the same persons have together, a
controlling interest in each of 2 businesses, the persons who
10 carry on those businesses constitute a group.
(3) If a member of a group is included in the group because of
carrying on a business in which a person has, or persons have
together, a controlling interest under section 33(4) or (9) as the
beneficiary or beneficiaries under a discretionary trust, the
15 Commissioner may exclude the group member from the group
in accordance with section 38 if the Commissioner is satisfied,
after taking into account the matters referred to in
subsection (4), that --
(a) the group member's business is carried on substantially
20 independently of the business carried on by any other
member of the group; and
(b) it is just and reasonable to exclude the group member
from the group.
(4) The matters to be taken into account are --
25 (a) the nature and degree of ownership and control of the
businesses;
(b) the nature of the businesses; and
(c) any other matter that the Commissioner considers
relevant.
page 23
Pay-roll Tax Assessment Bill 2001
Part 4 Constitution of business groups
s. 33
33. Controlling interest in business
(1) A person has, or persons have together, a controlling interest in
a business carried on by a corporation if the directors of the
corporation, or a majority of them, or one or more of them --
5 (a) are or is entitled to exercise a majority in voting power
at meetings of the directors; and
(b) are or is accustomed or under an obligation, whether
formal or informal, to act in accordance with the
directions, instructions or wishes of the person, or of
10 those persons acting together.
(2) A person has, or persons have together, a controlling interest in
a business carried on by a corporation that has a share capital if
the person, or those persons acting together, may (whether
directly or indirectly) exercise, control the exercise of or
15 substantially influence the exercise of, more than 50% of the
voting power attached to voting shares issued by the
corporation.
(3) A person has, or persons have together, a controlling interest in
a business carried on by a partnership, if the person or
20 persons --
(a) owns, or own together (whether beneficially or not)
more than 50% of the capital of the partnership; or
(b) is, or are together, entitled (whether beneficially or not)
to more than 50% of any profits of the partnership.
25 (4) A beneficiary under a trust has, or beneficiaries under a trust
together have, (whether or not as the trustee or trustees of
another trust) a controlling interest in a business carried on by
the trust if the beneficiary has, or the beneficiaries together
have, a beneficial interest in respect of more than 50% of the
30 value of the interests in the trust.
page 24
Pay-roll Tax Assessment Bill 2001
Constitution of business groups Part 4
s. 34
(5) A person has a controlling interest in a business if the person is
the sole owner of the business, whether as trustee or otherwise.
(6) Two or more persons together have a controlling interest in a
business if the persons own the business as trustees.
5 (7) If a corporation has a controlling interest in a business, the
corporation also has a controlling interest in any other business
in which a related corporation has a controlling interest.
(8) Where --
(a) a person has, or persons have together, a controlling
10 interest in a business; and
(b) the person or persons who carries or carry on the
business has or have a controlling interest in another
business,
then the person or persons referred to in paragraph (a) has or
15 have a controlling interest in the other business referred to in
paragraph (b).
(9) A beneficiary under a trust has, or beneficiaries under a trust
have, a controlling interest in a business if --
(a) the trustee or trustees of the trust has or have a
20 controlling interest in the business; and
(b) the beneficiary has, or the beneficiaries together, have a
beneficial interest in more than 50% of the value of the
interests in the trust.
34. Value of beneficial interest in discretionary trusts
25 (1) For the purposes of this Part, a person who may benefit under a
discretionary trust as a result of the exercise of a power or
discretion by the trustee or by another person, or by the trustee
and another person, is taken to be a beneficiary of the trust who
page 25
Pay-roll Tax Assessment Bill 2001
Part 4 Constitution of business groups
s. 35
has a beneficial interest in respect of more than 50% of the
value of the interests in the trust.
(2) For the purposes of this Part, 2 or more persons who may
benefit under a discretionary trust as a result of the exercise of a
5 power or discretion by the trustee or by another person, or by
the trustee and another person, are taken to be beneficiaries of
the trust who together have a beneficial interest in respect of
more than 50% of the value of the interests in the trust.
35. Grouping head and branch businesses
10 (1) Two businesses together constitute a group if --
(a) one of the businesses is the head or parent business;
(b) the second business is a branch, agency or subsidiary of
the head or parent business; and
(c) the head or parent business exercises managerial control,
15 whether administrative, financial, or procedural, over
the branch, agency or subsidiary.
(2) The Commissioner may exclude a business from the group in
accordance with section 38 if the Commissioner is satisfied,
having regard to the nature and degree of managerial control
20 exercised by the head or parent business and to any other
matters that the Commissioner considers relevant, that it would
not be just and reasonable to include the business as a member
of the group.
36. Smaller groups subsumed into larger groups
25 (1) Where a person is a member of 2 or more groups (each of which
is called a "smaller group" for the purposes of subsection (3)),
the members of those groups together constitute one group for
the purposes of this Act.
page 26
Pay-roll Tax Assessment Bill 2001
Constitution of business groups Part 4
s. 37
(2) Where the members of a group (called a "smaller group" for
the purposes of subsection (3)) have together a controlling
interest in a business, the members of the group and the person
or persons who carry on the business together constitute one
5 group for the purposes of this Act.
(3) When the members of a smaller group are members of a group
constituted under subsection (1) or (2), the smaller group is no
longer treated as a group for the purposes of this Act except for
the purpose of --
10 (a) determining whether a group is constituted under
subsection (1) or (2); or
(b) excluding a member from a group under section 31(4),
32(3) or 35(2).
37. Grouping provisions operate independently
15 The fact that a person is not a member of a group constituted
under a provision of this Part does not prevent that person from
being a member of a group constituted under another provision
of this Part.
38. Exclusion from groups
20 (1) The Commissioner may exclude a person from a group under
section 31(4), 32(3) or 35(2) on receiving an application from
the person or on his or her initiative.
(2) However, a corporation cannot be excluded from a group if it is
related, within the meaning of section 50 of the Corporations
25 Act, to another corporation which is a member of the group.
(3) An application for exclusion must --
(a) set out the grounds on which it is made; and
(b) include a statement of the circumstances giving rise to
those grounds.
page 27
Pay-roll Tax Assessment Bill 2001
Part 4 Constitution of business groups
s. 39
(4) An exclusion takes effect on the date specified in the notice of
exclusion and continues in force until it is revoked.
(5) The date specified as the date on which the exclusion takes
effect may be the date of the notice or an earlier date.
5 (6) The Commissioner may revoke an exclusion at any time by
giving notice of the revocation to the person or persons
excluded from a group.
(7) A person who is excluded from a group must notify the
Commissioner immediately if there is a material change in the
10 circumstances set out in the statement under subsection (3)(b).
39. Designated group employer
(1) The members of a group may designate one of the members as
the designated group employer (DGE) for the group for the
purposes of the pay-roll tax Acts.
15 (2) A designation must --
(a) be in the approved form;
(b) be accompanied by any information required by the
Commissioner;
(c) be executed by or for each member of the group; and
20 (d) be served on the Commissioner.
(3) If the members of a group do not designate a DGE for the
group, the Commissioner may on his or her initiative designate
one of the members to be the DGE for the group for the
purposes of a pay-roll tax Act.
25 (4) A designation by the Commissioner is to be made by notice
served on the member designated as the DGE.
(5) An employer who is the DGE for a group stops or is taken to
have stopped being the group's DGE on the first day of a return
page 28
Pay-roll Tax Assessment Bill 2001
Constitution of business groups Part 4
s. 39
period of the employer during which either of the following
happens --
(a) the employer leaves the group; or
(b) the designation is revoked.
5 (6) The members of a group may revoke the designation by giving
the Commissioner notice in the approved form.
(7) The members of a group are not entitled to revoke a designation
unless --
(a) the members designate another member to be the DGE;
10 or
(b) the Commissioner consents to the revocation.
(8) If the Commissioner designated a member of a group as the
DGE, the Commissioner may revoke the designation by giving
notice of the revocation to the member.
page 29
Pay-roll Tax Assessment Bill 2001
Part 5 Miscellaneous
s. 40
Part 5 -- Miscellaneous
40. Exempt wages
(1) The following wages are exempt from pay-roll tax --
(a) wages of a kind listed in subsection (2);
5 (b) wages that are exempt under subsection (3);
(c) wages prescribed under subsection (4);
(d) specified exempt allowances;
(e) benefits that are exempt benefits under any provision of
the FBTA Act except section 58W and that are not
10 specified taxable benefits.
(2) For the purposes of subsection (1)(a), wages paid or payable
during an assessment year are exempt from pay-roll tax if the
wages are paid or payable --
(a) by the Governor of a State;
15 (b) by a religious institution for doing the religious work of
the institution;
(c) by a public benevolent institution for doing work of a
public benevolent nature;
(d) by a public hospital for doing work of a kind ordinarily
20 performed in connection with the conduct of public
hospitals;
(e) by a hospital carried on by a non-profit organisation for
doing work of a kind ordinarily performed in connection
with the conduct of hospitals;
25 (f) by a school or college (except a college under the
Vocational Education and Training Act 1996) that is
carried on by a non-profit organisation that provides
education at or below, but not above, the secondary
level of education, for doing work of a kind ordinarily
page 30
Pay-roll Tax Assessment Bill 2001
Miscellaneous Part 5
s. 40
performed in connection with the conduct of such
schools or colleges;
(g) by a local government, a regional local government or
one of the associations constituted under section 9.58 of
5 the Local Government Act 1995;
(h) by a consular or other representative (except a
diplomatic representative) in Australia of the
government of another country to members of his or her
official staff;
10 (i) by a Trade Commissioner representing in Australia the
government of a country of the British Commonwealth
of Nations, to members of his or her official staff;
(j) by the Commonwealth War Graves Commission;
(k) by the Australian-American Educational Foundation;
15 (l) to a person who is a member of the Defence Force of the
Commonwealth or of the armed force of a country that
is a member of the British Commonwealth of Nations,
being wages paid or payable by the employer from
whose employment the person is on leave because of his
20 or her being a member of the force;
(m) by an employer to or in relation to a person who is a
probationer, or an apprentice, within the meaning of the
Industrial Training Act 1975;
(n) by a charitable body or organisation exempted under
25 section 41 for doing work of the kind ordinarily
performed in connection with a charitable purpose for
which the body or organisation is established or carried
on;
(o) by an employer to or in relation to a trainee employed
30 under a training agreement as part of the Australian
Traineeship System established by the Governments of
the Commonwealth and the State;
page 31
Pay-roll Tax Assessment Bill 2001
Part 5 Miscellaneous
s. 40
(p) by an employer to or in relation to a person employed as
a trainee by agreement under a traineeship or training
scheme that --
(i) is established or recognised as a traineeship or
5 training scheme by the Minister to whom the
administration of the Industrial Training
Act 1975 is for the time being committed by the
Governor; and
(ii) is not a prescribed traineeship or training scheme
10 or a traineeship or training scheme of a
prescribed class or description;
(q) out of moneys expended for the purpose of a division or
portion of a division referred to in the annual estimates
of expenditure from the Consolidated Fund prepared by
15 the Treasurer in respect of the assessment year, being a
division or portion in respect of a department or other
organisation prescribed for the purposes of this
paragraph or the division in respect of special Acts to
the extent that the estimates of expenditure in that
20 division relate to the department or other organisation;
or
(r) as wages of a prescribed kind to a person for services
carried out by the person at a remote location.
(3) If wages are paid or payable in Western Australia for services
25 carried out wholly in another country for a continuous period of
more than 6 months, the wages paid or payable more than
6 months after the wages were first paid, or first became
payable, are exempt from pay-roll tax.
(4) Regulations may prescribe, as exempt wages, the whole or part
30 of wages paid or payable by an employer where the employer is
entitled to recover an amount in respect of those wages from a
fund, contributions to which are specified taxable benefits.
page 32
Pay-roll Tax Assessment Bill 2001
Miscellaneous Part 5
s. 41
(5) If the Minister referred to in subsection (2)(p) notifies the
Commissioner that an agreement under a traineeship or training
scheme referred to in the subsection has been terminated
because the trainee or the trainee's employer contravened the
5 terms of the agreement during a period specified in the notice,
then the Commissioner may determine that the exemption under
that subsection does not apply to the wages paid or payable by
the employer of the trainee to the trainee during that period.
41. Exempting charitable bodies or organisations
10 (1) A charitable body or organisation may apply to the
Commissioner for exemption from liability to pay-roll tax.
(2) The Commissioner may, by giving notice to the charitable body
or organisation, exempt it from liability to pay-roll tax.
(3) The exemption is subject to any conditions specified in the notice.
15 (4) The exemption comes into operation on the day specified in the
notice, which may be the day on which the notice is given, or an
earlier or later day.
(5) The Commissioner's decision as to the day on which the
exemption comes into operation is non-reviewable.
20 (6) The exemption continues in force until it is revoked.
(7) The Commissioner may amend or revoke the exemption and
any condition to which it is subject, by giving further notice to
the charitable body or organisation.
42. Tax payable when employer leaves Australia
25 (1) If the Commissioner has reason to believe that an employer may
leave Australia before any taxes become due and payable by the
employer --
(a) the Commissioner may, by notice to the employer, fix
an earlier date for payment of the taxes; and
page 33
Pay-roll Tax Assessment Bill 2001
Part 5 Miscellaneous
s. 43
(b) the taxes are due and payable on the date specified in the
notice.
(2) In subsection (1) --
"taxes" means pay-roll tax, or any penalties, interest or other
5 amount payable under a pay-roll tax Act in connection with
pay-roll tax.
43. Agents and trustees
(1) An agent or trustee is answerable as an employer for the doing
of everything required to be done by a pay-roll tax Act in
10 relation to the payment of any WA taxable wages by the
principal or the trust.
(2) Without limiting subsection (1), an agent or trustee is to lodge
the returns for WA taxable wages as required, and is chargeable
with any taxes payable on the wages, but in his or her
15 representative capacity only, and each return is separate and
distinct from any other, except as otherwise provided by a
pay-roll tax Act.
(3) If the agent or trustee is an executor or administrator, the returns
are to be the same as far as practicable as the deceased person, if
20 living, would have been liable to make.
(4) An agent or trustee who disburses an amount by way of taxes
for the principal or beneficiary is authorised to recover the
amount from the person for whom it was paid, or to deduct it
from any money belonging to that person that is in the hands of
25 the agent or trustee.
(5) An agent or trustee is required to retain from time to time out of
any money which comes to the agent or trustee in his or her
representative capacity so much as is sufficient to pay the taxes.
page 34
Pay-roll Tax Assessment Bill 2001
Miscellaneous Part 5
s. 44
(6) An agent or trustee is personally liable for the taxes payable if,
after the Commissioner has required him or her to make a
return, or while the taxes remain unpaid, the agent or trustee,
except with the permission of the Commissioner, disposes of or
5 parts with any fund or money which comes to the agent or
trustee from which the taxes could legally be paid, but is not
otherwise personally liable for the taxes.
(7) An agent or trustee is indemnified for all payments which he or
she makes in accordance with a pay-roll tax Act or a
10 requirement of the Commissioner.
(8) For the purpose of ensuring the payment of taxes the
Commissioner has the same remedies against attachable
property of any kind vested in or under the control or
management or in the possession of any agent or trustee, as he
15 or she would have against the property of any other person in
respect of taxes, and in as full and ample a manner.
(9) The Commissioner may, by giving notice to a person, declare
the person to be an agent, or the sole agent, of any other person
for the purposes of this Act.
20 (10) Nothing in this section affects the operation of Part 2
Division 3, or of Part 4, in relation to trustees.
(11) In this section --
"taxes" means pay-roll tax, or any penalties, interest or other
amount payable under a pay-roll tax Act in connection with
25 pay-roll tax.
44. Keeping books and accounts
(1) An employer who is registered or required to apply for
registration must keep --
(a) the records that are prescribed in the regulations for the
30 purposes of this section (if any); and
page 35
Pay-roll Tax Assessment Bill 2001
Part 5 Miscellaneous
s. 45
(b) any other records necessary to enable the Commissioner
to determine the employer's liability to pay pay-roll tax.
Penalty: $20 000.
(2) Despite section 79 of the Taxation Administration Act 2001, the
5 employer must retain the records for at least 5 years, or for any
greater period that is prescribed, after the completion of the
transactions to which they relate.
Penalty: $20 000.
45. Regulations
10 (1) The Governor may make regulations prescribing all matters that
are required or permitted by this Act to be prescribed or are
necessary or convenient to be prescribed for giving effect to this
Act.
(2) Regulations may be made about any or all of the following
15 matters --
(a) the evidence that the Commissioner may require for the
purpose of determining whether or not an employer was
an employer for part only of an assessment year,
whether or not a person was or was not a member of a
20 group or whether or not an exemption under section 29
should be given;
(b) benefits on the value of which pay-roll tax is payable
(whether or not the benefits are exempt benefits under
the FBTA Act);
25 (c) allowances that are exempt from pay-roll tax, to the
extent that is prescribed;
(d) the records and other evidence required to be kept in
respect of --
(i) specified exempt allowances; and
page 36
Pay-roll Tax Assessment Bill 2001
Miscellaneous Part 5
s. 45
(ii) anything affecting the extent to which those
allowances are excluded from being wages;
(e) the value of a fringe benefit paid or payable by an
employer that is to be included in a return;
5 (f) any other matter for the application of this Act to a
fringe benefit, a specified taxable benefit or a specified
exempt allowance;
(g) classes of contracts for the purposes of clause 2(1)(e) of
the Glossary.
10 (3) Regulations may create offences and provide, in respect of an
offence so created, for the imposition of a fine not exceeding
$5 000.
page 37
Pay-roll Tax Assessment Bill 2001
Glossary
Glossary
[s. 4]
1. Definitions
In a pay-roll tax Act, unless the contrary intention appears --
5 "actuary" means a Fellow or an Accredited Member of the Institute
of Actuaries of Australia;
"agent" includes --
(a) a person who in Western Australia, for or on behalf of
another person outside Western Australia, holds or has the
10 management or control of the business of that other
person; and
(b) a person on whom notice of a declaration under
section 43(9) has been served;
"allowable deduction" means --
15 (a) in relation to a group -- the amount calculated in
accordance with section 18;
(b) in relation to an interstate non-group employer -- the
amount calculated in accordance with section 14; or
(c) in relation to a local non-group employer -- the amount
20 calculated in accordance with section 12;
"annual threshold amount", in relation to a financial year, means
the annual threshold amount fixed for the financial year under
section 8(1);
"appropriate rate", in relation to a particular kind of employer and
25 an assessment year or return period, means the rate or rates of
pay-roll tax fixed in relation to employers of that kind for the
year or the return period by the Pay-roll Tax Act 2001;
"assessment year", in relation to pay-roll tax, means the financial
year for which the pay-roll tax is, or is to be, assessed;
page 38
Pay-roll Tax Assessment Bill 2001
Glossary
"Australian superannuation scheme" means a superannuation
scheme that --
(a) was established in Australia, or has any asset situated in
Australia; and
5 (b) has its central management and control in Australia;
"business", for the purposes of Part 4, includes --
(a) a trade or profession;
(b) any other activity carried on for fee, gain or reward; and
(c) the activity, carried on by an employer, of employing one
10 or more persons where that person performs or those
persons perform duties for or in connection with another
business;
"charitable body or organisation" means a body or organisation
established or carried on for charitable purposes except --
15 (a) a body or organisation whose sole or principal purpose is
the provision of tertiary education; or
(b) a college or other vocational education and training
institution under the Vocational Education and Training
Act 1996;
20 "company" includes all bodies and associations (corporate and
unincorporate) and partnerships;
"controlling interest", in relation to a business, has the definition
given in section 33;
"Corporations Act" means the Corporations Act 2001 of the
25 Commonwealth;
"corporation" has the meaning given by section 57A of the
Corporations Act;
"corresponding law", in relation to another State, means a law in
force in the State relating to the imposition upon employers of a
30 tax on wages paid or payable by them and the assessment and
collection of that tax, but does not include the Pay-roll Tax
Assessment Act 1941 of the Commonwealth;
page 39
Pay-roll Tax Assessment Bill 2001
Glossary
"defined superannuation benefit" means a benefit under a
superannuation scheme that is defined, wholly or in part, by
reference to either or both of the following --
(a) the amount of the participant's salary --
5 (i) at a particular date, being the date of the
termination of the participant's employment, the
date of the participant's retirement, or an earlier
date; or
(ii) averaged over a period ending on any such date;
10 (b) a stated amount;
"designated group employer", in relation to a group, means the
member of the group designated under section 39;
"DGE" means designated group employer;
"employer" means any person who pays or is liable to pay any
15 wages, and includes the Crown in right of the State of Western
Australia and an employment agent;
"employment agent" means a person (the agent) who procures the
services of another person (the worker) for a third person (the
client) under an arrangement where --
20 (a) the worker does not become the employee of either the
agent or the client, but does carry out duties of a similar
nature to those of an employee; and
(b) remuneration is paid directly or indirectly by the agent to
the worker or to some other person for the services
25 provided by the worker;
"exempt", in relation to wages, means exempt from pay-roll tax
under section 40;
"FBTA Act" means the Fringe Benefits Tax Assessment Act 1986 of
the Commonwealth;
30 "fringe benefit" means anything that is a fringe benefit under the
FBTA Act except a benefit prescribed not to be a fringe benefit
for the purposes of this definition;
"group" means a group constituted under Part 4;
"GST" has the same meaning as it has in the A New Tax System
35 (Goods and Services Tax) Act 1999 of the Commonwealth
page 40
Pay-roll Tax Assessment Bill 2001
Glossary
except that it includes notional GST of the kind for which
payments may be made under the State Entities (Payments)
Act 1999 by a person that is a State entity as defined in that Act;
"individual superannuation guarantee shortfall" has the same
5 definition as it has in the Superannuation Guarantee
(Administration) Act 1992 of the Commonwealth;
"interstate non-group employer" means a non-group employer who
pays or is liable to pay WA taxable wages during all or part of an
assessment year, and who also pays or is liable to pay interstate
10 taxable wages during all or part of the assessment year, whether
or not the interstate taxable wages are paid or payable in respect
of the same part of the assessment year as the WA taxable
wages;
"interstate taxable wages" means wages that are subject to pay-roll
15 tax under a corresponding law;
"local non-group employer" means a non-group employer who pays
or is liable to pay WA taxable wages during part or all of an
assessment year, but is not liable to pay any interstate taxable
wages during the assessment year;
20 "monthly threshold amount", in relation to a financial year, means
the amount fixed as the monthly threshold amount for the
financial year under section 8(2);
"nominated deduction" means --
(a) in relation to a group -- the amount nominated for the
25 group under section 19;
(b) in relation to an interstate non-group employer -- the
amount nominated for the employer under section 15;
"non-group employer" means an employer who is not a member of a
group under Part 4;
30 "non-profit organisation" means body corporate, society or
association formed otherwise than for the purpose of profit or
gain to individual members of the body, society or association;
" 'otherwise deductible' rule" has the meaning given in clause 7(3);
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Pay-roll Tax Assessment Bill 2001
Glossary
"participant", in relation to a superannuation scheme, means a
person in respect of whom the fund provides for benefits that are,
or are to be, funded to any extent by the employer's
contributions;
5 "pay-roll tax" means the tax imposed under the Pay-roll Tax
Act 2001;
"pay-roll tax Act" means --
(a) the Pay-roll Tax Act 2001;
(b) the Pay-roll Tax Assessment Act 2001; or
10 (c) the Taxation Administration Act 2001;
"provide", in relation to a fringe benefit or a specified taxable
benefit, has the same definition as in section 136 of the FBTA
Act;
"registered" means registered as an employer under section 25;
15 "regulated superannuation fund" has the same definition as in the
Superannuation Industry (Supervision) Act 1993 of the
Commonwealth;
"related corporation", in relation to a second corporation, means a
corporation that is related to the second corporation within the
20 meaning of section 50 of the Corporations Act;
"remote location" means a location that is not --
(a) in an eligible urban area within the meaning of section 140
of the FBTA Act; or
(b) adjacent to an eligible urban area within the meaning of
25 that section;
"return" means a return lodged under this Act;
"return period", in relation to an employer, means --
(a) a month;
(b) if the employer is required to lodge an annual return under
30 section 27(1) -- an assessment year; or
(c) if the employer is exempt under section 29 from lodging
monthly returns, but no alternative return period is
specified in the notice of exemption -- an assessment
year;
page 42
Pay-roll Tax Assessment Bill 2001
Glossary
"smaller group", for the purposes of section 36, has the meaning
given in that section;
"specified exempt allowance" means an allowance prescribed under
section 45(2)(c);
5 "specified taxable benefit" means a benefit prescribed under
section 45(2)(b);
"State" means a State or a Territory;
"superannuation fund" means any fund carried on --
(a) for the purposes of a superannuation scheme; or
10 (b) to provide retirement savings accounts within the meaning
of the Retirement Savings Accounts Act 1997 of the
Commonwealth,
and includes the Superannuation Holding Accounts Reserve
established by the Small Superannuation Accounts Act 1995 of
15 the Commonwealth;
"superannuation guarantee charge" means a charge imposed by the
Superannuation Guarantee Charge Act 1992 of the
Commonwealth, except that it does not include additional
superannuation guarantee charge under Part 7 of the
20 Superannuation Guarantee (Administration) Act 1992 of the
Commonwealth;
"superannuation scheme" includes a provident or retirement fund or
scheme;
"taxes", for the purposes of section 42 or 43, has the meaning given
25 in the respective section;
"tax-reducing arrangement" means any arrangement, transaction or
agreement, whether in writing or otherwise --
(a) under which a natural person (the worker) carries out, for
or on behalf of a second person, services for which any
30 payment is made to a third person related or connected to
the worker; and
(b) which has the effect of reducing or avoiding the liability
of any person to the assessment, imposition, or payment of
pay-roll tax (whether or not that is the only effect of the
35 agreement);
page 43
Pay-roll Tax Assessment Bill 2001
Glossary
"Territory" means the Australian Capital Territory, the Jervis Bay
Territory or the Northern Territory;
"trustee", in addition to every person appointed or constituted trustee
by act of parties, by order or declaration of a court or by
5 operation of law, includes --
(a) an executor or administrator, guardian, committee,
receiver or liquidator; and
(b) every person having or taking upon himself or herself the
administration or control of any real or personal property
10 affected by any express or implied trust, or acting in any
fiduciary capacity, or having the possession, control or
management of any real or personal property of a person
under any legal or other disability;
"unfunded public sector superannuation scheme" means a public
15 sector superannuation scheme within the meaning of the
Superannuation Industry (Supervision) Act 1993 of the
Commonwealth, except one that is funded in advance in
accordance with actuarial advice at a level that is reasonably
expected by the actuary to be adequate to provide for present and
20 prospective liabilities in respect of benefits under the scheme;
"value" --
(a) in relation to a beneficial interest in a discretionary trust,
has the meaning given in section 34;
(b) in relation to a fringe benefit, has the meaning given in
25 clause 7;
(c) in relation to a specified taxable benefit, has the meaning
given in clause 6;
(d) in relation to wages in respect of a supply on which GST
is payable, has the meaning given in clause 3;
30 (e) in relation to wages paid in kind, has the meaning given in
clause 6;
"voting share" has the definition given by section 9 of the
Corporations Act;
"wages" has the definition given in clause 2;
35 "WA taxable wages" means wages that are taxable in Western
Australia under section 5(2);
page 44
Pay-roll Tax Assessment Bill 2001
Glossary
"work-related benefit" means a benefit that is provided to an
employee in the course of carrying out the duties of his or her
employment and for the purpose of enabling the employee to
carry out those duties.
5 2. Wages -- meaning
(1) In a pay-roll tax Act, unless the contrary intention appears --
"wages" means --
(a) wages, salary, commission, bonuses or allowances paid or
payable to or in relation to an employee as an employee,
10 whether paid or payable at piece work rates or otherwise,
and whether paid or payable in cash or in kind;
(b) wages, salary, commission, bonuses or allowances that are
paid or payable, in cash or in kind, to or in relation to an
employee by someone acting for the employer, or acting
15 in concert or under an arrangement or undertaking,
whether formal or informal and whether express or
implied, with the employer;
(c) an amount paid or payable by way of remuneration to a
person holding office under the Crown in right of the State
20 of Western Australia or in the service of the Crown in
right of the State of Western Australia;
(d) the amount of any superannuation benefit that is taken by
clause 8 to be paid by the employer;
(e) an amount paid or payable under a class of contracts
25 prescribed under section 45(2)(g) to the extent to which
the payment is attributable to labour;
(f) an amount paid or payable by a company by way of
remuneration to or in relation to a director or member of
the governing body of the company;
30 (g) an amount paid or payable by way of commission to an
insurance or time-payment canvasser or collector;
(h) an amount in respect of services that is paid or payable by
an employment agent, directly or indirectly, to a person
who was engaged to perform the services for a client of
35 the employment agent, or to some other person, as a result
of which engagement the employment agent receives
page 45
Pay-roll Tax Assessment Bill 2001
Glossary
payment, directly or indirectly, whether by way of a lump
sum or an ongoing fee, in relation to the period during
which the services are performed for the client by the
person engaged to perform them; and
5 (i) an amount equal to the value of a fringe benefit or
specified taxable benefit that is provided to or in relation
to an employee.
(2) Wages, salary, commission, bonuses or allowances referred to in
subclause (1)(b) are taken to be paid or payable by the employer.
10 3. GST excluded from wages
(1) If a person is liable to pay GST on the supply to which wages paid or
payable to the person relate, the amount of those wages on which
pay-roll tax is payable is the amount equal to the amount or value of
the wages paid or payable to the person minus the relevant proportion
15 of the amount of GST payable by the person on the supply to which
the wages relate.
(2) In subclause (1) --
"consideration" has the same meaning as in the A New Tax System
(Goods and Services Tax) Act 1999 of the Commonwealth;
20 "relevant proportion", in relation to GST payable on a supply to
which wages relate, means the proportion that the amount or
value of the wages bears to the consideration for the supply to
which the wages relate.
4. Place of payment of wages
25 (1) Wages that are payable to a person, but have not been paid (except
wages that, under the terms of employment, are payable in Western
Australia or in another State), are taken --
(a) if the wages are not payable for services carried out wholly in
Western Australia or wholly in one other State, and the wages
30 last paid or payable to the person were included or are
required to be included in a return by the employer under this
Act -- to be wages payable to the person in Western
Australia; or
page 46
Pay-roll Tax Assessment Bill 2001
Glossary
(b) where the wages are not taken, by paragraph (a) or by any
provision in a corresponding law that corresponds with
paragraph (a), to be wages payable to the person in Western
Australia or in another State -- to be wages payable to the
5 person by the employer at the place where the person last
carried out any services for the employer before the wages
became payable.
(2) If a cheque, bill of exchange, promissory note, money order or postal
order issued by a post office or any other instrument is sent or given
10 by an employer to a person or the person's agent at a place in
Australia in payment of wages, the wages are taken to have been paid
at that place, and to have been paid when the instrument was sent or
given.
5. Provider of fringe benefits or specified taxable benefits
15 (1) A fringe benefit that is provided or liable to be provided by a person
other than the employer is taken to be provided by the employer.
(2) A specified taxable benefit that is provided or liable to be provided to
or in relation to an employee by a person acting for or in concert or
under an arrangement or undertaking, whether formal or informal and
20 whether express or implied, with the employer, is taken to be
provided by the employer.
6. Value of wages paid in kind and other benefits
(1) The value of wages (except fringe benefits or specified taxable
benefits) that are paid or payable in kind is the greater of --
25 (a) the value agreed or attributed to the wages in, or ascertainable
for the wages from, arrangements between the employer and
the employee, whichever is the greater; and
(b) if the regulations prescribe how the value of wages of that
type is to be determined -- the value determined in
30 accordance with the regulations.
(2) The value of a specified taxable benefit is the prescribed value, or the
value calculated in the prescribed manner, as the case requires.
page 47
Pay-roll Tax Assessment Bill 2001
Glossary
7. The value of fringe benefits
(1) The value of a fringe benefit is --
(a) the grossed-up value of the fringe benefit worked out in
accordance with subclause (2) (unless paragraph (b) applies
5 to the fringe benefit); or
(b) if a method for determining the value of a particular kind of
fringe benefit is prescribed -- the value determined as
prescribed.
(2) The grossed-up value of a fringe benefit is G in the formula --
10 G = V×F
where --
V is the employee's share of the taxable value of the fringe
benefit worked out --
(i) if the benefit is a work-related benefit -- under the
15 FBTA Act; or
(ii) if the benefit is not a work-related benefit -- under
the FBTA Act without regard to any reduction of that
taxable value under that Act because of the
"otherwise deductible" rule;
20 F is the factor by which --
(i) for a fringe benefit that is a GST-creditable benefit
(within the meaning of the FBTA Act) -- the
"Type 1 aggregate fringe benefits amount" is
multiplied in section 5B(1B) of the FBTA Act; or
25 (ii) for a fringe benefit that is not a GST-creditable
benefit -- the "Type 2 aggregate fringe benefits
amount" is multiplied in section 5B(1C) of the FBTA
Act.
(3) In subclause (2) the reference to the "otherwise deductible" rule is a
30 reference to any provision of the FBTA Act that provides for a
reduction of the taxable value of a fringe benefit because the person
receiving the benefit, had he or she personally incurred the cost of
providing it, would be allowed a deduction under the Income Tax
Assessment Act 1936 of the Commonwealth in relation to that cost.
page 48
Pay-roll Tax Assessment Bill 2001
Glossary
8. Superannuation benefits
(1) A contribution paid or payable by an employer in respect of a person
to a superannuation fund is taken, for the purposes of the definition of
"wages" in clause 2, to be a superannuation benefit paid by the
5 employer in relation to the person when and where the contribution is
paid or payable.
(2) Clause 4 applies for the purpose of working out when and where the
contribution is paid or payable as if those provisions referred to
contributions instead of wages.
10 9. Superannuation fund contributions
(1) Setting aside any money or anything that is worth money as, or as part
of, a superannuation fund is taken to be paying it as a contribution to
the superannuation fund.
(2) Making a contribution to a superannuation fund of anything that is
15 worth money is taken to be paying a contribution of the amount equal
to its value, and its value is to be worked out in accordance with
clause 6 as if that clause referred to the contribution instead of to
wages.
(3) If an amount by way of administration or other charges in respect of
20 the carrying on of a superannuation fund is paid otherwise than to the
fund, the amount is taken to be paid as a contribution to the fund.
(4) If, in a return period, a person becomes obliged, but fails, to do
anything that, if it were done, would be taken under subclause (1), (2)
or (3) to be paying a contribution to a superannuation fund, the
25 contribution to the superannuation fund is taken to be payable in the
return period.
(5) A contribution to a superannuation fund that is paid or payable on
behalf of an employer is taken to be paid or payable by the employer.
(6) Contributions to a superannuation fund that are taken by different
30 provisions of this Act to be paid or payable by an employer are
cumulative upon one another, and on contributions that are actually
paid or payable, unless it is otherwise provided.
page 49
Pay-roll Tax Assessment Bill 2001
Glossary
10. Contributions to defined superannuation benefit schemes
(1) This clause applies to an Australian superannuation scheme if the
scheme --
(a) either is not a regulated superannuation fund, or is an
5 unfunded public sector scheme (whether or not it is a
regulated superannuation fund);
(b) provides for an employer to contribute; and
(c) provides for any defined superannuation benefit in respect of
any person, whether or not it also provides for any benefit
10 that is not a defined superannuation benefit.
(2) A contribution is taken, for the purposes of clause 8(1), to be payable,
in the return period, by the employer to the superannuation fund for
each participant.
(3) The amount of the contribution for a participant is the amount that an
15 actuary determines would be sufficient, together with earnings on the
amount, to provide fully for the cost to the employer of the
entitlement accruing under the scheme to benefits for services carried
out by the participant in the return period.
(4) The regulations may include provisions about how an actuary is to
20 determine an amount under subclause (3).
(5) If a contribution by an employer under a scheme is taken by
subclause (2) to be payable to the superannuation fund, no other
contribution by the employer to the fund under the scheme is taken by
clause 8(1) to be a superannuation benefit unless --
25 (a) it is a contribution that the employer is taken to pay under
clause 12(1); or
(b) the contribution is made for any reason other than to make
provision for the cost described in subclause (3).
11. Unfunded credit to certain unregulated schemes
30 (1) This clause applies to an Australian superannuation scheme if --
(a) it is not a regulated superannuation fund;
(b) it does not provide for any defined superannuation benefit in
respect of any person; and
page 50
Pay-roll Tax Assessment Bill 2001
Glossary
(c) under the scheme, any amount not excluded under
subclause (3) is credited in a return period as an employer's
contribution in respect of a person.
(2) An amount that a person is obliged to, but does not, credit in a return
5 period is taken for the purposes of this clause to be credited in the
return period and not at any other time.
(3) Amounts of the following kinds are excluded from the amount
referred to in subclause (1) --
(a) an amount paid or payable as a contribution under the
10 scheme;
(b) an amount that is taken, otherwise than under subclause (4),
to be paid or payable as a contribution under the scheme for
the purposes of clause 8.
(4) A contribution of the amount referred to in subclause (1) is taken, for
15 the purposes of clause 8(1), to be payable by the employer to the
superannuation fund concerned, in the return period, in respect of
each participant.
(5) If an amount credited as an employer's contribution under a scheme is
taken under subclause (4) to be payable to the fund concerned, no
20 contribution paid under the scheme is taken to be a superannuation
benefit under clause 8(1) to the extent that it is paid to meet or partly
meet an obligation arising from the credit.
12. Superannuation guarantee charge
(1) If any superannuation guarantee charge payable by an employer is
25 imposed in a return period, a contribution of the amount of the charge
is taken, for the purposes of clause 8(1), to be payable by the
employer to a superannuation fund in the return period.
(2) If the charge is imposed because of only one individual
superannuation guarantee shortfall, the contribution is taken to be in
30 respect of the person in respect of whom the employer has the
shortfall.
(3) If the charge is imposed because of an individual superannuation
guarantee shortfall in respect of each of 2 or more persons, the
contribution is taken to be in respect of them, apportioned according
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Pay-roll Tax Assessment Bill 2001
Glossary
to the amount of the employer's individual superannuation guarantee
shortfall in respect of each of them.
(4) If --
(a) a contribution that was payable, but not paid, by the employer
5 in respect of a person is taken to be a superannuation benefit
under clause 8(1); and
(b) the charge is imposed wholly or in part because of an
individual superannuation guarantee shortfall that results
wholly or in part from the employer's failure to pay the
10 contribution,
then the amount of the contribution that is taken by this clause to be
payable in respect of the person is reduced by the amount of the
contribution described in paragraph (a).
(5) However, subclause (4) cannot reduce an amount below zero.
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